Look on your TITLE. You sign just as you do if they paid cash AND you sign as LEINHOLDER. Then when he goes to register it, they will show you as leinholder. If you have any doubts, go with your friend to register it. That way you KNOW its done. Repo it? YES, if , you know where it is. Before you give your friend the keys you should have in writing and always have in writing his proof of insurance for the vehicle. You are still under obligation for what happens to the car and who is injured while in or by the car. Selling with a hand shake agreement to a friend or family member is rarely going to have a good outcome. Just act as a bank would if they financed your friend. True friend would understand and not ask for anything less!
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