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)

dwiggl said:

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....

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?

Boat/US has some sample sales contracts on their web site. I have used them in private sales in the past.

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

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.

dwiggl said:

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..

Comodave said:

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/boats-and-tow-vehicles/buying-and-selling-advice.


Didn't find anything about handling deposits though.


David

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.

DavidM said:

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...

"Bacchus" Thanks for the offer. As soon as I sort the technical difficulty in sending a PM I will reach out.

Capt'n Sid. Appreciate your input. Many thanks.

dwiggl said:

Capt'n Sid. Appreciate your input. Many thanks.

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No worries...

dwiggl said:

"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.