Guy tried to sell me a bike without clear title

[SilverBurr]

I won an auction for a 2005 yz-250, ($3200) have all my money together and go to his house to get the bike. Bike looks good and runs well. So I asked for the title, will take the bike.

Long story short, he owes $4300 on the bike and was wanting me to give him $3200 and he will continue to make payments on the bike until the bank note is satisfied, at which time he will send me the title.

I told him, that I can't do this and the bank will not allow this. For all I know, he could take my money and go to Vegas. Needless to say, the guy was pissed, cause I won the auction but was not giving him the money.

I don't understand whats the matter with people, it's not his bike to sell until he pays the bank in full.

:coocoo:

 

[IndyMX]

Geeesh.. Some people.

 

[HajiWasAPunk]

I suppose he left this "little" detail out of the auction details eh? :)
You definitely made the right move. You should have asked to trade your ocean front property in Nebraska for the bike.

But the real moral of the story is that you shouldn't be buying a 2-stoke Yamaha, but rather a 4-stoke Honda (haha, let the games begin!) :nener:

 

[kdx200chick]

One more option, if you are still interested, is to go to the bank with him where he pays the difference owed and you pay your 3200. At that time, the bank can sign the title over to you and satisfy the lien.

 

[mtk]

That assumes the guy could come up with the extra $1100 in cash right then and there. Given his plan to keep making payments to the bank, I don't see that as an option.

 

[SilverBurr]

That assumes the guy could come up with the extra $1100 in cash right then and there. Given his plan to keep making payments to the bank, I don't see that as an option.

He said he didn't have the cash on hand to pay the differnece. I then asked him could he get a seperate loan to payoff the lien, he said he didn't want to do that. Didn't give a reason.

In a nice way, I told him that the bike wasn't his to sell, the bank is the the true owner until fully paid for. He kept on rambling about how he was not gonna ruin his credit over this(meaing that he could continue to make payments) and that his word was good.

I just told him I'll call him mid week and we could work something out. But I ain't calling him back if he isn't smart enough to understand basic business. Maybe he's selling the bike due to some sort of head unjury, cause he doesn't seem to be thinking very well. :whoa:

 

[sparkysakitas]

make sure you leave feedback relating to the situation so he doesn't try and do it to someone else and doesn't leave you bad feedback

 

[stevensj2]

As long as he provided a Bill of Sale, which you both signed, that showed you paid $3200 for ownership of that specific bike, you'd be good.

Any faulty payments that he made would only reflect his credit, and if he failed to pay, they'd come to him, not you. And that Bill of Sale would remove any liability from you for having to make those payments.

It would have been a safe buy that way, but still was not the best thing he could have done.

I'm sure the Bank could take it from you, since they'd be the real owners, but he would then owe you $3200, which would essentially mean you got to ride for free until that happened.

 

[SilverBurr]

As long as he provided a Bill of Sale, which you both signed, that showed you paid $3200 for ownership of that specific bike, you'd be good.

Any faulty payments that he made would only reflect his credit, and if he failed to pay, they'd come to him, not you. And that Bill of Sale would remove any liability from you for having to make those payments.

It would have been a safe buy that way, but still was not the best thing he could have done.

I'm sure the Bank could take it from you, since they'd be the real owners, but he would then owe you $3200, which would essentially mean you got to ride for free until that happened.

The bike is property of the bank, thats why they hold the title. He cannot sell it.

Definition of title

Law.
The coincidence of all the elements that constitute the fullest legal right to control and dispose of property or a claim.
The aggregate evidence that gives rise to a legal right of possession or control.
The instrument, such as a deed, that constitutes this evidence.

My advice to anyone who is trying to sell you a late model bike without a title, this is a huge red flag. A bank could knock on your door and demand their property. Any bill of sale you have doesn't mean squat.

You always have a right to take anything to court, but judge is going to say one thing, let me see the name on the title. CASE CLOSED!!!

 

[mtk]

As long as he provided a Bill of Sale, which you both signed, that showed you paid $3200 for ownership of that specific bike, you'd be good.

You'd be wrong on that one, 100%.

See the post above. A Title trumps a Bill of Sale every time.

 

[stevensj2]

You always have a right to take anything to court, but judge is going to say one thing, let me see the name on the title. CASE CLOSED!!!

Not exactly.

I have the title to my yz125. The original title, no surprise here, is not in my name.

I however have the bill of sale, signed by both of us, which will hold up in court pointing to me as the sole owner of the bike.

Even though it would be the same for a car, these are off-ride vehicles we're talking about. A title isn't even necessary, and most dealers, when selling the bike bran new, don't even have them.

 

[MikeT]

Here is another thing to think of. Most people refer to the Certificate of Origin as the "Title". From the way I understand it, the DMV issues a Title and the name can be changed on that when you apply for a new title.

 

[oldguy]

Not exactly.

I have the title to my yz125. The original title, no surprise here, is not in my name.

I however have the bill of sale, signed by both of us, which will hold up in court pointing to me as the sole owner of the bike.

Even though it would be the same for a car, these are off-ride vehicles we're talking about. A title isn't even necessary, and most dealers, when selling the bike bran new, don't even have them.

Yep but until you get a lien waivetr or clear title the bank still has controling interest in that bike. If he defaults yes the bank will go after him but they will take the bike from the next owner because he had no right to sell the bike without their approval.

Recently my son totalled a car which had the lien cleared but I had neglected getting a clear title issued. Before the insurance would issue me a check (instead of the bank) I had to take the lien clearance letter to the DMV and get a clear title issued.

My advice stay clear of this deal because the guy sounds financially shakey which is why he probably has to dump the bike in the first place.

 

[motometal]

dirt bikes, especially used ones rarely had any paperwork here until the last few years. They are now stongly encouraging you to title them and keep the registration current.

On the other hand, I sold a bike within the last year, and was bummed out because after the guy was already on the way I realized i'd misfiled the title. He wanted the bike, and wouldn't have even mentioned the title. Being the stand up guy that I try to be, I volunteered that I couldn't find it, but would get it to him eventually. He didn't care about it at all, only riding the bike in the back yard, didn't need it. Since then i've found it, but he has never called back. Technically the bike is mine, eh? (although of course I would never try to claim it).

 

[oldguy]

dirt bikes, especially used ones rarely had any paperwork here until the last few years. They are now stongly encouraging you to title them and keep the registration current.

On the other hand, I sold a bike within the last year, and was bummed out because after the guy was already on the way I realized i'd misfiled the title. He wanted the bike, and wouldn't have even mentioned the title. Being the stand up guy that I try to be, I volunteered that I couldn't find it, but would get it to him eventually. He didn't care about it at all, only riding the bike in the back yard, didn't need it. Since then i've found it, but he has never called back. Technically the bike is mine, eh? (although of course I would never try to claim it).

Between 2 people a bill of sale written up can take care of most worries- I have also sold all my bikes without a 'title' since Wisconsin does not issue titles to offroad vehicles.
My concern is when there is money owed a bank on the bike. They have a lien and until that is satisfied the bike is theirs as colateral and they can take it back if payment stop short.

 

[mtk]

What Oldguy said. You still having the title is one thing; the bank still having the title (due to a lien against it) is entirely another.