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Old 02-25-2016, 04:54 PM   #1
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cash deposit

Hi all new to this forum. Going to look at a trawler in Florida and was told I must put a 10 percent CASH deposit with a signed contract before I get it surveyed. Is it customary to use CASH? I can understand a deposit but don't understand why CASH. Can anybody comment. Thanks
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Old 02-25-2016, 05:00 PM   #2
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I've done checks, not cash. Broker held in office safe until deal wrapped up. % varies, there is no magic number but the higher the % the more serious the offer, generally.
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Old 02-25-2016, 05:06 PM   #3
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Hi all new to this forum. Going to look at a trawler in Florida and was told I must put a 10 percent CASH deposit with a signed contract before I get it surveyed. Is it customary to use CASH? I can understand a deposit but don't understand why CASH. Can anybody comment. Thanks
Are you dealing with a broker? The standard in Florida is for the deposit to be paid to the selling broker's escrow account. I've personally never encountered a situation where a deposit by check wasn't accepted.
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Old 02-25-2016, 05:20 PM   #4
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Greetings,
Welcome aboard. Agree with above. Check should be acceptable and put in escrow account. IF cash is still demanded I'd question the shadiness of the seller and particularly the broker if the broker is the one making the demand. Be prepared to walk or run away. VERY few people work in cash anymore and there are hundreds of boats out there.
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Old 02-25-2016, 05:23 PM   #5
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Be on guard if required to pay in a way outside the norm.
Could be the seller only deals in cash, for some reason...
Does the broker really mean cash $,or a form which transfers $ in a simple direct way, including cheque/check?
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Old 02-25-2016, 05:40 PM   #6
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Here is a link to the standard Florida agreement as designed by the Florida Yacht Brokers Association, Inc.

http://www.fyba.org/docs/memberdocs/..._agreement.pdf
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Old 02-25-2016, 05:41 PM   #7
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Never, never cash.
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Old 02-25-2016, 05:52 PM   #8
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GET YOURSELF A BUYERS BROKER

He will go with you to view the boat and walk you through the whole process, guarding you from the nastiness that often comes with dealing with a certain type of broker. Plus HE will take you deposit check and put it into HIS escrow.

You pay nothing, he gets paid out of the sellers paid commission.
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Old 02-25-2016, 05:53 PM   #9
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The deposit is a way to weed out the tire kickers or people looking for a free boat ride. Requiring "real money" is a way to make sure that you are seriously in the market and in the market for the boat in question.
A check isn't "real money" until it is cashed and clears the bank.
What you need to do is be sure you will get your deposit back if the boat fails the survey or you don't like how it rides or handles. This should be in the contract.
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Old 02-25-2016, 05:54 PM   #10
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no cash ad only in an escrow account. Boat US offers escrow serice.
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Old 02-25-2016, 05:57 PM   #11
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Check only! Broker should hold it in escrow while survey is conducted. At least that's how it worked in Annapolis MD.
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Old 02-25-2016, 06:02 PM   #12
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If I recall correctly, I had to make a wire transfer into the broker's escrow account.

The method of placing a deposit is negotiable, but if you and the seller or broker can't agree, this will be one boat that you won't be buying.
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Old 02-25-2016, 06:07 PM   #13
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Make sure they know the deposit is not 'earnest money' which is money they keep regardless of the outcome of the sale.
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Old 02-25-2016, 06:10 PM   #14
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If the cash, or the check, gets deposited to an appropriate account, the effect is the same. The problem arises if the cash is not going to be dealt with that way. How will it be dealt with, what does the Agreement say about the deposit?
With my present boat, the sellers broker never banked the deposit cheque, it was returned to me when I paid for the boat.
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Old 02-25-2016, 06:18 PM   #15
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I can't imagine he's dealing with a broker. Florida brokers are licensed and do generally follow a standard protocol.
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Old 02-25-2016, 06:21 PM   #16
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I should be clear. Im going to see the boat monday and having it surveyed Wednesday so he is asking for cleared funds before we do anything and was told cash is very common for something like this
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Old 02-25-2016, 06:30 PM   #17
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I should be clear. Im going to see the boat monday and having it surveyed Wednesday so he is asking for cleared funds before we do anything and was told cash is very common for something like this
Is it a broker? Or individual?
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Old 02-25-2016, 06:41 PM   #18
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To be honest, I can't recall how I handled my boat purchase 6 years ago. I think I made a deposit at the time of the sea trial, haul out and survey. It most certainly wasn't in cash but likely was a cashiers check.

I never quite figured out the reason for the deposit. I paid much more for my flight down to California, the haul out, and the survey, than I paid in a deposit. It seems to me that if a potential buyer is already footing the bill for all that, that a deposit just to see if the buyer is serious is a bit of overkill. OTOH, a deposit paid into an escrow account with an agreement that it is simply a refundable deposit doesn't bother me.
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Old 02-25-2016, 07:15 PM   #19
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cash deposit

I'm dealing with a broker
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Old 02-25-2016, 07:22 PM   #20
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The problem with cash is that it's not traceable if things don't go well. If I were you, and they were demanding cash, I'd offer to show up with the cash at the broker's bank and pay it into the escrow account and get a receipt. I wouldn't just hand over the cash.

The three times I have done this, my deposit check was never even cashed.

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