Purchase Agreement

[Lagoon4us]

Originally Posted by Lajos

Thanks for all the usefull info, I am going to check the local sail association to see if they have a standard form, I am in Canada and the boat is Canadian, the purchase agreement sent by the brooker is based in the US and it states that any dispute would have to be settled in the brookers state, does not make much sense to me...
If I don't find a good form, I'll edit his and keep some outs...
I might also just fly down, the cat is in Grenada and my friends Bahia is there also on the hard...

Thanks again to all! (even the condescending comment...)

We signed nothing up front, we went and looked at the boat before any offer was made. Try to find other boats in the same area, treat it as a fact finding holiday.

When it comes to the contract get a lawyer familiar in marine contracts, don't scrimp on good advice.

Good luck, it worked for us.

[Jerry Woodward]

There is also the little issue of clear title. How do you know there is not some lien on the boat? When you buy a house there is almost always an attorney involved and a title search. If you are spending an equivalent amount on a boat, why should it be any different?

[boatpoker]

Originally Posted by Jerry Woodward

There is also the little issue of clear title. How do you know there is not some lien on the boat? When you buy a house there is almost always an attorney involved and a title search. If you are spending an equivalent amount on a boat, why should it be any different?

Incredibly simple on a Canadian Registered vessel. One phone call to Transport Canada will answer that question as all liens on a Registered vessel must be registered with Transport Canada.

[2Ripples]

Several things to look for that are key IMO.
A clause that says something like "Buyer's obligation to purchase is subject to Visual inspection, sea trial and survey at the satisfaction of the Buyer, in Buyer's sole discretion" (emphasis added) - this is your out for any reason, including not liking the color of the cushions
And a clause that says something to the effect " In the event of rejection, Broker shall return the Deposit to Buyer "
There will be some dates tied to survey and acceptance, but you can set those to give you enough time to decide to reject or not. And if you feel you don't have enough time, you reject, makes the offer null and void, and you can re-start negotiations.

Of course, if you can visit the boat before making an offer / deposit, that is better, but if the boat is in Grenada, and you want to make sure the boat is still available for you once you show up in Grenada, then making an offer /deposit makes sense.
Just went thru this last week for a boat in Guadeloupe - waiting now for the formal survey report to decide next step.

Finally, deal with a reputable broker. Above words are included in the standard Catamaran Company contract and I am in my second purchase with them as my broker and fully satisfied.
*

[rancher44]

RIPPPLES is CORRECT !
Lawyer are not needed with the above terminology . You can reject your offer and get your money back Most companies will not ask for payment until the offer is accepted.
Some do require the deposit with the offer and that is really a pain because usually there is an offer and then a counter offer and so on .
A good broker will take care of you or at least mine did and does.

[ausaviator]

You can reject your offer and get your money back Most companies will not ask for payment until the offer is accepted.

Catamarans.com require the deposit via Escrow or similar.

If I was the seller I would not accept an offer without a deposit, you'd be crazy too.

There is a new service that's coming called PromisePay.com which I believe will help the boating industry and many others too. It's an online Escrow service that would be most suited to purchasing a boat, particularly around quickly giving a deposit, refunding it etc. All I can say is that I wish I'd thought of it as they will probably do really well out of it.

[BandB]

If you cannot afford to lose the entire purchase amount, then hire an attorney. You're going to need one through the process. Just making a deposit has significant risks even if you put all the clauses in the world to allow you to back out. What happens if the seller just refuses to return the deposit? Well, the better option is for the deposit to be protected in escrow. What about title and liens? What about advice on ownership or on flagging? What about the issues you haven't even thought of yet?

[pbiJim]

Originally Posted by David M

You can always write your own purchase agreement without all the small print intended to protect only them. If they won't sign your purchase agreement then take your business elsewhere. You can also modify their purchase agreement and write items into the agreement for the purpose of protecting you. Again, if they want you to sign a purchase agreement that is completely in their favor and can't come to terms that protect both parties then go elsewhere.

This is my perspective precisely, especially in today's soft market.

You're the one making the offer. Make it your way. Just leave enough meat & potatoes in the offer to make the seller want to bite.

They can always counter offer if a few details rub them the wrong way.

[boatpoker]

Originally Posted by BandB

If you cannot afford to lose the entire purchase amount, then hire an attorney. You're going to need one through the process. Just making a deposit has significant risks even if you put all the clauses in the world to allow you to back out. What happens if the seller just refuses to return the deposit? Well, the better option is for the deposit to be protected in escrow. What about title and liens? What about advice on ownership or on flagging? What about the issues you haven't even thought of yet?

The boat is Canadian Registered and the OP is Canadian. Title, flagging and liens are very simple to deal with ( send me a PM and I'll give you my phone number and tell you how it's done). As to protecting your deposit, also easy ... work through a Canadian broker, I know a few who are well versed in international deals and they control your deposit until the deal is completed. This is not as hard as it's being made out.

[Sand crab]

The Catamaran Company and the Multihull Company are huge brokerages with hundreds of listings. They are both multinational with their own facilities in different countries.and have their own documentation people. They sell new as well as used and also handle servicing and charters. They deal with buyers and sellers almost daily from all over the world. All this advice is worth what you paid for it. I really wouldn't be worried.

[2Ripples]

I'll second what Sand Crab and boatpoker just said. The Catamaran contract also very well spells out what's required from the Seller for the Closing - clearance of title, liens, ... DetailsDetails, an offshoot of Catamaran Co will also do this for a fee if you want to be doubly sure, but I think they only do it for US registered boats.

Now just wait until you start reading the Insurance Policies' fine print !

[FLLCatsailor]

Most yacht brokers in the US use the Florida Yacht Broker Association contract, which has been tried and tested over time.

The contract is definitely protects the buyer.