There are third party companies I have heard that deal in this area now that basically hold the funds in escrow and title work until the deal is completed and distributes them accordingly. This is a future route that some now consider as many do not want to encounter Buyer/Owner Beware.
selling a boat/releasing the title
- Thread starter r. gallagher
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Do a bank transfer. There are so many phony certified cashiers checks floating around, they arent worth the paper they're printed on. Literally.
I knew a guy who sold a Cessna 185 on retractable floats, over $175K airplane at the time, to a guy in new york. The buyer was able to get a certified cashiers check cancelled after crashing the plane on Hudson Bay and claiming something wrong with the plane caused the accident..... And I knew another guy who said he had one cancelled, though no where near that amount of money. I did some research and found all states have different laws, and all checks have to clear Federal Reserve before being truly clear, approx 21 business days. I've sold a few high end cars, as well as other high value items to out of state buyers (and in state for that matter), and known others who have, bank transfers are cheap, easy, safe, and there wont be any standing around worrying of your getting scammed. Plus its quite rare the bank is going to put any counterfeit cash into your account.
Its about $20 to do a funds transfer, and if you do it before noon, it should be in your account before close of day. Most often its no more than an hour.
So I always ask for cash or bank transfer on anything of value. Its just good business. And its NOT reversible.
I knew a guy who sold a Cessna 185 on retractable floats, over $175K airplane at the time, to a guy in new york. The buyer was able to get a certified cashiers check cancelled after crashing the plane on Hudson Bay and claiming something wrong with the plane caused the accident..... And I knew another guy who said he had one cancelled, though no where near that amount of money. I did some research and found all states have different laws, and all checks have to clear Federal Reserve before being truly clear, approx 21 business days. I've sold a few high end cars, as well as other high value items to out of state buyers (and in state for that matter), and known others who have, bank transfers are cheap, easy, safe, and there wont be any standing around worrying of your getting scammed. Plus its quite rare the bank is going to put any counterfeit cash into your account.
Its about $20 to do a funds transfer, and if you do it before noon, it should be in your account before close of day. Most often its no more than an hour.
So I always ask for cash or bank transfer on anything of value. Its just good business. And its NOT reversible.
Bill of Sale
I am going to take the suggestion from Doc Holiday and write up a bill of sale stipulating that the title will transfer when the funds are cleared and deposited into the account. I was able to google a recommended Texas bill of sale formate so it helped make it easier. I do appreciate all of the suggestions and the story by CR!
It is crazy this day and age when you have to sell something of value. Being 56, I can remember the day when we never worried about all the phony documents that people draft now days. I am too old!
I am going to take the suggestion from Doc Holiday and write up a bill of sale stipulating that the title will transfer when the funds are cleared and deposited into the account. I was able to google a recommended Texas bill of sale formate so it helped make it easier. I do appreciate all of the suggestions and the story by CR!
It is crazy this day and age when you have to sell something of value. Being 56, I can remember the day when we never worried about all the phony documents that people draft now days. I am too old!
This is one of those mysteries of life that people are wedded to checks as opposed to electronic transfers which obviate all of the problems described.
Hey Don,
I am not arguing with you but..................the one time you have your account hacked into and someone attempts to drain your account of monies, then you are a little shy of anything electronic.
I had a person in a city 70 miles away attempt to drain my account of all my funds. I had just happened to check my account that morning and saw the pending transaction and alerted my bank. I recouped my funds but had to jump through hoops to get it all back. Filed charges and three years later she is still running around free stalling and delaying. I am sure there have been more victims since my encounter. I am really gun shy allowing anyone access to my acount information.
I am not arguing with you but..................the one time you have your account hacked into and someone attempts to drain your account of monies, then you are a little shy of anything electronic.
I had a person in a city 70 miles away attempt to drain my account of all my funds. I had just happened to check my account that morning and saw the pending transaction and alerted my bank. I recouped my funds but had to jump through hoops to get it all back. Filed charges and three years later she is still running around free stalling and delaying. I am sure there have been more victims since my encounter. I am really gun shy allowing anyone access to my acount information.
I did have a guy try to buy a boat with a bogus Nations Bank Cashier's Check... luckily I smelled a rat. I took it to my bank, and they even thought it was real.... they called Nations and was told that the routing number was bogus. I've sold and bought 6 boats in the last 12 years... I have been lucky on most of those purchases (one had damage hidden by thick bottom paint).
But for money I now go to the post office and get a money order and ask for the same from my buyers.
Since my wife works in banking the industry I found out a fake certified check will clear your bank and can take up to 3 weeks before its frudlent nature showes up; the bank will go after you for the funds and you are then left with nothing. You can go to any bank and have them verify the funds at the time you have both parties present and if it is issued from a credit union be carfull cause many credit unions opperate on different rules than banks do. If it were me have him make the cretified check out to himself then both of you go to the bank he will withdraw the cash and give it to you if there is a fraud it will be on him because his name is on the check not yours. Wait till you have HIS CASH in your hands!!
Hold up delivery?
If you hold up the title until the check clears, wouldn't it make sense to hold up the buyer from also taking delivery until the check clears? Just thinking outloud. The crashed plane story in an earlier post would scare me now.
I've sold racecars and delivered half way across the country to a mid-way point. Taken a bank check, called the bank to verify the check was valid before unloading. But, the crashed plane story makes me think differently now.
JerryA
If you hold up the title until the check clears, wouldn't it make sense to hold up the buyer from also taking delivery until the check clears? Just thinking outloud. The crashed plane story in an earlier post would scare me now.
I've sold racecars and delivered half way across the country to a mid-way point. Taken a bank check, called the bank to verify the check was valid before unloading. But, the crashed plane story makes me think differently now.
JerryA
Sounds like you found some good buyers, but I agree with Striker, just get the cash before signing the title. Most legitimate buyers will understand your concern, so make it easy on everyone and meet them at their credit union if they are nervous about carrying around a lot of cash.
If your really worried about anyone having your bank information, you better stop writing personal checks. Your routing and account number are printed right on your check.
When you do a wire transfer, your bank is getting funds directly from the buyers bank, and its all 100% Federally controlled. The funds are the same as cash. No checks, no 21 days to clear the FED. Right now CASH. In your hand.
And if your afraid of electronics, you better give up all together. There is no paper transaction with banks anymore, other than storage, and I think even that has ended. All checks are scanned electronically and stored electronically, all transactions are fully electronic between banks and the Fed Res. The only reason the Fed waits 21 days is simply a safety net for all involved
Also, unlike just a few years ago, identity theft has forced banks to guarantee your funds better. I dont know if its all banks, or a Federal law, but every bank I have dealt with the last 5 or 6 years guaranteed my funds after the first $50.
The one to really watch out for is Paypal. You give paypal the right to access your account when you sign up. If your buyer/seller complains to paypal, they can reach into your account and take any amount they see fit. And because you authorized them to have access to your account, your Bank cant stop them. They are also offshore, so the Fed cant do anything either. They took over $1000 out of my account as a "hold", because they thought I was selling to much stuff and decided I was a risk. The only problem is that unlike all the other transaction where they email you, they dont do that when they take it from you. I will eat dirt before I ever deal with them again.
Postal Money Orders are "okay", but if lost will take 90 days to be replaced. I wouldnt accept one from anywhere else, and wouldn't cash it anywhere else. Western Union is "okay", but its expensive and its a hassle and I believe there is a $3000 limit.
I have had bank wire transfers over $10,000 and never had a problem. I too was worried about giving out my routing and account number, until the bank person reminded me its on my checks. Well duh!
Stop being afraid and just do it the right way. Have them wire the money to your bank and they can take the boat ASAP. Done. And no, they cannot undo it for any reason because it is a cash transaction.
When you do a wire transfer, your bank is getting funds directly from the buyers bank, and its all 100% Federally controlled. The funds are the same as cash. No checks, no 21 days to clear the FED. Right now CASH. In your hand.
And if your afraid of electronics, you better give up all together. There is no paper transaction with banks anymore, other than storage, and I think even that has ended. All checks are scanned electronically and stored electronically, all transactions are fully electronic between banks and the Fed Res. The only reason the Fed waits 21 days is simply a safety net for all involved
Also, unlike just a few years ago, identity theft has forced banks to guarantee your funds better. I dont know if its all banks, or a Federal law, but every bank I have dealt with the last 5 or 6 years guaranteed my funds after the first $50.
The one to really watch out for is Paypal. You give paypal the right to access your account when you sign up. If your buyer/seller complains to paypal, they can reach into your account and take any amount they see fit. And because you authorized them to have access to your account, your Bank cant stop them. They are also offshore, so the Fed cant do anything either. They took over $1000 out of my account as a "hold", because they thought I was selling to much stuff and decided I was a risk. The only problem is that unlike all the other transaction where they email you, they dont do that when they take it from you. I will eat dirt before I ever deal with them again.
Postal Money Orders are "okay", but if lost will take 90 days to be replaced. I wouldnt accept one from anywhere else, and wouldn't cash it anywhere else. Western Union is "okay", but its expensive and its a hassle and I believe there is a $3000 limit.
I have had bank wire transfers over $10,000 and never had a problem. I too was worried about giving out my routing and account number, until the bank person reminded me its on my checks. Well duh!
Stop being afraid and just do it the right way. Have them wire the money to your bank and they can take the boat ASAP. Done. And no, they cannot undo it for any reason because it is a cash transaction.
Years ago selling boats either new or used when doing wire transferes particularly with large amounts, I set up a seperate account just for that and maintained a minimum to avoid monthly fees. If for a one time transaction, then you might want to consider a temporary account with a minor fee. Anyway, that information was given to the buyer who wired the funds over. Confirmation was quickly received and the funds were then transferred to my regular account. Title work was then sent. I did previously send via email copyies of the title work. Thus, my main account was not a security risk. Further, I had my bank agree to contact if someone was trying to wire transfere out of my wire transfere account for authorizatioln thus putting the bank on notice.
Hope this helps but in any contract, make sure you include Where is AS Is. This should help to avoid any frivalous claims by the buyer like in the airplane case.
Hope this helps but in any contract, make sure you include Where is AS Is. This should help to avoid any frivalous claims by the buyer like in the airplane case.
its been a while since business law, but credit cards and checks have LAWS behind them protecting the consumer.
debit cards, and many online transactions are backed up by Bank POLICY.
eventually I expect laws to catchup to technology....
On the paypal, I recently hit my limit and needed to be verified. I did not wish to share my bank acct with them, since I am agreeing to allow them deduct $ from my acct. -on their terms.
So I applied for the PayPal credit card, was approved, and am now Verified...
-I still use my old Amex cc on paypal. their CC sits in my drawer(no fee).
debit cards, and many online transactions are backed up by Bank POLICY.
eventually I expect laws to catchup to technology....
On the paypal, I recently hit my limit and needed to be verified. I did not wish to share my bank acct with them, since I am agreeing to allow them deduct $ from my acct. -on their terms.
So I applied for the PayPal credit card, was approved, and am now Verified...
-I still use my old Amex cc on paypal. their CC sits in my drawer(no fee).
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