Deals on Wheels by Lonnie Scruggs

Author:Lonnie Scruggs [Scruggs, Lonnie]
Language: eng
Format: epub
ISBN: 9781481999588
Publisher: DOW Enterprises
Published: 2013-01-21T05:00:00+00:00

Chapter 13

Title Transfer

As a dealer, I’m required to collect the title transfer fees, handle the paper work, and have the title transferred into my buyers name. Check with your local Division of Motor Vehicles (DMV) to see how it’s handled in your area, but this is how it’s done in Virginia. (It’s my understanding that several states still use a bill of sale, and/or a UCC-1 (Uniform Commercial Code) instead of a title to secure the loan.)

Dealer Regulations

In Virginia there is a 3% sales tax, plus a $20 title transfer fee, which is paid by the buyer. This is the amount I collect at the time of sale. I fill out the proper forms, deliver them to DMV, and they cut a new title listing my buyer as the registered owner. DMV will also forward information on the sale to the appropriate city tax collectors, so that all future tax bills go to the new owners. This is the personal property taxes for the mobile home that is collected by the local tax collector.

If we have a lien on the home, this will be shown on the title together with our address. The title remains in our possession until the lien has been paid off. Once the buyer makes all the payments, we sign off on the lien and deliver the title to our buyers. It’s the same as a bank, or loan company, financing a car.

If it becomes necessary to repossess the home, we apply for a repossessed title, pay $10, and a new title is cut in our name. Then we look for another buyer and sell the home again. Very simple paper-work and nothing to be alarmed about.

I recommend that you get familiar with the laws in your area regarding repossessions and judgments. Just call, or visit the Clerk of Court and ask what you have to do to repossess a mobile home that you hold a lien on. Find out what kind of warrant you have to file...the cost...how long it takes...where the courtroom is located, and etc.

Our notes state that if legal action is required to collect on the note, that the note maker will pay all such cost, including reasonable attorney fees. So far, we’ve never had the need to use an attorney, but I like to have that statement in the note in case I ever need to. (Being able to do business without the need of a lawyer is a real blessing, and another reason I like these little “cheapo” deals.)

As a licensed dealer, we are not required to pay the sales tax and title transfer fee when we buy the home. Neither do we have to transfer title into the dealership. We simply hold the title until it’s sold, then re-assign the title from the person we bought it from, through the dealership, to the person we sold it to.

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