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Old 06-26-2018, 09:22 AM   #41
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I can see the deposit waiting till a written agreement on price....purchase PENDING survey and sea trial.....

I wouldnt waste 5 seconds on even going to the boat without a deposit, let alone take soneone for a ride.

Way too many tire kickers in many places..... ones that do it just for boat rides included.

You would NEVER sell a boat to me.
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Old 06-26-2018, 10:48 AM   #42
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No big deal..... every boat I have sold was the same way and quick....show me the money...

And never wasted much of my time......
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Old 06-26-2018, 02:04 PM   #43
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Earnest Money deposit

We just purchased a boat, the first in 16 years, and we emailed our initial offer and a photo of the check for 10% that we snail mailed. No wire fees.

We finally did settle on a price more than our original offer, however the broker did not request additional funds to get the escrow to 10%. The check was not cashed until the agreement was signed by both parties.

In the end, after the survey and concessions, the original deposit almost covered the 10% requirement. Of course everything was squared away with the final settlement.
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Old 06-26-2018, 05:53 PM   #44
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You can see my boat for free, at that point you assume it is legit and can make an offer contingent on successful seatrial & survey. I might start the engines, there should be no risk in that. But we’re not going for a ride. I’ve certainly seen tire kickers before who think it’s like a car and the should just go for ride after ride. Nope. Seatrial usually means running engines harder than I would normally. I’m taking zero risk for someone who is also committing to zero risk. Same, Same.

I’ve always found seatrial to be considered typical only after offer has been made. If you want to go outside the standard process, I’d expect it to be on your responsibility to request such a deviation to expectations before driving 800 miles. You certainly demonstrate intent and I would likely consider it and probably accommodate to an appropriate degree, but not if you show up without asking first. That would put you into the craigslist penalty box and make me defensive and skeptical, no matter how far you drove. I’d expect you were going to lowball me After with an amount I’d never consider. There really is little reason why an offer could not be made based on appearances. After all, if the seatrial does not pass muster, you would have the right to back out. The boat should be assumed to either be running satisfactorily, or that the price would be adjusted to get it there. So no reason the offer could not be made based on that assumption. No reason to get as serious as a seatrial without knowing if the money is in the right ballpark. Still think the standard process is the best.
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Old 06-26-2018, 08:23 PM   #45
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We have bought, and sold, boats in TX, MD, NC and almost in FL. In all those cases the earnest money deposit was made after buyer and seller agreed on a price. I am now dealing with a broker in LA who insists that I submit a 10% deposit with my original offer before he will even contact the buyer.


Seems fishy to me, why pay the wire charges if you may never agree on a price?


Bob
If I’m a serious buyer and think the boat is desirable then so might someone else. If I make an offer with no Ernest monies I would think that would allow broker/seller take other offers or use mine to help boost selling price. “We have an offer for $175k but you can buy the boat out from under them” if no deposit then you lose.
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Old 06-26-2018, 08:49 PM   #46
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Originally Posted by Eddieandgail View Post
If I’m a serious buyer and think the boat is desirable then so might someone else. If I make an offer with no Ernest monies I would think that would allow broker/seller take other offers or use mine to help boost selling price. “We have an offer for $175k but you can buy the boat out from under them” if no deposit then you lose.
Eddie and Gail
Paying a deposit without your offer having been accepted and a binding agreement for sale and purchase made(in some enforceable form) won`t stop the seller selling to someone else.
In real estate here it`s called "gazumping", happens often in a hot market.
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Old 06-27-2018, 07:48 AM   #47
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Deposits and Offers

It's a common misconception that the deposit is consideration. Legally, the deposit is merely another term of the contract. The consideration is technically the promise inherently included in the contract to fulfill all the agreed terms of the agreement.


A deposit can certainly be submitted with an offer, but should not be cashed until a contract is made since the deposit is, as I said, just another term of the yet to be agreed contract. So, aside from a broker's personal incentive, which is of no serious concern to the parties of the negotiations, there's really no justifiable motivation for a party to the proposed contract to demand or submit a deposit with the offer.



However, once a contract has been made, the deposit should, by agreement, be submitted and processed by a certain agreed date and held either in trust by the brokerage, or in the case of a private sale, in a non-interest-bearing segregated or non-segregated account pending the outcome of the conditional contract. Who holds the deposit and the terms under which is is to be returned or forfeited are, of course, subject to negotiation of the parties.


The problem with the marine sales industry is that there seems to be no oversight by a governmental body or responsible national organization. And there's certainly no ethical standards, or even contract standards. My own experience with the industry left me feeling that I had been maliciously deceived for personal gain by the brokerage who was supposedly representing my interests.


My trawler is for sale https://www.boatdealers.ca/boats-for...an-bay-ontario privately, and I've amended what I was told was a standard contract. I found it highly deficient. It failed in clarity and completeness. The revised version is far better at protecting both parties, thus leaving little room for misunderstanding of terms. And it also reduces the possibility of litigation for a failed contract, unless, of course, one of the party reneges on his or her agreement.


I hope this helps clarify this matter. Bottom line? How and when and the amount of the deposit is subject to negotiation by the parties of the proposed contract, and not by the brokerages involved.
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Old 06-27-2018, 02:52 PM   #48
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Originally Posted by Eddieandgail View Post
If I’m a serious buyer and think the boat is desirable then so might someone else. If I make an offer with no Ernest monies I would think that would allow broker/seller take other offers or use mine to help boost selling price. “We have an offer for $175k but you can buy the boat out from under them” if no deposit then you lose.

Eddie and Gail


Just because you deliver an offer along with a deposit doesn’t meant that the seller won’t receive and accept an other offer.
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Old 06-27-2018, 04:03 PM   #49
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Never even considered asking for a sea trial or survey prior to having my offer accepted and a deposit having been made. Object to making the deposit before the offer is submitted to the seller. Once accepted and a written agreement with the seller's signature is made then a deposit is made.
All irrelevant now, seller decided to keep the boat. Found out just in time to avoid another road trip to look at it again.
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Old 06-27-2018, 06:11 PM   #50
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In my dealings with brokers they all demanded 10% earnest money up front with your offer. I got burned one time on $6,000. I had to get a lawyer to get my money back. The broker claimed that he had incurred expenses. He ended up $500. Never again. They all still want 10% up front. I give them a check for $500 and tell them I want the check back at closing. This has worked for the last 5 boats.
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Old 08-31-2023, 09:32 AM   #51
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I totally understand where you're coming from – it's important to be cautious, especially when dealing with financial matters. It does seem a bit odd that the broker is requesting a deposit upfront before any price agreement.
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Old 08-31-2023, 09:51 AM   #52
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I totally understand where you're coming from – it's important to be cautious, especially when dealing with financial matters. It does seem a bit odd that the broker is requesting a deposit upfront before any price agreement.
On expensive yachts it is not uncommon that a six or seven figure deposit accompany an offer. Financial surety on the part of the buyer needs assurance somehow.

We just sold our boat. No listing but a reputable broker handled the paperwork with the buyer paying the fees. A 10% deposit was put in place prior to sea trial and survey.
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Old 08-31-2023, 11:46 AM   #53
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In my experience with buying and selling, earnest money deposits usually come after both parties have reached an understanding.
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Old 08-31-2023, 11:54 AM   #54
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I believe the 10% upfront is a brokers way of ensuring the buyer & seller don't get together and conspire to "do the deal" w/o the broker involvement.
The brokers deposit the check in their (escrow) acct and it ends up as their fee assuming the deal closes. The seller never sees it or controls the deposit.
With that said I have had my buyers broker contact the selling broker and negotiate buyers offer and brokerage sharing prior to me issuing the 10% deposit. The verbal discussions have little or no standing until it is reduced to writing, signed and deposit paid... even then there are many outs for parties involved.
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