selling process question

[Taxus812]

Ok im going to sound green but I have to ask this.

We are moving out of state and I decided to sell and buy something when I get settled. That said I need to sell my current boat. (2002 Four Winns fish and ski)
The boat is ready for the season and is 100% drop in and go. I'm including a lot of other stuff as well and it will be below NADA guide pricing for this area.

I never sold a boat before so I was wondering what the traditional personal sale process is like. I know only want a bank check and since I have a lean, there would be a waiting period before they could take it and register it.

I can still sell via consignment in a local marine shop where they manage the survey, water trial, inquiry's etc. That is $230 for the survey and listing plus 15% of the price. Very tempting but that's a loss of $1500 for a $10,000 boat.

 

[oldjeep]

Guess it depends on your lien holder and how your state deals with the titles, but as a buyer the only way I would do it would be to go to the bank with you and have the lien released on the spot. You'll have better luck if you can pay off the boat immediately and be able to sell the boat with no lien. Boat that old, I can't imagine that the loan could amount to much. Avg retail looks to be around $7500 on the trailer.

 

[MTboatguy]

It is not a loss, if it convinces someone to purchase your boat that otherwise might not without the survey and other perks by consignment route. As Jeep said, If I were to look at your boat, I would go to the bank and make sure the lien was released before I would actually commit to purchase the boat. I also would want to be assured that the transom and other components are in good condition and I would need to take it out to ensure it runs and handles correctly. $1500 seems to be a low investment to get it sold. I would not buy a boat out of the front yard of somebody I don't know without knowing it is in good condition and working properly.

You have to understand, you don't own that boat, the bank owns it until such time as the lien is satisfied, and If it were me, I would go to the bank with you, hand you the money, you hand them the money to pay it off and I walk away with paper work and a title that says the lien has been satisfied, there would be no waiting to register it for me.

 

[GA_Boater]

You have to understand, you don't own that boat, the bank owns it until such time as the lien is satisfied, and If it were me, I would go to the bank with you, hand you the money, you hand them the money to pay it off and I walk away with paper work and a title that says the lien has been satisfied, there would be no waiting to register it for me.

That is the only way to handle buying or selling a boat with a lien in a private transaction, Protection for both parties.

 

[JoLin]

What these guys said. I'd use a broker. If you're thinking that the buyer will pay you the full price and then wait for you to pay the lien, well, that ain't gonna happen if the buyer has any sense. If the lienholder is local, the buyer can accompany you to the bank, pay off the lien, get the 'letter of satisfaction' (or title I guess, depending on the state) from the bank, and THEN pay you the balance.

I've been through this as a buyer, with the lienholder located in another state, The coordination was a PITA, but we got it done. The seller went into it thinking I was just going to pay him the agreed price, then let him take care of the bank. He was actually surprised and a little p.o.'d when I laughed at that..

My .02

 

[MTboatguy]

You have to realize, boats are one of the highest theft items in this country, they are portable and if the owner does not store at his home, often times it is months before he ever figures out it is gone. Any smart buyer is going to want to have that paper work in their hands at the time the transaction is completed.

 

[bruceb58]

Talk to who ever holds the lien ahead of time and see what they recommend for releasing the lien at time of sale.

 

[H20Rat]

+1 on doing it at the bank... As a buyer, if I'm not walking away with some sort of legal document saying I own it, I'm not turning over money. Reason #1 to always bank locally for this sort of thing!

 

[bruceb58]

The reason I suggested this is that I ran across this problem selling a $25K Suburban. We went to my credit union and did everything we needed to do to get the lien holder to "sign off". Problem in CA is that titles with liens on them are electronic so the buyer drove off without her title for a few weeks. In retrospect, I would have paid off the loan before I sold the truck and had the title in hand when i sold it.

 

[MTboatguy]

In retrospect, I would have paid off the loan before I sold the truck and had the title in hand when i sold it.

Which is exactly what you should do if it is possible, the buyer should really never have to be involved in anything other than handing over the money and walking off with his new product.

 

[tpenfield]

If you have a way of paying off the loan and getting the title in hand, then it is an easier sell. Otherwise, you are best to go a broker route (often $1500 minimum) or see if the bank can act as an escrow agent on the deal.

In reality, the bank may take a few days or even a week+ to have the buyer's check clear, release the title and get it to you. Then you would have to sign over the title (in many cases) and get it to the buyer. . . could take a while. That is why I suggested paying off the boat ahead of time.

 

[oldjeep]

If you have a way of paying off the loan and getting the title in hand, then it is an easier sell. Otherwise, you are best to go a broker route (often $1500 minimum) or see if the bank can act as an escrow agent on the deal.

In reality, the bank may take a few days or even a week+ to have the buyer's check clear, release the title and get it to you. Then you would have to sign over the title (in many cases) and get it to the buyer. . . could take a while. That is why I suggested paying off the boat ahead of time.

The banks involved would typically use a wire transfer for this type of transaction rather than checks. But I agree, clear title in hand is always best.

 

[Silvertip]

If you have a decent credit rating, apply for a line of credit with your bank. Pay off the note on the boat, you will get the required release. Pay off/pay down the credit line when the buyers funds have been deposited in your account. This will not likely be an option if you already have a high outstanding credit balance.

 

[Taxus812]

I appreciate the posts. I did a little research before committing . I found that Connecticut does not issue boat titles, it is a registration only state. (The trailer is titled if over 3000lbs and I have the title for that with no liens). CT has rule that the last registered owner must complete the bill of sale using their form.

If I am reading this right. I can sell it, they can take it and register it without needing a the release of lein ?

 

[oldjeep]

I appreciate the posts. I did a little research before committing . I found that Connecticut does not issue boat titles, it is a registration only state. (The trailer is titled if over 3000lbs and I have the title for that with no liens). CT has rule that the last registered owner must complete the bill of sale using their form.

If I am reading this right. I can sell it, they can take it and register it without needing a the release of lein ?

How in the world does the bank protect their interest in the boat without a way to enforce the lien? And worse yet, how does a buyer know that the boat they are buying is free of liens - so that someone doesn't do what you are suggesting and then never pay it off?

 

[tpenfield]

Just be careful making assumptions. It is best to know the lien release process fully and to disclose the lien to the buyer.

It may not slow down the buyer's ability to re-register the boat, but you would think there would be some sort of check and balance along the way.

 

[Taxus812]

It sounds funny to me too. Maybe someone in CT can chime in ?

 

[Taxus812]

WOW I just called the DVM. There are no title requirements on a documented BOAT. The requirement is the last registered owner must sign the registrations "Bill of sale" section. You also fill out a Standard Bill of sale document and that's it. I can (and would) send the buyer a release of lien if I choose to. The trailer is a different case.

 

[oldjeep]

"There are no title requirements on a documented BOAT"

What do they mean by documented? If that refers to the USCG documentation then I would be surprised if an 18ft runabout had that.

 

[tpenfield]

WOW I just called the DVM. There are no title requirements on a documented BOAT. The requirement is the last registered owner must sign the registrations "Bill of sale" section. You also fill out a Standard Bill of sale document and that's it. I can (and would) send the buyer a release of lien if I choose to. The trailer is a different case.

Yea, it is interesting that a fairly populated state, such as CT, would leave boat documentation so open ended without hard & fast titling. New Hampshire is similar.

I Googled a thread on THT from about 7 years ago where someone in CT bought a boat from a private seller, paying cash, and 2 years later a bank (from the previous owner) came looking for the boat, as they still had a loan/lien on the boat that have never been paid.