So I have finally found a reasonably priced boat that I'm extremely interested in purchasing, but have run into an issue with the purchase. The seller I'm looking to purchase the boat from financed it brand new, and is currently still paying on the boat. Considering they're still paying on it, they do not have the title readily in hand. This is an issue for me as the buyer, considering we have come to an agreement on a price lower than what they owe on the note. I don't feel comfortable doing business and handing all this cash over with no title in exchange. I'm posting on here because this will be my first boat purchase, and wanted to understand what my options would be to get me in this boat worry free? I'd hate to lose this boat from my grasp, so I want to make a deal with the seller ASAP.

you will have to do the transaction with the lien holder to be legal, or have the lien holder sign off on the title. any other way isn't legally binding. also in Tx you must have the title put into your name. if the title is signed by the lien holder and you never do the transfer, the state still has it listed as having a lien on it. i didn't have my trailer put in my name after paying the boat loan off and lost the temp title. ten years later it was like pulling teeth getting all the i's dotted. the state still sent me a renewal notice every year, so i had plates on the trailer, but it still was in the lien holders name. have the seller go with you to the loan institution and do the paper work.

Go with the owner to the place he has it financed and pay for it and get the title in your hands at that time. Go by a TP&W office and get all the paper work you need for the transfer of the boat and motor. You will need paper work from your vehicle registration office for the trailer. Very easy if you dot all the "i"s and cross all the "t"s.

When I bought my first boat, it was from the original owner, but the dealer never titled the trailer in his name. Had he not been with me at DMV it would have been a real mess.

What I'm giving the seller is a few grand short of what they owe on the note. The problem is the seller sounds like they will not be able to provide the remaining amount right then and there. Will the lien holder/bank still provide me with the titles even though the full amount that is left on the note will not be paid at the time of my purchase?

They will not release the title until the loan is paid off...so even if you finance it with your bank at the agreed price, his lienholder would receive less than pay off and not release titles. Either he or you will have to pay the remaining balance to receive the original cleared title.

Like Ol Man River said. If the seller doesn't have the cash difference between what he's sell it for and what he owns the lender isn't going to let it happen. Sadly situations like this ruin a great deal. Also DO NOT give the seller any money in any way, shape, or form.

All good advice. No title, no cash. You might want the boat really bad, it very well might be the deal of the century, but if you can't get a clear title, walk/run/scram.

Like others said either the buyer or seller has to cover the payoff on the titles or the lien holder will not sign off on titles. When I buy something with a lien which is not often I do the transaction at the lienholders office. When I sell something to the GP I always pay off lien if I have one and get a clean title. Just makes things a lot easier.

Agree lien has to be paid in full at time of purchase period.

Unfortunately that's what I figured. I'll have to see what I can do to get into this boat hassle free. Thank you all for the feedback!

No cleared title no cash no deal.