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Boat Sold...How To Arrange Payment?

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Old 04-06-2006, 07:03 PM
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Default 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 ) 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?
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Old 04-06-2006, 07:12 PM
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Default 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.
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Old 04-06-2006, 07:13 PM
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Default 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
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Old 04-06-2006, 08:30 PM
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Default Re: Boat Sold...How To Arrange Payment?

Quote:
Originally Posted by kswest
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.

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

would
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Old 04-06-2006, 08:34 PM
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Default 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
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Old 04-06-2006, 10:14 PM
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Default 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.
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Old 04-06-2006, 10:14 PM
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Default 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.
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Old 04-06-2006, 10:55 PM
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Default 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!
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Old 04-06-2006, 11:10 PM
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Default Re: Boat Sold...How To Arrange Payment?

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Originally Posted by dhlaw
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!

Thanks for all the info.

Wouldn't I have to sign the title over before it goes to the buyer?
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Old 04-06-2006, 11:32 PM
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Default 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.
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