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I might be buying a boat from a private seller and just looking for tips on the best way to exchange funds, get titles, etc. I know a lot of you have done this in the past so any experience (both good and bad) you can pass on would be very helpful.
TIA for any help
It will depend on the seller. Everyone involved is nervous that the other is out to get them. It is understandable and why you should agree to use a 3rd party (i.e. bank, credit union, dealer)
My credit union handled everything when I did this. They need a couple key pieces of info, contacted the sellers loan officer and verified everything. Seller had to provide 2 documents and sign a power of attorney. That was it. Credit union paid the sellers loan and then certified a check directly from my bank for any extra. I was in the driveway when his bank called to verify funds were clear. I hooked up and headed home. Credit union then used POA to switch titles, registrations, etc. That took awhile but it was winter here and covid still had the state offices locked down.
I have done a bank check for one, cash for one as a buyer and as a seller I took a certified check from a bank with the receipt from his bank, and he showed me a screen shot where it took it out of his account as well as a copy of his license and truck plate.
Just depends on who you are selling it to and what feeling you get from them. I have sold cars where it was cash only at a bank for them to verify they were real as I wasn't sure the cash was real.
Title will also depend on the state, in Missouri the owner holds all the titles, even if there is a lien. So the title is always given with the car, I have had to wait on lien releases as well as make buyers wait. As a seller I always tried to shoot a message every other day letting them know what was going on.
I’m selling my boat today to a cash buyer. My title is held at my credit union, so I called to verify what we needed. Buyer is going to wire the payoff amount to the CU, and cashiers check to us for the balance. They are local, which calms the nerves.
We are providing 3 bill of sale documents. One for boat and trailer, one for trailer with added verbiage because of title being hung up at DMV, and the official DMV bill of sale, plus build sheets, maintenance docs, etc.
If you are including anything itemize it in the bill of sale, or get it itemized with value if buyer.
My CU is handling POA docs and title transfers. They did this when we bought the boat, but some forms weren’t included in the packet for the sellers to sign, so they were inconvenienced by having to sign some additional docs after the transaction. They were in another state and Covid made everything messy.
Do your homework, ask questions, and seek answers, especially on interstate agreements.
Currently boatless
If you're buying in ILL make sure you know you have to pay sales tax when you send the title in to ILDNR. The state tries to assign whatever it thinks the value is not what you actually paid, bill of sale doesn't mean anything to them. I keep evidence of what you actually paid like checking account withdrawals or check copy. Then I say that total was used for the boat, trailer and extras. I subtract the trailer (Like 5k) and extras, ropes, anchors (2-3k?) from that total and only pay taxes for the "boat". Of course with covid you may be paying more than the state expect so they won't question when you pay more taxes. However if you get the boat at a reasonable price they automatically send you an audit letter. :)Quote:
Originally Posted by 2in2out
Thanks for all the input, I really appreciate the insights