Keep your insurance coverage for at least a month. If the check is counterfit, you can file a theft claim with you insurance co!

 

That's a tough question and a good question. With all the scams going on, you pretty much have to wait until the check clears. If you call the issuing bank, dont use the phone number printed on the check. It could be a buddy of the scammer answering the phone and saying it will clear. Look up the bank and get the phone number from their website or phone book.

Buyer could then put a stop on the check, so definitely hold the title and keep insurance on the car until the check clears. You are liable for anything the vehicle does while it is in your name. I would also have them show proof of insurance before driving away, or at least proof they have full coverage on another car (usually insurance companies will grant coverage of a car just purchased on the same policy).

Many things can go wrong, but if they show up in person, most likely it is legit. It is the mailed checks and remote deals that you really have to watch...

 

very true.

that reminds me why i always pay a small fee go though a third party to do the transaction even though i sell it myself. for the peace of mind it's well worth it & protect both parties.

 

Turning that around, anyone that faxes a copy of a check for "verification" is a fool. A faxed copy of a check CAN be cashed.

Are you sure of that? If you sign releasing your interest in the vehicle, even if the payment is fraudulent, I think you're still out. Would be interesting to know for sure.

 

You are. From what I know, it depends on the mileage on the title. That's why it's extremely important to have the mileage accurate before you guys part ways.

Also, from what I've heard from my banker, banks will most likely not reverse cashier's checks. Cashier's checks (if legitimate) are drawn against the bank, not the personal account. As such, it's very very difficult to get those reversed.

My knowledge is a couple of years old, however...I haven't been buying/selling like I used to, so who knows if they still stand today (and I know I'm really late to this post, sorry!).

 

it is not difficult to reverse a cashier's check at all. The purchased person reports to the bank the check was lost. The bank will refund or reissue another check and void the old one. Then the old check will bounce. How hard can that be?

 

If the payment is fraudulent, the agreement between you and the seller is nil and void. In essence, it is not any different from somebody outright stealing it. Not to mention that you can always get a replacement title made unless the vehicle is already registered on somebody's else's name.

 

I've asked the same question to a manager of the local B0fA branch. He said that in the case of a lost cashiers check or mo, the bank will indeed re-issue a new document, but only after a "wait and investigate" period of about 30 days.

If a check is indeed legit, reversing it will be time consuming. I'd be more afraid of the counterfeit documents, which apparently are dime a dozen in today's turbulent environment.

 

I sold a Rolex Daytona a few years back and accepted a B of A Cashier's Check. Thought nothing of it, deposited it in my bank and took off for Sydney. Couple weeks later, I was notified the check had bounced. B of A confirmed that there was a counterfeit ring in San Diego pulling these scams. Long story short I was out $10K, or gave my Daytona away for free. I ran an ad to sell it, the buyer showed up and you would suspect nothing was amiss. The amazing part is I am a professionally trained printer by trade and I can tell you the reproduction was perfect in every detail. I only accept wires, or will go with the party to the issuing bank for verification. Live and learn.

 

One option is to meet at the bank that issued the check (or a local branch) to complete the transaction. Get the check verified on site and if it is fake, the bank (and their security) can deal with the buyer.

 

Banks can only verify their own checks. So if it is drawn on a different institution, then it is still risky. Tellers are not brilliant sometimes and cannot tell most times... Hey, I used to be one long time ago. That should tell you something!

 

This is how you should do it except only take cashier check, not personal check. However, any check can be cancelled by the buyer. So, I'd get it in cash at the local bank before releasing title.

Otherwise, have it wired. Wiring is instantaneous if it's done by the cut off time.

 

1. The *only* thing that is "instantaneous" and secure is cash in hand. 2. *Anything* other than cash in hand is subject to fraud, interruption and/or dispute. 3. Personally, I would never trust a stranger to hold any appreciable amount of my money or property simply on blind faith. Even if the person is known to me, I would be careful. Would you make an investment without doing due diligence? Bernie Madoff's "investors" (probably better to call them "unwitting contributors") wish they had done so.

 

Cash can be just as dangerous. Fake bills should be a very real concern.

 

I worked in banks many years of my life both on the front lines and in the computer departments... I think a wire transfer is probably the safest method without waiting for a check to clear, etc. Cash can be faked, check can be faked, etc.

I think that when we got a wire transfer request come in to our bank/credit union, they talked with one of our staff and the transfer happened right then. Money out, money to your account.

Correct me if I am wrong on that, but that is what I remember.

I know when I sold an old Honda Civic, the guy did not transfer the title in a while and I had to sign an affidavit that I sold the car, etc. They pretty much told me I was responsible for what that car did unless I did that. So keep insurance on it until it gets transferred or you know the other guy has coverage...