Posted by Donna in AZ on December 20, 2006 at 11:35:53:
Anne, thanks so much for the input!
I had done the checking with AZ DMV, but hadn’t thought of asking the PM to see what she wants me to do - excellent suggestion. I will call her today and based on her response I have a clear course of action.
Donna in AZ
Mechanics of first deal - input? - Posted by Donna in AZ
Posted by Donna in AZ on December 20, 2006 at 08:50:52:
My first deal is progressing, buyer approved by park and scheduled to close on 1/2/2007 when he returns to town. Unfortunately seller is 150 miles away, works during the week, and is not available on 1/2/2007, so I’ll have to buy before I sell.
I see three ways to go:
Buy on 12/26 when seller in town, go in to DMV and transfer title, then get my signature notarized on new title and hand to buyer on 1/2/2007.
Buy on 1/1/2007 when seller in town, do not transfer title, then ask buyer to sign a power of attorney so I can take documentation in to DMV and transfer title to me and then new buyer.
Buy on 1/1/2007, do not tranfer title, and then hand to buyer to transfer title directly from original seller. I believe this would be termed ‘skipping title’ and I got the impression this is not a good way to go.
In talking with buyer yesterday, I got the feeling that since he is paying cash he wants me to give him the title rather than doing a POA.
My question here is - when you do a cash sale, are there any risks to having the buyer transfer title? There’s a portion at bottom of title that I tear off and send in stating it’s sold, so I don’t think so, but wanted to get some input from others.
Worst case scenario here is buyer backs out and PM unhappy with me owning a trailer I can’t live in. I have had an offer from someone who wants to move the trailer, so I could do that if I have to.
Thanks for any input -
Donna in AZ
Re: Mechanics of first deal - input? - Posted by Tom (WA)
Posted by Tom (WA) on December 24, 2006 at 13:56:23:
Donna,
I don’t think that I would want to wait for the buyer before I have paid the seller and received the title. I would be concerned that if you try to do both the buy and the sell at the same time, both the buyer and your seller might discover the prices paid/received by the other. Neither would be happy and they might just figure out how to do a deal with each other and leave you out of the middle. It’s happened many times.
I’m not sure how long it takes to get a title in your county and I don’t know the cost. If you are fortunate, and the cost is low (no sales tax) and they can do titles in a couple of days, I would go that route. In my state, titles take over a month and they would charge an excise tax on both deals.
In either of the other methods, you are probably violating some regulation (dealer license, broker license, avoiding tax/fees, etc.), but frankly, I wouldn’t worry too much about that on one deal.
Good luck with it.
Tom
Re: Mechanics of first deal - input? - Posted by Anne_ND
Posted by Anne_ND on December 20, 2006 at 10:51:59:
Donna,
This is a question for the AZ DMV. We can’t tell you your state rules, get your info from the horse’s mouth.
This situation arises all the time, your DMV can tell you how best to handle it. In ND they were okay with me bringing in the title and transfering it twice, I just paid for both transfers, even though we never put it into the middle owner’s name (that would be you in this case).
I’d also talk to the PM about this and ask her what she wants you to do. I would say you want to keep the PM happy at all costs, even more so than the buyer. The PM should have some suggestions for working this out.
good luck,
Anne