Advice on Selling an Asset

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Selling a camper that has a blue book value north of $30k, what is the safest way to insure I don’t get hosed. Should I require a certified check, bank draft , or something else? Thank you.


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[ohiojmj]

Go to a bank with buyer, watch the bank draft get printed, take possession of bank draft, sign and have title notorized, hand over signed title, deposit bank draft. Worked for me. Cash is too clunky.

[Clairebear]

That was very good advise.

[muskyed]

Had a buyer from Canada purchase a 5th wheel from me. When working out payment, he wanted to bring bank check, my bank said no, cash or wire transfer only, and if cash do it at my bank so they could run it through their machine. All went smooth, and my bank helped him with paperwork needed to get back across the border. Another boat sale of about 30k to a private party locally, I insisted it be done at the buyers bank, and their teller could hand me their bank check. Both went really smooth being done at bank. Be very warry of anyone wanting to do a large sale when banks are closed, if not in cash, and even if it's in cash, I would be worried if it's a large amount.

[Pokey Fisherman]

They can fake money order and bank checks now a days and it can take 2 weeks or better for the bank to find out. I will take a personal check and deposit it, wait a week and then do the deal. Wire transfer is good or doing the deal in his bank if he is close to you.

[REW]

Ohio had good advice.

When I sold my RV, it turned out that the buyer used the same Bank as we did - just a different branch.

I arranged for a meeting for him to check out the vehicle that was close to another branch of the bank.

When he agreed to buy the vehicle, I signed the title and we both went into the bank.

He wrote a check to me in the presence of the teller.

The teller took the check - checked for account and money availability. Once it was verified, I filled out a deposit slip, and the money was put into my account without even going through the clearing house.

The money was in my account, before we left the bank.

Best wishes.

[grizzley]

Originally Posted by Pokey Fisherman

They can fake money order and bank checks now a days and it can take 2 weeks or better for the bank to find out. I will take a personal check and deposit it, wait a week and then do the deal. Wire transfer is good or doing the deal in his bank if he is close to you.

At one time I would have not blinked at accepting a cashiers check, then after reading about several instances where a cashiers check was bought and then altered to a much higher amount, I would now be leery to accept one.

[Mark R]

I used the bank transaction method twice. When buying the boat the seller wanted cash, I wasn’t going out with that much cash so after we made the deal we drove to my bank and he had a choice of cash or cashiers check. Once he saw how busy the bank lobby was he took a cashiers check from the teller.
Sold my boat the same way. Met at the buyers bank and made the deal went inside and Goya cashiers check from the teller for my $$$

[Rooster Rick]

This is going to be long, and still will only cover the basics. Sorry. I’ve been a banker for over 30 years and have facilitated 1000’s of private party purchases. I have also accomplished many personally, as both a buyer and seller. The more money involved, the more caution should be exercised. For more significant transactions, using a financial institution ( bank or credit union) as an intermediary is highly recommended. If you don’t know what your doing, you are at risk. Significant is relative, but for me $10k or more.

The form of payment should be discussed, and agreed to, in advance with the purchaser. Cash or certified funds; cashiers check or wire transfer. Any payment instrument can fraudulent, BE CAUTIOUS. I prefer a cashiers check, the legitimacy of which can be verified with the issuing financial institution. Sellers, do this please. Cash is fine, and is preferred by me for transactions less than $10k. However, I am familiar with currency, the security features, I have a counterfeit detection pen, and more sophisticated counterfeit detection technology. Sellers need to be aware of the risks of accepting currency, unless they are present when it is withdrawn from the buyers financial institution. Also know, financial institutions are required to gather addition information for cash transactions exceeding $10k, and that information is reported to FinCEN. I will not go into detail here; but I would not be concerned with this for any legitimate transaction. Bank to Bank wire transfers are also a viable and very safe method of settling a sale, typically used for more significant purchases, as they require some advance planning.

Sellers should have ownership document(s), typically a certificate of title, in hand, and free of any lien. This is absolutely necessary to consummate the sale. All current owners will need to endorse the title as sellers. Some states require these signatures to be notarized. Whether you are the buyer or seller, you need to know in advance if this is a requirement. I recommend the buyer request a copy of the title, in advance, if possible. A copy of the title will also verify current ownership, the detail of the asset (year, make, model, VIN) and if there is a lien. The sellers ability to provide free & clear ownership, without a lien, greatly simplifies the transaction. Title is exchanged for payment, and the sale is consummated.

If you are selling and money is owed on the asset, contact the lender in advance, explain the situation, and determine if the title can be delivered to your financial institutions local branch. Then payoff can be accomplished and the title made available to the buyer at the time payment is received and the sale is consummated. If this is not possible, and you will not be able to deliver title and consummate the sale with the seller at the time of payment, it significantly complicates the process for a private party sale. I have walked away from several purchases because the seller could not provide title at the time of the sale... because their lender was not able to deliver the physical title to a local office. I will not wait 2-6 weeks to have the title delivered, typically mailed to the seller, which will still require the sellers endorsement to transfer ownership to me. Too much can go wrong, and too much risk for me as the buyer. There are ways to accomplish a private party sale in this scenario, but I would not recommend it for inexperienced buyers.

Sellers, an appropriate Bill of Sale should be provided to the buyer at the time the sale is consummated. Many forms are available online. At a minimum, these should list the buyer(s), seller(s), a description of the asset, including VIN or serial number(s), and the amount of sale. The form I use contains “no warranty, expressed or implied” and “as is, where is”. A word about the amount of the sale... if the amount of the actual sale is different than what is disclosed on the Bill of Sale, it can be considered fraud. I will not ask a seller to commit fraud, and I will not do so. The risk far exceeds any benefit, for me. A personal decision, I’ll leave it at that.

Verification of Identification. Buyers and sellers should verify ID’s, this protects both parties. Many miss this step, but it’s really pretty critical. Especially buyers, you need to know the person(s) endorsing the certificate of title are the owner(s). If a seller, or buyer is unwilling, it’s time to walk. Nuff said.

Buyers, if you are a “cash buyer”, re-read the section above. Your expectation is to consummate the purchase and take title and ownership of the asset at the time payment is rendered. As said above, if the asset is titled, request a copy prior to meeting to consummate the sale. This is the only way you will be able to verify the asset, the ownership and any lien. If the seller cannot produce a copy for you, I would move on. If the asset is not a titled asset, I would ask for other documentation; MSO, registration, copy of prior bill of sale... you need to verify what you’re buying, the ownership and the right of the seller to sell. If you are uncomfortable, slow down and research; due-diligence. Do not make an impulsive purchase, you are at risk if unable to satisfy this.

Buyers, you will need to discuss payment and expectations in advance with the seller. Be aware of the risk of carrying large amounts of cash. A cashier’s check is preferred for most significant sales. Be aware, if the sale is not consummated for some reason, you can return the cashier’s check to your financial institution and receive a refund, minus fees. However, you should verify this in advance, as policies vary among different institutions.

Buyers, you will only be able to consummate a sale at the time of payment if you take ownership of the asset. You do not own the asset until you own it. The seller(s) need to convey ownership to you; endorsement of the title and/or bill of sale, executed by all all legal owners. If the seller is not able to convey ownership at the time of payment, you do not own the asset, and you are at risk.

Buyers and Sellers: Always try to arrange to meet at a public place, financial institutions are ideal; offer to meet at your, or their, bank or credit union. Consider the need for, and availability of, a Notary, as appropriate.

Buyers, if you are financing the purchase, your lender will almost certainly establish the process by which the purchase is to be accomplished, payment is made to the seller, and the ownership transferred. I have had plenty of situations where a purchaser financed an asset purchase primarily as a means to have the financial institution(s) handle the details of the sale. Especially, if the seller has the asset currently financed and is subject to a lien. Do not hesitate to consider this option, many financial institutions will accommodate a short-term loan to accomplish this. It will obviously not be free, but eliminates much of the risk of a private party sale/purchase.

I hope this information is helpful.

[RMBin303]

Meet at buyers bank and get a bank check while you are there. Or wire transfer (probably the easiest). Most banks allow it from their app now.