Boat sales transaction tips

[NCH2oSki]

A potential buyer is driving up Sat spending the night a hotel, and wanting a test ride and has committed to purchase at an agreed upon price if everything is represented as I claim. So unless something out of the blue happens, I have my boat sold on Sunday. I've only done this were we could go to the bank and have checks verified etc. He has a dental practice and cant meet me during the week, so how would you suggest that I accept payment for my boat? Even though he seems like everything he has represented himself to be, I'm still not enthused about accepting a check for such a large sum of money and not being able to post it right away. Any suggestions?

[Dandy21]

Cash is king my friend, but I am sure he would prefer not to travel with several thousands of $$$. Given the day and age of fraud (fake bank checks, fake money orders....) it is really difficult to trust a piece of paper. Another option would be to work with your bank to see if they can set something up allowing the buyer to wire transfer funds to a holding account to be released by the buyer or returned by the seller. Not sure if this can be done. I have purchased things where I agreed to make a bank transfer for a portion of the purchase price to hold the item and then provided cash for the balance - these were all under $10K. I would either work cash or work through a bank and transfer/hold if possible. Let us know what you work out and how it goes.

Good Luck

[cedarcreek216]

Set up an Escrow account. It's done all the time, but I have not done it other than for real estate transactions. There has to be a way that he can deposit the full amount into an account so the funds can be verified and once he confirms the purchase item he simply releases the funds to be delivered to your account.

[jward]

Cashiers check. Have him text you a pic of the check after they cut it to him. Call his bank and verify the numbers. Did that twice on boats I have sold. Worked out just fine.

[trip33]

Second jwards advice.....

[ddipert]

Another way would be to hold the title until the check clears. Then you still are the owner of the boat, would be a pain to get it back but you would have the law on your side.

[JoeA]

Yes, get a copy of the cashiers check in advance, call bank to verify funds, hold on to boaters registration until check clears, then mail them the registration. I'd also have a vehicle sales contract plus driver license copy.

You can't be too careful these days. I sold my 2013 Malibu like this with no problems.

[justhavinfun]

The only thing as good as cash is cash. Remember a cashiers check can be cancelled. If you are buying another boat from a dealer they might act as the middle man in the transaction for a small fee.

[xrichard]

Cash is the best, but cashier's check is almost as good if you're careful.

Cashier's checks can be cancelled. only in the event of loss, theft and destruction. Of course the buyer can lie about these things, but the bank holds the money for 90 days--during which time you show up and prove the check was not properly cancelled. I don't know the process after that point, but it's not like the buyer instantly gets his money back.

Here's what I do: First, get a photo of both sides of the check and verify it with the bank--takes just a few minutes. Now you know the check is real. Shortly after the transaction is finished, take the check to the bank is was drawn on and cash it. You don't need to get cash back--you can get another cashier's check drawn in your name payable to you. That way your buyer has lost all control of the check--it's been paid to you and can no longer be cancelled.

If you verify shortly before your buyer arrives and cash it shortly after he leaves, the chances of you getting burned are slim. And, of course, you want a bill of sale signed by the buyer to support any claims if there is a dispute. (FYI, in California the bill of sale supplied by the DMV as a standard form is only signed by the seller. I always add a line for the buyer to sign and the words, "sold as-is, no warranty express or implied.")

[NCH2oSki]

Good advice, thanks!

[swc5150]

I've held title until the check cleared. Cash is great, but not entirely realistic when talking this kind of money...although I did get $30k in cash at a boat landing once. I agree, just get a copy of the check prior, call his bank to confirm it's real, and enjoy shopping for a new boat after the sale. You could also check out his dental practice website, which would help you verify he is who he claims to be? If the physical location exists, and you confirm it's his practice, I wouldn't be concerned at all. Worse case, you know where to find him if the check bounces. You then pay him a visit with the title and the police

[Tryathlete]

This is a really good topic and ought to earn a sticky label. All of us face this when buying from private parties, where best deals are made. I recently drove for three hours with many thousands of dollars in cash in my pocket....not going to do that again now that I can see a few ways of improving the experience. I especially like the cashiers check and calling the bank to insure legitimacy and so forth. Great idea. Escrow smells like a bad craigslist or ebay scam method....even though perfectly legit.


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[Tryathlete]

I've held title until the check cleared. Cash is great, but not entirely realistic when talking this kind of money...although I did get $30k in cash at a boat landing once. I agree, just get a copy of the check prior, call his bank to confirm it's real, and enjoy shopping for a new boat after the sale. You could also check out his dental practice website, which would help you verify he is who he claims to be? If the physical location exists, and you confirm it's his practice, I wouldn't be concerned at all. Worse case, you know where to find him if the check bounces. You then pay him a visit with the title and the police

I would even call the practice to insure you can speak to the dentist and ask him if it's really him! I hate trust....it's such a hopeful thing.


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[shag]

Agree with the Cashiers check and verify it set up. Hold title till the funds ARE IN YOUR ACCOUNT, and also check the states business website to confirm the dentistry.
Two happiest days are buying a boat, and selling a boat.

[skiinxs]

Cash can be counterfeit. Cashier’s can come back on you months later, even when verified at the time. The only completely safe transaction is a wire transfer, but that has to be done during banker’s hours. It also is not instantaneous. Find a bank that is able to process their own and not rely on a larger bank. Plan on waiting two or three hours to get verification that it has gone through. Once a wire transfer is completed it is a done deal.