Re: Why give the payoff amount?
If you've used a standard contract and the buyer has accepted the vessel after the survey, they have no ability to renegotiate the price. They certainly have no need to know your loan balance until they've accepted the vessel. Their warranty, after acceptance, is to provide clear funds for the remaining balance of the contract by a certain date. If they default, you keep the deposit.
This just doesn't happen for the reason you are concerned over. The buyer always needs to know how to pay off the existing lien and you can't do so after you get the money or the lien will still be on the boat at closing. That would violate a standard seller's warranty to deliver free and clear title.
Banks are completely accustom to this and typically give a payoff figure with two or three extra days of interest and a deadline to receive it for the figure to be valid. The seller will get the few dollars back, if it pays off right away. On the other hand, the bank is not in the business of acting as an unpaid escrow company, therefore, will not want to deal with the entire excess purchase price and have the seller breathing down their necks to be issued the difference quickly.
As others have said, this is just standard every day stuff. No reason to be concerned. Unless you don't have a contract at all.
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
In the harsh marine environment, something is always in need of repair. Margaritas fix everything.
Last edited by Minnewaska; 08-27-2013 at 07:49 PM.