Boat Sold...How To Arrange Payment?
 

Okay, got a cash buyer for my boat. I usually pay cash for my stuff and have the title so when I sell it's no problem. However on this boat I took out a loan and there is a balance to be paid off. How do I get this deal done and protect both the buyer and myself? If he sends payment first he has to trust that I will actually deliver the boat. If I deliver first I have to trust that the check will be good!

I did tell him that I personally know several members on here that (I think :D ) would vouch for me but he would like to be completely protected.

We have both agreed that some sort of escrow setup might be the answer but don't want to pay any crazy escrow fees if avoidable.

Anybody done this before?

Re: Boat Sold...How To Arrange Payment?
 

Never with a boat but I have sold quite a few cars.

You need a simple legal document stating what will be delivered by who and when. Do a google for bill of sale. There should be some available for less than $20. Depending on how much your boat sells for you may want to have a lawyer review whatever you put together.

The basics .. make sure the B.O.S. states that the boat is being sold "AS IS" and you will not be responsible for any damages (direct or incidental) to the buyer as a result of the boat.

He should pay you will certified funds (cashier check from a big bank or wire transfer) when the boat is delivered. It is then on your shoulders to pay off your note and send him the title within X days. All that will be spelled out in the B.O.S.

That should get you started.

Re: Boat Sold...How To Arrange Payment?
 

Escrow is more for not-in-person sales so he can inspect the boat and not pay you if it is a POS. Since you are doing it in person that seems like a waste of $$ to me. SImple legal doc will do ya.

Kyle

Re: Boat Sold...How To Arrange Payment?
 

thats a good idea.
or get the title in hand (short term loan if needed? sell some stock?), then sell

would

Re: Boat Sold...How To Arrange Payment?
 

Cashier's Check is always nice, but you have to watch out for the bad CC's. Have the opportunity to go to the bank ASAP and have them check it. I drove to the back with the buyer...just to make sure

Re: Boat Sold...How To Arrange Payment?
 

Have him go to the bank with you to pay off the loan. Your sale paperwork can be done at the same time. Everyone is then protected and happy. He leaves with the title. You have the loan paid off and money in your pocket.

Re: Boat Sold...How To Arrange Payment?
 

Take his cashiers check to a branch of his bank; the both of you; to verify the check's authenticity, and go ahead and have the bank cash the check to you right then and there. Give him the boat with a Bill of Sale specifically stating date of sale, and that you are no longer responsible for the boat (insurance). Send him the title when you get it from your lender.

Re: Boat Sold...How To Arrange Payment?
 

Have him make out 2 checks, one for the payoff made out to the bank referencing the loan account number and stating payoff, the second to you for the balance. Instruct the bank in writing to send the title directly to the buyer upon lien clearance and go on about your business!

Re: Boat Sold...How To Arrange Payment?
 

Thanks for all the info.

Wouldn't I have to sign the title over before it goes to the buyer?

Re: Boat Sold...How To Arrange Payment?
 

I did this with a car this past Fall. Buyer was flying in from halfway across the country, and wouldn't be sure he was buying it until he got here and saw it.
We settled on price beforehand, then worked with the bank to pre-arrange for wire transfers. One to my bank to pay off the loan, and another to a different account in the amount of the sale price minus the loan payoff.
Once he got here and knew it was a go, we made one phone call and the transfers were done.
The only catch was that my bank overnighted the title to me, which I signed and overnighted to the buyer. It actually beat him home. It took a lot of phone calls before the deal, but the day of the transaction couldn't have been any smoother. Probably helped that we both banked with USAA.

Re: Boat Sold...How To Arrange Payment?
 

Question from buyers perspective: (yup, I will be buying BajaFresh's boat!) How am I protected from the seller taking my money and NOT paying off the boat loan? I would end up with posession of the boat, but not have title in hand.

I have no reason to distrust the seller, but we must protect ourselves. Thanks for the info, it's all been great.

Re: Boat Sold...How To Arrange Payment?
 

Get a Bank check made out to Citizens against smog horror (CASH) and send it to Bill Hionas in Florida. A smooth transaction will follow

Re: Boat Sold...How To Arrange Payment?
 

Hey Dan,

I like Rainmn's post. Let's try to work that out tomorrow, pre-setup of wired funds transfer. Maybe full amount to G.E. and they can just send me a check for the difference. I'll call G.E. in the morning and see what they think.

Now we just have to find a meeting place. You sure you don't want to drive down here for the Havasu poker run? :D

-Al

Re: Boat Sold...How To Arrange Payment?
 

I think that would be the best option, I just got a similar suggestion from a friend.

The poker run sounds like a blast, but I don't think I'd ever want to go back to the rain in the NW!

Re: Boat Sold...How To Arrange Payment?
 

I went to the my bank with the buyer 'early afternoon' with boat in tow
made sure he had insurance coverage allready in effect for his benafit. My bank allowed him to call his and do a wire transfer, then my bank gave us the lean release and allowed us to finish the transaction right there. being well prepaired he had temp trailer tags too.

Re: Boat Sold...How To Arrange Payment?
 

Sorry to hijack the thread, I have a question...If a wire transfer or certified funds goes into the sellers account. Does the seller need to pay tax on the amount deposited?

Re: Boat Sold...How To Arrange Payment?
 

No, only sales tax needs to be paid and it will be paid by the buyer when he regesters the boat in his state. If his sate has sales tax.
I supose if the seller made a profit on the sale :eek: he should claim the profit on his income tax and then it would probubly be taxed as capital gain tax and not income tax. But I doubt the seller made $$ on the sale.

Re: Boat Sold...How To Arrange Payment?
 

Does'nt the bank report deposits of more than $10K? I hate to sound dumb but how do you prove no profit was made on a sale when tax time comes?

Re: Boat Sold...How To Arrange Payment?
 

Banks supposedly report anything over $5K. I have documents showing what I paid for the boat and will have bill of sale showing what I sold it for. The IRS can kiss my Azz! :eek: :mad:

Re: Boat Sold...How To Arrange Payment?
 

I just recently sold a motorcycle. The buyer brought a certified bank check from a major bank. My bank still would not release the title because they said there is so much fraud and it still takes time for the check to clear.

The only way that they would release the title at that time is if the buyer payed with cash. We took the check to a local branch of his bank and they made a few phone calls and gave the guy the money. We returned to my bank and payed off the loan and got the lean released.

Cordell

Re: Boat Sold...How To Arrange Payment?
 

In the sale of the motorcycle above, the bank made ME sign a paper for the IRS because the transaction was over 10k in cash.
I think this was a bunch of bull because I did not have the cash, the buyer did and he should have to explain where he got the money not me.

Cordell

Re: Boat Sold...How To Arrange Payment?
 

Banks used to report CASH transactions over 10K. I have made deposits of over 50K by check without any questions asked. I also deposited a 32K check in the ATM at my bank without any issues.

Re: Boat Sold...How To Arrange Payment?
 

In the transaction I described above, the amount that came to me after payoff was over $10K. I heard nothing about it from anyone.

Re: Boat Sold...How To Arrange Payment?
 

I believe this is required for the PATRIOT Act, not the IRS.

Re: Boat Sold...How To Arrange Payment?
 

No, the Feds do not come to your house nor call you.... it is on the NSA computer...so when or if you are under investigation it will come up