[Ducboy]

I'm going to buy a bike this wkend from another state but seller has a bank lien. He says he'll go Friday to bank, pay it off, get a signed-over title, and then give the title to me later Friday. Are there any issues w.this scenario, i.e. is there any opportunity for me to get screwed some how? I've never dealt w.lien-tainted titles and am leary of this situation. I don't suspect the seller is trying to pull a fast one but I want to be sure I'm not open to some kind of pitfalls.

In my state at least with a reg title transfer (i.e. no liens) I surrender the transferred title to DMV when I reg the bike and then get new one in the mail.

Thx.

 

[JAFO2RHh]

Um, bad idea. The only way you should do it is to go to the bank with him to make sure he actually pays it off and gets the title and signs it over to you right then and there.


just my 2 cents.

 

[RayOSV]

+1 Those types of transactions are better done with both parties together in person. Is he planning on paying it off and getting the title before you pay him? If so, that's not so bad. Only issue may be how do you know that the docs he gives you are legit. If you pay him first and then he goes to the bank alone, how do you know he'll do it? Who gets the bike during that time?

 

[Superstuddc27]

That situation CAN work if it's not your money he's using to pay off the title. Tell him to pay the title off on his own, blah blah.. and when he has the title in hand, switch it with cash.. If you pay him first and he "goes to the bank"... he can run and you have no proof that he took the money whatsoever. Either that, or go to the bank with him.

 

[Raven R1]

this is how you do it....find out the name of the bank with the lien and his account number....maybe even do a conference call with him and find out his exact payoff....make one cashiers check out to the bank for the exact amount of the payoff on the date it will be paid and the remaining balance will go to the seller in another cashiers check...that way the cashiers check to the bank is useless to him because its not made out to him.....WARNING....even though its a cashiers check alot of banks will hold on to it for 5 business days to ensure that its not forged or a fake.

example:

price of bike is $6500

payoff is $4500 make this cashiers check out to the bank

balance: $2000 made out to seller

this protects you in a couple of ways:
1. You know the bike IS paid off
2. You know that the seller doesn't owe MORE than what he's selling for
3. The bank knows he's selling
4. The bank can forward the lien release to you upon cashier check clearing (REQUEST THIS...YOU MIGHT NEED HIS AUTHORIZATION FOR IT...BUT ITS IMPORTANT)
5. Seller knows your not playing around


If he doesn't agree to these terms....RUN

 

[OFFICER737]

this is how you do it....find out the name of the bank with the lien and his account number....maybe even do a conference call with him and find out his exact payoff....make one cashiers check out to the bank for the exact amount of the payoff on the date it will be paid and the remaining balance will go to the seller in another cashiers check...that way the cashiers check to the bank is useless to him because its not made out to him.....WARNING....even though its a cashiers check alot of banks will hold on to it for 5 business days to ensure that its not forged or a fake.

example:

price of bike is $6500

payoff is $4500 make this cashiers check out to the bank

balance: $2000 made out to seller

this protects you in a couple of ways:
1. You know the bike IS paid off
2. You know that the seller doesn't owe MORE than what he's selling for
3. The bank knows he's selling
4. The bank can forward the lien release to you upon cashier check clearing (REQUEST THIS...YOU MIGHT NEED HIS AUTHORIZATION FOR IT...BUT ITS IMPORTANT)
5. Seller knows your not playing around


If he doesn't agree to these terms....RUN

Good advice there!

 

[fiftyonefifty]

i like that last advice too, for those who say make sure he uses his own money, well duh if it was that easy, if the dudes broke and needs to sell the bike, he has no choice. however, make sure you get all the documentation you need, drivers license copy etc, and size him up, if he seems even a tad sheisty i'd look elsewhere

 

[MT Wallet]

It can work when I sold my z28 I didn't own the title, I wasn't trying to pull a fast one or anything.

But when the guy handed me the cash I said "Oh, now I gotta go to the bank and pay this off and give you the title."

It wasn't a scam...I just didn't know and he has my baby now

 

[jim schmidt]

What they said. In person or you pay the bank directly. However, in person is better. Get a bill of sale (contingent on your paying off the loan) prior to paying the bank. After you pay off the bank, there is no requirement that he sell you the bike.

 

[zx7Ryder]

I am not sure, but you may want to verify if getting a "lien release" the same day is possible. If it was me, I wouldn't buy from any seller without title in hand, period. If you must buy, then do as Raven R1's suggests.

 

[bumblebee]

Unless you are there when he pays off the bank and immediately have the title transferred and notarized to you, they will send the title to him in his name and that could take week to 10 days.