Offer to purchase

[Flexible]

I am about to make an offer on a used boat and just want to get some advice on what I should put in the terms and conditions? I am going to get a survey but don’t know how I should word it so I can get out of the deal if there are any major problems with the boat. Is there anything else I should put in the contract. Thanks.

[teddier1]

I would make a verbal offer subject to survey. Once the survey has been completed you can adjust your offer if necessay. The downside of this is that a verbal offer will be non-binding, so if there are multiple people interested in the boat you may lose it.

That may not be a downside though, since my experience has been that a seller with multiple buyers interested in the boat = a good deal for the seller and a poor buy for the buyer.

[sailingfool]

You should be signing this form http://www.oceanmarinellc.com/broker...eAgreement.pdf or a version of it.


Do a search for "p&s" if you want to read some of the discussion about this subject.

[badsanta]

Make sure you state that the sale is contingent on a passing survey. You can renegotiate the price if major problems show up. I would not nickel and dime the seller but it gives you leverage if something real bad shows up. If you have any concerns about the engine get an engine survey and that is not covered in a normal survey.

[camaraderie]

Survey AND a SEA TRIAL must be inclded as conditions!

[Stillraining]

I agree with SF & Cam ...On SF form you would put what cam said here under..

ADDITIONAL PROVISIONS = Subject to Surveys and Sea trial

[Delirious]

Originally Posted by badsanta

Make sure you state that the sale is contingent on a passing survey. You can renegotiate the price if major problems show up. I would not nickel and dime the seller but it gives you leverage if something real bad shows up. If you have any concerns about the engine get an engine survey and that is not covered in a normal survey.

What he said. If it is on shore you certainly want to have the engine tested under load once launched and have the seller put $1,500 in escrow so that if it does not pass that money goes to remedy the problem. Something like 10 minutes in gear and the alternator charges, the oil pressure is within a good range and the heat is likewise. And that the oil appears normal afterwards.

[Stillraining]

Depending on the value of the vessel ..I would consider three Separate Surveys..

1) Hull
2) Rigging
3) Mechanical

I would also stipulate to the parties involved that the Hull And Machicanal surveyors accompany you at Sea Trail..The Rigging Inspection can be performed in advance.

[FritzN]

If you use the standard Yacht Purchase and Sale Agreement, which is the form developed by the Yacht Brokers Association of America, under paragraph 7. (Additional Provisions), insert the following:

1) This agreement is subject to a sea trial that is satisfactory to the buyer, in the buyer's sole discretion.

2) This agreement is subject to a survey, at buyer's expense, by a surveyor of buyer's choice that is satisfactory to the buyer, in the buyer's sole discretion.

This basically gives you an out under any circumstances. For example, you can just say that you didn't like the way that the boat handled during the sea trial, and you're out.

If you don't use the YBAA form, just insert comparable language where appropriate in the document that you are using.

I found the YBAA form on the Internet and insisted that we use a modified version of it because, frankly, the broker's contract was a joke -- it ignored a whole series of issues that can arise in a boat (or any other) purchase.

Typically, sellers won't consider an offer that isn't in writing and that doesn't include a deposit. Having said that, times are tough and consequently things may be getting less formal.

Fritz

[cardiacpaul]

uhhh, ummm, ehhhh.....

"2) This agreement is subject to a survey, at buyer's expense, by a surveyor of buyer's choice that is satisfactory to the buyer, in the buyer's sole discretion."

yea, that one. really... mean it.