Out of state purchase

The friendliest place on the web for anyone who enjoys boating.
If you have answers, please help by responding to the unanswered posts.
See posts with no answers
W

Woody5

Veteran Member
Joined
Oct 4, 2022
Messages
82
I live in Florida and have found an Albin 25 without an engine in Connecticut to purchase. Boat belongs to a Diesel sub-contractor in a reputable yard. He says he can install a new Beta engine and have the boat in great running condition for a reasonable price without trailer for 15K. What kind of paperwork/steps will i need to ensure this deal goes thru without any problems?

Hoping to have my ducks in a row before making the trip north to look over the hull....
 
State sales taxes, trailer registration and eventually boat registration. Nothing you can't do on your computer.

An Albin 25, with a trailer and a new engine for $15,000? You know what they say about if it sounds too good to be true..

pete
 
I would have two different documents. One for the sale of the boat and one for the services to be provided. I would pay for the boat at time of signing and pay for services upon completion.
 
To add to what tiltrider1 posted, use the bill of sale for the boat BEFORE the work to pay taxes on. You will probably already have to pay taxes on the services/repair work, so no sense paying twice!
 
I have bought a couple of small boats in CT as a non-CT resident. There is an exemption form you fill out saying that you are a non-resident and that you will remove the boat from CT within some period of time. I think this last part is significant in your case.


Personally, I would buy the boat only after the work is complete, tested, and accepted by you. Otherwise there is a distinct possibility that you end up with a junk boat with no motor, a junk boat with a motor that doesn't work, a project that takes much longer than promised, and large yard storage bills. Then once you take ownership, you have some time to get it out of CT so not subject to taxes. BTW, that would make the boat, the new engine, and all associated work part of the purchase price, so all tax-free.


As a side note, I agree that it sounds too good to be true. I can't imagine an engine alone that costs $15k. And I can't imagine and engine installation that will cost less than $15k just for the labor and parts. And I can't imagine a boat that is only worth $15k.
 
Last edited:
But, you will most likely have to pay sales taxes when you register the boat in the state where you will end up keeping it. So the advantage of buying the boat before the engine install is the low tax on the sale price. This whole deal could be a risk but $15K isn’t that huge amount, but I still would not like to loose that much. The engine for this boat will probably be less than 50hp so that may be part of the low cost. I would look at the boat, look at the engine installer and then decide if it looks reasonable or not. What kind of shop does the installer have? What references can he give you for repower jobs? Anyway good luck, hope it works out for you. Back in the 90s I patrolled on one of these boats and it was a neat little boat.
 
Looking to use the boat no sooner than late April.
13k for new Beta 38 ho 2k for the Albin 25 boat.
Diesel man says motor installed ready to go 15k no trailer.
Seller says he is friend with local yards and can get good quality used parts for a great refit of the old 25 ft Albin.
 
I have not priced that engine but $15K doesn’t seem out of range to me with that boat. What does just the engine cost?
 
Woody5 said:
Seller says ...........
Click to expand...

Famous last words. What a seller says before the sale and what they do after the sale are two very different things. Besides, he's not promising to do something himself, per se. He's promising to cash in a favor. He's not really in position to be making promises for other people's actions.

Just because 'joe' over at ABC Marina helps him out, doesn't mean he's going to help you out.
 
Well $2K for the boat isn’t too bad even if it is worth nothing. Then you just have to deal with the engine mechanic. I would buy the boat. Then work out a schedule for the engine installation. Keeping in mind supply chain issues nowadays. Setup a schedule for payments as the engine installation progresses. But first do some due diligence on the engine mechanic and see if he is reputable. Then when you go to register the boat in the state of principal usage you pay sales tax on $2K.
 
Comodave said:
Well $2K for the boat isn’t too bad even if it is worth nothing. Then you just have to deal with the engine mechanic. I would buy the boat. Then work out a schedule for the engine installation. Keeping in mind supply chain issues nowadays. Setup a schedule for payments as the engine installation progresses. But first do some due diligence on the engine mechanic and see if he is reputable. Then when you go to register the boat in the state of principal usage you pay sales tax on $2K.
Click to expand...


I would do the opposite. As soon as you (the OP) buy the boat, nobody has any incentive to get the work done, nor any incentive to stick to any timeline promises or cost promises. Meanwhile, the yard storage costs, insurance costs, and risk are all on you. If the project goes tits up, then you have a boat that nobody wants to buy, and you are stuck with the hot potato. Now you are paying all the storage fees while trying to find a buyer for a boat with no motor that isn't worth more than $2k.



I would spell out what's to be delivered (boat, working with new Beta engine, etc.), reserve inspection and acceptance rights, put it all in a purchase agreement, pay a deposit, with balance due on delivery and acceptance. Then they have plenty of incentive to get the job done in a timely manner and to your satisfaction, with risk and yard costs on them until they deliver.
 
twistedtree said:
I would do the opposite. As soon as you (the OP) buy the boat, nobody has any incentive to get the work done, nor any incentive to stick to any timeline promises or cost promises. Meanwhile, the yard storage costs, insurance costs, and risk are all on you. If the project goes tits up, then you have a boat that nobody wants to buy, and you are stuck with the hot potato. Now you are paying all the storage fees while trying to find a buyer for a boat with no motor that isn't worth more than $2k.



I would spell out what's to be delivered (boat, working with new Beta engine, etc.), reserve inspection and acceptance rights, put it all in a purchase agreement, pay a deposit, with balance due on delivery and acceptance. Then they have plenty of incentive to get the job done in a timely manner and to your satisfaction, with risk and yard costs on them until they deliver.
Click to expand...

Agreed
 
twistedtree said:
I would do the opposite. As soon as you (the OP) buy the boat, nobody has any incentive to get the work done, nor any incentive to stick to any timeline promises or cost promises. Meanwhile, the yard storage costs, insurance costs, and risk are all on you. If the project goes tits up, then you have a boat that nobody wants to buy, and you are stuck with the hot potato. Now you are paying all the storage fees while trying to find a buyer for a boat with no motor that isn't worth more than $2k.



I would spell out what's to be delivered (boat, working with new Beta engine, etc.), reserve inspection and acceptance rights, put it all in a purchase agreement, pay a deposit, with balance due on delivery and acceptance. Then they have plenty of incentive to get the job done in a timely manner and to your satisfaction, with risk and yard costs on them until they deliver.
Click to expand...

Shrew said:
Agreed
Click to expand...

Above would be nice provided the seller wants to get involved with the repair and wait for his $. I'm going to bet seller will want no part of that but could be wrong and it never hurts to ask.
The other sticky point is how long the grace period is before CT wants tax $ and registered in CT. Usual time limits is in the neighborhood of 60 days but they may give a waiver if repairs are the holdup and can't move until they are complete.
 
Last edited:
I think he used to work out of Portland Boat works on the Connecticut river. Not sure if he is still there. Yankee Boat Yard and Riverside are 2 marinas right next door and any one of them would be capable of installing an engine properly. I used to winter store my boat at Yankee for 14 years. When you get there and need some local knowledge or input the owner, Dean, is a straight shooter.
 
Book value of boat is ~$6000. One comp in MI for $14K but has been on market for months. Your starting cost is $15K. I don't see any sunbrella over main cabin. Add $5K. I don't see any navigation equipment. Add $1K. Don't see any cushions in aft cabin. Add $4K. Overall condition looks well used.

I just don't see the value in this particular hull. If you have $20K+ to spend then there are many other boats in ready to go condition that I would look at.
 
twistedtree said:
I would do the opposite. As soon as you (the OP) buy the boat, nobody has any incentive to get the work done, nor any incentive to stick to any timeline promises or cost promises. Meanwhile, the yard storage costs, insurance costs, and risk are all on you. If the project goes tits up, then you have a boat that nobody wants to buy, and you are stuck with the hot potato. Now you are paying all the storage fees while trying to find a buyer for a boat with no motor that isn't worth more than $2k.



I would spell out what's to be delivered (boat, working with new Beta engine, etc.), reserve inspection and acceptance rights, put it all in a purchase agreement, pay a deposit, with balance due on delivery and acceptance. Then they have plenty of incentive to get the job done in a timely manner and to your satisfaction, with risk and yard costs on them until they deliver.
Click to expand...

I am in agreement with twistedtree. I had assumed that OP was buying the boat regardless of the engine deal. If he thinks he is buying a working boat then twistedtree is correct.
 
Couple quick thoughts. I live in CT and could take a quick look for you if it's not too far away. 38 HP sounds way underpowered. What does an Albin 25 normally have? You may not want to go fast, but it may make it hard to sell in the future.
 
backinblue said:
Couple quick thoughts. I live in CT and could take a quick look for you if it's not too far away. 38 HP sounds way underpowered. What does an Albin 25 normally have? You may not want to go fast, but it may make it hard to sell in the future.
Click to expand...

It's in Branford. A used Yanmar 3GM30 would make more economic sense than a new Beta. 27hp would move it along at hull speed. Not a lot of displacement to push.

https://newhaven.craigslist.org/boa/d/branford-albin-25-trawler-1976-deluxe/7536260699.html

(Note: OP has cross-posted in Albin owners site)
 
Last edited:
backinblue said:
Couple quick thoughts. I live in CT and could take a quick look for you if it's not too far away. 38 HP sounds way underpowered. What does an Albin 25 normally have? You may not want to go fast, but it may make it hard to sell in the future.
Click to expand...
That Albin 25 sits out side and is at Dutch Wharf Marina, 70 Maple St Branford CT
Current owner is Joe Demeers.
 
There's a fundamental problem here. As noted above, the Buyer shouldn't buy the boat until the work is done -- otherwise it may take forever to be done and cost more. On the other hand, the Seller doesn't want to (and maybe can't) lay out the money to buy and install the engine without a guarantee that the Buyer is going to come up with the money when the work is done.


Best solution is to find a third party -- maybe a lawyer or a surveyor-- to hold the money under instructions to release it when the work is done.


I think Connecticut is a non problem. There's nothing to alert the state that the boat has been sold, so the tax collector is unlikely to come around looking for money. On the other hand, you presumably will have to pay a use tax in Florida before you register the boat there (I say presumably because I have no knowledge of Florida law, but the states that I do know work that way.) I agree that the bill of sale should be for the boat before the engine -- maybe the Florida tax collector will accept that number if you explain that it didn't have an engine and show him a separate invoice (with sales tax) for the engine. Maybe he'll look up the book value.


"38 HP sounds way underpowered." -- I disagree. The Albin originally came with a 20hp engine, later a 30. With fuel and water it displaces around 2 tons. A 45hp Westerbeke 4-107 moved our 40' gaff schooner along very well 45 years ago.


Jim
 
BruceK said:
Is this the boat? https://www.trawlerforum.com/forums/s9/albin-25-deluxe-sale-64154.html
Click to expand...

Same boat, also listed on Craigslist. OP has responded to that TF ad.

If you trailer it down to FL, you will pay 3% sales tax in CT separately on boat and engine. The boatyard could file a resale exemption claiming the engine is used or consumed by the boat but I am just guessing at that. Once in FL you have 30 days to register it. You are then subject to FL 6% sales and use tax. FL will discount any amount paid to another state. So your total should be in $1K range. Not a significant factor. It's a boat. Keep the checkbook handy.
 
Last edited:
SoWhat said:
If you trailer it down to FL, you will pay 3% sales tax in CT separately on boat and engine.
Click to expand...

You will only have to pay CT tax if you register it there. Since it's a private sale, no one will know.
 
jleonard said:
You will only have to pay CT tax if you register it there. Since it's a private sale, no one will know.
Click to expand...

Correct. No tax is collected at the sale, only when registered. Therefore also, you should not have to worry about a time limit. I assume you'll pay tax when you regiser it in FL.
 
jleonard said:
You will only have to pay CT tax if you register it there. Since it's a private sale, no one will know.
Click to expand...

Key being private sale of the boat. The engine is subject to CT sales tax unless dealer submits exemption form.
All somewhat moot because purchaser will pay sales and use tax in FL, less whatever is paid in CT.
 
That boat had sailed

Owner say boat is sold. Thanks for your tips I have learned many important lessons. I will soon be ready for a relationship with a real boat?
 
You must log in or register to reply here.

Similar threads

F
Our experience trying to view Diesel Duck "Zeta: with Seattle Yachts
2
Replies
56
Views
5K
long-cours.62
long-cours.62
mvweebles
Market for Center Console boats???
Replies
17
Views
2K
psneeld
psneeld
Jklotz
Buyers Broker - Why I Think It's a Good Idea
Replies
27
Views
3K
Jklotz
Jklotz
P
Cargile Cutter 50th anniversary of 1977 Atlantic crossing
Replies
10
Views
1K
petehdgs
P
Dougcole
Mainship 400 Fuel Tank replacement project
Replies
20
Views
2K
Dougcole
Dougcole

Latest posts

Back
Top Bottom