Quote:
Originally Posted by NONE_too_SOFT
what to do if bike owner does not hold title? Ie still has a lean on it?
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These are a little tricky when buying from the seller, but a little care can keep you out of the woods.
Couple of things:
Bill of Sale: A piece of paper (can be handwritten in most states; I am NOT a lawyer, so check with the MVA or a legal representitive in YOUR STATE) singed by the buyer AND the seller and NOTORIZED IN MOST STATES (same disclaimer) stating the year, make model and VIN # of the bike, milage and price, and the legal names and addresses of both the buyer and seller, stating that Joe Schmo sold a 1958 Vincent Black Shadow Viz# yxz123456 with 3,458 true miles to Ron tirekicker for the price of $12,456 cash money on this date, blah blah blah. It's legal proof that you bought the bike and didn't steal it.
Title: Piece of Paper issued by the State of residence of the owner, giving legal title to the named person. WITHOUT THE TITLE, YOU CAN NEVER GET REGISTRATION AND PLATES
Lien: Piece of paper issued by the state showing that an interested party (like the bank or credit union) has a legal monetary claim against the vehicle.
Normally, the lien(s) is recorded on the front of the title, although, in the case of court jugdements (lawsuits) they may not be recorded ON THE COPY THE SELLER HAS, but may be recorded at the MVA. UNLESS THE LIEN HAS BEEN SIGNED OFF, THE TITLE
WILL NOT BE TRANSFERRED.
So, the tricky part is how do you insure that the money you give the seller makes it to the lienholder, and not his local crack dealer? Simple. You need to do a couple things over and above what you would do with a clean titled bike.
A. Verify the amount of the lien. How do you do that? Normally, the seller will disclose the fact that there is a lien, and about how much it is. You need to verify that fact. And since it is sensitive and person info of theseller, he needs to call the party that holds the lien and give verbal or written permission to have them disclose the amount of the lien; they will normally supply you with and amount and a due by date.
B. Make your deal and agree to any terms;
1. If the selling price is the same as the payoff, MAKE OUT A CERTIFED CHECK TO THE LIENHOLDER>>>NOT THE SELLER (otherwise, he may use it to payoff his bookie or ex-wife).
2. Have the seller sign over the title and a bill of sale.....and take delivery of the bike. Send the check, a COPY of the signed title and bill of sale to the payoff dept of the lienholder (they will give you this info when you do the payoff verification call) and a letter instructing them to sent
YOU the Lien Release. (otherwise if he is a druggie or other low life scum, he can use the lien release as leverage for more money later....ask me how I know this)
3. Occasionally, you will make a deal for a bike in which the sale price to you doesn't cover the lien amount (like when somebody is in dire straits and you have them up against the wall and they GOTTA sell the damn thing) I this case, the seller will need to supply cash or certified funds TO YOU so that you can complete the payoff process as above (yes, I have done deals like this, but they are rare).
Just make certain that you control the payoff documents after delivery of the bike....I once had a nightmare deal (trying to help out an aquaintance in trouble) where I've been unable to use the bike for months while I chased his no-good ass around trying to tie up paperwork. CONTROL THE PAPERWORK AT DELIVERY. PERIOD. If the guy balks, WALK AWAY.....YOU WILL NEVER GET CONTROL OF THE PAPER, and then all you have is an expensive track or parts bike.