cash deposit - Page 2

menzies · 02-25-2016, 07:24 PM

Surprised you scheduled a survey before seeing the boat? Are you that confident?

Anyhow, the broker will not expect a deposit check until after you have seen the boat and want to make an initial offer. You should then give the broker the check with your signed offer. The offer will include a "subject to satisfactory survey" clause. If you are not satisfied with the survey you get ALL of your money back. If you had a buyers broker he would make sure that was all in order.

So read the offer contract very carefully to make sure you get it all back if you chose to walk away.

After the survey you get to negotiate the price again to cover for repairs. If the finding are so grave that you are no longer interested in the vessel you can walk and not negotiate and get your money back. If you decide to negotiate and the seller will not come down to where you want to be, you can walk then to. The broker or seller should not take one penny of your money unless you chose to go forward after survey. The offer contract will have dates in there by when you have to make a decision.

Here is a critical piece of information. IT IS A BUYERS MARKET. A big-time buyers market. The seller wants to sell his boat. So tell the broker that you will be bringing a check. Tell him you need to do that as documentation that you gave the deposit. Do not fall in love with the boat. Unlike a house, location is not a factor - you can move the boat. And unlike a house production boats are pretty much all alike - and there will be another one along shortly.

So again,. no check until you have seen the boat and are ready to make a signed offer.

gflc123 · 02-25-2016, 07:25 PM

I told the broker I was surveying the next day and had told him originally I am a cash buyer (meaning i didn't need financing) He would not take deposit till the contract was signed. apparently it takes 2 business weeks for bank checks to clear and 3 weeks for personal checks to clear.

menzies · 02-25-2016, 07:29 PM

Quote:

Originally Posted by gflc123

I told the broker I was surveying the next day and had told him originally I am a cash buyer (meaning i didn't need financing) He would not take deposit till the contract was signed. apparently it takes 2 business weeks for bank checks to clear and 3 weeks for personal checks to clear.

Where does he live - Timbucktu?

By the time you make the offer, survey, negotiate, do the title searched, and prepare the documentation, and collect the boat, he will have plenty of time to clear the check.

meridian · 02-25-2016, 07:30 PM

Are you saying you haven't seen the boat yet but already have a signed purchase agreement? I see you are a new member. What is your boating background? Have you purchased a boat previously?

menzies · 02-25-2016, 07:31 PM

Quote:

Originally Posted by meridian

Are you saying you haven't seen the boat yet but already have a signed purchase agreement? I see you are a new member. What is your boating background? Have you purchased a boat previously?

No, see post #22.

meridian · 02-25-2016, 07:34 PM

Messages are being posted fast and furious. Can't stay ahead of the pack

gflc123 · 02-25-2016, 07:41 PM

thanks all for your help

menzies · 02-25-2016, 08:05 PM

gflc, the process is pretty much identical to buying a house.

Only people buying a house tend to have their own realtor, whereas most boat buyers don't think about doing that. If this boat does not work out consider getting a broker for the next one you look at. You will be amazed at how easy he will make your life.

gflc123 · 02-25-2016, 08:38 PM

Hey meridian not sure where you got your info but if you look at my original post and read it carefully it might answer some of your questions.
As far as my boating background goes I'm positive it's not nearly as accomplished as yours, but we all have to start somewhere. Boat? I've owned a few, but i still get confused with port and starboard when i look to the back of the boat. Oh well i'm sure it will come with time. thanks again

ksanders · 02-25-2016, 08:48 PM

If you have any doubt at all just use a marine title and escrow company. Their fees are astonishingly low, and they are an impartial third party.

menzies · 02-25-2016, 09:23 PM

Quote:

Originally Posted by ksanders

If you have any doubt at all just use a marine title and escrow company. Their fees are astonishingly low, and they are an impartial third party.

I have one I can recommend. It cost me $295 for all of the title, lien, paperwork, and Coast Guard Documentation. Smooth process. Lady I dealt with knew what she was doing.

gflc123 · 02-25-2016, 09:29 PM

hey Menzies thanks guys, that sounds reasonable will gladly take that contact at your convenience. Thanks again

THD · 02-25-2016, 09:37 PM

GFLC-much good advice so far, so just a point or two. From one of your posts, he wants "cleared funds." Assuming you are within the US, a personal check will take no more than 5 business days to clear but a simple call to the bank can verify the check, a Cashier's check no more than 2 business days, but if he has any relationship at all with his bank, he will receive immediate credit for a Cashiers' Check. And as someone noted, a wire transfer is completed in less than 2 hours or so usually if done before about 2 in the afternoon. Also as noted, I would want any agreement to specify "deposit" to be held in escrow, and the time and form in which it will be returned should the sale not proceed. I would ask that it be returned in the same form and manner as delivered by you, i.e. Cashier's check or wire transfer.

menzies · 02-25-2016, 09:47 PM

Quote:

Originally Posted by gflc123

hey Menzies thanks guys, that sounds reasonable will gladly take that contact at your convenience. Thanks again

Just PM'd you the info.

Good luck.

BandB · 02-25-2016, 11:55 PM

Cleared funds is insane for a deposit. First, with all the effort you've gone to, writing a bad check is highly unlikely. There is the risk you stop payment. However, if he has a signed contract and you decide not to follow through then it would be returned to you anyway so no big deal on stop payment. If you follow through you won't stop payment but you'll replace the check with a bank check or wire transfer.

As to you writing a bad check, again unlikely if he's properly qualified you. If you did, he can file a criminal complaint.

I have written checks on house deposits and boat deposits and never been asked for cash. I've written checks for cars. Had they not been good, I believe the term is Grand Theft Auto.

As to the contract, it should look much like the one I posted the link to earlier.

I don't know the price range you're looking in but odds are great that it doesn't go contract, survey, closing. There are almost always things in the survey you'll either want fixed or want a price concession on. Plus insurance to arrange, registration and such.

Richard W · 02-26-2016, 01:44 AM

Could this be a miscommunication?

Cash as opposed to Credit Card (that charges the seller a significant fee).
Usually a check is as good as cash in face to face transactions.

Quote:

Originally Posted by gflc123

I told the broker I was surveying the next day and had told him originally I am a cash buyer (meaning i didn't need financing) He would not take deposit till the contract was signed. apparently it takes 2 business weeks for bank checks to clear and 3 weeks for personal checks to clear.

Looks like I am still catching up and reading the entire story ... but ... the above 2/3 weeks clearance time is, oh, a bit unusual. In light of this I would insist on paying by wire transfer, US bank account to US bank account. Fast, traceable, and safest way for either party.

kthoennes · 02-26-2016, 01:49 AM

We bought our boat in Massachusetts long distance (from South Dakota). Just as another poster said, two plane tickets across the country, a rental car, at least one night's hotel, meals and miscellaneous travel expenses...if that doesn't demonstrate serious intent, then I'd tell him to forget it. Hundreds of boats out there, especially if you're willing and able to transport your purchase. Our seller was fantastic, we shook hands, I gave him a check for $1000 on the spot, signed a bill of sale, then we flew back home and FedEx'd him a cashier's check for the balance.

BandB · 02-26-2016, 02:14 AM

Quote:

Originally Posted by Richard W

Could this be a miscommunication?

Cash as opposed to Credit Card (that charges the seller a significant fee).
Usually a check is as good as cash in face to face transactions.

Looks like I am still catching up and reading the entire story ... but ... the above 2/3 weeks clearance time is, oh, a bit unusual. In light of this I would insist on paying by wire transfer, US bank account to US bank account. Fast, traceable, and safest way for either party.

Maybe he's talking about checks drawn on foreign banks or something.

O C Diver · 02-26-2016, 07:41 AM

When I bought my boat, a wire transfer was done from my bank to the broker's escrow account. Same as cash, but with a record trail. Closing was handled the same way.

Ted

rwidman · 02-26-2016, 07:50 AM

Quote:

Originally Posted by O C Diver

When I bought my boat, a wire transfer was done from my bank to the broker's escrow account. Same as cash, but with a record trail. Closing was handled the same way.

Ted

Exactly. There's too much chance of fraud with checks, cashier's checks and even certified checks.