You will get dozens of comments from us armchair lawyers, so let me be the first. That contract reads more like something between two trusting friends. Those of us who have been in the brokerage business have seen all sorts of deals fall through for all sorts of reasons. The contract can protect the parties from some of the more egregious reasons.
Deposit- I firmly believe that any deal lasting several weeks (the time it will take to arrange a survey, get the results, arrange insurance, financing, etc) needs a deposit. The problem is who will hold the funds. I believe that marine documentation companies, like Atlantic Documents in Maryland will and that is one option. But if the boat is not going to be documented or the new owner wants to do it himself, then another source needs to be found that is acceptable to both parties. There are generic escrow services. Google it.
Survey- I think that the language around the survey should be unequivocal. The buyer should have the absolute right to cancel the deal for whatever reason, following the survey, not the ambiguous language about obtaining insurance. I know that this sounds harsh but that is what the YBAA contract says.
Time: Time should be of the essence. There should be a specific date upon which all contingencies are released and a date for closing.
Funding: Title should pass when all funds have been received.
Failure to perform- The buyer should lose his deposit as liquidated damages if he fails to close. The seller should be liable for all costs (including the difference in buying an alternate boat) if he doesn't close as agreed. Again this sounds harsh but that is why you sign a contract- you expect the parties to perform and they should bear the cost if they don't.
David