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PWC Trailers/titles/registration headache. . .
4/30/2012 8:18:33 AM
So the wife and I are looking at buying a Seadoo. We found one we liked and made an offer. The seller apparently had never transferred either the trailer title or the PWC regristration when she bought it from the first owner. The guy she bought it from just signed all the blanks on the "sellers" line, but she never signed any of the "buyers" lines. I'm guessing she needs to go get this shit transferred into her name before I would buy it.
The 1st owner dated one of the lines and it was 2 years ago. I have the feeling that when she goes to the revenue office they will be a little pissed about sales tax and personal property tax right? If I were to buy it without her taking legal ownership first, then that gets her off the hook for paying the sales and P.P. tax, which sounds illegal to me.
Thoughts?
She has to have all this transferred to her name first right?
The 1st owner dated one of the lines and it was 2 years ago. I have the feeling that when she goes to the revenue office they will be a little pissed about sales tax and personal property tax right? If I were to buy it without her taking legal ownership first, then that gets her off the hook for paying the sales and P.P. tax, which sounds illegal to me.
Thoughts?
She has to have all this transferred to her name first right?
4/30/2012 9:32:26 AM
If the person you are trying to buy it from never went and legally transferred ownership to themselves and try to sell the seadoo to you...it is referred to as "floating" a title. Yes it is illegal. It can be done (although illegal), but YOU will end up paying the penalties and back taxes. The seller either doesn't have the $$ or doesn't want to pay the extra $$ –– That is why the person selling the seadoo still has not went and titled it.
There are ways that you and the seller can skirt those issues, but it is still illegal. It isn't worth the fine or fraud that would be involved.
If the seller really wants to unload it, they can go and get the seadoo titled properly. Pay the fees & possible fines and then sell it to you (This is how I would handle it.). You might mention to the seller that they can fill out an affidavit @ the revenue office stating that the PWC and trailer has NOT been in use because it was out of service, in repair, and unusable. The revenue office sometimes will waive the late filing fees and pro-rate the PP taxes (sometimes).
I've handled several car sales with this type of situation and doing it right will make it easier for you in the long run. If you and try and make it easier on the seller...it could end up costing you in the long run.
Hope this helps.
DK
There are ways that you and the seller can skirt those issues, but it is still illegal. It isn't worth the fine or fraud that would be involved.
If the seller really wants to unload it, they can go and get the seadoo titled properly. Pay the fees & possible fines and then sell it to you (This is how I would handle it.). You might mention to the seller that they can fill out an affidavit @ the revenue office stating that the PWC and trailer has NOT been in use because it was out of service, in repair, and unusable. The revenue office sometimes will waive the late filing fees and pro-rate the PP taxes (sometimes).
I've handled several car sales with this type of situation and doing it right will make it easier for you in the long run. If you and try and make it easier on the seller...it could end up costing you in the long run.
Hope this helps.
DK
4/30/2012 1:03:07 PM
Thanks, that all makes sense and I do plan on going the right/legal route.
As of this morning, she has agreed to do all the paperwork this week. If she gets it all done properly, I will be happy to buy it. The trailer title will suck though since I'd have to wait 3-5 weeks for the new title to arrive. Would it be foolish of me to take delivery o the Seadoo and trailer prior to having the new trailer title in hand?
As of this morning, she has agreed to do all the paperwork this week. If she gets it all done properly, I will be happy to buy it. The trailer title will suck though since I'd have to wait 3-5 weeks for the new title to arrive. Would it be foolish of me to take delivery o the Seadoo and trailer prior to having the new trailer title in hand?
4/30/2012 7:52:01 PM
My boss just did this on a 40 yr old pickup he just bought. The guy he bought it from never got it registered and never signed the title. Neither of us knew it was illegal though. Anyhow, he got a bill of sale from the guy and took the original title to the DMV. It didn't cause much of a problem for him, if any.
I'd say buy it and go get it registered. It's not like you did anything wrong.
Some friends of ours did the same thing when they bought my old bike for their youngest son who was a few years younger. We found out when they sold it a couple years later that it was still registered in my dad's name.
I'd say buy it and go get it registered. It's not like you did anything wrong.
Some friends of ours did the same thing when they bought my old bike for their youngest son who was a few years younger. We found out when they sold it a couple years later that it was still registered in my dad's name.
5/2/2012 6:50:57 PM
Go with her to revenue if you can and have the title mailed to YOU.
5/3/2012 10:36:55 PM
Arkansas does not title boats (or PWC's in this case), only the trailer. Also, no sales tax is due in Arkansas on a used boat. All you should need at the revenue office to do the PWC is a bill of sale showing where she bought it from the last registered owner and a bill of sale where she sold it to you, your assessment showing where you've added the PWC, your previous year's personal property tax receipt and insurance on the PWC in your name. Depending on whether there is time remaining on the registration and the length of the PWC, this will likely cost anywhere from $2 to $15.
As far as the trailer goes, if she took possession of the trailer, it is illegal for her to sell it without getting a title in her name first. She would have to have it assessed in her name first, have her previous year's personal property tax receipt, and turn in the title and bill of sale (which may be filled in on the back of the title) to the revenue office. Depending on how much she paid for the trailer alone (not the whole package, but just the value of the trailer by itself), more than likely she will not have any sales tax due if the price is less than the sales tax cap for the date she bought it (after January 1, 2012, $4000, before January 1, 2012, $2500). Once her title comes in, she signs it off on the back as seller and fills out the bill of sale to you and you can take it to the revenue with your assessment and property tax reciept to get it put in your name. You can have them mail her title to you, but you will still have to take it back to her and she will still have to sign off on the back as seller before you can get it registered in your name.
You should only be liable for the personal property tax from the date you purchased it, and she should be responsible for her personal property tax from the date she bought it, plus any penalties they may assess due to her not adding it to her assessment when she was supposed to.
As far as the trailer goes, if she took possession of the trailer, it is illegal for her to sell it without getting a title in her name first. She would have to have it assessed in her name first, have her previous year's personal property tax receipt, and turn in the title and bill of sale (which may be filled in on the back of the title) to the revenue office. Depending on how much she paid for the trailer alone (not the whole package, but just the value of the trailer by itself), more than likely she will not have any sales tax due if the price is less than the sales tax cap for the date she bought it (after January 1, 2012, $4000, before January 1, 2012, $2500). Once her title comes in, she signs it off on the back as seller and fills out the bill of sale to you and you can take it to the revenue with your assessment and property tax reciept to get it put in your name. You can have them mail her title to you, but you will still have to take it back to her and she will still have to sign off on the back as seller before you can get it registered in your name.
You should only be liable for the personal property tax from the date you purchased it, and she should be responsible for her personal property tax from the date she bought it, plus any penalties they may assess due to her not adding it to her assessment when she was supposed to.
5/4/2012 2:45:58 PM
Originally Posted By AR_BUDMAN:
Arkansas does not title boats (or PWC's in this case), only the trailer. Also, no sales tax is due in Arkansas on a used boat. All you should need at the revenue office to do the PWC is a bill of sale showing where she bought it from the last registered owner and a bill of sale where she sold it to you, your assessment showing where you've added the PWC, your previous year's personal property tax receipt and insurance on the PWC in your name. Depending on whether there is time remaining on the registration and the length of the PWC, this will likely cost anywhere from $2 to $15.
As far as the trailer goes, if she took possession of the trailer, it is illegal for her to sell it without getting a title in her name first. She would have to have it assessed in her name first, have her previous year's personal property tax receipt, and turn in the title and bill of sale (which may be filled in on the back of the title) to the revenue office. Depending on how much she paid for the trailer alone (not the whole package, but just the value of the trailer by itself), more than likely she will not have any sales tax due if the price is less than the sales tax cap for the date she bought it (after January 1, 2012, $4000, before January 1, 2012, $2500). Once her title comes in, she signs it off on the back as seller and fills out the bill of sale to you and you can take it to the revenue with your assessment and property tax reciept to get it put in your name. You can have them mail her title to you, but you will still have to take it back to her and she will still have to sign off on the back as seller before you can get it registered in your name.
You should only be liable for the personal property tax from the date you purchased it, and she should be responsible for her personal property tax from the date she bought it, plus any penalties they may assess due to her not adding it to her assessment when she was supposed to.
Arkansas does not title boats (or PWC's in this case), only the trailer. Also, no sales tax is due in Arkansas on a used boat. All you should need at the revenue office to do the PWC is a bill of sale showing where she bought it from the last registered owner and a bill of sale where she sold it to you, your assessment showing where you've added the PWC, your previous year's personal property tax receipt and insurance on the PWC in your name. Depending on whether there is time remaining on the registration and the length of the PWC, this will likely cost anywhere from $2 to $15.
As far as the trailer goes, if she took possession of the trailer, it is illegal for her to sell it without getting a title in her name first. She would have to have it assessed in her name first, have her previous year's personal property tax receipt, and turn in the title and bill of sale (which may be filled in on the back of the title) to the revenue office. Depending on how much she paid for the trailer alone (not the whole package, but just the value of the trailer by itself), more than likely she will not have any sales tax due if the price is less than the sales tax cap for the date she bought it (after January 1, 2012, $4000, before January 1, 2012, $2500). Once her title comes in, she signs it off on the back as seller and fills out the bill of sale to you and you can take it to the revenue with your assessment and property tax reciept to get it put in your name. You can have them mail her title to you, but you will still have to take it back to her and she will still have to sign off on the back as seller before you can get it registered in your name.
You should only be liable for the personal property tax from the date you purchased it, and she should be responsible for her personal property tax from the date she bought it, plus any penalties they may assess due to her not adding it to her assessment when she was supposed to.
Dang, man. Do you work at the revenue office or something?
I think we have it all worked out. She had the registration transferred to her name, and now we will fill out the back side where it gets transferred to me. The title is en route (3-5 weeks), but we have a written agreement where I am withholding $500 of the total purchase price. That money will be delivered upon my receipt of the title. If I get the title and don't pay her––she gets her shit back. If she doesn't get me the title within 3 months––I don't pay the $500.
5/4/2012 4:17:13 PM
No. But the Wife works for the revenue office.
