I might be buying a bike off some guy where a bank is holding the title. He wants me to give him near 5K to pay off the loan. when he receives the title, I am to pay him the balance to get title.

Not knowing this guy I prefer to not give him any money til he has the title. He needs the money to get the title.

Is there an alternative? He did say I can hold the bike until the title comes. Would possession of the bike and a receipt for the down payment protect me?

 

Go to the bank with the guy and pay off his loan getting the title at the same time. That's how I did it.

Bringing cash will be a lot easier.

 

you go into the bank with him.

he pays off, the banks signs off on title

the bank notary public then records the transfer of title to you

you go the DMV and put in in your name

the bank gets their 5K, he goes home with any balance


mike

 

Or get your bank to give you a certified check made out to his bank for the payoff. Then y'all both finish the deal.

 

Big ten four on that one. Don't give him or the bank any cash. The bank cashiers check is your receipt!! And proof if you need it!

 

You will have to wait for the title even with a cashiers check, unless you both bank at the same place. If you want the title the same day, bring cash.

If the bank is nice enough, they may call to validate the check. Bank check forgery has ruined the cashiers check is the same as cash mentality.

 

Go with him to the bank. They deal with this all of the time and will have everything needed to make it fairly quick and painless. Doing it this way you will get the title at the same time as you pay for it.

 

With some of these bigger banks they do not have the title at the local bank. They are usually stored in a vault at the main office, sometimes in another state.
It could take 2-3 weeks for them to release the title (and wait for the check to clear) and send it to the current owner.

I have purchased a camper once that the title was heald by a bank. It was a pain.

I had the check made out to the owner and the bank for the full amount, that way neither could cash it without the others signature. This will ensure the bank gets their money and releases the title. The owner signs the check and gives it to the bank..they send him the title and a check for rest of the money.

Get a good legal bill of sale and have it notarized with both of you signing it in front of a notary with witnesses. You take the bike when the check is transfered into his hands. Talk to a local used car dealer about what is legal in your state. IF you doing this across state lines...it may be harder to do with protection on your side.

You might talk to the bank that holds the title...they might work a deal if the check is from you to send the title straight to you...in a few weeks.

 

Every recent title exchange I have done were electronic titles. You don't get the physical title at the bank. You get to notarized paper stating the lien has been removed. Make damn sure you take possession of this paper. You get this after the check has cleared, unless to bring cash. You both go to the DMV, get a new title in the previous owners name, he signs it over and you get a new title in your name.

Best bet, call his bank and ask them what the procedure is.

 

I also did the "bank trip" thing w/title/payment swap - best option b/c they can't "bail" on you in the bank loan office...JMO.