Cash Buyer Title Question

[dewilso]

I’m certain this has been asked & answered, but I don’t find it.

I want to purchase a RV from a private party. The unit has a lien on it, & I’ll be paying cash. How should the lien clearance be handled so I get a clear title ? I'm in Texas, the RV is registered in Texas, and will be registered in Texas.

[podwerkz]

Depends on who the lien holder is. 

If it is a credit union or bank you can physically walk into that facility with the seller, then that makes it a lot easier.

Edited August 5, 2020 by podwerkz

[Kirk W]

You definitely need to be in contact with the lien holder directly. If it is a local bank, go to the bank with the seller and make arrangements with them for you to pay them off and the seller at the same time so that both can sign off on the old title and so allow you to get a new one. Of course, if you plan to finance the RV, that makes the entire thing much more complicated, unless you can arrange to finance it through the present lien holder and so do that at the same time. 

[Pappy Yokum]

4 hours ago, podwerkz said:

Depends on who the lien holder is. 

If it is a credit union or bank you can physically walk into with the seller, then that makes it a lot easier.

If it's *not* a credit union or bank.....find out who/where the lien holder is.  Should be easy - the lien holder should be listed on the title.  If that's the case, have *YOUR* financial institution handle the transaction - or advise how to do so - BEFORE you hand over anything more than a $100. deposit.

(Kirk - the OP said he's paying cash!)

.

 

[sandsys]

When I sold an RV to a cash buyer, I also had the buyer go with me to the DMV to change the title so I knew it was done thus removing my liability for whatever he did after the sale. Otherwise he could have not changed the title leaving me on the hook and he was not a buyer I trusted.

Linda Sand

[Wrknrvr]

  You should be able to call the DMV with the vin number and see who has the lien on that unit. And also possible to see any other problems with it financially.

 

  That way you can proceed after that info is obtained. And you can trust  what other people are saying about the unit.

 

  Just a thought,   Vern

[Kirk W]

8 hours ago, sandsys said:

When I sold an RV to a cash buyer,

In TX the state has a vehicle transfer notification that the seller should file to take care of that. 

14 hours ago, dewilso said:

? I'm in Texas, the RV is registered in Texas, and will be registered in Texas.

In addition to dealing at the office of the lien holder, you need to get a Texas form 130-U.

[DJohns]

Be careful!  1.  The lien holder has to take the title to the court house to have the lien released. 2. the seller has to sign the title at sale time. This will take place AFTER you have given your money away leaving you at a disadvantage.  A few years ago I bought a boat at the sellers bank. The bank was supposed to send me the title when cleared. I forgot about the seller having to sign. The bank sent the seller the title instead of me. Turned out ok but could of gone bad. At least get a bill of sale but best to leave with the title when buying any vehicle.

[chiefneon]

Howdy!

 I wouldn’t trust the DMV regarding a lien on it. We purchased a Smart Car paid off the balance within 60 days. When we traded it in on a Newer Smart at the same location we found that Mercedes-Benz had never removed the lien. Good thing we had our title to it.

” Happy Trails “

Chiefneon 

[dewilso]

I’m putting the $ in a escrow account with a lawyer who will see that the title is cleared & issued in my name.

Gary, bought our Van from Camping World, then had some warranty work done at a different dealer. When we went to pick it up the repair dealer said we had to pay because the sale had not been registered, Winnebago still owned the vehicle....I should have walked but I had paid cash for it. I’m gonna be careful !

[Twotoes]

20 hours ago, chiefneon said:

Howdy!

 I wouldn’t trust the DMV regarding a lien on it. We purchased a Smart Car paid off the balance within 60 days. When we traded it in on a Newer Smart at the same location we found that Mercedes-Benz had never removed the lien. Good thing we had our title to it.

” Happy Trails “

Chiefneon 

Not sure what State you live in but before I went full time I lived in CA. When I paid off several vehicles in the past, the bank would mail me the title marked paid and signed off. I would have to go to DMV myself and remove the lien from the title and reregisture with no lien. The bank would only send me the title which they had signed off.