Buying Advice buying used -- how to know if "title" is "clear"?

DroppedAxle · Jan 9, 2014

Thanks everyone. So the thing to do is to ask a lot of questions, figure out where the machine was bought and check with the original dealer, and to check for any local/state UCC records.

TSO · Jan 9, 2014

Like already mentioned ...

Each time I've financed a tractor here in Michigan, I receive the lien notice from the state a short time later in the mail.

I would have assumed that lenders take these precautions in any state, as a way of protecting their investment.

Also, if the tractor was paid off, and the lien released ... then a seller should have appropriate documentation proving that. The only time I would think that would not apply is this the person paid cash up front ... in which case, he should have a sales receipt.

GolfAddict · Jan 9, 2014

The other consideration beyond a lien would be, if he's really unscrupulous, that he's leasing the tractor and scamming you into buying it when it isn't his to sell. I'm sure that's highly unlikely, but you already mentioned you will check with the selling dealer so I think you'd be pretty safe there.

DroppedAxle · Jan 10, 2014

Something I see a lot (on craigslist especially) are guys wanting to sell their tractor in order to pay it off. Any suggestions on how to handle that safely? Or just avoid such deals altogether?

kjwpdjTia · Jan 10, 2014

I just bought my first tractor, a Kobuta Bx22, I live in the city limits and have less than 5,000 sq feet of land. I just got tired of shouveling snow and the snow blower is just as tough to operate. I took a lot of grief about it when I first got it but I notice my neighbors all ask me to help them every time it snows. You got to laugh they look at me funny when I ask for gas money, not much just $5.00 per end of driveway and $10 for the whole driveway and they have to have a placed to put the snow, against the law here to put it back in the street. I'm retiring and need another toy.

TSO · Jan 10, 2014

DroppedAxle said:
Something I see a lot (on craigslist especially) are guys wanting to sell their tractor in order to pay it off. Any suggestions on how to handle that safely? Or just avoid such deals altogether?

What you'll do is, send payment directly to the Lein holder. If you pay more than he owes, either his lender will cut him a check for the overage, or you (or your lender) will cut two checks. One to the lien holder for the owed balance, and one to him for the rest.

If he owes more than the sale, he'll have to pay the balance to his Lein holder before they release the title to you.

kcflhrc · Jan 10, 2014

DroppedAxle said:
Something I see a lot (on craigslist especially) are guys wanting to sell their tractor in order to pay it off. Any suggestions on how to handle that safely? Or just avoid such deals altogether?

You can handle that safely and sometimes get a really good deal. You will need to be in contact with his lien holder. If they are local then that is a big plus. If they are not you can still get in contact with them with the guy on the phone and find out the particulars.

The Fred · Jan 10, 2014

By the way UCC filings need to come off your record! It's best to check in your home state to make sure as it can be a problem if the people you financed with don't remove them.|

You can search by state:
http://www2.sos.state.oh.us/pls/bsqry/f?p=100:5:0:::::

Fred

unbidden · Jan 10, 2014

robdefm said:
hello folks,I would suggest checking to see if a UCC is listed with the state.It means uniform commercial code,and even if you think your loan isn't using the financed item as collateral--it is.While reading this I went and goggled UCC, and there they were,hope this helps,Rob

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