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  #41  
Old 10-09-2011
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Quote:
Originally Posted by MonteB View Post
It seems I am paying for flippin everything
It's customary for the buyer to pay for survey, finance charges, etc. However, it's very unusual for the buyer to pay the broker. Are you looking at boats that are listed with brokers, or are you using a broker to help you look at Craigslist boats? If the latter, the sellers are probably going the DIY route to avoid paying the fees, and you could end up on the hook for broker's fees, depending on what the contract says.
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  #42  
Old 10-09-2011
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Quote:
Originally Posted by MonteB View Post
It seems I am paying for flippin everything
Welcome to Boat Ownership
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  #43  
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Welcome to Boat Ownership
Hahaha Indeed
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  #44  
Old 10-18-2011
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How long are they allowed to keep the deposit?
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Old 10-18-2011
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You need to address the return of the earnest money deposit in your contract, who will hold it - the seller or escrow agent, under what conditions it can be retained, and under what conditions it can be applied or released.

As a buyer, you are safest depositing the deposit with a neutral escrow agent, such as a closing agent. If there is a dispute over the deposit, the escrow agent may deposit it with a court in a procedure known as an interpleader, and the court can decide who is entitled to the deposit.

Normally, the earnest money deposit would be either credited to the purchase price at closing, returned to the purchaser because a contingency was not satisfied - such as a satisfactory sea trial or satisfactory marine survey, or applied to damages because the purchaser breached the ratified contract.

You should provide that the deposit would be returned to you immediately if certain conditions are not met.

I would never accept the uniform broker's contract that primarily protects the broker's interest. Do not allow these brokers or sellers to lead you around by the nose simply because they may know more than you do about the procedure, or about boats. Do not accept something because they tell you this is the way we always do it. It is all negotiable. In this market, as a buyer you should control the transaction, not the broker or seller. If they do not like it, find another boat.

Last edited by jameswilson29; 10-18-2011 at 11:14 AM.
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I just closed on a boat early this month. Deposit was held in escrow. Deposit was due when the contract was signed by both parties. I could back out of the deal at any time for any reason up until the acceptance date. I had about 4 weeks between when we signed the contract and the acceptance date to get the survey done. I paid for the survey. If I didn't "accept" the boat by the acceptance date the deal was "off" and I would get the deposit back. Once formally "accepted" I was committed to the deal. If I didn't complete the transaction by the close date (about one week after acceptance) I would forfet the deposit. Seller paid broker costs.
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Congrats on your successful purchase.

Was the seller free to sell the boat to someone else for a higher price before the acceptance date?

Was your check held or actually deposited, presented and cleared upon signing of the contract?

Did you have the right take the boat on a sea trial before the acceptance date? Was the boat in the water or on the hard?
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Quote:
Originally Posted by jameswilson29 View Post
....
I would never accept the uniform broker's contract that primarily protects the broker's interest. ...
I believe there is nothing wrong with the standard brokers contract, it has been reasonably structured to fairly cover the interests of all parties:
http://www.integrityyachtsales.com/i..._Agreement.pdf. In standard form it supports all the concerns listed in your post and others.

Obviously you can and should adjust the standard form agreement to meet any particular or specific reasonable concerns. Because everything CAN be negotiated, does not mean you want to negotiate EVERYTHING.

For example, the standard text does not mention a sea-trial...but it has a section titled Additional Provisions: where you add your expectation about a sea trial linking it back to Acceptance of the Yacht, and anything else that is special or additional to your concerns.

The boilerplate document covers a lot of legal territory that needs to be covered, and you would be looking for far more trouble if you tried to cover this territory from scratch, even if you didn't mind the legal fees. Plus it'd be a waste of time.
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Last edited by sailingfool; 10-18-2011 at 05:06 PM.
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Old 10-18-2011
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Yes, at some point you need to presume positive intent on the part of all participants. You can send the wrong signal if your first priority is to negotiate excessive bailout options that deviate from standard practice of the industry. You may think you're protecting yourself, but if the negotiations become protracted, you may risk another buyer coming along with more reasonable stipluations.
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Quote:
Originally Posted by jameswilson29 View Post
Congrats on your successful purchase.

Was the seller free to sell the boat to someone else for a higher price before the acceptance date?

Was your check held or actually deposited, presented and cleared upon signing of the contract?

Did you have the right take the boat on a sea trial before the acceptance date? Was the boat in the water or on the hard?
Once the purchase agreement was signed I had exclusive right to purchase the boat until the acceptance date at which time I had to "accept" or walk away. The check for the deposit was cashed and held in escrow. Between the date the purchase agreement was signed and the acceptance date the seller was obligated to present the boat for survey and sea trials. We made sure there was sufficient time before the acceptance date to complete the survey and for me to receive and review the report. The boat was in the water when the purchase agreement was signed. The boat was hauled for survey then put back the water for sea trials.
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