Looking for a 1999-2001 Sea Ray 210 sundeck. Found one that I like from a private seller 250 miles away in another state, but lean holder Compass Bank takes 4-6 weeks to release the paid off title. They will not allow a cash payoff in exchange for clear title at any of their branches. Is this standard with all the big banks? How then do I buy a boat from a private seller that has a lean holder? The seller suggested I pay him and he would send me the clear title in 4-6 weeks. I said no way.

Very standard. The titles are normally held at a central location so a local branch will not have access. To take that long to get the clear titles back is common but that does not make it right. Banks hold things for every penny they can get. The biggest part in your note is to pay a seller direct and wait for a clear title?? We would NEVER tell anyone to make a payment to a person and HOPE they go to the lender and do the right thing. If you meet at a branch and pay the lender, you will not get the clear title in your hand, but you will get a witnessed receipt that payment was made. You are right to back away from that set up. We deal with private sellers and buyers all the time. Every once in a while, we advise the buyer to back away. Sometimes if something "seems" odd, it is. There are ways to put the deal together that would satisfy both parties. Ask your seller if he would hand over money without any proof of ownership. Let us know if we can help.
Thank you,
Ken

Had another failed attempt at purchasing from and individual in Austin. I am a cash buyer, but insist on meeting at a bank to exchange thousands of dollars for the completed paperwork/title. Sell said no to that, insisting on cash at the boat location. He also did not like me asking all the right questions. So, I am paying a bit more than I intended, and buying from a dealer.

Not a bad idea. You hate to get to a point where you don't trust anyone but $$ do strange things to people. Every boat has some sort of ownership papers. Even in non-title states, the seller should have the original Manufacturer Statement of Origin (MSO), or a Certificate of Origin (C of O) for boat and trailer and one for the motor if an outboard. Documents make ownership, not just having the keys.
Ken