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Security on a family loan

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(@hamstrung)
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Joined: 14 years ago
Posts: 9
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Is it acceptable to have security on goods (vehicles) as part of a loan between family members.


   
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Mark McFadyen
(@mark-mcfadyen)
Famed Member
Joined: 16 years ago
Posts: 4798
 

Hi Hamstrung

Typical, come in from 3 meetings, travelled 390 miles and tonight's forum are like exam questions (just kidding)

In general yes. Security is a complicated word to use and i dont fancy sitting here for 5 hours running through the various legal connotations which accompany it. In general, the goods need to be uniquely identifiable (which a car is via registration) Slight more complicated with white goods, suite etc.

If you were thinking of this, then a simple sale would be far easier. A simple agreement signed and witnessed, money demonstrated as coming from the buyers account into your account at full value. cash makes things easier for 1000 reasons I wont go into, but there needs to be a paper trail. Generally if someone has paid fair value for goods, then its a valid transaction.

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
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