What is the process of buying a 2nd hand bike?

[hellamatrix2]

Hi guys, am planning to get my bike directly from another owner after I pass my TP. So, I would like to ask what is the process of the dealing?

 

Like after I done my checking and I get the insurance, do I do the transfer with the owner first then pay him the amount or pay already then transfer the bike?

[Chemol]

The insurance is done together with the transfer, dated on the same day. You can pay the owner 10-20% when you begin the paperwork at the bike shop, with the balance due the next day when you collect the IC and documentation.

[Sky99]

Buy insurance

 

Meet with seller at LTA

 

Transfer name, pass money..

 

Ride home

[feriosi]

Buy insurance

 

Meet with seller at LTA

 

Transfer name, pass money..

 

Ride home

 

Add-on: Make sure that bike are fully paid and Form B was released before u meet the seller at LTA, if not won't be able to transfer the ownership.

[feriosi]

- double post -

[hellamatrix2]

So I just pay a deposit first, then make sure the ownership is transferred then I pay the remaining amount?

[feriosi]

Normally u just need to pay a small deposit to reserve the bike, the balances pay to seller on the spot after ownership transferred at LTA.

[danielling1981]

Insurance is first. Without tat cant transfer owner. Note tat u must ve e hardcopy of e insurance cover letter to show e lta counter staff.

 

Paying and transfer owner is chicken and egg issue. Can discuss and agree on which comes first. Naturally buyer would wish to get ownership first and seller get $ first.

 

1 of e post suggest transfer at lta and pay immediately after. But this may not work for cls2 bike where e price can be above 10k. paying a deposit also puts a risk on e buyer as e transfer may not happen.

 

To make things easier u can get a shop to be middle man. But there will e cause involved. Or can draft a nice purchase agreement between buyer and seller stating e terms including things like when transfer owner when pay, etc. But note tat it is not a legal document in eyes of law as no lawyer witness.

[fatboypin]

another way is to make full payment while at the LTA counter.

 

Insurance is first. Without tat cant transfer owner. Note tat u must ve e hardcopy of e insurance cover letter to show e lta counter staff.

 

Paying and transfer owner is chicken and egg issue. Can discuss and agree on which comes first. Naturally buyer would wish to get ownership first and seller get $ first.

 

1 of e post suggest transfer at lta and pay immediately after. But this may not work for cls2 bike where e price can be above 10k. paying a deposit also puts a risk on e buyer as e transfer may not happen.

 

To make things easier u can get a shop to be middle man. But there will e cause involved. Or can draft a nice purchase agreement between buyer and seller stating e terms including things like when transfer owner when pay, etc. But note tat it is not a legal document in eyes of law as no lawyer witness.

[hellamatrix2]

Alright thanks for the advice guys

[Chemol]

But note tat it is not a legal document in eyes of law as no lawyer witness.

 

That is incorrect.

 

Valid contracts are signed everyday without a lawyer present. A common example is your cell phone contract.

 

However, enforcing the terms of a contract may very well cost more than the value in question. Fraud though, is criminal. Whether the police will take equitable action... that's another question.

[danielling1981]

That is incorrect.

 

Valid contracts are signed everyday without a lawyer present. A common example is your cell phone contract.

 

However, enforcing the terms of a contract may very well cost more than the value in question. Fraud though, is criminal. Whether the police will take equitable action... that's another question.

 

Maybe times and laws ve changed. Just sharing my experience. Just to verify, wat i meant was a purchase agreement either hand written or typed out signed by buyer and seller.

 

Not any form of official documents like e example u stated. "mobile phone contract".

 

Reason i say is not valid in legal terms is becoz i asked before. It is only valid as an additional piece of evidence rather than "legal binding document". Meaning u cannot take this piece of paper and ask police to make arrest if buyer/seller defaults.

 

But of coz this information is years old i think 2006 or older. Times may ve changed already.

 

Ps: if assuming e law can take action base on e agreement, e party who defaults will foot e bill for any additional cost of e legal fight.

[wX]

Maybe times and laws ve changed. Just sharing my experience. Just to verify, wat i meant was a purchase agreement either hand written or typed out signed by buyer and seller.

 

Not any form of official documents like e example u stated. "mobile phone contract".

 

Reason i say is not valid in legal terms is becoz i asked before. It is only valid as an additional piece of evidence rather than "legal binding document". Meaning u cannot take this piece of paper and ask police to make arrest if buyer/seller defaults.

 

But of coz this information is years old i think 2006 or older. Times may ve changed already.

 

Ps: if assuming e law can take action base on e agreement, e party who defaults will foot e bill for any additional cost of e legal fight.

 

Times have not changed. A purchase agreement is legally binding even without any lawyers witnessing it. If you can prove it, even verbal agreements are contractually binding. However, it is difficult to fight the case of a verbal agreement unless you have a neutral 3rd party willing to be the witness. Which is why many ppl opt to go for the written agreement.

 

The reason why many ppl will say that written agreements are of no use for selling/buying of bikes is that the amount of money and time that you need to spend to haul the person to court just to chase back the couple of hundreds of dollars. Note that the police in this case will not take any action, as cases of deals gone wrong are usually not considered as criminal cases. The only times when the police will intervene is when a magistrate's order is issued, or the particular person reported against is involved in many similar cases of "deal gone wrong" (i.e.: cheating cases).

 

BTW, BTT.

 

TS, check out the following link:

 

http://www.singaporebikes.com/forums/showthread.php/69188-101-ways-to-sell-your-bike...

 

The thread is about selling of bikes, but there are also useful information for bike purchases

[Chemol]

Maybe times and laws ve changed. Just sharing my experience. Just to verify, wat i meant was a purchase agreement either hand written or typed out signed by buyer and seller.

 

Not any form of official documents like e example u stated. "mobile phone contract".

 

Reason i say is not valid in legal terms is becoz i asked before. It is only valid as an additional piece of evidence rather than "legal binding document". Meaning u cannot take this piece of paper and ask police to make arrest if buyer/seller defaults.

 

But of coz this information is years old i think 2006 or older. Times may ve changed already.

 

Ps: if assuming e law can take action base on e agreement, e party who defaults will foot e bill for any additional cost of e legal fight.

 

Most contracts are not signed with lawyers present. Many are, however, drafted by lawyers (what I guess you mean by official).

 

Official or not, drafted by lawyers or not, signed, dated statements/promises/contracts can be legally binding. Drivers involved in accidents routinely exchange statements and particulars to admit/discharge liability.

 

In certain cases, verbal statements can also be admitted.

 

The difference lie in whether justice is pursued in criminal or civil court.

 

Criminal = AG seeks redress.

Civil = Engage your own lawyer.

 

Typically, contractual disputes fall under civil purview. Consumer cases involving small sums (in the thousands) are handled by CASE or the Small Claims Tribunal. However, the lack of lemon laws and the pro-business approach of the legal system disadvantage the consumer. Equitable redress is... unfortunately, a rather uncommon outcome (we don't even have a return policy!).

 

The law has not changed. Perhaps there has been a misinterpretation somewhere.

 

Buyers beware!

Edited May 10, 2012 by Chemol