I'm looking to buy (cash) a used boat from a private party, who is still paying his loan. The tricky part is the seller and boat are in Dallas, and his dad actually financed the boat originally and lives in Houston. Although the seller claims to have taken over payments some time ago, the loan is still in his dad's name. The seller seems to be legit and straight forward thus far, but I'm not quite comfortable paying him, so he can pay off the boat, so his dad can get the title and mail it to me. There's a lot that could go wrong with that transaction, and I would be the only one at risk.

I called Capital One, where the boat is allegedly financed, and they recommended the dad submit a letter to them (bank) stating his intent to sell the boat and transfer ownership to me once the bank receives the payoff amount from me, and to mail the title directly to me once payoff is complete. From there, they recommended the seller and I meet at his bank of choice so I can pay the amount in equity to the Seller in exchange for his boat keys. In theory, I would haul the boat home and receive the title in a couple weeks. Capital One did suggest that I use a contract agreement with the seller for our own records, but said they (bank) do not need anything else other than money and the letter from the dad to complete the payoff and release of title.

Despite what Capital One suggested, it still seems like I'd be wide open to risk. Will a Bill of Sale or Contract protect me on this transaction? If so, does anyone know where I could obtain a template to fill out?

Assuming the transaction above goes smooth and I receive the title, will I have any problems registering the boat with Tx Parks & Wildlife Dept?

Capital One has given you good advice but there is still risk. Pay his loan off directly yourself, you should just be dealing with the dad on all the paperwork.

Give dad a cashier check for the equity, you mail/fed ex the payoff to Cap 1 with his letter of authorization. You need a signed bill of sale and a signed title application, and he has to sign the title(s) (make sure the boat and motor do not have separate titles, outboards do) there are boat Power of Attorneys you can Google that he can sign and then someone else can sign the title when you get it. Google Texas Parks & Wildlife Boat Power of Attorney and that should pull up the POA in pdf


Buying a boat with a payoff is a PITA.