Private RV Sale through Escrow

[Mike M]

Hi all. I'm looking at buying a 5th wheel from a private seller from another state. Was thinking about setting up an escrow to hold funds until the title is transferred. Has anyone done this? If so, with whom did you set up the escrow? Looking for recommendation from satisfied users.

Thanks, Mike

Edited January 10, 2021 by Mike M

[Ranger Smith]

Not quite sure how that would work as a bank won't release a title till they have funds if there is a loan on it. If no loan it should be fine. I only used an escrow service once when I bought out a particular line of jewelry from a jewelry store and needed to check inventory before I paid them. It worked out fine for us. Don't remember the company name but will post when I think of it.

[Kirk W]

Welcome to the forums, Mike!

The use of an escrow service could be done, but I have never known anyone to do that in purchasing an RV. Those services can be quite expensive and if used, who pays that cost? I found the following on escrow.com...

Quote

By most accounts, an Escrow Officer will generate a buyer and seller base escrow fee and calculate it based on the purchase price. I made a few calls to local companies in San Diego and my basic research shows the following as a range: $1.00 – $2.25 per $1,000 in price plus $250 – $500 Base fee.

There are two questions that can either simplify or complicate the process. Is the RV financed now, and do you plan to finance it? The only time that I ever bought an RV that had a loan on it and financed it, I financed with the same bank that had the previous loan and we did the transaction at that bank in the presence of a loan officer. 

[agesilaus]

Lots of people seem to use a wire transfer, probably easier to setup

[sandsys]

As a seller I would not be happy with your plan since you are asking me to trust you to release the funds without you trusting me to sign the title.

Linda Sand

[rynosback]

18 hours ago, agesilaus said:

Lots of people seem to use a wire transfer, probably easier to setup

Wiring them money does not seem to be the issue. It sounds to me that they want to make sure that they don’t take their $$$$ and do not give a clean title. So I suspect that is why they asked about an escrow company. 

Edited January 11, 2021 by rynosback

[rynosback]

Why not call the lean holder and ask them what is the best way to proceed? See if you can get the paper work overnighted. This way you can go to the sellers area check out the rig. Ask for a signed title from them and give them the funds minus the Pay Off. When you get the pay off from the lender, ask how much per day in interest it is after a certain $$ date that you ask for. Unless you have a clean title, you will not be able to register it.

[Mike M]

On 1/10/2021 at 7:56 AM, Kirk W said:

 

There are two questions that can either simplify or complicate the process. Is the RV financed now, and do you plan to finance it? The only time that I ever bought an RV that had a loan on it and financed it, I financed with the same bank that had the previous loan and we did the transaction at that bank in the presence of a loan officer. 

The RV is financed now but I am paying cash. We are planning to close the deal at the credit union where the unit is financed. Sounds like my next step should be to contact the credit union to ask what they think is the best way to proceed. 

[Jinx & Wayne]

8 minutes ago, Mike M said:

Sounds like my next step should be to contact the credit union to ask what they think is the best way to proceed.

Be sure to ask whether thy have checked for the existence of other lien holders.  The credit union may have the primary lien, but there may be tax liens, court judgments or attachments, or liens from secondary lenders.  Secondary lenders are not likely on a used RV, but you need to be sure that the credit union is the only lien holder.

Wayne & Jinx
2017 F-350 diesel, dually
2006 Carriage Carri-Lite 36KSQ

[Kirk W]

51 minutes ago, Mike M said:

Sounds like my next step should be to contact the credit union to ask what they think is the best way to proceed

Absolutely. There is no need to go to the expense of paying an escrow agent, particularly since you will be paying cash. You will probably need to get the seller to contact his loan officer and OK them taking with you and then make contact with that loan officer before you actually travel there While it would not hurt for you to ask about other liens on this RV, in most cases they would not know if some other lender had loaned money against the RV as  my wife (a former loan officer) points out the title should be held by his bank and be delivered to you with a release of loan at the time of closing. You should also be able to arrange with the lender and your bank to have the money wire transferred between the two so that you do not need to walk around with that amount in cash or in certified check. 

I would start with a phone conversation with the seller, and then a conference call with him and his loan officer. 

[sandsys]

We have used wire transfer several times. Try to start early in the day as one dealer was so close to closing time when our wire came through that they almost sent us home without the new vehicle.

Linda Sand

[Twotoes]

You don’t need an escrow if the seller has a loan that will need to be paid off. The sellers bank will act as the escrow. The sellers bank will not release the title until it receives the funds to pay off the loan. Just ask them for a 10 day payoff. After you have signed the purchase agreement you can instruct your bank to wire the funds to the sellers bank to pay off the outstanding loan. Of course if you are buying for more than the amount owed you will have to give the seller the difference. Get the keys and possession of the RV when you pay the seller the difference, but not until you have verified that his bank has the title and will transfer it to you after they receive your banks wire.