So I am selling a recreation vehicle. The details are:

price is 17k.

Items is, as is. No Warranty

Buyer is providing a non refundable 1/3 down payment. Which I am cashing.

Lump sum balance to be paid in sixty days.

Title to be signed over and provided at the time final payment is made.

I am thinking or just drawing it up. Include vehicle description with vin. Having him sign it. Both have a copy.



Is there a better way to go?

Anything I need to include or change?

Thanks guys and gals.

I would include turning the vehicle over at the same time the title is signed and turned over. In other words, don't turn over the vehicle until final payment received.

Yes YJ, he does not get the vehicle until the full payment is made. I did not mention that specifically but implied it in mentioning he gets the titles when the final payment is made. Thank you.

do a search for vehicle sales agreement to get an idea.

Provide proof of full coverage insurance.

dg, once he completely pays for it. He gets the title and the vehicle. So your comment does not apply. Thanks though.

Write it up to the best of your ability. Keep it simple and straight forward.

I have them make the final payment and then go to the DMV and have it registered in their name. Then when they come back with the registration papers, I give them the key.

If they drive off and get in an accident, you want the vehicle to be in their name.

Sounds like you have a good handle on it. Only thing I'd do is check with you DMV and see if the have a form to report that you've sold a vehicle. If so, fill it out with buyer's information, note the mileage at time of transfer, and turn it in to the DMV. That way if anything goes sideways, there are any parking tickets, or whatever else, it won't come back to you.

You should also include what rights you have or don't have to the rv after the deposit is cashed.

Are you allowed to use it or must it be left alone. Are you required to keep insurance on it.

The contract should protect both parties.

Another note for the contract may be who is responsible for insurance/liability prior to closing of the sale (we assume it to be you, but I'd spell that out, perhaps with a policy). IF I was the buyer, I'd push for the funds to be held in escrow...with a copy of the contract. Obviously if the amount of the total transaction isn't a lot, then that wouldn't pencil. If it was anything over $40K, I'd insist on it. Other people's thresholds may be different.

Also...perhaps the signing should be done in front of a notary? I assume that you'd both want copies. Since you plan to cash the deposit check, perhaps just transact at your bank...they'll notarize the contract for free (assuming you have a good bank).

If things go sour and you end up keeping the deposit, I'd want his signature to have been witnessed.

There are other good suggestions in this thread.

Make sure to call it a down payment or partial payment, not deposit.
The lawyers here can step in but I think there is a legal distinction.
Be sure both get signed copies of the contract.
Make a bill of sale when it closes including mileage/odometer statement.
Sounds like you have it pretty well figured out otherwise.

IANAL, but "Sold As Is, no warranty expressed or implied, and Sold As Is, with no liability expressed or implied".

I'm just trying to help but you might as well wait for one of the forumn's lawyers to step in.

I see two red flags which I have a question on based on several years of faithfully watching Judge Judy.

quote:

Originally posted by old rugged cross:
Yes YJ, he does not get the vehicle until the full payment is made. I did not mention that specifically but implied it in mentioning he gets the titles when the final payment is made. Thank you.

If you're going to have a contract then you should express everything material instead of assuming that what you imply is clear and understandable to the other person or to the judge should things go south.

quote:

Originally posted by old rugged cross:
dg, once he completely pays for it. He gets the title and the vehicle. So your comment does not apply. Thanks though.

Why doesn't DG's proof of insurance not apply? Until he gets the title, then you're the owner.

If the worse possible case happens, all you have to show is the first payment made with the rv possibly destroyed or unusable and you'd be on the hook for whatever liabilities are associated with the RV like impound fees while the other party just walks away from the situation and all they're out is their first deposit.

Notarization isn't needed unless you doubt the person you are contracting with is the person he claims to be. That is all notarization does - confirms that the person is who they say they are. It doesn't make the contract any more enforceable.

Thanks I appreciate the thoughts guys. Some valid points. Thanks Jhe888 for the clarification and the Notary.

My state requires a notary to release the title upon a sale and transfer, Fwiw.