Offer Letter

[Bardo]

If purchasing a boat directly from an owner, what should be in the offer letter? So far, I have:

1) offered price
2) contingent on survey and sea trial
3) offer deadline

What am I missing? Is there a template floating around the bilge somewhere? No luck searching so far...

Thanks as always,
Freeman

[TrueBlue]

Purchase and Sales Agreements such as the ones used by YBAA (Yacht Brokers Association of America) are normally used for this transaction, followed by a Closing Statement.

These forms are copyrighted and are to be only used by members. Although, I do have both a blank form and completed ones from my past purchases which I have scanned. I'm sure if I post jpegs of these forms, or even send you copies, the Yacht Broker Form police will hunt me down and arrest me.

[k1vsk]

any contract, which this is, needs to contain all the provisions which you require unless you make this "offer letter" contingent upon a subsequent contractual agreement. As examples, dinghy, motor, clear titile, equipment, spares, removal of any liens, etc... Unless you include all requirements, they don't exist. There is a generic P&S agreement someone might post, however, none I have ever read are sufficiently thorough and complete enough to repy upon in my opinion. Depending upon how much money is involved, you may be best served by having your attorney draft such an offer. If you do nothing else, understand that unless it is in writing, no understanding exists.

[sailingdog]

It might be wise to have the offer letter be contingent on a subsequent contractual agreement, per K1vsk's advice. All the details need to be in writing... anything that isn't might as well not have been agreed to.

[Bardo]

Thanks all. I agree and understand the contractual requirements, which is why I asked about a template into which I enter the details. I hate to spend another 300 bucks on a lawyer drafting the initial letter, but could see my way clear to making the offer contingent on a signed contract including all details.

[sailingfool]

If you do a search of the board for YBAA you will find a number of threads on the subject of offer letter, plus you will find this link http://www.oceanmarinellc.com/broker...eAgreement.pdf to the document that you are looking for.

You need to cross out the text regarding the brokers, you might use an attorney to hold the deposit and any escrow if applicable.

[SailorMitch]

I probably have the contract I used when I bought my current boat 4 years ago. I'll let you know if I find the file. There are lots of them floating around the internet. The one I used I got from a friend.

[Gene T]

OK, maybe I'm old fashioned, but I like dealing person to person, face to face is better but over the phone if necessary. Offer, counter, haggle, agree on terms, equipment, timing and a handshake. Purchase agreement is generally supplied by seller, you can modify it until you both agree. Hand over a check for 10% of the price or enough to cover haul-out costs whichever is more.

Again, that's the way I would prefer to do it, either buying or selling. Maybe I'm idealistic but if I don't feel comfortable with who I'm dealing with I just walk away. I feel the same way about dealing with a broker, if I don't feel like they are ethical I just go away.

[sailingdog]

Unfortunately, a handshake isn't worth what it used to be... some of the people I've dealt with in the marine industry are less than honorable and not trustworthy.

[kwaltersmi]

I would also add a contigency regarding financing if you do not intend to pay cash. It's always a good idea to cover your butt in case you can't don't qualify for the loan or the lender doesn't think the boat is worth the amount borrowed.

You could also add something about time periods for the seatrial and survey and what equipment/personal property ( VHF radios, life jackets, docking lines, etc.) are included in the sale.

Don't forget to make your offer contigent upon receiving a proper clear/clean title!