How to buy a boat

[Gansett2045]

Any good "how-to" books or articles on the legal side of purchasing a used boat.

I may have found the boat I have been looking for. It is out of state so I don't want to make a bunch of trips back and forth. It is on the hard and will not be able to schedule a sea trial until the spring.

Do I meet a surveyor at the boat and if it is satisfactory make and offer, place a deposit, and wait until a successful sea trial to conclude the sales agreement? If I pay to launch it and it sinks how do I get my money back? Or do I require the seller to launch it and reimburse him if all checks out? Is the seller responsible for have the boat and engine in working order prior to the sea trials it was represented that systems were in working order?

Thanks

[Gryzio]

Many ways to buy a boat. First do a little research as to how the State Title/Register their boats. Internet search give you the person(s) to contact.

I hate traveling all over the country to look at boats I not take if they give it to me. So, I try to get a good idea from pictures and phone conversations what I will see in real before a road trip.

I have cash money right now burning a hole in my pocket for a boat. I have my; "I want" list I check from time to time to see if the boat(s) have sold and remove from the list if they do.

My "Buy a Boat" date is March/April when I be ready to run around and buy.

I have friends and family in a few key places from Texas Gulf around Florida and up the east coast to Virginia to take quick looks and pictures for me.

Usually when I go look at a boat. I sail away with it. I have done the research and most times know I will buy after a quick look. There have been a few times I not see what I thought I would see in real.

Personally, I would not pay any money when it be month(s) before I can really check out the boat. Too many boats out there, I not have to commit to just one. But, I like boats, so, many I like. I will pay my money when I ready to take possession.

One thing you may try is this link;
http://www.sailnet.com/forums/boat-review-purchase-forum/38505-local-boat-buying-assistance.html

This are some of the people on here who may be around the area you looking and may help you.

This all I can offer. Just take everything people say, use what you can and good luck.

I add this; The link is mainly for Power Boats. But, there is good information for free, about buying boats and this and that stuff. See the oval picture in middle/center. Left and Right are the articles to read. The man not survey sailboats anymore, but, it free information if you think it can help.

http://www.yachtsurvey.com/boatreviews/Introduction.htm

[camaraderie]

Gansett...the general way it works is:
1. You visit the boat and inspect it and if it meets your needs you make an offer through the broker. This is in written form and usually includes refundable "earnest money" held by the broker and fully refundable if the offer is not accepted. The offer is contingent on satisfactory sea trial and survey.
2. There are negotiations and once a price is agreed on and a contract is signed by both parties which spells out each other rights and a 10% deposit is made...again held in escrow. In general...the buyer is protected more than the seller in that if you are unhappy with the survey or sea trial...you can walk away with all your $$ EXCEPT for the $$ you pay to have the boat hauled or launched and the survey itself.
3. You arrange for a professional survey before a date set in the contract. It is VERY good if you can be there for the survey but not necessary. You will receive a report telling you all the bad things you didn't know about the boat and at that time you will either walk away or re-negotiate the price based on the survey findings...AND that will still be subject to sea trial. Sometimes survey and sea trial can be done together and if so...then once you are agreed on a final price...you pay the balance due and take ownership of the boat. It is not yours and you are not responsible for it in any way until this point.
4. Sometimes the sea trial must be delayed for some months due to weather but everything else has been agreed on. In this case sometimes the deal is finalized and the boat is paid for but an agreed upon amount is held back in escrow to cover any problems encountered during sea trial...like the engine needing to be replaced. Sometimes the whole deal is simply delayed until a certain calendar date by which time the sea trial must be completed. You are responsible for the launch fee...but not anything else. Bring a diesel mechanic along for the ride as this is the biggest concern during a sea trial...but also check everything else you could not check for operation on land.

Hope this help a bit. Note that this is generally how things work...but individuals can agree on other terms. Just don't let any $$ go from you to the buyer until you are ready to CLOSE the deal. Everything should be in escrow through a broker or a lawyer.

[Gansett2045]

Excellent.

Thanks for the detailed response.

J

[punjabi]

What about in a For Sale by Owner situation? I'm always afraid I will forget something silly and I won't be able to register the boat, car, motorcycle, etc. What do you guys do about that?

[BarryL]

Hello,

Cam summarized the 'typical' purchase. That process will be followed if the boat is sold by a broker, costs above 'x' dollars (you determine X), will be financed, etc.

If the boat is real cheap (and you define cheap) and sold by an owner the process can be a lot simpler. The first boat I bought was a Catalina 22 on a trailer. Real simple boat, outboard powered, private owner. The boat looked very nice and was cheap enough so that if I hated it, I couldn't lose too much money. The owner started the outboard in a tub of water, I paid in cash and towed the boat home.

The first time I sailed the boat was after I rigged and launched it. It was a great boat and I have no regrets.

For my second (and third) boat, the boat was bigger, more complicated, sold by a broker, etc. For that I followed the procedure outlined above. The broker was great and the experience was fine.

Lastly, regardless of where the boat is, you should plan on seeing it a few times before you buy it. Many many boats look great in the on line ad, but are total dogs when you see them in person. If you are spending a considerable amount of money, plan on visiting the boat at least twice before you bring her home: once to look her over, another time at the survey, and finally when you bring her home. Considering it's mid feb, if I were in the market for a boat, I would look now, but not now buy until I could have an in water survey done (mid April?).

Good luck,

Barry