An offer is made with a down payment. 10% is traditional.
An offer is made with a down payment. Ten percent is traditional. In the United States. In a brokered sale
Those last two parts
are important to add, I think, because, as I've stated here before, it is no coincidence that the "traditional" down payment in the US and the broker's commission are both 10%. Why not? Simple: If a sale
would have been consummated but for the buyer's breach, the brokerage(s) still get paid.
redbreast also asked, ". . . are there any further complications if the boat happens to be in France
(ie french law)?" If, as I infer from the question, redbreast is not French, then yes, this adds a complicating factor. Not an insurmountable one, however. People from different cultures have been conducting trade
Most exchanges go off the rails because the interested parties have differing understandings of what they each think they have agreed to. It can even happen within the same family
, so the different nationalities of the parties in itself isn't necessarily a deal-killer, but yes, it can complicate things.
Originally Posted by David_Old_Jersey
If you just want to find out if you are in the same ballpark, then you can talk figures without making an actual offer to buy.
If you are talking UK then an accepted offer is a binding contract, whether verbal or written - however in practice the verbal is worth the paper it is (not!) written on. But if the Vendor is a lawyer........
Usual procedure is to use a written contract (the RYA have one that can be downloaded and amended as required) - Although many folk do like the 10% deposit down approach, I would never do that either with a Broker or direct to a Vendor - appreciate that attitudes vary on this. But for me a buyer is serious enuf if willing to put a deposit down of £500 or £1000 and to pay the haulout costs for a survey. I figure if someone is willing to pay for these costs they are a serious buyer, and the deposit is just icing on the cake to concentrate minds.....after all if the deal does fall through I will have lost
some time, but won't be out of pocket....so why do I need 10%?
I whole-heartedly agree with DOJ
on this, particularly in a non-brokered sale. Ten percent is not some magical threshold that "proves" a potential buyer's serious interest.