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

[tyoungs]

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.

[midnightsadie]

I.ve sold lot of boats .I just write from jon doe $ ---- to my name down payment on boat , to be completed by --- . copy to both .if your honest and there honest you,ll have no problem. make the deposit none refundable.

[DownTheAvenue]

I just love all of these arm chair attorneys.

You can do anything you want, and if all goes well, then it is no issue. If things turn sour, then your "RV.net" attorney advice may get you into more trouble. If the sale is for just a few thousand dollars, then winging it probably is OK. If the sale is 5 to 6 figures, then pay a local attorney $250 to $500 to handle the transaction. That gives peace of mind to the buyer and seller.

[timjet]

Offer to purchase is different from Bill of Sale.

Offer to purchase should include the VIN#, Year of vehicle and any other items included in the sale. Include a statement that the vehicle is free of any liens. It should also include a provision on how any deposit should be handled. If no contingency exits such as an inspection then the deposit will probably be non-refundable and should be stated. If an inspection is desired, financing required or insurance to be obtained then the offer to purchase should state that the deposit is refundable if the vehicle does not pass inspection satisfactory to the buyer, or the buyer is unable to obtain financing or insurance.

Also include the date upon which you will close the deal. Include enough time for the buyer to complete any inspection. It might be a good idea to put a phase into the contract with the provision that this date can be extended upon agreement of both parties.

I don't think it's necessary to over complicate this. No lawyer is needed unless some complicated issue is involved.

As a seller you should cash the deposit immediately. If the buyer has an inspection done and is unsatisfied with the inspection, he could walk and not pay for the inspection. A lien could then be placed against your vehicle.

In Florida, a bill of sale can be downloaded from the DMV web-site. The buyer then takes the completed bill of sale to the DMV along with the title and registers the vehicle. I would think most states are similar.

[rgatijnet1]

Since her husband died just before Christmas, I have to assume that a lawyer is involved to settle his estate. I also assume that her deceased husband's name is on the title, which further complicates the transfer to a new owner.
Why not let the estate lawyer handle the paperwork and deposit to sell the RV?

[Walaby]

Lwiddis wrote:
"I could come up with some appropriate language"
"Found one online that will work"
"You can download a bill of sale"

Hilarious! Do you also work on teeth? And do roofing?

Protect the lady. Get an enforceable contract with a Michigan attorney.

No need to over think it. I sold my 2010 Dodge Challenger. Took a 10K deposit, wrote a receipt and a basic agreement that I would reimburse the deposit, less 1K if sale/transaction cancelled by seller. Seller signed the agreement, I signed agreement, and we had two witnesses (his brother and my wife). I gave him a receipt and a copy of the agreement. He paid balance 30 days later and I signed title over.

Mike

[Lwiddis]

"I could come up with some appropriate language"
"Found one online that will work"
"You can download a bill of sale"

Hilarious! Do you also work on teeth? And do roofing?

Protect the lady. Get an enforceable contract with a Michigan attorney.

[Jim]

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]

found one on-line that will work, just googled
"document deposit on auto sale"

[Effy]

You can download bill of sale and deposit docs on line.