How to close this deal?

[rbyham]

Seller, buyer (me) and boat are in state "A". Boat title sits in credit union in state "B" with a $3500 payoff. Agreed to price between seller and buyer is about $6k. Seller needs to use proceeds from sale to payoff credit union note and have title released. Buyer (me) does not want to pay in cash until title is in hand. How do we close this deal in a way that all sides are protected legally? Seller and buyer do have local banks in state A.

Thanks all...

 

[roscoe]

Re: How to close this deal?

Either the seller takes a personal 30 loan or credit card advance to pay off the boat loan;

or you hop in the car and drive to state B.


I'm sure it could be done using your banks and having them all handle it, but there would always be some doubt and worry during the wait.

Things like, the credit union does its part, then mails the title to the seller and he doesn't give it to you.

Or the credit union sends it to you, and the seller won't sign it.

Perhaps your bank can handle it, acting as an escrow agent?

No matter how you do it, its gonna cost money.

 

[rbyham]

Re: How to close this deal?

Thanks... would people generally agree that the buyer (me) should not front the money and wait for the title to be sent?

 

[pevaguy]

Re: How to close this deal?

I can't remember all the details but it works something like this: You have your bank issues a check to the credit union with some notation that title has to be returned for inspection with the check before the check will clear. Go to your banker and they should be able to explain it to you. Or go to a car dealer and the finance person and they should be able to tell you how they do it.

 

[Home Cookin']

Re: How to close this deal?

not necessarily; you may be able to use his credit union as the escrow/closing agent.

 

[Lakes84]

Re: How to close this deal?

Heck no! You need to protect yourself. I purchased a Florida boat and flew from Wisconsin to Florida and made the transaction. You need to make sure you get that title BEFORE you pay him in full. I'd schedule a time for both of you to do this all together. That's what I did and it went good. I'm not sure about you, but I trust no one...ever when it comes to legal stuff like titles and my money. Maybe take the money with you to the bank and as he is getting the title he signs it over to you and you hand him the cash, or vice versa, just as long as it gets done in one sitting. That way it eliminates any doubts for either party. My .02

ETA: I understand what others are saying about using the banks. If that is your only option and you can't go to the title state, that would be your best option. In person of course is always the best, but if that's not an option your 2nd best would be the bank.

Joe

 

[rbyham]

Re: How to close this deal?

thanks all... I will not give money and wait for title. No way. But I will speak with my bank about options...

 

[JoLin]

Re: How to close this deal?

thanks all... I will not give money and wait for title. No way. But I will speak with my bank about options...

I did this when I bought the Four Winns. The seller made a phone call to clear the way, and I was put in touch with the loan officer at the seller's bank. She gave me the payoff amount as of such-and-such date, and I wired the money to the seller's bank. The only tricky part was that the bank wouldn't mail the payoff letter to me, only to the owner. It took 2 days for him to get it. At that point, we met up, he turned over the title and payoff letter, and I paid him the remainder of his money. There was some anxiety on my part, but it went okay.

The seller's original 'plan' was for me to pay all the money up front, at which point he would pay off the bank. Uhhh.... right.

 

[tpenfield]

Re: How to close this deal?

My 2 cents . . . the buyer will have to put up some money, unless the seller is willing to use other financial resources to pay the loan off. However, as a seller, I would not enter into a deal unless I had a decent amount of deposit money.

You could use an escrow agent to handle the transaction, but for a $6K deal, it could get a little pricey.

Usually it takes about 5 days to get the title after a loan payoff.

What you could do is pay with 2 checks . . . 1 of them goes directly (by you) to the loan company for the payoff, and another goes to the seller for the balance. You get physical possession of the boat at that time. Seller agrees to deliver title to you once received from the loan company. You could even agree to a hold-back amount until the title is delivered to you. It is a matter of what both parties are agreeable to, etc.

 

[shrew]

Re: How to close this deal?

Why make this your problem. The owner has a lien. You have cash and want the title signed over at the time of payment. Make the seller figure out how to make this work. Keep in mind, the owner doesn't actually own the boat, the bank does. There are PLENTY of boats out there and this is still a buyers market.

 

[waterdowg]

Re: How to close this deal?

Years ago in I purchased a Jeep forom someone that still owned on the loan. The tiltle was out of state with the loan company. He worked with his bank to have the title mailed to his bank. Once the title was at his bank, we set a time to mee there. I paid him, he paid the bank and gave me the title. All this was done in front of the bank people. I'm sure this situation is not new and there is a system in place with the banks to handle it. Call yout bank and ask thm what they think.

 

[Captain Caveman]

Re: How to close this deal?

Lakes84 and others have the right attitude. This is not your problem to solve, although I can understand why you are motivated to do so. Just make sure that your desire for the boat does not ever override your desire to avoid getting ripped off. This dude could go to any Payday loan place, take out a pricey loan (no matter his credit), pay off the out-of-state bank, and be ready to do business with you in state. I'm guessing that he's already got bad credit and no savings or else he'd have taken care of this already. To me, those are signs for you to be weary and not overreach.

 

[airdvr1227]

Re: How to close this deal?

delete

 

[rbyham]

Re: How to close this deal?

Thanks all. I am a cautious guy and for now leaving this with the seller to solve...

 

[rbyham]

Re: How to close this deal?

I told seller I want to see title BEFORE I inject my money into the situation. My theory is that seeing the title will verify it is clen and also clear in terms of any sort of salvage type situation. Am I correct in thinking the title (Illinois) would reveal a "salvage" somehow? Thnx