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Buying/Selling Tractors - How to be safe when there's no title?

9K views 27 replies 12 participants last post by  Akovia 
#1 ·
Here's the summary reason for my post - I bought my tractor new from a Deere dealer along with most of the implements. The other couple of items I also purchased new from another company or received as a gift. I own all of it outright. I have a deal pending to sell everything to a local resident and am wondering what is best to provide them in terms of any paperwork that shows full transfer of legal ownership to them in lieu of the fact that these items are not titled or registered within the state's systems.

I am not willing to provide a "full" copy of my original bill of sale to me because it has all of the pricing and such on it (plus it shows an implement that I have already sold). I suppose that I could take a photo of it, crop out the prices on the right side, and give that... But, that technically also still doesn't show that there is no lien on the machine (which there isn't).

If anyone has any suggestions or knows of a more formal 'registry' of sorts to use, I'm game.

Thanks in advance!
 
#2 ·
If you had a loan tgat used the tractor as collateral, there should be a payoff letter or the ability to get one from the lender. This would be more to protect the buyer than the seller. A notarized Bill of Sale would be my request if I was the buyer, after confirming the VIN is released from any liens.

The original receipt (if paid in full) is your "title" if there has never been other ownership or lien(s). What you agreed to sell it for and what you paid for it are details that shouldn't matter to the buyer. Unless it was some epic deal originally and you're selling a used machine for more than you paid. 😉
 
#3 ·
If you had a loan tgat used the tractor as collateral, there should be a payoff letter or the ability to get one from the lender. This would be more to protect the buyer than the seller. A notarized Bill of Sale would be my request if I was the buyer, after confirming the VIN is released from any liens.

The original receipt (if paid in full) is your "title" if there has never been other ownership or lien(s). What you agreed to sell it for and what you paid for it are details that shouldn't matter to the buyer. Unless it was some epic deal originally and you're selling a used machine for more than you paid. 😉
Thanks. Reasonable points... However... I don't recall what I got (if anything) in the mail from Deere Financial when I paid off the loan (and if I did get something, I have no idea if I still have it or where it is). I do remember grabbing a screen shot of the account at the time showing no balance on the loan, but I don't know if I still have it. Plus, I don't know that there's any way to 'prove' that no lender currently shows my machine as collateral for a loan of any kind. I'm trying to figure out how to fully transfer ownership to the new owner so he's protected and can insure it if he wants or whatever...
 
#5 ·
To me...its no different than selling a bicycle or a power tool. Don't offer to give the seller anymore than he asks for.
 
#7 ·
Seems to me you’re good to go. Give the buyer a bill of sale. If you know it’s yours without any encumbrances why worry about it. As for anything further if the buyer requests something else deal with it then.
 
#8 · (Edited)
"as is" bill of sale on each separate item ......its the buyers responsibility to do his own due diligence........if i were the buyer and extremely skeptical i would call in the vin# to JD to check status, get the bill of sale notarized, and get a receipt for payment if not paid by check

just a question.......how is he going to pay you? ........how will you know if his check is good? ....point is you will have to do your diligence on that end

if its a large purchase/sale i always like to take a picture of the other parties drivers license and car plates for my records
 
#9 ·
"as is" bill of sale on each separate item ......its the buyers responsibility to do his own due diligence........if i were the buyer and extremely skeptical i would call in the vin# to JD to check status, get the bill of sale notarized, and get a receipt for payment if not paid by check

just a question.......how is he going to pay you? ........how will you know if his check is good? ....point is you will have to do your diligence on that end

if its a large purchase/sale i always like to take a picture of the other parties drivers license and car plates for my records
I have a Purchase and Sale contract that I've drawn up based on a raw template I found online. I have each item listed out, serial numbers where available, and a total cost. It specifically states "As is" and "No warranty".

We use a common brick and mortar bank - we're going to meet at a branch where he will make a "cash" withdrawal that I will then deposit into my account. We will then proceed to where the tractor and everything is garaged and he will load up and take away.
 
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#11 ·
"as is" bill of sale on each separate item ......its the buyers responsibility to do his own due diligence........if i were the buyer and extremely skeptical i would call in the vin# to JD to check status, get the bill of sale notarized, and get a receipt for payment if not paid by check

just a question.......how is he going to pay you? ........how will you know if his check is good? ....point is you will have to do your diligence on that end

if its a large purchase/sale i always like to take a picture of the other parties drivers license and car plates for my records
I personally wouldn't let a private individual take a picture of my driver's license anymore than I would send a copy of it to a random stranger on the internet. How do I know that they are going to protect my personal information?
 
#13 ·
While I agree with the sentiment and I don't trust random buyer/seller however when it's a high dollar item like a tractor or a vehicle, I will make an exceptions. In MD for example, there's no requirement (at least was when I was a resident) to get a BoS notarized and there's nothing that forces the buyer to ever put the vehicle in their name. Should that buyer do something illegal with the vehicle and it was never transferred to their name, that BoS would be all that you have to hopefully release you of liability, add in a copy of a DL or similar would provide some additional documentation to validate the claim. Granted this is negated with getting a notary, as they will get all that information and (in theory) store it safely.

So yea, I guess I do ultimately agree with you Trav 😀 and will likely start to use a notary when desirable and not a state requirement. (Like tractor sales...)
 
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#17 ·
I just take a picture of the bill of sale with their name, town and signature on it to take care of my liability.

In Maine every used sale is as is where is unless a seller provides a written warranty.

As a buyer you might want to see some proof of ownership, but as a seller, get their money and send them on their way. Those are the only two legitimate concerns. If you want proof, take a picture of the bill of sale, and their vehicle taking possession as they leave your driveway.
 
#18 ·
I just take a picture of the bill of sale with their name, town and signature on it to take care of my liability.

In Maine every used sale is as is where is unless a seller provides a written warranty.

As a buyer you might want to see some proof of ownership, but as a seller, get their money and send them on their way. Those are the only two legitimate concerns. If you want proof, take a picture of the bill of sale, and their vehicle taking possession as they leave your driveway.
Yeah, every state has its own rules and such but I'm fortunate that the buyer is in-state (so I really only have to think about dumb laws from ONE place...lol). Good idea about taking a pic of them driving away with it loaded, too. Although I suspect I can go a step further and use the captured video off of my security cam in the front of the house of them loading and leaving. :)
 
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#20 ·
I certainly understand the sensitivity to a picture of a drivers license...I would comment that a notary in our area will normally review and/or take a photo copy of a driver's license for their records....main point is to verify identity and address should there be a problem .....as a example of a sale I will not perform without verification is a person to person gun sale as allowed in our state
 
#22 ·
All of this makes trading in big ticket items sound appealing.
 
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#23 ·
The struggle here is because these items aren't titled or have any sort of "official" documentation that shows ownership. Houses have deeds, cars/trucks/trailers/etc. all have titles, powersports typically have registrations... Tractors have, well, pretty much nothing.
 
#27 ·
As a banker, there is a way to check lien on a non-titled item. At least in Ga. I would think it would be somewhat standard in most states. "A UCC filing is a legal notice a lender files with the secretary of state when they have a security interest against one of your assets. It gives notice that the lender has an interest, or lien, against the asset being used by you to secure the financing. The term “UCC filing” comes from the uniform commercial code. In Ga, it is filed with the Clerk of Superior Court. It can be filed in the county you live in or on the statewide system. Most likely, Deere Financial is filing on the statewide system. Not sure as an individual how you would access the system. Lending institutions establish an account with the Superior Court system. I know you can go to your county Clerk's office & they can do a search for you. Your personal banker has the ability to look it up for you. The search is performed on the borrower's name. The search would show Deere's recording info along with a copy of the filed UCC. If it has been released/terminated, it will show a termination on file for that specific generated file number. If there is no release recorded, you need to contact the lender & demand a release/termination be filed.
 
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