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16-11-2018, 10:48
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#1
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Registered User
Join Date: Aug 2018
Boat: Lagoon 380
Posts: 135
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Really frustrated
Part of our contract on our boat stipulates that the US taxes are paid on it by closing by the seller(it's a Canadian boat).
Our closing company says that they have "proof of taxes paid", but will not show it to me because of "sensitive seller information".
I replied that I'm fine with them redacting whatever information the seller thinks is sensitive (that somehow becomes magically less sensitive when they promise to deliver it to me after closing), and they're still dragging their feet.
Closing is next week-how hard do I push for this piece of paper before closing? I've been threatening not to close unless I see an emailed copy of it.
(this is my first boat, so I'm not sure what is usual or typical, but my something's rotten in Denmark meter is going "wheep wheep wheep!")
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16-11-2018, 10:59
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#2
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Registered User
Join Date: Aug 2014
Location: Left coast.
Posts: 1,451
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Re: Really frustrated
Interesting situation. As a seller, I’d have a problem paying taxes on a boat before your money is at least in an escrow account.
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16-11-2018, 11:05
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#3
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Registered User
Join Date: Aug 2018
Boat: Lagoon 380
Posts: 135
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Re: Really frustrated
Quote:
Originally Posted by Training Wheels
Interesting situation. As a seller, I’d have a problem paying taxes on a boat before your money is at least in an escrow account.
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The money for closing is in an escrow account, and the boat has passed sea trial and survey.
According to the closing company, the taxes have already been paid; they just don't want to show us the proof.
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16-11-2018, 11:09
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#4
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Registered User
Join Date: Oct 2007
Location: Lakewood Ranch, FLORIDA
Boat: Alden 50, Sarasota, Florida
Posts: 3,464
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Re: Really frustrated
Claiming sensitive information is a dubious excuse as the seller's identification is readily obtainable both in the U.S. and Canada from a number of public sources. Consequently, there must be some other reason. Regardless, it's simple enough to redact the portion with which any seller may object to disclosing. I'd be concerned.
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16-11-2018, 11:11
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#5
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Moderator
Join Date: Nov 2011
Location: aboard, cruising in Australia
Boat: Sayer 46' Solent rig sloop
Posts: 28,400
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Re: Really frustrated
Get it on paper: have the closing company send you the information that the taxes have already been paid, signed and witnessed.
I think you've bought a boat, but get it in writing that can go to Court if needs be.
Ann
__________________
Who scorns the calm has forgotten the storm.
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16-11-2018, 16:49
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#6
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Registered User
Join Date: Feb 2016
Location: Portsmouth, NH
Boat: Bayliner, 4588, 45'
Posts: 207
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Re: Really frustrated
Do you mean state taxes - like sales tax? What US taxes are due? I paid none bringing a boat back from Canada in August.........
__________________
Irony
4588 Bayliner
Portsmouth, NH
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16-11-2018, 17:39
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#7
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Registered User
Join Date: Aug 2014
Location: Left coast.
Posts: 1,451
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Re: Really frustrated
It would seem to me if it is specified in the contract, and you are using an escrow, you should be fine.
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16-11-2018, 17:51
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#8
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Registered User
Join Date: Jul 2005
Location: Bellingham
Boat: Outbound 44
Posts: 9,319
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Re: Really frustrated
Quote:
Originally Posted by Wood
Do you mean state taxes - like sales tax? What US taxes are due? I paid none bringing a boat back from Canada in August.........
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This is confusing as I don't see what US taxes would be due if you are taking the boat to Canada.
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16-11-2018, 19:46
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#9
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Registered User
Join Date: Aug 2018
Boat: Lagoon 380
Posts: 135
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Re: Really frustrated
They emailed me the paperwork, it looks fine.
It's the "not for sale to us citizens while in us waters" tax.
Definitely a different way of doing things than buying a house, that's for sure.
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16-11-2018, 19:53
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#10
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Moderator
Join Date: Nov 2011
Location: aboard, cruising in Australia
Boat: Sayer 46' Solent rig sloop
Posts: 28,400
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Re: Really frustrated
There may be import duties owing on it at the time it comes to live in the US.
Ann
__________________
Who scorns the calm has forgotten the storm.
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17-11-2018, 07:38
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#11
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Registered User
Join Date: Feb 2015
Posts: 1,223
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Re: Really frustrated
Quote:
Originally Posted by JPA Cate
There may be import duties owing on it at the time it comes to live in the US.
Ann
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I think that's the "tax" being discussed. That's what would be due bringing a boat into the US for the first time.
But they sent the documentation, so all is fine. This is a great example of the silly things that can screw a deal.
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17-11-2018, 08:10
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#12
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Registered User
Join Date: May 2011
Location: Lake Ont
Posts: 8,547
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Re: Really frustrated
Quote:
Originally Posted by JPA Cate
Get it on paper: have the closing company send you the information that the taxes have already been paid, signed and witnessed.
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^^^ This.
What is a "closing company" in this context? Is it a broker? In any case, there's probably some responsibility implied in their services. Still - it should be explicit or visible to all.
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17-11-2018, 09:23
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#13
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Registered User
Join Date: Nov 2018
Boat: Jeanneau 42DS
Posts: 1
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Re: Really frustrated
Assuming the "taxes" are really the import duty as mentioned above (1.5% typically), they should provide you with a copy of the Customs form 7501. Note import regulations also require the engine have the correct emissions label (depending on year).
We just went through this (buying a Canadian flagged vessel in the US), and do not trust the yacht brokers - ours tried to convince us it was not required. Once we had an import (customs) broker on board it went smoothly however.
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18-11-2018, 04:01
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#14
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Senior Cruiser
Join Date: Mar 2003
Location: Thunder Bay, Ontario - 48-29N x 89-20W
Boat: (Cruiser Living On Dirt)
Posts: 49,082
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Re: Really frustrated
Greetings and welcome aboard the CF, Jake.
__________________
Gord May
"If you didn't have the time or money to do it right in the first place, when will you get the time/$ to fix it?"
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18-11-2018, 05:39
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#15
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Registered User
Join Date: Apr 2013
Posts: 11,002
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Re: Really frustrated
If they refuse to provide clear evidence, you could require them to hold the value of the taxes in the escrow account until you are able to confirm that the taxes have been paid. If they aren't you can lay claim to the money in the escrow account.
Them just telling you it's good is not adequate.
Honestly, this sounds very fishy and I would be double checking everything before finalizing the sale.
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