I want to buy your tractor... what will you accept

[Thomas]

If I know buyer whatever means they wish to pay,not knowing buyer cash or check clears first.

 

[fried1765]

This is one thing that really irritates me in todays electronic and digital society.

If I write a check....the money comes out of my account the same day the person cashes it.
If I cash/deposit a check....usually the money is on hold for a few days. And unless I have the money in the account to cover the amount of the check they usually wont let you "cash" it. Only deposit.

Think about the people who still get a paper paycheck. Get paid on friday.....go to bank and deposit said check. After you deposit your paycheck, you write some checks to pay some bills that same day. Come monday you are overdrawn because the checks you wrote posted to your account immediately, yet you are still waiting on your paycheck to clear. The length of time for a check to clear your account SHOULD be the same no matter if it is being withdrawn or deposited. Which I have never understood.

As it pertains to making a large equipment purchase from a private party....perhaps the most "dangerous" part isnt the monetary transaction. Its weather or not the person actually owns the tractor to be sold. And Im not talking theft either.

With automobiles, there are titles. No title....they dont own and cannot sell.
No titles with equipment. So how can one be assured there is no lien on the equipment? Either through a MFG or through a persons private bank?

Heard horror stories before. Someone selling a tractor for $20k.....but owe 16k on it. By rights you hand them 20k and they "SHOULD" take 16k of that and pay off their lien. BUT.....what if they dont? They technically didnt have the right to sell.....so you technically dont own even though you are out 20k. And lien holder is well within their rights to re-posses.

So....that brings up the question of how do you know if the seller has a lien? Take him/her at their word? Even producing a paper from a dealer or bank saying loan was paid off is no guarantee? They simply could have found better financing at a different bank.....and their letter from the bank/mfg showing loan fulfillment could simply be the payoff from their new loan institution.

And I have read people say to call the sellers bank or dealer (similar to how a car dealer will call your bank to get a loan payoff amount). But there isnt any bank gonna give some random Joe lien information about one of their clients.

I dont have the answers and dont know how to handle things. Sure if you are buying a 50 year old tractor or backhoe for a few grand their probably isnt a lien associated with it. But when you see someone selling a 20k piece of equipment thats only a few years old....how can one be assured that it isnt gonna be re-possed in the future if the seller was less than honest? And not sure a chicken-scratch bill-of-sale the seller writes up on notebook paper would suffice.

I try to stick to dealers (new or used) when shopping or selling/trading in higher value stuff. Implements that are a few grand or less....its cash only.

So..... a buyer for your tractor travels a X (many?) number of miles to purchase your tractor. Unbeknownst to him it has an unpaid lien.
You collect the thousands of dollars cash, and stuff it in your pocket.
You give the buyer a hand written receipt.
The buyer drives away with your (now his) tractor on his trailer.

The buyer is completely safe! How would ANY lien holder ever locate that tractor to repossess?
Search all 50 states for every used tractor out there?
Check all used tractors shipped out of US ports?

That tractor is GONE!
The issue is now a legal one, between the lien holder and the seller.
As the buyer, with a receipt from the seller, you are not ever even aware that there was a lien issue.

 

[skipperbrown]

One thing that has worked for me as the buyer and for the seller on several occasions. I have Bank of America account. I see if there is a branch reasonably close. We meet at the bank and have them issue a cashier check right there. Everybody is protected. For deals under $10,000 I usually do cash, over that I do the bank thing. Luckily there has been a branch close enough every time I needed one.

If you don't do a cash deal, this is a very good approach (or do the transaction at the seller's bank). And if the buyer is smart, they will ask the bank to run a check to make sure there are no recorded liens on the equipment.

 

[LD1]

So..... a buyer for your tractor travels a X (many?) number of miles to purchase your tractor. Unbeknownst to him it has an unpaid lien.
You collect the thousands of dollars cash, and stuff it in your pocket.
You give the buyer a hand written receipt.
The buyer drives away with your (now his) tractor on his trailer.

The buyer is completely safe! How would ANY lien holder ever locate that tractor to repossess?
Search all 50 states for every used tractor out there?
Check all used tractors shipped out of US ports?

That tractor is GONE!
The issue is now a legal one, between the lien holder and the seller.
As the buyer, with a receipt from the seller, you are not ever even aware that there was a lien issue.

What if the buyer doesnt travel that far. 10 miles, 20 miles......would that not make it easier for a lien holder to locate?

Lien holder can make a report with police, with said tractors serial number and list it as stolen. Next time you as the buyer take it to a dealer for service work, or wanna trade it in....bam....listed in the data base as stolen.

OR worse case scenerio....when lien holder starts pressuring their client and wanting to re-posses.....they can sell you out. IF they vaguely know where you live. Win-win for the seller. Not only did they pocket their money....they also located the "stolen" tractor for their bank to go re-posses and get them off their back. Seller gets the money, bank gets the collateral, buyer gets screwed and how has to hire attorneys and try to settle the matter.

As a buyer, sure you are not even aware there is a lien issue......but as a buyer.....you may not be aware of stolen property either. IF you buy something that was stolen....it dont stop the police from taking and returning to rightful owner. This is just substituting the bank for a private individual.

IF the seller has a lien....they have no right to sell. The bank owns the equipment until loan is satisfied.

IF someone rents a tractor from a rental place.....and sells it to you for cash....unknown to you that the seller didnt actually own the tractor......when the dust settles who do you think is gonna get the tractor? (rental place) And who is gonna tied up in litigation to try and get their money back (you)

 

[skipperbrown]

The buyer is completely safe! How would ANY lien holder ever locate that tractor to repossess?
Search all 50 states for every used tractor out there?
Check all used tractors shipped out of US ports?

That tractor is GONE!
The issue is now a legal one, between the lien holder and the seller.
As the buyer, with a receipt from the seller, you are not ever even aware that there was a lien issue.

My buddy's SIL bought a Deere tractor a state away from a farmer who said he was selling because the tractor was too big. A deal too good to be true. 8 months later he gets a registered letter from Deere financing that they are repossessing his tractor for non payment. Not sure how they found him, but they did. He had to hire a lawyer and sue the seller who had by now declared bankruptcy. The only reason he got to keep the tractor was because the farmer's family stepped up and paid off the lien. Lesson learned: Always run a lien background search before buying expensive equipment from an individual.

 

[LD1]

Always run a lien background search before buying expensive equipment from an individual.

And how does an average Joe do that? And with any kind of certainty? And does it cover everywhere one may get a loan at? Local banks, credit unions, dealers, etc?

 

[5030]

And how does an average Joe do that? And with any kind of certainty? And does it cover everywhere one may get a loan at? Local banks, credit unions, dealers, etc?

By serial number and call the manufacturer. They can and will assist.

 

[LD1]

By serial number and call the manufacturer. They can and will assist.

So when a bank or local credit union offers a loan on a piece of equipment.....they in turn notify the MFG of said piece of equipment? OF does that only work for dealer/mfg financed stuff. IE.....kubota can only tell you if kubota finance corp has a lien against a particular tractor? Or they can tell you if Joe Schmoe has it finance through a local credit union or bank?

Its the stories like skipperbrown just told that I have read so many of. If the sellers family had not stepped up....his buddies SIL would be out a lot of money and a big legal hassle

 

[sixdogs]

Some states have a note holder database where liens on equipment are recorded.

 

[tmcj]

Would it be legally binding if you wrote up a bill of sale, including pictures, both parties signed, and had it notarized? Noting that possession would transfer upon clearing of the check?