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Old 13-06-2020, 16:13   #1
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Private sale escrow

I'm confident I understand the ins and outs of selling a boat without a broker except how to ensure that I receive the funds. Normally I would want to use an escrow company, but the only one I've found so far is online (escrow.com) and frankly I don't like the idea of doing this online when there is more than $150,000 at stake.


My one thought is to have all the papers ready to go (there really are not many) and meet at the buyers bank. I open an account there and the buyer transfers the money to that account. I give him the completed paperwork.



It seems like the bank will know if the money in his account is "real" or "questionable" (meaning it has not cleared yet). The alternative is a cashiers check, but there are lots of scams out there that use money orders and I assume cashiers checks. The checks are bogus and that is not known until a week or more after you deposit it.



What are your thoughts?
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Old 13-06-2020, 17:38   #2
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Re: Private sale escrow

Some of the companies that do the documentation have escrow services. I used one in Newport Rhode Island once. Sorry I can’t recall the name.
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Old 13-06-2020, 17:39   #3
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Re: Private sale escrow

Quote:
Originally Posted by mlibkind View Post
I'm confident I understand the ins and outs of selling a boat without a broker except how to ensure that I receive the funds. Normally I would want to use an escrow company, but the only one I've found so far is online (escrow.com) and frankly I don't like the idea of doing this online when there is more than $150,000 at stake.


My one thought is to have all the papers ready to go (there really are not many) and meet at the buyers bank. I open an account there and the buyer transfers the money to that account. I give him the completed paperwork.



It seems like the bank will know if the money in his account is "real" or "questionable" (meaning it has not cleared yet). The alternative is a cashiers check, but there are lots of scams out there that use money orders and I assume cashiers checks. The checks are bogus and that is not known until a week or more after you deposit it.



What are your thoughts?
You are not correctly understanding an escrow account if you are planning on ALL the funds of the transaction are going into it.

Normally in a boat purchase the down payment goes into escrow until the survey and other deal details are worked out. Once all those things are complete, the balance of the funds are paid directly to the seller usually through a wire transfer or other bank-to-bank transaction.

The seller can certainly hold the transaction until he is sure the funds are "good". Your bank will help you with how long that takes for various types of transactions. Wire transfers are normally considered instantaneous and irrevocable, but again your bank can give you details.

Once good funds are delivered, the seller releases the title to the buyer, and then the downpayment is released to the seller by the escrow company when all parties agree the deal is complete to satisfaction.

Either the buyer or the seller can set up the escrow account with their bank. The funds are not released to the seller until both parties sign off on the deal.

Call your bank.
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Old 13-06-2020, 17:58   #4
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Re: Private sale escrow

The last thing you want is to involve your bank. They have no interest in you only in protecting themselves. Consult with your family lawyer. Most have accounts through which client funds can be transferred.
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Old 13-06-2020, 20:00   #5
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Re: Private sale escrow

Thank you for your reply, but I do disagree. While the escrow company may hold the deposit, they are the middle-man, receive all the money before close of escrow, and hold the title documents. At completion they give the title documents to the buyer and transfer the money to the seller. This is identical to how a house is sold.



Quote:
Originally Posted by SVHarmonie View Post
You are not correctly understanding an escrow account if you are planning on ALL the funds of the transaction are going into it.

Normally in a boat purchase the down payment goes into escrow until the survey and other deal details are worked out. Once all those things are complete, the balance of the funds are paid directly to the seller usually through a wire transfer or other bank-to-bank transaction.

The seller can certainly hold the transaction until he is sure the funds are "good". Your bank will help you with how long that takes for various types of transactions. Wire transfers are normally considered instantaneous and irrevocable, but again your bank can give you details.

Once good funds are delivered, the seller releases the title to the buyer, and then the downpayment is released to the seller by the escrow company when all parties agree the deal is complete to satisfaction.

Either the buyer or the seller can set up the escrow account with their bank. The funds are not released to the seller until both parties sign off on the deal.

Call your bank.
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