jac
Well-known member
Working in a bank i can maybe shed some light.
Firstly - virtually nothing is risk free for all parties - it just comes down to the level of risk! This is typically managed by having a 3rd party, maybe a broker / solicitor with a client account but that still has some residual risks of a dishonest broker / solicitor.....
Main methods -
Cash - Can you tell a fake £20 from a real one? 100% of the time. If genuine a high risk if you lose it / theft unless perhaps handed to you in the bank. You will be asked Anti Money Laundering Questions but shouldn't be an issue unless you're selling lots of boats
Banker Draft - Can you tell a genuine one 100% of the time? How do you know it's not stolen if it is a genuine one ? If stolen / a fake - you get nothing .
BACS - Can still be stopped in some circumstances - Most accounts will show something like " Pending Transactions" from first thing on the day they arrive. If the bank stops / recalls them that morning you lose it. They are fine once they show up as coming in yesterday ( or before) and can;t be claimed back
Faster Payments - Banks will only release them to recipients account when the customer has the funds and no way to stop it once gone . If the payment shows up part way through the day it's probably a faster payment and may have a reference with FP on it so should be good to go. Risky for the sender though - how does he know he will get title. Limit of IIRC £50k.
CHAPS - Gold standard ( with a fee) - Bank send to the recipient bank and confirms it - Recipients bank then places into your account. You may get a phone call (or can ring and ask) if it's in, it's in. Same risk applies to sender for faster payment.
My suggestion would be to approach a local friendly broker and ask what fee they might charge to do the legal bit and pass through their client account. if unable / unwilling to do that then I would use Faster payment / Chaps - wait till you have confirmation that the funds are in then release the paperwrok and boat. Maybe take new owner through a handover whilst waiting.
Firstly - virtually nothing is risk free for all parties - it just comes down to the level of risk! This is typically managed by having a 3rd party, maybe a broker / solicitor with a client account but that still has some residual risks of a dishonest broker / solicitor.....
Main methods -
Cash - Can you tell a fake £20 from a real one? 100% of the time. If genuine a high risk if you lose it / theft unless perhaps handed to you in the bank. You will be asked Anti Money Laundering Questions but shouldn't be an issue unless you're selling lots of boats
Banker Draft - Can you tell a genuine one 100% of the time? How do you know it's not stolen if it is a genuine one ? If stolen / a fake - you get nothing .
BACS - Can still be stopped in some circumstances - Most accounts will show something like " Pending Transactions" from first thing on the day they arrive. If the bank stops / recalls them that morning you lose it. They are fine once they show up as coming in yesterday ( or before) and can;t be claimed back
Faster Payments - Banks will only release them to recipients account when the customer has the funds and no way to stop it once gone . If the payment shows up part way through the day it's probably a faster payment and may have a reference with FP on it so should be good to go. Risky for the sender though - how does he know he will get title. Limit of IIRC £50k.
CHAPS - Gold standard ( with a fee) - Bank send to the recipient bank and confirms it - Recipients bank then places into your account. You may get a phone call (or can ring and ask) if it's in, it's in. Same risk applies to sender for faster payment.
My suggestion would be to approach a local friendly broker and ask what fee they might charge to do the legal bit and pass through their client account. if unable / unwilling to do that then I would use Faster payment / Chaps - wait till you have confirmation that the funds are in then release the paperwrok and boat. Maybe take new owner through a handover whilst waiting.