OP
Capricious
Platinum Member
I think they have (6) years:
SS 3-118. STATUTE OF LIMITATIONS. | UCC - Uniform Commercial Code | LII / Legal Information Institute
It is possible that state laws may differ.
liens
- Thread starter Capricious
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I think they have (6) years:
SS 3-118. STATUTE OF LIMITATIONS. | UCC - Uniform Commercial Code | LII / Legal Information Institute
It is possible that state laws may differ.
CincyFlyer
Veteran Member
Note that the six years mentioned is for the lien holder (say, JD) to take action (request payment or surrender of collateral) against the original purchaser. Once they do that, it's easy to get a judgement (whether you are JD or some guy who lost his garage down payment-another story), and that judgement is forever, at least in Ohio (and Kentucky and Indiana, I believe). Collectible? Maybe, maybe not. In the case of the tractor, the machine has some value, so JD will look for it. So if the tractor owner has a seven-year note, sells you his liened-upon tractor, and keeps paying the payments for several years, the "clock" doesn't start until he stops paying-thus missing a due date-and the lien-holder takes action. So, in theory, you could have a tractor for more than six years and still lose it (but at that point it's likely paid down to a point where you could pay it off with JD or whomever.)
I don't know if there's something similar to "title insurance" for a tractor, but it's something I would probably buy-of course, they'd do a UCC search first, which, it appears, we all should do for high-buck capital items. I do note that many states have searchable databases of UCC filings, perhaps all.
DavesTractor
Elite Member
Great input Capricious and CinciFlyer.
I am thinking that the original owner stopped making payments right away, and was in fact behind on payments when he "sold" it as think the loan balance is $37k. But even so, that won't get us beyond 6 years, and as mentioned that applies to the original purchaser. Seems the law is pretty clear on the original purchaser being obligated to this loan, but I do not know if there is any obscure way that the new purchaser, given enough time and with a purchase clearly made in good faith, can have a legal right to keep this tractor. Probably not, but worth checking.
I am thinking that the original owner stopped making payments right away, and was in fact behind on payments when he "sold" it as think the loan balance is $37k. But even so, that won't get us beyond 6 years, and as mentioned that applies to the original purchaser. Seems the law is pretty clear on the original purchaser being obligated to this loan, but I do not know if there is any obscure way that the new purchaser, given enough time and with a purchase clearly made in good faith, can have a legal right to keep this tractor. Probably not, but worth checking.
DavesTractor
Elite Member
...another thought. If JD Finance had noticed the change in registration and put it together with a loan that was in arrears (assuming it was at that time) and did this promptly, both the new buyer and JD Finance themselves would have been in a much better position to track down the original owner. I'm not sure they had any obligation to do so however. But if I were the buyer I would make a fuss with JD and say, "hey I bought this thing in good faith, paid for it and quickly registered it in your system. Now years later you say you are coming to get it? You should have told me right away, and so forth. " Not sure if that has any legal legs, others may comment.
OP
Capricious
Platinum Member
It has already been alluded to, but I think it should be emphasized that Deere Financial is not the "bad guy" here- the seller of the tractor is. Unfortunately, there may be little possibility of collecting from him.
All of this worried me when I bought my junky little used tractor in 2014.
All of this worried me when I bought my junky little used tractor in 2014.
John Fitzgerald
Gold Member
Is it generally safe to buy a used tractor from a regular tractor dealer?
OP
Capricious
Platinum Member
In regards to the status of legal title to the tractor, it is probably safer to buy from a dealer if for no other reason than the dealer
probably has "deeper pockets" if the deal should go bad.
Of course, the dealer will almost certainly charge more for the same tractor than a private seller would, just as with cars or trucks or about
anything else.
Teachu2
Platinum Member
Yes, as you have recourse against the dealer - assuming they haven't packed up and left the country.
dfkrug
Super Member
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- 05 Kioti CK30HST w/ Prairie Dog backhoe, XN08 mini-X
What I do when buying a used tractor is contact the nearest local authorized dealer of that
brand and give them the VIN. They can look it up and give you all sorts of info, including
whether or not it is in a "stolen database". That has worked for me with Kubota, but I am not
sure all brands do that.
An individual who legitimately owns a tractor should have some paperwork showing his
purchase. A used tractor dealer will have some paperwork, as they don't want to get
burned in this way either.
I would like to see tractor makers step up and issue titles for tractors and states to share
ownership info. That is happening more and more with offroad vehicles and it has helped
combat the stolen (and lien) problem. Sadly, states don't always share that info yet, so an
ATV stolen out of state can be re-titled in our state. ATV/UTV/dirt bike makers need to step up and
maintain stolen databases, as (some) tractor makers do.
John Fitzgerald
Gold Member
I wonder if the current owner would be off the hook if he had sold the tractor in good faith a year or two ago, and no longer knew to whom he sold it?