Can anyone please explain what this means. They accepted my offer.

[Shrew]

I'm not clear how you (The OP) ended up at this point. Are you verbally negotiating the price?? The P&S should be the offer, signed by you. The acceptance should be the signed P&S from the seller.

It looks like you are verbally negotiating the price and the P&S has been drafted by the broker. You have a P&S (Offer of Acceptance??) with no signatures. You're going to need to finance and pay taxes on the $77K, then get a 'credit' at the time of closing?

I would expect this to read:

Purchase Price: 77K
Credit: $20K
Balance Due at Closing: $57K

This is a promise of a credit which, in itself, is oddly worded.

The brokers commission should not become your tax burden.

 

[GoneFarrell]

Duc, who's going to insure your boat? That person should be your new best friend and refer you to a competent attorney for a quick contract review. $$ well spent.

8 bikes in the garage here, will have to cross paths/mooring lines when you're afloat.

 

[Medic]

"IM ALSO GETTING PRIME TRANSFERABLE MOORAGE IN DOWNTOWN SEATTLE THAT TAKES YEARS TO GET, (Almost worth the price alone if I take the boat out and sink it in deep water)"

Ask the broker for a "bit of clarification, because I'm a bit confused as to the final price". Also, ask that "Prime transferable moorage in downtown Seattle" be very clearly stated, if it is not already (because I could not enlarge your offer to a readable size).

Then BUY THE BOAT. Don't quibble.

Happy cruising.

 

[AlanT]

As others have noted, you should feel completely free to phrase "reword" your offer as you see fit. Brokers in my opinion are rubbish at writing legally strong PSA agreements. I am not trashing Hampton, they are good folk and will negotiate a good deal, but as other brokers, when they add language to their basic contract form (which would have had legal review) they are pretty carefree with what they write. As written it may be an attempt to maintain commission from the seller, and it will certainly present you with a higher tax bill if you leave it as is. ~A

 

[SteveK]

What IF came to mind. The $20K credit is for repairs to blistering. The value of the boat is stated as $77K without blisters.

So, why not considering a purchase of $77 after the repairs are completed, after a resurvey to confirm the blister repair before completing the transaction and taking delivery.

As others have said insurance difference is negligible, purchaser does not pay commision.
You have nothing to lose, but you might gain should there be more than $20K in blister repairs which is the apparent focus of this credit. By writing in the credit it may limit the seller to an amount that (regardless of quote) may not be enough.

 

[Shrew]

IM ALSO GETTING PRIME TRANSFERABLE MOORAGE IN DOWNTOWN SEATTLE THAT TAKES YEARS TO GET, (Almost worth the price alone if I take the boat out and sink it in deep water)

Not according to the P&S you're not. If it's not part of the contract, it's not legally binding and not part of the sale. All you have is 'word of mouth'.

 

[Sidclark]

This is pretty standard wording on an "Acceptance of Vessel" document. The next document you should receive, once you sign the AOV, is the buyers statement. This is the document that spells out the breakdown and will have the adjusted sales price of $57,000 on the document. The sales tax will be based on the $57,000 in the buyers statement. And yes, the seller will pay a commission based on the $77,000. This is standard also and has nothing to do with your side of the deal.

 

[Spinner]

To the OP:

Are you sure about the transferable moorage?? Downtown Seattle to me means Elliott Bay, not the Ship Canal. There are about 20 “condo slips” at Elliott Bay Marina, but it doesn’t sound like you are talking about those. Shilshole is a public marina, pretty sure they don’t have transferable slips, and they are in Ballard, way north of downtown.

Would you mind disclosing the location of the transferable slip?

 

[BandB]

This is pretty standard wording on an "Acceptance of Vessel" document. The next document you should receive, once you sign the AOV, is the buyers statement. This is the document that spells out the breakdown and will have the adjusted sales price of $57,000 on the document. The sales tax will be based on the $57,000 in the buyers statement. And yes, the seller will pay a commission based on the $77,000. This is standard also and has nothing to do with your side of the deal.

Absolutely. You are all making way too much of this. It clearly states you'll only be responsible for $57,000. Now if you want to add a sentence reading, "Therefore net cash outlay at closing is $57,000" then fine.

The $77,000 is also helpful toward your financing. You're buying a $77k boat when you've completed the repairs.

I don't see anything wrong with what the broker has done. There isn't a conspiracy under every bush.

 

[Seevee]

Absolutely. You are all making way too much of this. It clearly states you'll only be responsible for $57,000. Now if you want to add a sentence reading, "Therefore net cash outlay at closing is $57,000" then fine.

The $77,000 is also helpful toward your financing. You're buying a $77k boat when you've completed the repairs.

I don't see anything wrong with what the broker has done. There isn't a conspiracy under every bush.

Agreed. Get the job done. If you only have to come up with the $57 at closing, you're golden. However, the P&S agreement is poorly written.... should only have $57 as the sales price.... period.



BUT, if this is the boat you really want and you DO have rights to a highly desirable slip, get it done.


Insurance has little to do with the purchase price, and you can prove to the tax people what you paid for it. Commissions are not your concern.

 

[Ducatihottie]

Moorage transferable letter below. I have the required insurance. I'll give them a call today.

"David,

Congratulations on the pending sale. Monthly moorage would be transferrable, the new owner would need to fill out the moorage agreement, ecology letter and provide proof of at least $300K of liability insurance and proof of ownership. If the new owner wants liveaboard moorage, we cannot provide that.

In the negotiation, please consider moorage costs. For example, you have already been billed for July moorage on the boat. I do not have the ability to split that month or go back and bill the new owner. It would seem fair that the buyer would pay you for the remainder of the month that we are in and the bill would be in his name the following month. I hope this makes sense (it does in my head). If you would like to discuss it, I would be glad to talk to you. Thank you.

 

[Ducatihottie]

Shrew I've already signed a purchase and sales agreement. The boat had some problems that needed addressed and this is the new agreed price. I just don't like the new wording.

I was also informed to fix the boat in the winter and enjoy my summer on it.

"The $77,000 is also helpful toward your financing. You're buying a $77k boat when you've completed the repairs".

I get a lower intrest rate the more the boat is appraised and actual price difference. It has something to do with that 80/20 the bank keeps mentiong? So dropping the price from $77,000 to $57,000 I get lower intrest rate.

 

[Swfla]

Once you've signed these agreements, you're bound to the terms. You may not like the wording (I agree with you there) but that's what you signed and agreed to. Hoping it works out for everyone with minimal problems.

 

[Ducatihottie]

New purchase and sales agreement photo below. Compare to original posted photo and I think we accomplished something, (I like this one better).

Great job everyone!

 

[AZ2Loop]

Much better. Well done, and congratulations. Ambiguity is now gone and so is any concern (founded or not) over paying sales tax on 77 vs 57. If broker still wants commission on 77, that can be worked out between broker and seller.

 

[Ducatihottie]

It was simple. I just texted him what was recommended here and he said OK. Minutes late I had this. Later I had him add contingent on insurance, (no problems as well). I've been approved for insurance, but they want to look over the survey I sent them.

 

[AlaskaProf]

Alaskaprof bad advice from members here? Or just my "acceptance of vessel offer" I posted above? Can you be more specific?

Reflecting on my original post, it is a bit hyperbolic. There is some good advice here, those posts which tell you a sales contract should not look like this. The fiddling with price is not normal.



I understand your emotional commitment, and that is something only you can evaluate, but reflecting back on a lifetime of acquiring houses, wives, cars, boats and especially airplanes, "because it's the one I want, dammit," was usually a sign of trouble to come.

 

[Swfla]

Very glad you got a better agreement. Hope you read and make changes " before" you sign any future agreements. Things could have been very different here if the broker was unwilling to make changes.

 

[Ducatihottie]

Thanks. If I do, I'll be bugging everyone again for help

Alaskaprof. Someone asked me if I knew a lawyer and I said no. Your "wives" comment reminded me that I do know one.

 

[Madhatter53]

Couldn’t see the last pic of contract and it was a good move to include the subject to ins clause. Big old boats are tough to insure but not having any experience running a big ol boat could have you in trouble or paying a high risk policy.

 

[Ducatihottie]

I have owned a boat but only ski boat. I was a crew member on a 140 foot Schooner Invader Cruises if anyone in San Diego remembers them.

 

[AlaskaProf]

Alaskaprof. Someone asked me if I knew a lawyer and I said no. Your "wives" comment reminded me that I do know one.

The third time i eliminated the "middleperson" and married a lawyer. Risky, I know, but it's been working for 25 years.

 

[Comodave]

I have had 23 boats but only 1 wife. Next year will be 50 years. I make sure she understands that she has a really good deal by telling her quite often. Saves all the lawyer bills if you stick to one.

 

[BruceK]

Moorage transferable letter below. I have the required insurance. I'll give them a call today.

"David,

Congratulations on the pending sale. Monthly moorage would be transferrable, the new owner would need to fill out the moorage agreement, ecology letter and provide proof of at least $300K of liability insurance and proof of ownership. If the new owner wants liveaboard moorage, we cannot provide that.

In the negotiation, please consider moorage costs. For example, you have already been billed for July moorage on the boat. I do not have the ability to split that month or go back and bill the new owner. It would seem fair that the buyer would pay you for the remainder of the month that we are in and the bill would be in his name the following month. I hope this makes sense (it does in my head). If you would like to discuss it, I would be glad to talk to you. Thank you.

Apportioning prepaid moorage is just like the buyer of real estate adding to the final payment municipal or water authority charges paid in advance by the seller.

 

[Ducatihottie]

Bruce, or anyone.

What's an "ecology letter " and do I have to pay someone for another inspection?

 

[bligh]

Thanks. This whole boat buying process is more F-up than buying a house

Lololol

 

[bligh]

Wow. Interesting.

This is pretty standard wording on an "Acceptance of Vessel" document. The next document you should receive, once you sign the AOV, is the buyers statement. This is the document that spells out the breakdown and will have the adjusted sales price of $57,000 on the document. The sales tax will be based on the $57,000 in the buyers statement. And yes, the seller will pay a commission based on the $77,000. This is standard also and has nothing to do with your side of the deal.

 

[BruceK]

Bruce, or anyone.

What's an "ecology letter " and do I have to pay someone for another inspection?

No idea. Someone from California should be able to help.

 

[Flatswing]

Buy the boat by requiring the contract to reflect your purchase price of $57k the only number relevant to you!
You will be out of pocket Much more than $57k ‘cause the insurance co is going to want most of the deficiencies fixed (blisters probably not depending on survey wording). U will need insurance, slip/mooring etc.

 

[stubones99]

You will be taxed on the sale amount, which leaves you paying the tax load on the $20k rebate... I would discuss this with the broker.