deal breakers

maestro · #1 (**permalink**) 03-22-2004

I''m lookinga at a new boat (used new boat)

Before I enter into a contract there are a few things I''s like to know..

1. after I pay a deposit, and get a survey, if the survey fails, should I receive my deposit back?? I''m not clear with this.
2. How much time normally elapses between deposit and survey and final agreement and signing of contracts???

3.Do most yards push for fast removal of said boat?? ( i was told by a agent at the yard that I can keep the boat in the yard for 3 weeks after the final contract is signed but he wasn''t sure)

4. the boat is on jacks now. Should the yard put the boat in the water for a sea trial for me or that that "extra" knowing that they have to take it back out and then possibly put it back in if I buy??

5. Does everyone get butterflies when considering purchasing a new boat??? There is so many things to consider both good and bad...phew....

Silmaril · #2 (**permalink**) 03-22-2004

Ok, So you have found "Your" boat. Great, now is the time to let your cooler head prevail.

Take a step back and list all the issues you have and review them with your broker. If he is unsure of the yard''s guidlines, find out who DOES know. Usually a walk up to the yard office, introduce yourself as a potential purchaser of said vessel, and ask to speak with the yard manager or someone who can cover your concerns.

You should make sure that your contract reads exactly how you want it to. You sould cover all the items you expect to recieve during the transaction, and any deficiencies you are aware of that will not constitute a deal breaker. Things like you know the stereo does not work or that the Shore Power connector needs to be replaced.

Then as long as the surveyor does not reveal any earth shattering information, you can proceed. You may want to set aside an amount in escrow for agreed upon repairs etc. Anything that will result in a significant repair, say over $1,000, (and it needs to be in writing) and you should be able to either renegotiate the deal, negotiate a reduction in selling price, or the set-up of the repair escrow, or the cancellation and return of your deposit.

In general, the sea trial and survey will be at your expense. So if splashing the boat and then hauling her again needs to be done, be prepared to pony up for that. Same deal for the $500 (or more) for a competent survey of the vessel.

Good luck, and remember that YOU are in control, not the sellers and the brokers. You are the one paying here, so you need to make sure you are protected and that all the parties realize who the customer is. And remember, THE CUSTOMER ALWAYS COMES FIRST!!!!

hamiam · #3 (**permalink**) 03-22-2004

Also, I would wager that the current owner has paid for winter storage and launching. You might find this out definitively as the cost or savings could be a fair bit.

maestro · #4 (**permalink**) 03-22-2004

long story short...the boatyard owns the boat and they are trying to get it off their property. No individual owner...I need to make sure that the title is in the yards name of course before I progress.

sailingfool · #5 (**permalink**) 03-22-2004

1. This is SOP, but should be clearly stated in the offer agreement, with no caveats as to what "unsatisfactory" means - it should mean whatever is unsatifactory to you.
2. As long as both parties agree to. I would say typically 1-2 weeks for survey, a week to consider survey, then 2-4 weeks to close. Get an excellent surveyor, take as long as needed, use most expensive as your guide if you lack any other...
3. Depends on whether you''re paying the yard to store the boat...Get whatever you expect in writing from the seller/broker, all yard charges to be paid at closing.
4. Negotiable. You can hold back material money (say $5-10K) from the closing for a satisfactory sea trial after launching. Gets complicated - don''t count on a sea trial for the engine, have an engine survey with compression test done.
5. Butterflies everytime, just after the first time you recognize the taste...

catamount · #6 (**permalink**) 03-22-2004

Off topic, but regarding butterflies ... One year, on the first day of school, my sister (who was starting high school) was so nervous she couldn''t eat any breakfast. My brother was wolfing his breakfast down as usual. She asked him "It''s the first day of school, aren''t you nervous? Don''t you have butterflies in your stomach?" My brother replied, "Yeah, I do, but my butterflies are hungry!"

Regards,

Tim

slipacre · #7 (**permalink**) 03-22-2004

Boats that are owned by the yard should send up a large warning flag. Previous owner may have abandoned because repairs cost more than it is worth. Be sure to have survey done and done well. Also since yard owns they might be willing to do the splash without cost. If you do not buy the boat they might charge to haul.
If the yard owns getting it out of there may not be a rush - in fact you could become a paying customer for a while.
again, though look at this boat very carefully. Also be sure that title is clear.
Todd V