Buying a Boat in Mexico

[SV THIRD DAY]

Originally Posted by Ruso

The best is just go to Banjercito and verify the TIP and make sure the TIP is canceled BEFORE the money changing hands.

It doesn't work that way because an owner isn't going to cancel the TIP until the sale goes through AND the new owner can't get a new TIP until they own the boat. And the current owner doesn't want to have the boat in Mexico without a TIP which is Illegal and could result in the boat being seized.

But this isn't rocket science folks. It's done every day down here.
As part of the terms of sale the current owner agrees to check the boat out of Mexico and Cancel the TIP (usually at their expense)
The new owner agrees to check the boat back into Mexico and buys a new TIP.
This can all be done through an agent/captain without the buyer or selling being in Mexico....again done all the time down here easy pleasy....

[Pagan Ways]

Rules to buying a TIP vessel in Mexico:

Ownership and documentation must be current, valid and up to date.
Never, ever pay in cash unless it is a very close personal friend. Your risk.
Never transfer funds, bank draft or otherwise to Mexico. They can be seized.
The legal Bill of Sale and transfer of funds must be signed and completed outside Mexico. Not "signed this date in the city of La Paz, BCS, Mexico" for example.
Use a broker or someone with actual experience.
There is no requirement for licensed brokers in Mexico or most states.
Make sure your broker has a work permit and valid visa to even be in Mexico.
Make sure your marine surveyor is reputable and has good references, not just accredited. I know several that are accredited but crooked.
Make sure all marina, workyard and workers are paid in full up to closing.
If the vessel had a Captain, make sure he has been paid his pension and severance.

What did I miss, as most of the above are rules that should be followed anywhere.
There are good deals to be had, and a lot of vessels are well equipped as well as they all made it to Mexico.

[Pagan Ways]

Originally Posted by SV THIRD DAY

It doesn't work that way because an owner isn't going to cancel the TIP until the sale goes through AND the new owner can't get a new TIP until they own the boat. And the current owner doesn't want to have the boat in Mexico without a TIP which is Illegal and could result in the boat being seized.

But this isn't rocket science folks. It's done every day down here.
As part of the terms of sale the current owner agrees to check the boat out of Mexico and Cancel the TIP (usually at their expense)
The new owner agrees to check the boat back into Mexico and buys a new TIP.
This can all be done through an agent/captain without the buyer or selling being in Mexico....again done all the time down here easy pleasy....

You are correct, except if the vessel is only on it's first TIP, then a second TIP can be issued (under new owner) without checking the vessel out of Mexico. Very easy to do.

[cfinn]

I'm in talks with an owner in La Paz and thinking of flying down to check it out, get it surveyed, possibly have any necessary work done, and have it delivered to the San Francisco bay area (no time, myself, and not enough experience at the moment).

Any recommendations for surveyors in La Paz?
Recommendations for delivery captains from La Paz to San Francisco?
Recommendations for boatyards or crews to get some work done on a sailboat before delivering it to the US?
Any other suggestions for purchasing a sailboat in La Paz these days (coronavirus and all)?


Thank you!

[Pagan Ways]

My recommendation on yacht deliveries would be Mike & Linda as I know they have considerable experience on your route. Mx: 612 136 6900 US: 760 815 1036 Email: megilman@yahoo.com
I haven't dealt in La Paz for a few years but there was an excellent surveyor there named Cecil (I believe). Mike would be more current with advice as that is his home port. Mike and your surveyor will know what needs to be done for a safe voyage.

You can download Cruseros service directory here: Club Cruceros

If you're not going to remain in La Paz while your vessel is being prepped/worked on, I would recommend hiring a manager to dole out the funds as work progresses/completed. You can set up spreadsheet in the cloud to account for the money.

I have no idea what is happening in La Paz during this pandemic, you will need local advice for that. The reports I get is that conditions and rules seem to vary wherever you happen to be in Mexico.

Good luck.

[cfinn]

Excellent info; thank you!

[SV THIRD DAY]

Alon Badt is an excellent delivery Capt and just completed back to back La Paz to Ensenada trips. One on a Sailboat and the last one on a Power Boat. He charges $300/day and then $100/day for a second crew member. Then of course fuel/food/flight back to La Paz.

Cisel retired from surveying.
Alon is also a certified Marine Surveyor, but since he works at La Paz Cruisers Supply and Brokerage, he only does Insurance surveys in La Paz to not have a conflict of interest. The two other surveyors in La Paz are:
1. Rick Martin from the USA dial 52 1 612 131 7459 email: Rick@MarineSurveyorsOfBajaCalifornia.com

2. Max Winters from USA dial 606 313 7751 Email: MaxWinter008@gmail.com

La Paz Cruisers Supply is a yacht management company and they routinely handle taking vessels to the boat yards and supervising work while clients are away.
Email La Paz Cruisers Supply at:
Info@LaPazCruisersSupply.com

The best boat yard in La Paz is the Palmar Yard hands down for USA type quality. Can you go to other yards and save a few bucks...yes...but if you are not standing there watching all the work being done you are taking a risk that the cheaper price will cost you Big Time. I've see the disasters of saving a few bucks here in La Paz....it's not worth it.

Cheers

[Pagan Ways]

There you go, some current info on La Paz services. I'm five years out of date.

[cfinn]

All excellent info - thank you!

[FredVeroMakani]

Hi Pagan Ways,
Would you please elaborate on this? I have been looking at Mexican Customs website without luck.
I will soon list my boat for sale and would like to understand the process before i do so.
(First TIP, French registered (But that part is easy))
Once i understand the process, i might (or not) list it through a broker.

Thank you

Originally Posted by Pagan Ways

You are correct, except if the vessel is only on it's first TIP, then a second TIP can be issued (under new owner) without checking the vessel out of Mexico. Very easy to do.

[SV THIRD DAY]

Originally Posted by FredVeroMakani

Hi Pagan Ways,
Would you please elaborate on this? I have been looking at Mexican Customs website without luck.
I will soon list my boat for sale and would like to understand the process before i do so.
(First TIP, French registered (But that part is easy))
Once i understand the process, i might (or not) list it through a broker.

Thank you

Fred, the info above given by Pagan Ways is Completely Wrong....100% wrong. First TIP, Second TIP...none of that matters in your situation as a sell or to a buyer.

A new Owner of a Vessel can NOT get a new TIP without first having the old owner Check the Boat OUT of Mexico and then Canceling their Current TIP. The new owner then check the boat back into Mexico and gets a new TIP in their name. YES the boat MUST check out and back into the Country of Mexico in order to get a new TIP. Do this Wrong...and the buyer is screwed.

The terms of a TIP forbid an ownership transfer (sale) of a vessel in Mexico which is why NONE of the paperwork of the sale touches Mexico: Money Transfer, Title Transfers, Notary...etc. NONE of it can be done in Mexico for a legal off shore sale. Screw this up...and not only can the buyer be chased for 16% tax and fines, but they can literally end up with a Boat they own but can not legally use in Mexico...EVER (two cases of that now here in La Paz) Or, Cancel the TIP ahead of being ready to get the new TIP and BOOM...trouble. I have seen it all and this is frankly why "for sale by owner" boats don't sale well in Mexico because oftentimes there is no one involved that knows the rules of the game and that frightens the buyers (which is should if they buy a boat they can't legally use in Mexico)

Talk to a Professional who does this process at the time:
www.LaPazCruisersSupply.com
Or PM me and I can help.
Cheers

[FredVeroMakani]

Thanks Rich, that makes total sense.
Once we are ready to move I ll let you know. Anyhow, I guess it would be better to list it right at the end of Hurricane season, right?

[SV THIRD DAY]

Originally Posted by FredVeroMakani

Thanks Rich, that makes total sense.
Once we are ready to move I ll let you know. Anyhow, I guess it would be better to list it right at the end of Hurricane season, right?

While summer does slow down a bit, boats continue to sale all summer long.
There are really two types of buyers in Mexico.
1: Mexico Pirate Buyer. These have never been to Mexico and their only "knowledge" of Mexico comes from CNN or FoxNews. They think headless bodies are laying in the streets that you have to step over while coming down to view a boat. This mindset also things that all of Mexico is cleaned off the map every hurricane season with only shacks and taco carts left standing. This type of "buyer" is not just hesitant to buy during hurricane season but also in Mexico in general.

2: Understand Mexico Buyer. This type of buyer gets that crime against cruisers and gringos is so low as to not even really register on the statistics. If you are not buying drugs at 3AM or looking for prostitutes you are safer here than in major US Cities. They also get that Baja and Mexico has many hurricane safe marinas. Hurricane Odile for example was the Largest Hurricane to EVER hit Baja in 2014. All boats at anchor were swept into the Mangroves and three cruisers died who were foolish enough to stay out at anchor. But for the boat that were in the known hurricane safe marinas in La Paz for example, the damage was minimal, with a few boats getting dock rash from when fenders popped. These buyers know that if they can handle the summer heat, the hurricane threat is manageable and if they buy in the summer they will get to cruise in the Best time in the Sea off Cortez.

The market is so hot for boats right now that I wouldn't wait to list, weather with a Broker or Going it alone. There is a shortage of cruising boat inventory in Mexico and until the "free money" game in the United States comes crashing down....I expect that to continue.

[Katapult Mike]

Originally Posted by SV THIRD DAY

There are really two types of buyers in Mexico.

Third Day, I make no claim to being an expert on boat buying in Mexico. [FWIW, I have been to Mexico many, many times, and I have bought a boat outside the US, though not in Mexico, which I brought back to the US.]

But by postulating that there are only two types, which types you then ridiculously caricature to serve your ends, you commit an obvious logical fallacy and only impugn your own credibility.

[SV THIRD DAY]

Originally Posted by Katapult Mike

Third Day, I make no claim to being an expert on boat buying in Mexico. [FWIW, I have been to Mexico many, many times, and I have bought a boat outside the US, though not in Mexico, which I brought back to the US.]

But by postulating that there are only two types, which types you then ridiculously caricature to serve your ends, you commit an obvious logical fallacy and only impugn your own credibility.

However you make the mistake of assuming I care about your opinion of my credibility from someone who can’t read tounge-n-cheek and laugh...but thanks for sharing.