Buying a used boat from private party in Texas

I'm looking to buy a used boat from a private party in Texas, who still has a bank note/lien to pay off. Texas Parks & Wildlife Dept's website has some forms to help, and specifically states do not buy a used boat without receiving the title signed on front and back. The owner obviously needs me to pay him, so that he can pay off his bank note and get the title.

Will a Bill of Sale, signed by both parties, cover me until the owner receives the title and forwards it to me? Should I complete all forms mentioned in the TPWD's guidelines for buying a boat?

Buying a boat in this state can be a pain if everything isn't per their specific instructions. They will pick apart a bill of sale when you bring it to the counter. Been there and done that several times.

I would get something in writing from him and the bank plus any forms signed by him you will need for TPWD. When he gets the title (signed by him) you will be able to transfer ownership but not until then I believe.

Originally Posted by Treybiz

Buying a boat in this state can be a pain if everything isn't per their specific instructions. They will pick apart a bill of sale when you bring it to the counter. Been there and done that several times.

I would get something in writing from him and the bank plus any forms signed by him you will need for TPWD. When he gets the title (signed by him) you will be able to transfer ownership but not until then I believe.

I was afraid that I might hear someone say this. What could he provide from the bank to help with the process, other than the clear title?

Most banks can/will provide a release of lein when they receive the monies. But, TPWD isn't going to take that and transfer ownership to you. They want a clear signed title and a signed title transfer form. And all your I's dotted and your T's crossed.

The TPWD offices I've used in the past don't exactly have rocket surgeons manning the desks and if what you have doesn't meet their checklist they won't listen to common sense.

Best of luck

You'd be better off paying the lienholder directly, rather than paying the seller the entire purchase price and having to trust him to actually use the money to pay off the lien. Here's a summary article:

http://www.treesfullofmoney.com/?p=2923

Also, check for any additional liens:

http://www.nolo.com/legal-encycloped...tle-check.html

Just make the check out to him and the bank.

bank gets paid, then they pay him separately

Yep....pay the bank. They will send you the title directly, and pay him any equity separately.

Sorry.....don't trust anyone but the bank.

Originally Posted by bstroop

Yep....pay the bank. They will send you the title directly, and pay him any equity separately.

Sorry.....don't trust anyone but the bank.

So if I pay the balance of loan off, directly to the bank, they will mail title directly to me? That would simplify this a lot.

Yes, in fact I bet you could pay the bank the entire amount and they will cut the extra back to him.

Yes...let the bank pay the seller. That way there's no disputing how much you owe him. It's all documented at the bank.

Turns out the seller's dad is the actual owner of the loan. He claims his dad gave him the boat and payments. Do we need his dad to provide documentation that the seller is authorized to sell the boat.

The dad, the seller, all lienholders, and anyone else with an ownership interest in the boat and/or trailer must be included in the transaction. I'd get the trailer VIN and check for any liens on that as well.

What Eric Said....

If the dad is the leinholder on everything then you are going to have to get him involved. I had a notorized power of attorney for a boat that I was given a few years ago and I still had to get the title and title transfer signed by the folks (my wife's uncle) that gave me the power of attorney in the first place.

TPWD sucks.