Need your thoughts on purchasing boat - owner owes $ on loan

lmor

Member
I am interested in purchasing a boat on which the seller has a loan. The boat is in Virginia. Obviously, the easiest and safest way from my perspective to complete the deal is to draw up a detailed bill of sale; for the seller to pay off the loan, get a release from lending company, and sign off the title to us. In this case, would you give him a deposit in good faith? What percentage of purchase price is reasonable? Would you have possession of the boat?

If seller does not have the money to make payoff prior to sale, what would you do? Are there lawyers or brokers who can facilitate the sale similar to closing on real estate in the area?

Thanks
 

RPMDAD

Well-Known Member
Whatever you do, do not take possesion of that boat without a signed over title showing there is no lien on that boat. Trust me on this one you can enter the nightmare from hell.
 

bcp

In My Opinion
work it like a mortgage.
borrow the amount he is asking and you are willing to pay.
go to closing, at closing you hand a check over to him, he pays off the outstanding balance and any other related obligations and pockets anything left over.
boat is yours with clear title.
 

Hannibal

Active Member
Problem solved. I have a wonderful fishing boat (21' Parker) that is for sale and I own her outright. Come and get her!
 

Hannibal

Active Member
If the bank owns the loan/lien, you can handle the transaction there I believe. Pay off the lien, get the clear title and the balance goes to the owner.
 

littlelady

God bless the USA
work it like a mortgage.
borrow the amount he is asking and you are willing to pay.
go to closing, at closing you hand a check over to him, he pays off the outstanding balance and any other related obligations and pockets anything left over.
boat is yours with clear title.
bcp! Good to see you post! Where have you been! :yahoo:
 

lmor

Member
Thanks everyone, for the advice, web link, and the humor. Unfortunately the loan holder/bank is not located in the area. That would be too easy, right? I will speak to my bank about handling closing and sale- maybe they would/could. Do you know of a lawyer or escrow company in southern Maryland or Virginia that will facilitate boat sale? Again I am most appreciative of your counsel.
 

RPMDAD

Well-Known Member
Thanks everyone, for the advice, web link, and the humor. Unfortunately the loan holder/bank is not located in the area. That would be too easy, right? I will speak to my bank about handling closing and sale- maybe they would/could. Do you know of a lawyer or escrow company in southern Maryland or Virginia that will facilitate boat sale? Again I am most appreciative of your counsel.
lmor, just curious, you never did mention what make of boat or size or price of vessel. What kind of boat is this??
 
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