I am looking to buy a bike from someone in Maryland, I am from PA. He has a loan, therefore a lein on the title. We were going to meet at a tag/title place in PA. He obviously needs my cash to payoff and have the lein removed, but how am I protected once I hand that over, to ensure the loan is satisfied? In PA, once all the paperwork is done at the tag place, you have a tag & temporary registration, and you can ride the new bike home. But this bit with the lein is a new wrinkle for me.

 

meet him at his bank, and watch him pay it off. I sold a Triumph 675 to a kid from MA back in 2010, he accompanied me to my credit union where I paid it off in front of him, however, the title was mailed to me, he had to trust that I'd send it to him which I did.

I'd say your situation is similar, shouldn't be too difficult. I'd get a notorized bill of sale as well...

 

im in pa too and this is exactly what we did with my camper from md.

 

I think in MD the owner has the title and it is stamped/printed with the lien holder on the title. The owner will need to pay off the lien. May want to contact MD DMV & PA DMV to see how this is handled or go to the lien holder (bank) and see how ownership is transferred.

 

Toms of vehicles are sold with liens - you need not complicate this. Meeting at the title place in PA does not resolve your issue. Even if you met there and he signed the title over to you, PA will still indicate there is a lien until they have proof that it is paid off.

Might I suggest an alternate solution. First, who is the lienholder? Perhaps that institution has offices in both MD and PA. If such is the case, meet at one of those offices. They can then stamp or release the line when funds are paid. At the same time, he can sign the title over to you. At this point, you can register the vehicle, lien free.

By the way, PA, like most states allow you to drive a vehicle a few days - allowing you time to register it when you purchase a used vehicle. Just make sure you give the guy his plates and keep the bill of sale with you while riding to register the bike. \

Enjoy your new bike

 

The tag place should be able to help you out. Maybe an one line payment to the lean holder at the notary and a paid recite ?

 

I spent a number of years in the automotive financial business. Most lienholders will not release the lien until certified funds are received. Usually, an online payment (unless from the same bank) is not considered certified funds.

 

Get a payoff statement from the lienholder, buy the bike subject to the lien and pay the seller the net, sale price less payoff. Pay the lienholder yourself and file the release when received. Or make payments, your choice.

 

I’d buy a different bike and stay away from this.

 

OP here. When I was young my GF had a car that was owned by her stepdad and on his insurance. She reimbursed him for insurance each month. She then bought the car and title was transferred to her. The car was in an accident 2 days later, and that's when we learned we had no insurance. It was still on stepdad's policy, but you can't insure a car you don't own. She needed her own insurance. It was a huge PITA, but after many months, the insurance co covered it. Lots of lessons learned.

Some people might be ok with paying for the bike and waiting for the title, but it would still be the seller's bike, have to be on his insurance, etc. Lots of risks to both parties in this situation.

As someone some said above, he has to pay off the bike himself to get a clear title. If he can't do this, there is one other option, the Harley Rider to Rider program. We both go to the dealership, he brings the bike. I apply for a loan through HD (Eaglemark - they are the lienholder now). I don't need a loan, but for the sake of this transaction, it allows for title transfer and everyone is protected. HD does an inspection of the bike, and when all the paperwork is on hand, we both go back for signatures. Everyone leaves with what they want. I would pay my loan off immediately. HD charges for this of course, but if he can't cover the lien himself, it's probably the only (safe) option.