Originally Posted by Bluewaters2812
I am not sure that your information is correct (or at least the info you were given when you bought). A US non-resident can State register the boat in the US. Secondly, a survey is only required if you import
the vessel into the EU/UK.
I think Zanshin was referring to a (Tonnage / Measurement) Survey being required for Red Flag / Part 1 UK boat registration
. Nothing to do with importing the boat (the boat does not even need to be in the UK / EU to get on the UK part 1 register - and simply being on that register does not mean the boat is imported (so no tax / VAT / RCD implications)....in practice probably as simple to get on the SSR, even if only as an interim measure as it's cheaper / quicker and no Survey requirement - the only requirement is to be a UK resident, passport and boat location immaterial).
My questions about the actual funding still remain though.
Personally I would use a Lawyer rather than only a Broker to hold the funds in Escrow (others will
The important thing with anyone
holding funds in Escrow is you have to be comfortable that a) they will deal with the funds strictly in accordance with the agreements signed b) that they won't simply b#gger off with the money! and c) if they do b#gger off with the money (or it simply gets hung up or dissapears?
into their own financial problems) that you have some recourse, in practice as well as in theory!
What happens to the funds in Escrow depends on what the agreements you sign say will happen. The idea is that initially the Escrow Agent is holding the funds 100% for you, but once certain conditions (under the agreement are met) that the money is then held for the Vendor. The benefit of an Escrow Agent is that the Vendor knows the cash is actually available and can be transferred to him instantly (without actually moving money!). In addition the Vendor can sign up the Bill of Sale (and whatever other documents are needed) in advance and pass them to the Escrow Agent to also hold in Escrow (i.e. they do not become effective until the deal completes). The benefit for the buyer is that he knows in advance all the documents are good to go before the money is released.....The Escrow Agent is effectively a neutral referee for the deal, ideally not also wearing another hat for either side (like a broker who has a finanical incentive to complete the deal).
I am not familiar with US boat buying
agreements (never done one myself) - but I would expect that (just like a UK contract) would spell out what the procedure is, the documents to be signed, the expected timescale and the reasons why either side could terminate the deal before completion. In practice those reasons should be wide enough to kybosh any deal for whatever reasons, even if dependent on arguing over the Survey
.......The Escrow Agent would confirm to both sides that everything is good to go (cash in place and documents (per the Agreement) all executed) and then most importantly that both
sides would need to confirm to the Escrow Agent that the deal is good to complete before the money and documents change hands(therefore even if one side thinks the other side is wrong to Kybosh the deal. and even if they are! then the deal does not happen and especially that neither the money or documents change hands......of course things could then end up in court (unlikely, but everything possible) but the possibility of legal
arguments nothing to do with the Escrow side of things - it's just a failed deal.......at that point the Escrow Agent would return documents and cash to each side and wish them all best
The good news is that the US far more familiar with using Escrow, and it is actually real
- whereas in the UK often little more than sending your cash to a Broker (aka a bloke you don't know and who may or may not have own financial problems) to hold in a bank account which even though titled Client Account (with the intention that it be used an Escrow Account) may in fact be no such thing (even if Broker thinks otherwise).
Hopefully others with actual hands on experiance will be along