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tyoungs's avatar
tyoungs
Explorer
Jan 25, 2017

How to document a "deposit" on a private party sale?

Helping a good friend who lost her husband just before Christmas - she is selling her motor home and I am handling all the contact with "prospects". Showing the unit tomorrow and if they want to purchase, what is the proper documentation for taking a deposit. We won't be able to finish the deal for about 2 weeks as the owner is out of town. So I want to be able to take a deposit with the understanding that it locks both of us into a specified deal.

I could come up with some appropriate language but I thought I would ask the all-knowing on here. Any suggestions would be greatly appreciated.
Class A
  • Jim's avatar
    Jim
    Explorer
    Jan 25, 2017
    Taking a small deposit to 'hold' a vehicle is fairly typical and it's usually pretty small. I've made deposits of $200 on $50,000 vehicles. It's also common to return the deposit if the buyer quickly changes their mind, usually after they have done research on the model. Ask any consignment dealer. Now, if the buyer wants you to hold the unit for weeks, that's a different story...and you keep the deposit.

    So in the real world, a deposit on a vehicle is rather informal. Don't over do it or the buyer might just walk...

    As far as the sale goes, the seller hangs onto the title until all monies are transferred.

    The more money involved, the stricter the informal rules become to protect either/both parties.
  • tyoungs's avatar
    tyoungs
    Explorer
    Jan 25, 2017
    found one on-line that will work, just googled
    "document deposit on auto sale"
  • Effy's avatar
    Effy
    Explorer II
    Jan 25, 2017
    You can download bill of sale and deposit docs on line.

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