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Old 03-11-2010, 17:29   #31
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Thats not much different to in OZ mate. Usually, you make and offer, put a 10% deposit down, then slip/survey (at your cost), test sail. Then, if all is ok you go through with the purchase. Or if there are problems you can re-negotiate or pull out getting you deposit back but not the costs of the survey.

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Old 03-11-2010, 19:34   #32
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Just curious here: I understand and have worked through the process when brokers are involved, but how does it work when the boat is for sale by owner with no brokers? Do you give the seller a deposit? Where's the protection then?
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Old 04-11-2010, 06:41   #33
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You should only put some money down if you want to sign a pre-purchase agreement and do some sea trials. Not when you just want to make an offer. 10% sounds ok for the pre-purchase agreement, but it must be clearly stated that this is 100% refundable if you chose not to buy.
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Old 05-11-2010, 06:07   #34
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I am in contract on a vessel - presently unseen.
We agreed on a price.
We signed a contract.
I wired 10% deposit to the broker.
Yacht World add changed to "Under Contract" in red.
All in about 4 days.
However, the "Under Contract" has since been removed.
Am a bit concerned about this.???
Survey and Sea trials are pending.
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Old 05-11-2010, 07:24   #35
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All North American yacht brokers will demand a 10% deposit before presenting an offer to a seller, it is printed on the standard brokerage contract. Any seller will probably ask the broker if he has a deposit when the offer is presented. Any time I have sold a boat through a broker I always ask if they have the deposit when they get an offer, if they have no deposit I would not even look at the offer period. An offer without money is a dream. It doesn't matter how inconveient it is for the buyer to put up the money, this is the only safeguard against tire kickers. 50% of brokers will not even deposit the 10% in the bank so if you live in Botswana and are looking at a boat in the U.S.A Fedex the offer back with a check on your local account denominated in Botswana Beads or whatever and he will present the offer. Now you are only out the cost of the Fedex.
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Old 05-11-2010, 08:06   #36
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All North American yacht brokers will demand a 10% deposit before presenting an offer to a seller, it is printed on the standard brokerage contract. Any seller will probably ask the broker if he has a deposit when the offer is presented. Any time I have sold a boat through a broker I always ask if they have the deposit when they get an offer, if they have no deposit I would not even look at the offer period. An offer without money is a dream. It doesn't matter how inconveient it is for the buyer to put up the money, this is the only safeguard against tire kickers. 50% of brokers will not even deposit the 10% in the bank so if you live in Botswana and are looking at a boat in the U.S.A Fedex the offer back with a check on your local account denominated in Botswana Beads or whatever and he will present the offer. Now you are only out the cost of the Fedex.
Nice to see the Nigerian approach to business adopted so widely
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Old 05-11-2010, 08:50   #37
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Don't count on the law to protect you. If you need to resort to that it could take years and the legal process is expensive. Even if you win it can be difficult to collect your judgment. Only the lawyers win in court.
Ditto that! Years ago I put out earnest money in a real estate deal and when the provisions of the contract were not met, I had to seek legal help to recover the money even though I thought the "iron clad" contract would lead to its recovery. Put as little down as possible because whoever has the deposit will control it and getting it back may be difficult regardless of right vs wrong.
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Old 05-11-2010, 08:53   #38
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If a yacht broker wants to require a deposit then that's his problem. Take your business to a different broker.
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Old 05-11-2010, 10:17   #39
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The last boat I put an offer in on required a 10% deposit. The money was placed in a trust account and refunded immediately when the survey showed the boat to be a junk heap. As far as that went I had no problems. However, the broker had very artfully composed the listing photos so that the wreck showed quite nicely and it took me a $1k trip from Toronto to PEI to find out it was junk. Sadly the surveyor had to drive the length of PEI to get there but was nice enough to just do a quick look see and confirm my estimate of it being junk, then just charged me for the gas he burned and $50. 36hrs and $1k later I was back home looking for another one. Of course the broker never admitted to the con but the owner had to attend (sale conditional on survey and proof the engine ran) and he did admit who took the shots.

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Old 05-11-2010, 11:11   #40
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documentation companies check liens and make sure you own that boat BEFORE making document for boat, they check with uscg and check banks for liens on boat. they are very good resources. i uase one in san diego --dona jenkins-- for all my ownership transfer and documentation needs.
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Old 09-11-2010, 21:32   #41
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"A foreign buyer like myself , cant just jump and fly over there always to make an initial inspection "
As if you're going to spend, what, $1500US on a bargain flight (and well over that for one inside of 30 days) to jump over to where, our west coast? In order to look at just one boat?

The broker knows that if you're coming, you damn well out to be coming over to stay for a week or two and look over a dozen or two boats. He wants your COMMITMENT to his boat, and there's nothing that says "committed" like cash up front. You drop $500 on each of ten boats...there's no committment there. You drop five grand on HIS boat, and he's got a reason to hold it.

You might try offering him less for "right of first refusal" instead of a simple deposit. That means, he's still free to sell the boat, and all that you are guaranteed is that IF you get there within a set time (probably a week) and IF you are willing to match or exceed any other offer, he'll sell it to you instead of the other guy. But do expect that "right of first refusal" payment to be a non-refundable PAYMENT, not a refundable deposit.
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Old 09-11-2010, 23:17   #42
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I have had some dealings with US brokers now and find it hard to appreciate that they want a 15% deposit with your offer to purchase .
Bluddy hell , why cant they just offer the price and the seller can say yes or no . Then take it further .
A foreign buyer like myself , cant just jump and fly over there always to make an initial inspection , before any offers .
I have to exchange from AU to US then probably back because they wont accept my offer . NO THANKYOU.
You cant even get and pay for a suvey before the deposit . What a load of horse dung.
I guess you just gotto follow the rules , even if they are there to make the rich richer and the poor to keep on dreaming.
I think Stillraining explains the reasons very well.

If your time (as the Buyer) is important, putting up a fully refundable deposit in your own currency with a reliable Broker who has you and Seller sign a conditional contract….. is the best way to assure your time will not be wasted if the boat is what you want.

Alternately, if you have free time, then going over to the US for a working holiday to find your boat, means you can work ALL the Brokers and Marinas to find the best deal face to face.

You cannot have it both ways
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Old 10-11-2010, 02:46   #43
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I had to reply to this thread when I read it. Lately I have dealt with many potential buyers in Florida that have told me the yacht brokers are telling them they can not get a survey unless they put up 10 - 15% on the vessel plus the offer! How are they supposed to make a reasonable offer on a boat without knowing the true value of the boat from a experienced surveyor? What if damage is found? I have bought and sold a few boats over the years, and I have always paid for the survey BEFORE an offer was made. I had one such broker tell me this, and I got the survey done anyway. He was actually angry I had done this. He had told me that I had broken the law and that I could be sued. Folks, let me tell you this. I am a former cop and before that I was a boarding officer in the U.S. Coast Guard. There is no such law, not no where, not no how. At best there might be a provision in the broker agreement, but that is merely a civil matter, which to my knowledge no yacht brokerage would sue a potential buyer for getting a survey to inform himself of the true value and condition of a vessel. It would be bad press. These are scare tactics in my opinion and they tend to fall mostly on first time boat owners and foriegners that are unaware of the process. Get the survey done first, then work with the broker if you must. Not the other way around. There are plenty of free listings for boats for sale on yachtworld and boat trader. Do not let some of these brokers bully you and talk you out of using your common sense and better judgment. If you read the fine print on these offer agreeements you will find it is very difficult to get your deposit back if you want to back out of the offer. Just my thoughts on the subject.
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Old 10-11-2010, 03:03   #44
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So what are your thoughts on being asked to do a "walk through" condition report on a boat before an offer is made?

It seems to me this is a good way for distant buyers to determine in the boat is "as advertised" without having to fly in to look at it.

Of course, there would be no liability for this report, that is it would not be a formal survey.
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Old 10-11-2010, 09:45   #45
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Buyer beware.

I have been seriously kicking tires for in excess of 6 months, as much to educate myself as to the pitfalls of purchasing a big ticket item. The best plan I came up with while at a recent boat show in Oakland and chatting to an intelligent broker was an offer to act on my behalf should I find a boat through a brokerage or privately. (Split or reduced commission). She would take care of all documentation, organize an off shore sale if required. (save some taxes, after all I am leaving town) I would be comfortable with this as the broker would be working for me and not vice versa.
My two bits worth

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