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Discussion Starter #1 (Edited)
So I am looking to finally upgrade my '97m750. Bikes I have purchased in the past have always been fully paid off. So it has been a simple matter of: checking out the bike, handing money over & getting signed title.

This time the bike I am looking at purchasing is from a private individual. The bike still has a lien with his credit union he used for financing the bike. So I guess this time it's handing over the cash, me taking possession of the bike, then he pays off the lien and sends me the title.

My question is, any general advice? He seems to be an honest straight forward guy, but I have watched to much People's Court not to be cautious. Is there stuff I should know, do? Anybody know of a website were a purchase contract can be downloaded?
Has anyone gone through this before?
ANY advice is appreciated!
 

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I'd recommend you and the seller go to the office of the lien holder where you pay off the lien and the proper paperwork is executed to ensure the vehicle is retitled in your name. Honest looking nice guys are one thing, but business is business. You gotta protect yourself.
 

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Depending on the state, a lien can be transferred, but it's not always an easy process. I'm assuming that the purchase price will cover the remaining amount owed plus a certain amount to seller to cover the remaining value or their asking price.

I'm not a big fan of lien transfer purchases - they are not as straight forward as they seem. Usually, the buyer takes on the risk that the seller will pay off the lien, receive the title from the bank, and then sign over the title to you. This could be a time consuming process. As someone previously said, they make look like a good, honest person, but business transactions sometimes blurs this appearance.

Perhaps you can create a contract that states that you will give him the amount needed to pay off the lien and will then give him the balance when you receive the title.
 

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I am going through with this but the financing company is GE, here is the process GE is making both of us do:

I pay GE off
Seller writes letter telling GE to send title to me
 

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It sounds like you are on the right track.

The PO of my bike also had a lien. We met at their credit union to handle the transaction.

Before I paid off the loan, I had them sign a Bill of Sale ( http://www.free-legal-document.com/free-motorcycle-bill-of-sale.html ) that legitimized the transaction of the bike. The Bill of Sale was signed by an employee of the credit union as a witness. To protect the transaction further, the Bill was also notarized.

After the contract was completed, I paid off the loan, the credit union released the title, and the PO signed the title over to me.

Good luck!
 

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Lots of good advice, but transactions will vary among states. Have you tried going to a motorbike dealer and explaining you situation and getting their recommendation? Most dealers will be glad to provide guidance, as they may secure you as a future client.
 
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