Contingency wording?

[WinterRiver]

Is there any standardized wording for contingencies when placing an offer on a boat?

I've searched and found lots of suggestions to make an offer contingent on insurance, financing, survey including engine and rigging, sea trial, etc. What I haven't found is how these contingencies should be worded. Trusting the broker with the wording, even if he is a nice guy, doesn't seem like the safest approach. Making it up on my own might not be much better.

[BarryL]

Hello,

I used the standard contract provided by the broker for the last two boats I bought. The broker should provide you with a copy of the contract ahead of time. You can review it and make changes as you require / see fit.

For me, the contract was very clear and provided me with the protection I wanted. Basically, I could have the boat surveyed if I wanted to. The seller had to make the boat available for the survey. If I didn't do anything after the survey, it was assumed the deal was off, and my deposit would be returned.

Barry

[Faster]

There will be a clause dealing with "subject tos" where you can specify that the offer is subject to such things as satisfactory survey, moorage availability, financing etc.

These are usually left open on the form, as some buyers will not need financing, others already may have moorage, etc etc. You can pretty well write in what you want here. For example in the last deal we made, because of time constraints I wrote into it that the offer was subject to the sellers delivering the boat to a specified location... to which they agreed.

[JohnRPollard]

If your broker is using the standard YBAA purchase agreement, the wording is very advantageous to the Buyer and covers all the contingencies you describe above. (Your broker should be able to provide a copy of this ahead of time.) Basically the boilerplate language will allow a purchaser to back-out, and receive a refund of their deposit, for almost any reason.

I would not be concerned about adding additional language if they use the YBAA P&S agreement. Of course, you should read it carefully yourself before signing, and you have every right to modify the language to fit your circumstances -- just make sure you get them to initial any changes.

[danjarch]

One thing I'd add, is that contracts are governed by the state and the contingencies and clauses are allowed or disallowed state by state. Get a copy of the contract from your broker and if you have any questions pepper away. If he doesn't know the local laws, he has a manager that does.

[Moonfish]

Danjarch - Great sig! Makes me laugh every time...

[sailingdog]

I would add that if you have any serious reservations about what is written in a contract, you should have your own attorney go over it with you.

[max-on]

Originally Posted by sailingdog

I would add that if you have any serious reservations about what is written in a contract, you should have your own attorney go over it with you.

And that is coming from SD, who does not like attorneys!!!

[sailingdog]

I like attorneys... preferably 300' below the ocean surface...but I like attorneys... One of my best friends and my brother-in-law are both lawyers...

Originally Posted by max-on

And that is coming from SD, who does not like attorneys!!!

[max-on]

Originally Posted by sailingdog

I like attorneys... preferably 300' below the ocean surface...but I like attorneys... One of my best friends and my brother-in-law are both lawyers...

The only thing is SD, at 300 ft down, I would have to add a premium to my hourly rate due to the nitrogen narcosis, the underwater writing pads are extra too!

In all seriousness, I agree with SD, if you have questions or are uncomfortable with the language, review the agreement with an attorney, the document is a legally binding contract.