What is the best way to purchase a dirt bike from a private party who does not have title and it is being held by a collection company?
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What is the best way to purchase a dirt bike from a private party who does not have title and it is being held by a collection company?
I have agreed (in price) to purchase a dirt bike from a private party. The physical owner of the bike does not hold the title. The title is held by a third party collection service. The seller is listed on the title. The following is my plan to complete the purchase. Complete a “bill of sale” with the current physical owner of the bike with the following stipulations: 1. I, the buyer, directly pay the collection agency what is owed on the bike (preferably with my credit card: $900). The collection agency will release the title to the registered owner (Seller). I have been told the collection agency will not release or send me the title directly. 2. I will take physical possession of the bike with an agreement to pay the remaining balance ($300) to the seller when he receives and delivers title of the bike to me. Does this plan leave me with an undue amount of exposure? Specifically; what if the seller never delivers the title to me or tries to retake possession of the bike? Does my bill of sale supersede in this dispute? How difficult is the process to obtain another title through my State’s DMV (OR)? Is there something I should add or delete to make this better?
Asked on July 27, 2011 Oregon
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The best way to obtain legal title of the desired dirt bike where registered title is being held by a collection company due to presumed non-payment by the person who signed the loan is to have a written agreement written up to be signed by you, the collection company holding registered title to the dirt bike and the owner in possession as to terms of the purchase by you and transfer of legal registered title to you upon payment in full.
You shouldprobably consult with a business attorney to have a properly drawn up contract created for this transaction where all documents and monies would be placed with a third party escrow to make sure the transaction is completed as agreed. By having a third party escrow handle the transfer of money and registered title to you, you do not have to worry about never getting the registered title to the motorcycle.
Once you obtain registered title to the motorcycle, you need to send it to your state's motor vehicle department keeping a copy of it. You should also place insurance on the motorcyle as well right away once you own it.
Good question.
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