BUYING YOUR BOAT
AYB simplified overview.
This is a reference guide and in no way supersedes
or replaces any contract or terms and conditions.
To ensure the boat is free from debt and that you
will not be landed with a "Marine Lien" against your boat you should always buy through a reputable broker.
Debts go with boats
A reputable broker will always check with local boatyards and marinas to confirm that no debt is outstanding.
Read the terms and conditions. if they are acceptable to you:- Ensure you have all the money to
pay for the boat ready. When you have found the boat that feels right to you and seems good on
Phone a surveyor and PROVISIONALLY book a survey,
you will also have to
provisionally book a dry-dock or slipway and/or crane for the survey.
N.B. You have to pay for these. Also for the move of the boat to the slipway etc (Sometimes the boat seller will offer to move the boat for you for free, if it is a powered vessel).
Now phone the Broker and say you have provisionally booked the survey and slipping and would
like to put down the non-returnable 10% deposit and/or sign contract subject to survey (as defined
in our terms and/or your contract, printed contracts can be re-negotiated, prior to signing, subject to
agreement by buyer and seller and should be checked on your behalf by your legal adviser).
Assuming that the survey is soon enough to be acceptable to the seller, you will then arrange for you with the
seller to sign the contract and/or you will also be asked to
Pay *10% deposit by C.H.A.P.S to Broker's "Client Account" .
Deposits are held on behalf of our client (the seller) until, final completion date(usually 10 days), or full and final payment is received when the boat
is deemed SOLD and funds are passed to the seller, less disbursements.
Once the deposit is in the bank, the contract can be signed
(only sign or pay a deposit if you really want
to buy the boat and you actually have the funds to pay for it, as either is more binding than exchanging
contracts on a house and virtually no-one backs out of completion after house exchange, because the
penalties are serious, ask your solicitor!)
When the contract has been signed, and/or deposit paid, you have committed to buy the boat and
the survey can proceed. If any material defects other than those commensurate with the age and use of
the vessel are found, the surveyor should advise you, you then advise the Broker and the owner will
arrange for them to be fixed (unless you and the owner previously agreed a payment reduction which
exceeds the cost of the work needed).
The work is then done, the final payment made and a
Department of Transport Bill of Sale given to buyer,
with keys to vessel.
Of Course, if you choose not to put down a deposit, have a
survey and/or sign a contract, you can just pay the full amount for the boat you have said you want to
buy. in this case, as soon as cleared funds are received, either in cash or by bank transfer, since we are
acting for the seller, you have paid for the boat and it is yours, you will soon after expect to receive a
Department of Transport Bill of Sale from the seller, confirming transfer of title and acting as a receipt
for your payment.
In both cases, as soon as the full payment for the boat has been made....
Then it is YOURS!!
.*Make sure you pay the ten percent deposit to the broker
Most Boat Buyers and Sellers are very grateful that Brokers and Agents are there to manage the advertising of yachts for sale and introducing prospective buyers to sellers.
We are aware of a very few cases where the buyer and seller decide to get together, effect a sale and purchase without notifying the agent and without placing a holding deposit with the agent, effectively conspiring to deprive the broker of commission due.
It seems from those who have spoken to us about these instances that it is the seller who makes the suggestion in order to avoid, or reduce the cost of the commission. The buyer is usually persuaded by offering a reduction of perhaps up to half the commission due.
In at least one case, the buyer paid a holding deposit on that basis direct to the seller , who then disappeared and proved later never to have owned the boat in question.
It is then possible for the seller, to emigrate with the funds and never be traced again.
For the buyer it is usually a different story. From the minute you start looking at a boat on the website, your IP adress is being logged by three different companies (including Google and Statcounter. Your use of the site includes acceptance of legal Terms and an undertaking that, if you buy a boat advertised on the site, you shall indemnify the broker against loss of commission if you fail to place the holding deposit with the broker, or an agreed third party.
This means that you could end up being prosecuted for criminal conspiracy to defraud, and have to pay the commission due, which may mean the boat you bought ends up in a court auction room.
If you are a Buyer, it is in your best interest to Play Fair by the broker, keep in touch and always ensure that the initial deposit is held by the broker or some body agreed by the broker.