Originally Posted by Minnewaska
A seller would be wise to choose the yard at which the boat will be hauled and have the haul and launch paid in advance. A buyer should have no problem with pre-paying this. There is no way for them to get out of the obligation and the good faith deposit will be fully retained by the brokers anyway and should not be available for this. I have this vague recollection that I was actually required to pay the yard in advance at some point, although, I believe it was the yard's requirement. I was hundreds of miles away and they probably thought they would never collect, if I balked, and they didn't know me.
On the other hand, I have a real curiosity over whether the surveyor can legally attach the boat, if they were contracted by the buyer. They didn't improve the boat, so I would find it unlikely. Still, I would be interested and may research it.
Brokers haven't been cashing these checks right away since long before the internet was around. Maybe the seller even decides to back out before they sign the contract. What is the percentage of deals that die after an offer is accepted. I will bet it's quite high and an active broker would rightfully become jaded.
You may be correct. Surveyor may not prove to be the best example. I have emailed our corporate counsel and will report what he says.
In any event, James Wilson gave you a couple of pretty good answers and he is apparently an attorney.
Anecdotally, I don’t know of a company in FL, MD or NJ who doesn’t clear funds prior to proceeding to contingencies. Admittedly I am not familiar with all companies particularly the smaller ones and I suppose there are always cowboys but I was most definitely in the industry prior to the internet.
I don’t see the downside that you seem concerned about?
BTW, it is quite common for the buyer to pay for the haul/hang/launch and any extras that come up before the boat goes back in the water and yes, in my experience, the seller usually selects the yard.