Letting a buyer use my registration until title arrives from Yamaha - What's the risk to me??

[amccoy]

I'm trying to sell my 242 LS. I called Yamaha Motor Finance and they are telling me it would be 30-45 days to receive the title after I pay off the loan.

If I were to sell the boat, and the buyer got insurance, what would be the risk of letting them use my states registration until the title was received and transferred to them? Most likely the buyer will be in a different state than me.

Has anyone done this?

I'm sure there are reasons this is a bad idea, just want some opinions. I'm not even sure if someone could get insurance on a boat that's not registered to them.

 

[Ozark]

Your registration is no good for the next guy. In most states, a bill of sale acts as a temporary registration (usually good for 30 days). I recommend he calls his state DMV for a definite answer though. Insurance companies don’t care who it’s titled to, they’ll put insurance on it for anyone if they are paying. I recommend always keeping full documentation of your sale in case anything ever arises. I once left a license plate on a truck when I sold it, and the guy got involved in a hit and run 8 months later with my plate still on it. Luckily I still had proof of selling it to him when the attorneys came knocking.

 

[Jim_in_Delaware]

How long would it take the Yamaha to get a lien release to you? When I sold my boat last year (still living in Maryland, outside of Baltimore) I went to the DNR, filled out the form for a duplicate title and it arrived in the mail in about a week.

FYIW, I took off all the registration numbers from the boat, accompanied the buyer to a tag service, he got his temp tag and I took my metal tag off the trailer.

Jim

 

[amccoy]

How long would it take the Yamaha to get a lien release to you? When I sold my boat last year (still living in Maryland, outside of Baltimore) I went to the DNR, filled out the form for a duplicate title and it arrived in the mail in about a week.

FYIW, I took off all the registration numbers from the boat, accompanied the buyer to a tag service, he got his temp tag and I took my metal tag off the trailer.

Jim

I thought Yamaha had the title but I checked and I have it, it does list the lien.

Did your duplicate title have the lien listed on it?

 

[ripler]

I was told the same thing by Yamaha that my title would take 30+ days. I wish I could remember who I called, but I had it in a week. I'm pretty sure I called the title department directly.

 

[Jim_in_Delaware]

No, I just needed to replace my misplaced title. I had paid cash for the boat initially, so a duplicate title didn't reflect a lien. I'm wondering if you could take your original title to DNR along with the lien release from the bank, and get a new clear title mailed to you?

Jim

 

[Ozark]

No, I just needed to replace my misplaced title. I had paid cash for the boat initially, so a duplicate title didn't reflect a lien. I'm wondering if you could take your original title to DNR along with the lien release from the bank, and get a new clear title mailed to you?

Jim

That would be a waste of time. He just needs to give the buyer the title accompanied by a lien release.

 

[Neutron]

Some states transfer the registration to the new owner. Like in RI the registration number stays with the boat forever, i guess so you don't have to scrape off the numbers with every sale
You just sign the back

 

[jocolo21]

wirth a bill of sale he can use the boat with no reg numbers, not every dealer give you numbers when you buy a boat or jetski

 

[ripler]

I'm pretty sure the buyer can't get insurance on the boat with out having a title in his name.
Even if it was possible for someone to insure the boat without having a title, I wouldn't feel comfortable doing it.

Personally I would not let a buyer take the boat until the titles are transferred.

I would be less worried about the registration numbers being in your name once the title is transferred.

 

[HangOutdoors]

The key is insurance and liability. I would not insure a boat for the biyer to drive.

 

[Florida195fsh]

I just sold my 2 Waverunners a week ago. I had the same issue with potential buyers. The Bill of Sale will act as a temporary registration, at least in Florida. I did verify the buyer had insurance but I will keep my insurance on them until I send the titles to the buyer.

 

[2kwik4u]

The key is insurance and liability. I would not insure a boat for the biyer to drive.

I'm 100% the other way. I wouldn't drop insurance until it's out of my name. Even with a bill of sale.

If I sold my boat today, I would leave insurance in effect through the end of this term (May '22 is my renewal date), OR until I had proof the title was transfered.

 

[Ozark]

I'm 100% the other way. I wouldn't drop insurance until it's out of my name. Even with a bill of sale.

If I sold my boat today, I would leave insurance in effect through the end of this term (May '22 is my renewal date), OR until I had proof the title was transfered.

Completely unnecessary. When the bill of sale of sale is completed and you've been paid you have absolutely nothing to worry about. It is legally no longer yours.

 

[Epsmith19]

Separate Question, I don't mean to hijack the thread: I've always been terrified to buy a boat with a balance on it through a private transaction. Aren't you as the buyer taking a risk that the seller won't pay the balance off? Are there any protections for the buyer in these scenarios?

 

[2kwik4u]

Completely unnecessary. When the bill of sale of sale is completed and you've been paid you have absolutely nothing to worry about. It is legally no longer yours.

Maybe so. Easier to have it and not need it, than to need it and not have it. Cost $593/yr. A few months of prorate refund isn't worth the risk IMO.

 

[Ozark]

Maybe so. Easier to have it and not need it, than to need it and not have it. Cost $593/yr. A few months of prorate refund isn't worth the risk IMO.

What is the risk would you be taking?

 

[Florida195fsh]

Separate Question, I don't mean to hijack the thread: I've always been terrified to buy a boat with a balance on it through a private transaction. Aren't you as the buyer taking a risk that the seller won't pay the balance off? Are there any protections for the buyer in these scenarios?

I had a ton of buyers with this same issue. I provided the buyer with proof of my loans, payoff amounts, and proof I paid them off after I cashed his cashier check which I verified with his bank.

If I was a buyer I would be very skeptical and verify everything or pay a 3rd party to witness/verify everything.

 

[2kwik4u]

What is the risk would you be taking?

New owner takes the boat out while still registered in my name and crashes it and does property or personal damage to someone. The risk is that they are not insured, and those damaged would come after me since I was still the legally registered owner. I get the premise that the bill of sale *SHOULD* cover me from liability there, but I'm not going to bet that level of responsibility on the assumption that the bill of sale I downloaded or hand wrote (or even got from the BMV) will hold up to that level of scrutiny.

I've been burnt multiple times in the past with people not transferring cars out of my name, then getting DUI's, not paying taxes, or otherwise NOT doing what the should, and it comes back to me. Luckily it's not landed me in financial or judicial trouble, but it is always a giant pain in the butt to deal with. $50/mo is quite literally "cheap insurance" to make sure I'm covered if something major goes wrong and it comes back on me. If it doesn't, then I wasted a bit of money.

 

[Ozark]

New owner takes the boat out while still registered in my name and crashes it and does property or personal damage to someone. The risk is that they are not insured, and those damaged would come after me since I was still the legally registered owner. I get the premise that the bill of sale *SHOULD* cover me from liability there, but I'm not going to bet that level of responsibility on the assumption that the bill of sale I downloaded or hand wrote (or even got from the BMV) will hold up to that level of scrutiny.

I've been burnt multiple times in the past with people not transferring cars out of my name, then getting DUI's, not paying taxes, or otherwise NOT doing what the should, and it comes back to me. Luckily it's not landed me in financial or judicial trouble, but it is always a giant pain in the butt to deal with. $50/mo is quite literally "cheap insurance" to make sure I'm covered if something major goes wrong and it comes back on me. If it doesn't, then I wasted a bit of money.

The bill of sale is a legal transfer out of your name. You are legally not responsible whatsoever for what another individual does with a vehicle/boat/etc. that is no longer yours. You are ignorantly spreading bad advice. In your scenario of getting burned by the new buyer getting a DUI or not paying taxes, how exactly would you continuing to carry insurance remedy the problem? By you continuing to carry insurance you are arguably creating a much greater liability on yourself. If some type of incident occurs after sale, you want to have solid proof that it is no longer yours.