Join Date: Nov 2009
Location: San Francisco, CA
Thanked 0 Times in 0 Posts
Rep Power: 0
Re: Previous owner wants property tax credit?
You guys brought up some good points which led me to go back and review the contract and that puts a whole new twist on things.
There is/was no lien on the boat, see number 9. below.
The vessel is in the process of USCG documentation. Paperwork has already been filed with USCG via my title company.
There was a broker involved.
In the contract item 10. there should have been a check mark and initals by one of the 2 options and there is not. Looks like that slipped by everyone.
Contract items 9 and 10:
9. Title.Seller shall furnish Buyer title to and possession of the Vessel free and clear of any and all claims, liens and encumbrances of any kind. Seller shall promptly discharge, and Broker is authorized and instructed to pay out of the purchase price funds, any and all commissions, liens, mortgages, taxes (including, without limitation, any personal property taxes and penalties Seller has agreed to pay under Paragraph 10 of this Agreement), assessments and bills of every kind incurred against the Vessel before transfer of title, except those which Buyer has agreed in writing to pay. Transfer of title to the Vessel shall be deemed to occur at the place, date and time of delivery of the Vessel to Buyer, and Seller shall bear all risk of loss of or damage to the Vessel until such delivery, unless otherwise agreed in writing. Seller shall become obligated to transfer title to Buyer when (i) Broker has timely received an original or copy of this Agreement duly executed by Buyer and Seller, (ii) Broker has received as agreed all amounts in cleared United States funds, including the full purchase price and any other amounts due, (iii) Broker is in a position to deliver said funds to Seller, less brokerage fees and other applicable fees, taxes and charges, and (iv) any relevant conditions or contingencies set forth in this Agreement have been satisfied or waived.
10. Taxes. Buyer shall timely pay any sales tax, use tax, other transaction tax, fee or duty that may be imposed on this transaction. Personal property tax on the Vessel shall be paid as follows (check one):
---Seller shall pay in full any and all personal property tax and penalties, except tax for the most recently assessed year, which shall be prorated so that Seller shall pay the portion from the January 1st of such year up until, but not including, the date Seller transfers title to the Vessel to Buyer, and Buyer shall pay the balance. The actual amounts payable by Seller and Buyer are to be stated in Buyer’s and Seller’s Final Statements, which are by this reference incorporated into this Agreement.
---Seller shall pay in full any and all personal property tax and penalties, up to and including the most recently assessed year, and such amounts shall not be prorated.