Join Date: Feb 2010
Location: Narragansett Bay
Thanked 315 Times in 295 Posts
Rep Power: 8
Re: What Is A Boat Really Worth?
The contract usually gives a period of time post-survey or a date specific for the buyer to accept (read as back out). In my experience, the check is usually deposited between the survey and that date, when it becomes clear there will actually be a deal. Contingent repairs, etc, have not necessarily been completed. I've not seen an escrow agent even engaged until that point, therefore, the expense of one. No point, if the boat is going to be rejected.
On the one hand, it is as simple as writing a check to refund. But, for the broker, who would probably hold it in their own account before engaging an escrow agent, they have to have bookeeping and internal controls to watch over significant funds they are responsible for, if anything screws up. Easier and arguably safer to just sit on the check that the seller has no rights to yet anyway. Buyers are happier too. Makes for a less threatening experience, until it becomes necessary.
I'm just going to speculate that checks are cashed earlier than this, simply to test whether the buyer has the money. I am not saying I know this to be the case. On the other hand, once a buyer has agreed to contract a surveyor, they're committed. The one argument for cashing the check would be survey costs that may attach to the boat, if not paid. However, I've always known the buyer to contract the surveyor, not the seller, so I'm not sure they could attach.
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
In the harsh marine environment, something is always in need of repair. Margaritas fix everything.
Last edited by Minnewaska; 07-30-2013 at 02:31 PM.