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Old 03-30-2015, 10:29 AM   #1
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Boat For Sale By Owner Purchase Agreement

After going through the effort of putting together a purchase agreement, I thought why not offer it to others. Why reinvent the wheel if one is already out there. This Purchase Agreement has no reference to a broker or his/her fees.
Us it as you will. All or just parts of it. Safe travels.
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File Type: doc Purchase Offer and Sales Agreement.doc (26.5 KB, 223 views)
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Old 03-30-2015, 11:09 AM   #2
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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
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Old 03-30-2015, 01:52 PM   #3
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Quote:
Originally Posted by djmarchand View Post
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

Hey, I hear what you are saying and agree. How about posting a Purchase Agreement that includes all that you mention for non broker sales so they can be contracted professionally? I am sure lots of folks would appreciate your efforts.
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Old 03-30-2015, 03:06 PM   #4
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I wish I could, but can't for several reasons:

1. I don't have access to the YBAA contract to start with.

2, If I were to modify the YBAA or any other brokers contract and post it, I would be practicing law. I am not a lawyer. I am a retired businessman.

So I did what I could do which is to post thoughts which should be incorporated into any serious contract.

David
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Old 03-30-2015, 04:31 PM   #5
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Quote:
Originally Posted by djmarchand View Post
I wish I could, but can't for several reasons:

1. I don't have access to the YBAA contract to start with.

2, If I were to modify the YBAA or any other brokers contract and post it, I would be practicing law. I am not a lawyer. I am a retired businessman.

So I did what I could do which is to post thoughts which should be incorporated into any serious contract.

David
Not to mention potential legal liability for posting a contract which someone uses to their detriment.
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Old 03-30-2015, 05:49 PM   #6
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Here's a draft P & S and the disclaimer. I've had this since 2009 and accept no responsibility.

Marine Documentation Service, Inc. and its employees are providing this fill in the blank form as a courtesy only and are not legally authorized to provide any advice as to its completion. Any such advice is to be obtained from either an attorney or a licensed yacht broker.
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File Type: pdf P & S marine, sample, draft.pdf (87.1 KB, 165 views)
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