US to Canada sales contract info needed

[JennyB]

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We are selling a mini to Canada and when we got the deposit we had to wait 30 days for the funds to come through. The question is what would you ask for from the Canadian buyer to expidite this transaction without waiting 30 days+ ?? Maybe a money transfer and how can we word it in a sales contract?

Thanks

Jenny

 

[Minimor]

I'm not sure how you're meaning you had to wait for the funds to come through. I bought a pony from South Dakota about a year ago; I mailed a cheque in US funds--seller received it a week after I mailed it, she had her money right away and the funds were out of my account within 2 weeks of mailing. (The pony wasn't being shipped for a few weeks, so time wasn't an issue for us anyway--if my cheque had been no good the seller would have found out before she shipped the pony.) The cheques I write on my US account usually clear 2 weeks after mailing, but once in awhile it has taken 3 weeks--of course I have no way of knowing if the recipient cashed those cheques immediately, or if they sat on someone's desk for a week before they got taken to the bank.

Maybe your bank is holding the funds for 30 days to make sure that the cheque or money order clears? a money order should go through faster--Canada Post ones are the best. Unfortunately I think they have a top limit of $250 for the ones in US funds so that means a $2000 horse would require a lot of money orders! Bank drafts (apparently my bank doesn't issue money orders any more, just bank drafts) are same as cash--unless you're worried it may be a forgery then you or your bank would still want to hold it for a time to make sure it's good.

I deal at a credit union, and am not able to have money transferred to me from other provinces--that can be done with all the banks, but credit unions here use a different system. I haven't asked if I'm able to do money transfers the other way around, out of my account, but I'm guessing not. Through my Tel-Pay (not through my bank) I'm supposed to be able to pay money to anyone, but I haven't done it & have no idea what is required to set up a payment to another individual--or what the serice charge would be for that. That would be a possibility to check into--you as a seller could set up an account with Tel-Pay, and then it woud be easy for anyone anywhere to pay you through that system.

There is also PayPal. It seems nearly everyone has a PayPal account--I don't, so whenever there's something I'm interested in buying and it's payment by PayPal only, I pass it by and shop elsewhere, but I'm probably in the minority.

 

[MiLo Minis]

Actually the limit on Canadian money orders is $999.00. Ask for a bank draft in American funds instead if it is for more than that amount. You can also use a money transfer through Western Union and then when you go to pick it up at the nearest depot to you they just give you a cheque in the amount that you can cash at your bank.

 

[JennyB]

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Minimor hi,

The buyer wrote a personal check and our bank here held it for 30 days(I guess this is normal)until the funds cleared. We don't have a paypal account and am not sure if that would be the way to go or as Milo said to just have the remaining amount wired to us through Western Union

...This is the first time we have sold out of the country so this is all new to us.

Jenny

 

[End Level Farms]

How is the person getting the horse?

If they are picking up the horse have them bring cash. Its that simple.

If they are shipping the horse then they will need to give you money orders. Postal Money Orders can not be cashed by most American Banks.

The easiest way to deal with Canadian Buyers is through paypal or Cash.

Checks range from 2 weeks to 3 months to clear. We have the same issue accepting US Checks here in Canada.

 

[tifflunn]

Actually the limit on Canadian money orders is $999.00. Ask for a bank draft in American funds instead if it is for more than that amount. You can also use a money transfer through Western Union and then when you go to pick it up at the nearest depot to you they just give you a cheque in the amount that you can cash at your bank.

Lori- When I bought a horse from the states this fall my credit union gave me a MO ( not a draft but an actual MO) for more than the $1000.00 US and I checked with the seller and they had no problem cashing it-

Tiffany

 

[Minimor]

Maybe the Canada Post ones are all $999--I was thinking that US ones were $250 and Canadian ones $999 but now I haven't bought one in awhile. Money orders from the credit unions don't have a limit, or at least if they do it's somewhere well over $1000

End Level farms--US banks shouldn't have any problems in cashing the Canada Post money orders. Over the years I've used them to purcharse things from a variety of places, and never had anyone say their bank couldn't accept them.

The only thing with Western Union is that fees are very high. I looked into sending money that way once, and it was IMO just too expensive. I forget the amount now, but on $4000 it was A LOT. As a buyer, if the seller demanded payment that way and expected me to pay the wire fees, I'd look long and hard at buying elsewhere. I'm honest, I know my money order is real, and if someone on the other end of the transaction doesn't trust me and wants payment via Western Union, I think I might sort of expect them to soak up the cost of wiring the money.

Also remember the warnings about being cautious of anyone wanting payment via Western Union. A contract that requires payment by this method could scare off some buyers. I think there are probably more than a few people that won't sire money to a complete stranger.

 

[Filipowicz Farm]

We have sold several horses to Canada and the people send us money orders that say U.S. funds and have not had any problems.They arrive by mail in about a week.

 

[Relic]

l bought 4 minis from Washington and used bank drafts in US funds each time. My bank the RBC a M.O. only goes to 1000 and then it's bank drafts to whatever you need. Personal cheques are or can be held for up to 30 days to clear your account so l never use them for horse buying...except with AMHA sometimes l'll send a check that says pay in US funds written beside the dollar amount but l don't like the surprise when they get cashed if they keep it for a while before taking it in and the dollar has taken a nose dive. l'm not sure if the Canada Post M.O.'s are accepted in the US...BUT l am very sure that they are not accepted by my bank the RBC up here if they are a US Postal MO so had to return them to the senders and ask them to remail a MO from a bank..l also won't use PayPal again ever which l did for a large amount this fall to a trainer so she'd have it real fast and that was a mistake...confimation l received back by computer from paypal was a far cry and almost double the amount from what was actually taken out of my account when l got my statement in the mail and l'm still fighting that one. Money orders are still the best route for border crossing payment lMO. l agree the fees on Western Union are out to lunch but they are fast when needed in a hurry to get money someplace to someone ponto.

 

[Amy]

I worked in CIBC bank for 10 years- Lori is correct -- a U.S money order can be UP TO $1000.00 (so 999.99 ) and a Bank Draft is from $1000.00 up.

Either should be easily cashed at any U.S. Bank as they are pre-paid & made out in U.S funds (if you request that at your bank) and all of the exchange is paid up front when purchasing the M.O or Draft.

I have never had any problem paying with either instrument.

Edited to add -- if you deposit a U.S cheque here it will also be held for a period uo to 30 days -- (can depend on your Bank.) I have a U.S fund account so that when I get paid with a U.S cheque I put it in my U.S. account & there is no hold on it then.(Also my accounts are considered STAFF so maybe that helps

hope this helps.

 

[JennyB]

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Thanks everyone for your responses

We really appreciate it and I think we have things figured out now with the buyer and the transaction will go just fine.

Jenny