how to structure private sale

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JanieArcadian

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Jun 22, 2006
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I'm not sure if anyone can help with this. My Mother is privately selling a park model RV and is holding the financing for a short term (1.5 years). Is title transferred after the completion of the financing or at the time of the contract? Do they both need to hold insurance on the RV during this time period? Any help appreciated. Thank you.
 

Woody

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Mar 10, 2005
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The laws may vary from state to state but in my state the RV would be sold the same as any other motor vehicle. A contract would be drawn up and signed by both parties. The title would be surrendered to the buyer with the lien information filled in on the back. The contract would require the buyer to provide a full coverage insurance policy to the seller covering the vehicle.
I would have an attorney draw up the contract, the fee should not be much.
Make sure to get a substantial down payment.

Woody
 

Carl L

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JanieArcadian said:
I'm not sure if anyone can help with this. My Mother is privately selling a park model RV and is holding the financing for a short term (1.5 years). Is title transferred after the completion of the financing or at the time of the contract? Do they both need to hold insurance on the RV during this time period? Any help appreciated. Thank you.

That depends entirely on the rules of your state.  If her original title document was issued by your state's dept. of motor vehicles, that is it is a vehicle, then their rules will apply to the whole transaction.  Contact them.

 

Gary RV_Wizard

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As others have said, it will depend on your state laws.  In most states the title is issued in the name of the new owner at the time of sale and whoever holds the mortgage on the vehicle obtains a lien against it. Make sure the lien is registered with the state motor vehicle bureau or whaever agency supervises such things - be sure to find out ahead of time. It is common for the lien holder to actually hold the title paperwork itself and return it to the owner when the laon is payed off, but that is usually a matter of business practice rather than law.

Typically the mortgage holder requires the buyer to obtain insurance and to name the mortgage holder as primary loss payee. Insist on receiving a copy of the insurance paperwork each and every year until payment is complete.
 
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