How to verify a cashier's check is legit

[nwsteve]

One other option is to find which bank in your town is a correspondent bank with the issuing bank. Meet at the bank and deliver title with instruction to send to bank issuing cashier check when funds are considered "good" by your bank.
Also when talking with the issuing bank, I encourage you talk with the bank manager directly--adds one more level of assurance. In fact you could ask him/her for name of bank he would prefer for your local contact.
Good Luck
nwsteve

 

[Rich_by_the_Bay]

Are there commercial escrow services for this type of transaction? It's cost might be worth it to avoid all the aggravation. I did a quick web check and there are quite a few, but I didn't bother to review them in detail to see if they were approrpriate.

 

[REWahoo]

You don't say so explicitly, but you imply that you haven't talked to the buyer. I'd be puzzled at someone who would make a significant purchase from me without extensive conversations about the goods.

I've had multiple phone conversations with him and exchanged multiple emails. I've sent photos of the boat from every angle he's requested, and given him a history of all the work I've done on the boat.

Is buyer assuming the third party picking up the boat will do an inspection and call the deal off if the boat is not 100% what the ad stated? When someone is buying something from you and being suspiciously trusting, I'd worry.

He has asked for the right to back out of the deal if his delivery guy sees anything amiss on the boat.

Actually, I haven't seen anything about this whole deal that would make me suspicious. I've run a reverse number check on his phone and it shows he's calling from where he says he is. He said his wife works at a specific bank and I have verified that. He's given me his name and address for the title transfer and I have verified someone by that name and address does reside there. I have also confirmed that someone with the same name as the bank employee/spouse resides at that address. He even has a side business that I've done some checking on and found nothing amiss.

But there could always be something wrong, right?

 

[Rich_by_the_Bay]

But there could always be something wrong, right?

You'll be fine. You know how and where to find this guy if he gets weird on you. Sell it "as is" and you are good to go

 

[Jarhead*]

I'm thinking about buying a motorhome. Or an annuity. Or taking up cow pasture pool.

But I suppose I should wait until the check clears first, right?

You're so serious today!

Stick with the boat in place of playing golf if cost is a big item.

Saluki and Ha had the right idea.

Cash should work fine. If you were forced to walk through "Watts" or areas of NYC at night, carrying $6,500.00 cash, probably not a good idea, but for a guy to drive to your property, what's the problem?

Actually, this thread, and the answers to it are reminding me of a bumper-sticker, "Help me please, the paranoids are after me".

In any case, congratulations on selling your boat. (I've sold a few in my time, and always a happy occassion).

 

[youbet]

Actually, I haven't seen anything about this whole deal that would make me suspicious.

Nothing is ever 100%, but with the checking you've already done and the fact your gut is telling you all is OK after talking extensively to the buyer, it sounds like your risk is minimal.

 

[JustCurious]

Actually, this thread, and the answers to it are reminding me of a bumper-sticker, "Help me please, the paranoids are after me".

Even if you are paranoid, that doesn't mean that people are not really out to get you.

 

[calmloki]

...
In any case, congratulations on selling your boat. (I've sold a few in my time, and always a happy occassion).

Best 2 moments in boat ownership: when you buy it and when you sell it.

 

[BigMoneyJim]

Best 2 moments in boat ownership: when you buy it and when you sell it.

It's also pretty good when the boat towing you back to shore after a breakdown is one of those rich guy's boats that has several hot women sunbathing on the deck. (But usually it's the lake patrol that comes to tow you...blech.)

 

[Coach]

I just called the bank and asked to speak to someone who could confirm a cashier's check for me. I was transferred to a lady who identified herself with a name that appears on the bank's website as an administrative assistant at the bank (not the buyer's spouse). I explained that I was expecting to receive a cashier's check from their bank and asked what I should do to verify it was good. She said once I had the check I could call her and she could confirm it for me. Everything sounded on the up and up and passed my sniff test.

I'm leaning towards taking the check if everything checks out tomorrow.

Tell me I'm not crazy.

Sounds pretty solid to me. You're not crazy.

Coach

 

[SteveR]

I sold my snowmobile last fall. I advertised it in Craigslist. One of the phone calls I received on it was a guy who knew a lot about the unit, more than me if fact. We set up a meeting where he could see it. The snowmobile was located at my cabin which was a very hard place to find without very detailed directions and even then one could easily take the wrong road (not well marked) and get lost forever. So we agreed I would meet him at the freeway entrance and I would escort him to the cabin so he could see the unit.

I arrived a few minutes late due to traffic. The interested party was already there. Sitting in his truck. I got out and he did too. I was a bit taken aback as he was a midget and was sitting on a booster seat in his truck. It turns out he had a proxy call and talk with me about the snowmobile as he said he had very little knowledge about them. He saw the unit and made me an offer which a agreed to and he pulled out a fist full of $100 bills and paid me in cash. I transfered title to him and he drove off with the snowmobile.

You never know who you are really dealing with until you meet them and see the green.

I also sold my ATVs and took a certified check for them. No problems with the deal.

That said, I did have my 9mm under the seat of the truck.

 

[Bikerdude]

I'd call the bank to verify the check is from there, give a written bill of sale with the boat, and deliver the title later in the week after its been notarized. That way you have money, buyer has boat, and ownership doesn't transfer until title is delivered.

I agree. Cashiers checks are basically worthless as are any paper promissory notes as they can all be forged. I have bought and sold items with just a personal check. On the bill of sale it states "title will be delivered upon the deposit of funds issued by ck#xxx". When it clears the title is mailed. I have never had a problem with that.

 

[cute fuzzy bunny]

I'm thinking about buying a motorhome. Or an annuity. Or taking up cow pasture pool.

Split it three ways and do 'em all.

Dont wait for the check to clear, just do it!

 

[TromboneAl]

I remember getting cash for our Toyota Celica. Adjusted for inflation, the selling price was $4,700.

Here's the funny part. The guy comes to look at the car, and we take it on a test drive. Although the car had always been fine, at the end of the test drive, substantial amounts of steam were coming out from under the hood. I was sure he'd say "forget it," but instead he just pulls out wads of bills and pays. Seemed suspicious.

Something may have been fishy, because months later we got some parking tickets for that car, but we explained that we'd sold it, and that was that.

 

[ERD50]

Isn't there a lot of fake cash going around too? If you accept it, and the bank detects a fake, you are SOL, as I understand it. Just a tax write-off.

-ERD50

 

[smileydog]

I just sold a car and was very leary of cashier's checks after hearing Clark Howard and other consumer gurus warn of the horror stories. I met the other guy at the bank (lucky the we both banked at the same place) and got cash deposited into my account. I know that's not very likely to happen often but it sure made me feel better.

dog

 

[Rich_by_the_Bay]

I kicked around Paypal a bit. Generally I find them to be obnoxious -- they nickel and dime you, self-promote incessantly. But they do offer a couple of advantages for this kind of transaction. If the buyer arrives and agrees to the sale, they can pay you by charge card in real time on your computer by loggin on to Paypal and entering the credit card transaction in real time. They don't have to be a member of Paypal, and this might make the feel like they have some recourse if the deal goes bad.

The funds appear in your paypal account balance in real time so you know you have your money.

Chargebacks by the buyer are not easy and get vetted along with escrowing of the funds involved in the dispute. Given that most chargebacks are either a scam with a phoney credit card, or a seller who fails to deliver this is not an unreasonable process.

Downside: you pay a fee (not sure how much -- 2% comes to mind); your buyer must be savvy enough to fill out the Paypal online form to charge the item; you as the seller need a Paypal acct in advance. I have one only because of the occasional eBay transaction.

Just another solution for the next time.

Oh yeah, to stay in tune with the other posts on this thread, you can keep your AK47 in the desk beneath your computer if you need support .

 

[cute fuzzy bunny]

I HATE paypal. Bunch of morons. They wont stand behind their guarantees, and once they have your bank and credit card information they'll never remove it from their easily and frequently hacked database servers.

(Oh come on bunny, tell us how you REALLY feel...)

Al - when I sold my wifes corvette, the battery exploded right after the security system locked up and wouldnt let them start the car. They still bought it. Proof that there are plenty of suckers still left in the world.

 

[Delawaredave]

There's a lot of good ideas on making sure you get paid.

To me, more important is making sure you release your liability.

Guy I know sold a car to a guy who paid cash. Seller signed over title to buyer. Buyer never transferred title - got several parking tickets which were in sellers name.

I've heard that if the buyer got in a serious auto accident - the seller might still be a legal "target" for a lawsuit as the car was still in his name.

I've always gone with the buyer to DMV to make sure title was reissued and registered in buyers name.

 

[cute fuzzy bunny]

Thats a good point. Its a nice idea to take the vehicle to the DMV to transfer ownership on the spot...they'll be sure to correctly identify the individual in the process.

I sold my wifes bazillion year old pickup truck to a farm worker who paid with cash. We're still getting the recall notices for it, so he didnt put in for a new registration on it...

 

[youbet]

I've always gone with the buyer to DMV to make sure title was reissued and registered in buyers name.

I don't go that far, but I do have the buyer sign a sheet I type up which says he has purchased the car and received a signed title from me. Don't know if that would help if he never processes the title transfer and goes out and kills forty-seven people while DUI. But, that's what I do. I figure it's better than just signing the title and handing it to him and finding out that later he's in an accident and claims it's my car that I just loaned to him.

 

[cute fuzzy bunny]

My standard bill of sale...the lawyers oughta have a good time with this one...

Date: _____________________________
Bill of Sale for an Automobile
_______________of __________, CA (Seller), in consideration of the sum of _______ received from _______________________ (Buyer) of ____________________, the receipt of which is acknowledged, hereby sells, transfers, and conveys the following personal automobile: _______________________ Color________ VIN _______.
1. The total price for the automobile is ______ paid by $____ deposit and $_____ paid by check. Buyer warrants that sufficient funds are available and will compensate the seller for any attempts and costs associated with obtaining payment if the check cannot be cashed in the full amount, and that ownership of the vehicle reverts to the seller in the event that a failed payment is not resolved within 3 days of the date of sale.
2. Seller warrants that he is the lawful owner of the automobile and is selling it free of all liens and encumbrances. The Seller will defend title of the automobile against any claim or demand. This automobile is sold as-is with no warranty of merchantability or fitness or any other warranty either expressed or implied by the seller.
3. Buyer has examined the automobile and has agreed to purchase it as is. Buyer accepts all liabilities associated with the ownership and operation of the vehicle as of the signing of this document. The seller advises the buyer to add this vehicle to his automobile insurance policy before operating, and to register the vehicle in his name at the earliest possible opportunity.





Buyer:____________________________________________ Date:_____________

Seller:____________________________________________ Date:_____________

 

[whitestick]

Just to add another horror story. And this one does go back a few years. I sold a monitor (at the time it was very expensive - about $2500), and was paid with a cashiers check. Called the bank and they said it was authorized, so everything seemed legit. Turns out, that in that state (think it was Conneticut, or one of the New England states), a cashiers check can be cancelled by the issuer, just like a personal check, with a stop payment put on it.
Took me 6 months, and I had to pay court costs in that state, to get my monitor back, and of course it was not in the same condition as when I shipped it. Learned a lesson "In God we trust -- all others pay cash!"

 

[REWahoo]

Turns out, that in that state (think it was Conneticut, or one of the New England states), a cashiers check can be cancelled by the issuer, just like a personal check, with a stop payment put on it.

According to BankersOnline.com, "From Bankers, For Bankers" , a stop payment order on a cashiers check is a big no-no:

Question: When can a stop payment be placed on a cashier's check?

Answer: One cannot place a stop payment on a cashier's check.

A bank may refuse payment of its cashier's check under certain circumstances, such as alteration, forged endorsement, or a claim against the payee/presenter. But it should be sure of its position before doing so, because the penalties for wrongfully refusing payment are stiff. Particularly when a holder in due course is involved, the bank that refuses payment of its cashier's check is walking in a minefield.

Another situation in which a bank may refuse payment of a cashier's check is in the special circumstances of a lost, stolen or destroyed check, which are described in detail in UCC §3-312.

But stop payment, an emphatic "no."

 

[Eagle43]

Cash. Maybe you keep the boat until you have the check clears, but cash is the best way. Just too much of a pita to go to court to solve a problem that you should not have had in the first place. Cash and release of liability; then you can live happily ever after. Oh, there's a 10% fee for this advice.