How Is the Seller Paid When I Finance a Boat?

Our closing team coordinates the money as part of the purchase. If there is a seller's loan, we need the payoff and release arrangements as well as the amount due to the seller. You should not have to hand over the full purchase price and hope the old loan gets paid.

Before anyone moves money, let's walk through the instructions for your closing.

An existing loan changes the conversation

If the seller owes money on the boat, that payoff has to be coordinated with the sale. We need the appropriate payoff information and the steps for releasing the lender's interest. Seller proceeds and payoff funds may have different destinations.

Do not assume paying the seller the full price leaves the existing loan safely handled.

Talk to us before the deposit

When there is a payoff, the deposit should come through our team so it can be included in the closing arrangements. There is a rare exception when a seller requires something to hold the boat. Discuss it with us first, document who received it and make sure the closing figures account for it.

The balance needed from you follows the approved loan and final closing figures. Use the verified payment instructions provided for your file. Confirm any changed instructions through a trusted contact before sending funds.

Payment and pickup must line up

Documents, remaining conditions and funding authorization need to be complete. Then confirm with the closing team when the seller is paid and when release is authorized. A signed purchase agreement, an approval email and a completed signature package are each progress—but none alone tells you to take the boat home.

Keep reading

• Purchase agreement versus bill of sale
• After approval

Have a boat in mind? Send me the listing through YourBoatMoney, or ask ScotBot to help you get started. You do not need every answer before we talk.

Educational information, not a loan offer or guarantee of approval. Requirements depend on the lender and transaction.