A major part of our loan business is what we call Private Sales. When a person is buying from a private party and often in a different state. The internet age has now made the entire country a shopping center. Buyers driving 8 - 10 hours one way to pick up the dream boat is now not so abnormal. This often means that the buyer is seeing the boat for the first time on pick up day.
There are some step we take to ensure the process can be smooth. The main focus is on your money and ownership papers. Here are the basic steps we take to ensure correct transfer.
1. We gathering sellers name and contact number.
2. Contact the seller to get VIN plate pictures of the boat, motor and trailer. This ensures accurate contracts. It also will reveal if the model year info was given correctly.
3. Request copies of ownership papers such as titles, MSOs, and registrations. The old bill of sale does not matter.
This step is where some transactions stop. If a seller can't or will not provide current ownership docs, we are out. There is no reason why a seller does not have something. Title state or not, there is something. The seller should have all correct docs that are required by his state for boat, motor and trailer. That is the rule we follow.
4. Ask about liens. In non-title states this is a bit tougher but not knowing this can be a major issue. Some states the seller holds the title even if there is a lien. It will be printed on the front. If released it will be signed and dated. There should also be a Letter of Release - we ask for copies.
5. If there is a lien, Seller gets a 10 day payoff from the lender on a letterhead. It should have a reference to what is being paid off and wire instructions. If a lien is in place - we pay the lien holder first. No money to sellers until lien is clear.
6. If our buyer is seeing it for the first time at pick up - we can wire funds on the spot once final OK is given. This must happen M - F during banking hours so the Fed Reserve is open and the money can transfer. Money does not move on weekends and Federal holidays.
7. Ownership papers come to us and we execute the state work for buyer. That can include UCCs, titles or registrations and sales tax depending on buyers state rules. Every state is a bit different and we process as quickly as we can. Sales tax remittance is often a part of our process. We have guidelines for that.
8. Buyer must be prepared to walk away. Once in a while after a long drive the boat is not right. The deal can still be unwrapped on our end. Better to make a tough choice up front than have issues down the road.
Sorry for the long read. Buying private can be a great experience. Covering your bases first and keeping eyes open helps. These are just basic steps and answers to questions we get every day.
Let me know if I can help.
Ken
(517) 543-6921 - Office
(517) 930-2721 - Cell
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