How to take payment

[doctorbill]

So over my years of life the approach to this issue has seemed to evolve.
I am selling a fifth wheel RV trailer and NOT a boat, but I sold a boat 2 years ago. When I sold the boat I had a small loan on the boat and I was very comfortable with the buyer and he with me (trust wise) and the buyer was banking with my loan company and we were able to arrange for him to clear the loan and I had confirmation of that before transferring title.

Anyway, I have a clear title on the RV that i want to sell for as asking price of $45K.
What method of payment is acceptable before handing over keys and signing away title? Cash greenbacks? Cashiers check? Money Order? How do people go about this for mobile items in this price range for private sales?

Thanks!

[pjShap]

I specify a wire transfer from the seller to me. It takes a few days for the money to move from the seller's account to mine. Once the money is in my account, I transfer the title.

[dcondit]

Depending on how much money is involved, you might consider an escrow account where funds are held/cleared and transferred upon title receipt. This protects both parties. I'd probably do that even with a wire transfer as it's possible to fraudulently transfer funds. The escrow account ensures the funds are fully cleared and legit.

[doctorbill]

Originally Posted by dcondit

Depending on how much money is involved, you might consider an escrow account where funds are held/cleared and transferred upon title receipt. This protects both parties. I'd probably do that even with a wire transfer as it's possible to fraudulently transfer funds. The escrow account ensures the funds are fully cleared and legit.

Thanks, but how does one do this for a $45,000 purchase? Who creates and manages escrow?

[dcondit]

Lots of options out there. I recommend doing an internet search for "escrow account for RV sale" or something like that. Just like in home sales there are escrow companies for RVs and yachts. $45K is still a lot of coin in my opinion. If it were me, I'd spend a couple benjamins on an escrow service. You could even split the cost with the seller as it's for their benefit also.

[TrentePieds]

Surely escrow is not required?

You are not worried about a $45K PURCHASE. You are worried about a $45k SALE. They are two different beasts!

You sit on one side of the table with a formal Bill of Sale already prepared in good form in one hand and with the vehicle's registration papers and a Transfer of Title document (obtainable at your vehicle registration authority) in the other.

The buyer sits on the other side of the table with a Cashier's Cheque from a trustworthy bank in his hand. He plunks down the cheque on the table. You examine it where it lies, and if you are satisfied, you plunk down the Bill of Sale for him to examine. If he sez "okay", then you sign it. But not before. Then you give the BofS to him and pick up the cheque and put it in your pocket. Now the deal is complete and irrevocable. Then you sign the Transfer of Ownership copy of the vehicles registration papers. You pull out the sellers copy from that sheaf of papers. Your insurance carrier will want to see your copy of the transfer document before cancelling your insurance and returning any "unearned premium". How the buyer effects registration and insurance of the vehicle in his name is HIS business and needn't concern you at all.

No escrow required if you do it that way. At least not in my jurisdiction.

TrentePieds

[MarkSF]

In the past when I've sold vehicles, I've accepted a cashiers check from a reputable bank, with a valid local ID.

I realize that there is a small but finite chance of a forged cashiers check, but it is reduced to an acceptable level by certain steps : checking the security features, checking buyer's ID, and so on.

[doctorbill]

Originally Posted by TrentePieds

Surely escrow is not required?

You are not worried about a $45K PURCHASE. You are worried about a $45k SALE. They are two different beasts!

You sit on one side of the table with a formal Bill of Sale already prepared in good form in one hand and with the vehicle's registration papers and a Transfer of Title document (obtainable at your vehicle registration authority) in the other.

The buyer sits on the other side of the table with a Cashier's Cheque from a trustworthy bank in his hand. He plunks down the cheque on the table. You examine it where it lies, and if you are satisfied, you plunk down the Bill of Sale for him to examine. If he sez "okay", then you sign it. But not before. Then you give the BofS to him and pick up the cheque and put it in your pocket. Now the deal is complete and irrevocable. Then you sign the Transfer of Ownership copy of the vehicles registration papers. You pull out the sellers copy from that sheaf of papers. Your insurance carrier will want to see your copy of the transfer document before cancelling your insurance and returning any "unearned premium". How the buyer effects registration and insurance of the vehicle in his name is HIS business and needn't concern you at all.

No escrow required if you do it that way. At least not in my jurisdiction.

TrentePieds

Thanks! This makes so much sense and seems reasonable. I was specifically wondering about the form of payment? Cashier's check if looks legit is reasonable to accept? How concerned should one be about counterfeit checks?

[PippaB]

Originally Posted by TrentePieds

...a Cashier's Cheque from a trustworthy bank in his hand....Now the deal is complete and irrevocable.....No escrow required if you do it that way. At least not in my jurisdiction...

Your jurisdiction must be entirely different than mine. The very last thing I would accept in payment for anything would be a cashier's check. Hence the recommendation for an escrow service, let them take their 1% and be left holding the bag when it turns out to be a bogus check. There's a reason many escrow places (in my jurisdiction) will only accept an incoming wire transfer as payment.... Even if you don't use an escrow service, look at what the local ones are willing to accept as payment and how long they wait for various forms of payment to clear, then use that as your guideline in what you are willing to accept and how to handle the process.

[doctorbill]

Escrow insurances considered, but is there a cheaper and simpler way that's guaranteed like meeting at a bank and ensuring funds?

Or a good old fashioned drug dealer's suitcase full of cash? What are the ins and outs of THAT option?!?!?!?

[Drummer79]

Originally Posted by doctorbill

Escrow insurances considered, but is there a cheaper and simpler way that's guaranteed like meeting at a bank and ensuring funds?

Or a good old fashioned drug dealer's suitcase full of cash? What are the ins and outs of THAT option?!?!?!?

Meeting at my bank Friday morning is what I'm doing to buy my boat. We meet there, get the documentation notarized, he watches me get a cashier's check from my account, watches them print it, and if he wants, can look at my account balance, although the bank takes the money from my account right then, so if it wasn't there, they wouldn't print the check. We've talked and texted alot for almost two months, and we're taking the boat together the 4 hour trip from dock to dock, as a "passing of the torch" and also just to get the feel of the new boat with her experienced captain. So I guess there's trust factor there too, but honestly, even if a total stranger met me at my bank, and watched the bank make me the check, I don't see how it could bite him later.

[marcjsmith]

Even if you didn’t go to the bank and do it all at the bank. With a bank check in hand, you could call the bank with account number and routing number and verify the check over the phone.

[Chotu]

You just go to the bank together. Especially if you have the same bank. Piece of cake. Sign all the paperwork there. Move all the money for safety at the bank.

Edit: I’m guilty of not reading the whole thread. Please let me have it. LOL. I know I do that to others in my threads.

So I agree. You are doing the right thing by going to the bank. Makes it all very simple. And it’s a safe place to do any transaction. Even $45,000 cash.

[Dogscout]

Meet at the bank. Exchange title for money. No BS

[mabowers]

Originally Posted by doctorbill

Escrow insurances considered, but is there a cheaper and simpler way that's guaranteed like meeting at a bank and ensuring funds?

Or a good old fashioned drug dealer's suitcase full of cash? What are the ins and outs of THAT option?!?!?!?

Glenn Frey did a song about that [emoji849]