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02-04-2007
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Junior Member
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Join Date: Sep 2006
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Buying without a Broker
We are considering buying a $100,000 boat from a private party.
I have read some things here about buying without a Broker but can't seem to find them.
Any suggestions?
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02-04-2007
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Wandering Aimlessly
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Join Date: Nov 2002
Location: Cruising
Posts: 7,168
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While you don't need a broker for a private sale, they are more familar with the process. Buying a boat though is a fairly straight forward proposition though.
As you already have a boat in mind, the first step is to make an offer (there are generic offer sheets on this site) based on what you think the boat is worth, or are willing to pay. It should be less than the asking price though. How much less would depend on your barginning skills.
Once a price has been accepted (they will most likely counter-offer and you meet in the middle), it is usual to place 10% of purchase price in escrow (this is usually the selling broker's commision, so may not be necessary since this is a private sale.) but expect it.
Now comes the important part, survey and sea trial, on which your offer should be contingent. In writing.
If you still wish to purchase after the survey and sea trial, a final price is negotiated based on those results.
__________________
John
Ontario 32 - Aria
Free, is the heart, that lives not, in fear.
Full, is the spirit, that thinks not, of falling.
True, is the soul, that hesitates not, to give.
Alive, is the one, that believes, in love. JCP
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02-04-2007
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Junior Member
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Join Date: Sep 2006
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Can't find offer sheet!
Have searched this site for a "generic offer sheet" and can't seem to find one.
Does anyone have one they'd like to share?
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02-04-2007
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Wandering Aimlessly
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Join Date: Nov 2002
Location: Cruising
Posts: 7,168
Rep Power: 7
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__________________
John
Ontario 32 - Aria
Free, is the heart, that lives not, in fear.
Full, is the spirit, that thinks not, of falling.
True, is the soul, that hesitates not, to give.
Alive, is the one, that believes, in love. JCP
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02-04-2007
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Senior Member
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Join Date: Apr 2000
Location: Boston and thereabouts
Posts: 1,560
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Lawyer
Quote:
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Originally Posted by PBzeer
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larryLinda,
I advise you to hire a lawyer to handle your purchase. If you have difficulty finding one familiar with boat closings, try calling an area boat dealer for a recommendation. Even though my last boat purchase involved a broker, I had a lawyer review all the paperwork and the money for his hours of work was very well spent. I think this particularly important if you haven't been through the boat buying process 3-4 times already - if the seller has, he/she will stack the agreement deck in their favor...and a good idea even if you have...
For example the broker offer agreement link above is an example of an offer prepared by a broker to load the dice in their (the broker's) favor. Do not use it as is. (no offense meant to John...) The biggest issue is it doesn't permit you to cancel the sale based on the survey...You're going to have to spend $4-800 for the survey, that's your good faith, you need the absolute freedom to terminate the purchase if the survey is not satisfactory to you, no explanation needed to the seller...It also doesn't address the risk of damage to the boat before completion of the sale.
There are some other threads on this subject (I know I've said the above previously). Here is a link to a YBAA form which would be a better starting point:
http://www.oceanmarinellc.com/brokerage/PurchaseandSaleAgreement.pdf#search=%22yacht%20pur chase%20and%20sale%20form%22
But better yet, your new lawyer should have a form for you to use...
Last edited by sailingfool : 02-04-2007 at 05:20 PM.
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02-04-2007
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Wandering Aimlessly
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Join Date: Nov 2002
Location: Cruising
Posts: 7,168
Rep Power: 7
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Good point sailingfool, I forgot to point out that was only an example.
__________________
John
Ontario 32 - Aria
Free, is the heart, that lives not, in fear.
Full, is the spirit, that thinks not, of falling.
True, is the soul, that hesitates not, to give.
Alive, is the one, that believes, in love. JCP
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02-04-2007
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Telstar 28
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Join Date: Mar 2006
Location: New England
Posts: 27,075
Rep Power: 5
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I would second hiring an attorney to help with the purchase. You probably wouldn't buy a house without an attorney, and this is much in the same. Make the purchase contingent on the survey, and get a good survey and an engine survey. Also, you will probably want a lawyer familiar with the marine industry, to make sure that the title to the boat is free of any liens. If the boat is currently USCG documented, the USCG should have a listing of any liens... if it is state-registered, I don't think there is a standard place you can check for liens.
__________________
Sailingdog
Telstar 28
New England
You know what the first rule of sailing is? ...Love. You can learn all the math in the 'verse, but you take
a boat to the sea you don't love, she'll shake you off just as sure as the turning of the worlds. Love keeps
her going when she oughta fall down, tells you she's hurting 'fore she keens. Makes her a home.
—Cpt. Mal Reynolds, Serenity (edited)
If you're new to the Sailnet Forums... please read this POST.
Still—DON'T READ THAT POST AGAIN.
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02-06-2007
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Here .. Pull this
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Join Date: Jan 2007
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Rep Power: 2
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Get lawyer - and the farther away from brokers you stay the better - a once honorable profession seems to have been taken over by folks too unethical to get jobs selling used cars...make sure your lawyer can establish clear title, God forbid you should buy a boat from Mr. Jones that actually belongs to Mr. Smith. Try to contact the builder to trace the history....
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