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01-11-2020, 12:31 PM
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#1
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Veteran Member
City: California Delta
Vessel Name: Cady Girl
Vessel Model: Californian, Seaswirl, Brig, all others sold.
Join Date: Jan 2014
Posts: 58
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Need advice on purchase contracts
I am looking at a 35 year old FRP Chris Craft - cash purchase. This is a private sale referred by word of mouth. It would be a 5-figure deal. A haul-out and survey was done a year ago, and she appears to be in great shape, all records and ownership history. This is far from my 1st boat & have even restored a couple over the last 50 years, so I know what I see.
However, this deal requires travel to inspect, and being a twin diesel with lots of systems I think the deal should include contingencies based on a systems survey by a professional. So that process is a new experience.
Yes I have business contract experience.
Question #1: Am thinking a maritime attorney is needed to produce a contract. Am I on point here?
Question #2: Any referrals to an attorney in the Annapolis area. (Must be a bunch of them there)
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01-11-2020, 01:00 PM
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#2
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Senior Member
City: myrtle beach
Vessel Name: Jubilee
Vessel Model: Marine Trader 36 Sundeck
Join Date: Jan 2018
Posts: 215
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Quote:
Originally Posted by dwiggl
I am looking at a 35 year old FRP Chris Craft - cash purchase. This is a private sale referred by word of mouth. It would be a 5-figure deal. A haul-out and survey was done a year ago, and she appears to be in great shape, all records and ownership history. This is far from my 1st boat & have even restored a couple over the last 50 years, so I know what I see.
However, this deal requires travel to inspect, and being a twin diesel with lots of systems I think the deal should include contingencies based on a systems survey by a professional. So that process is a new experience.
Yes I have business contract experience.
Question #1: Am thinking a maritime attorney is needed to produce a contract. Am I on point here?
Question #2: Any referrals to an attorney in the Annapolis area. (Must be a bunch of them there)
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Wow, this is where a broker really helps in the process. I would give Carrie a call at Annapolis Yacht Documentation. 443-949-9462. She can give you advice on the attorney, but can also handle the USCG documentation paperwork, the Bill of Sale and lien searches. Tell her Sid sent you.
The year old survey really means nothing at this point. My advice to clients if they have to travel long distance for initial inspection is this. Hire a local surveyor to go onboard for a couple of hours to get a idea of condition. Have him take "today" pictures. It might cost you a couple hundred bucks, but could save thousands in the long run visiting a boat that has been misrepresented.
The contract should include these conditions.
Acceptable Pre-survey ( in your case)
Acceptable Personal inspection
Acceptable Survey and sea trial
If any of these conditions become unacceptable, that's your way out of the contract.
Hope this helps....
__________________
USCG 100 Ton Captain Near Coastal
ASA Certified Instructor
Yacht Broker
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01-11-2020, 01:16 PM
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#3
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Veteran Member
City: California Delta
Vessel Name: Cady Girl
Vessel Model: Californian, Seaswirl, Brig, all others sold.
Join Date: Jan 2014
Posts: 58
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Thanks Sid,
I will be in the area in a few weeks and will do the walk-thru. As she is currently winterized we won't be able to do a survey/trial until the weather breaks. Seller is not (so far) in a rush.
Will get the ball rolling by contacting Carrie and begin the research after my initial viewing.
I read the thread on broker compensation. Based on my interpretation (and being self employed) it seams that a broker isn't really making any money on a deal under $100k, thus wouldn't want to play. Brokers need to eat too. Agreed?
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01-11-2020, 01:22 PM
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#4
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Moderator Emeritus
City: Au Gres, MI
Vessel Name: Black Dog
Vessel Model: Formula 41PC
Join Date: Jul 2015
Posts: 21,191
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Boat/US has some sample sales contracts on their web site. I have used them in private sales in the past.
__________________
Boat Nut:
If you are one there is no explanation necessary.
If you aren’t one, there is no explanation possible.
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01-11-2020, 01:44 PM
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#5
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Valued Technical Contributor
City: Litchfield, Ct
Join Date: Aug 2012
Posts: 6,786
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Look at the BoatUS contracts, although I have never been able to find them on their website.
Here is a very simple sample contract attached that I used for my last boat purchase. Realize that anything you find during survey will have to be negotiated and the seller has no obligation to give you anything other than deliver the boat as is per the contract. Fortunately most sellers when confronted with surprise findings will negotiate some compensation.
I wouldn't use an attorney which will cost you about $1000. Modify the attached to fit. BoatUS will hold the deposit for you.
David
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01-11-2020, 02:04 PM
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#6
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Moderator Emeritus
City: Au Gres, MI
Vessel Name: Black Dog
Vessel Model: Formula 41PC
Join Date: Jul 2015
Posts: 21,191
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On the Boat/US web site go to the membership area then go to the Consumer Affairs section and the boat sales contracts are there.
__________________
Boat Nut:
If you are one there is no explanation necessary.
If you aren’t one, there is no explanation possible.
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01-11-2020, 02:45 PM
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#7
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Senior Member
City: myrtle beach
Vessel Name: Jubilee
Vessel Model: Marine Trader 36 Sundeck
Join Date: Jan 2018
Posts: 215
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Quote:
Originally Posted by dwiggl
Thanks Sid,
I will be in the area in a few weeks and will do the walk-thru. As she is currently winterized we won't be able to do a survey/trial until the weather breaks. Seller is not (so far) in a rush.
Will get the ball rolling by contacting Carrie and begin the research after my initial viewing.
I read the thread on broker compensation. Based on my interpretation (and being self employed) it seams that a broker isn't really making any money on a deal under $100k, thus wouldn't want to play. Brokers need to eat too. Agreed?
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I just did a quick Yachtworld search and in the US there are currently 13,416 power boats for sale between $25,000 and $100,000. As for sailboats, there are 2,547 for sale.For a lot of brokers this is their bread and butter. These guys work a little harder due to the volume they have to sell in order to make a living, but they do make money..
__________________
USCG 100 Ton Captain Near Coastal
ASA Certified Instructor
Yacht Broker
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01-11-2020, 03:30 PM
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#8
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Valued Technical Contributor
City: Litchfield, Ct
Join Date: Aug 2012
Posts: 6,786
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Quote:
Originally Posted by Comodave
On the Boat/US web site go to the membership area then go to the Consumer Affairs section and the boat sales contracts are there.
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Getting there is still rather obtuse. But in any case, the Boat/US contract is attached. Simple and anyone should be able to understand it.
Also read their boat buying advice, here- http://boatus.com/expert-advice/boat...selling-advice.
Didn't find anything about handling deposits though.
David
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01-11-2020, 04:23 PM
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#9
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TF Site Team
City: Seneca Lake NY
Vessel Name: Bacchus
Vessel Model: MS 34 HT Trawler
Join Date: Nov 2014
Posts: 7,828
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I have a MS Word Doc contract form I have used buying and selling. Happy to fwd a copy if you PM me your email.
__________________
Don
2008 MS 34 HT Trawler
"Bacchus"
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01-11-2020, 05:46 PM
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#10
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Senior Member
City: myrtle beach
Vessel Name: Jubilee
Vessel Model: Marine Trader 36 Sundeck
Join Date: Jan 2018
Posts: 215
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Quote:
Originally Posted by DavidM
Getting there is still rather obtuse. But in any case, the Boat/US contract is attached. Simple and anyone should be able to understand it.
Also read their boat buying advice, here- Buying & Selling Advice | BoatUS.
Didn't find anything about handling deposits though.
David
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To the OP...Carrie will probably have a line on an escrow service as well...
__________________
USCG 100 Ton Captain Near Coastal
ASA Certified Instructor
Yacht Broker
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01-19-2020, 11:37 AM
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#11
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Veteran Member
City: California Delta
Vessel Name: Cady Girl
Vessel Model: Californian, Seaswirl, Brig, all others sold.
Join Date: Jan 2014
Posts: 58
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"Bacchus" Thanks for the offer. As soon as I sort the technical difficulty in sending a PM I will reach out.
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01-19-2020, 11:39 AM
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#12
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Veteran Member
City: California Delta
Vessel Name: Cady Girl
Vessel Model: Californian, Seaswirl, Brig, all others sold.
Join Date: Jan 2014
Posts: 58
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Capt'n Sid. Appreciate your input. Many thanks.
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01-19-2020, 12:15 PM
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#13
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Senior Member
City: myrtle beach
Vessel Name: Jubilee
Vessel Model: Marine Trader 36 Sundeck
Join Date: Jan 2018
Posts: 215
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Quote:
Originally Posted by dwiggl
Capt'n Sid. Appreciate your input. Many thanks.
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No worries...
__________________
USCG 100 Ton Captain Near Coastal
ASA Certified Instructor
Yacht Broker
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01-19-2020, 08:13 PM
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#14
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TF Site Team
City: Seneca Lake NY
Vessel Name: Bacchus
Vessel Model: MS 34 HT Trawler
Join Date: Nov 2014
Posts: 7,828
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Quote:
Originally Posted by dwiggl
"Bacchus" Thanks for the offer. As soon as I sort the technical difficulty in sending a PM I will reach out.
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I sent you a PM w my email.
Just see your PMs.
Also... you can set your acct to email you if/when you receive a PM.
__________________
Don
2008 MS 34 HT Trawler
"Bacchus"
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