Join Date: Jan 2001
Thanked 6 Times in 5 Posts
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Re: Working with sellers who refuse a pending survey contract
Just wanted to see what others have done in this situation. A buddy of mine is looking at a GOB in SC and expressed interest in it. The seller refuses to do any sort of contract that protects him while heís arranging a survey. Basically if someone walks up tomorrow with the right offer, boats sold, even if a surveyor is coming in the afternoon. Purchase price is in the $25k range and I told him an insurance co wonít touch it without a survey. Itís a classic like mine and theyíre arenít a whole bunch of them on the market. He said itís in really nice shape and basically ready to go. Iíve bought plenty of boats without a PreP survey but then again I can recognize major issues..usually....and understand that going in I might have missed something and have to fix it. Thereís always something to fix anyway so I look at it as taking over the projects from the previous owner. Boats use us until weíre spent and broke then move on to another skipper.
Make a price offer subject to survey with a couple of "outs," just in case. An offer has to have consideration, so a check for $1,000.00 into someone's Trust Account is a good idea, or just give the guy $500.00 to hold it until you get back with survey. Time limit the survey and acceptance. Until something's in writing and signed, nobody has anything. I did it with my most recent, just because I wanted full protection of equitable title (by virtue of a purchase agreement). Legal title comes with bill of sale, registration and/or documentation (to the extent that legal title actually exists).