Private Selling Process and Risk Controls

[FraidNot]

What is the best way to manage a private sale.
I'm thinking in terms of the flow of deposit management, and title transfer and cash transfer management?

[S/V Illusion]

There is no amount of advice I or anyone can give you which could cover all potential risks. People buy and sell boats every day with what they believe to be proper documentation ans protections and still don't have a clue what risks they avoided by accident.
If you don't have the knowledge to properly conduct such a sale, it would be foolish to follow the advice you receive by strangers here on the internet.

If there is such a thing as the "best" way, find a broker in whom you have some degree of trust and ask him/her to act as intermediary in the transaction and what they consider a reasonable fee to do so.

[djmarchand]

BoatUS has an escrow service that can be the intermediary in a private sale. I think they even have a sales contract.

[Benz]

Be aware that (in my experience, having dealt with this oftener than I can stand), about 90% of potential buyers are complete flakes. Actually, I've had 100% of buyers, and they were not a few, turn out to be flakes and scammers on several occasions. If you can get someone else to sell your boat for you, you'll save lots of frustration and not have to deal with loads of dead-end emails and phone calls.
Good luck

[Bergovoy]

thanks for the info.. i will look into boatus escrow service...

One of my 'quandaries' is to give a good faith deposit and then have to try to get it back... (if the deal doesnt go thru) Im not broke broke, but, whatever money i give for a deposit should be returned if that is part of the terms...

I would also consider and use non refundable deposits if that was agreed upon up front...

but if there is an escrow service, I would use that in a heart beat... and pay for it too...assuming it is relatively cheap, (less then a $100 or so)

[daddle]

Originally Posted by Benz

Be aware...about 90% of potential buyers are complete flakes.

What a remarkable coincidence! about 90% of potential sellers are complete flakes. Plus, there's absolutely nothing about brokers that makes them more reliable or honest than private parties. It's a bad situation all around, be careful.

[Bergovoy]

Hi, my name is Bill, and I am a flake!


((response from the gallery...), HI BILL....)

[FraidNot]

thanks guys.

could cover all potential risks.

Just identifying the main ones and people have managed them is mostly what I'm after.

[S/V Illusion]

Originally Posted by FraidNot

thanks guys.

Just identifying the main ones and people have managed them is mostly what I'm after.

it's always the subtle things which create the most problems.

[capn_billl]

Having just dealt with a flakey buyer for a house. I would say get either a property lawyer, and or a title company involved unless the amount of the boat transaction is not worth it. If it is a boat priced in the car range, transact just like buying a car. I.E. cash in hand sign over title. If it is more expensive than that I.E. house priced get a professional to set up an escrow. For one house I bought I got a property lawyer, (we each paid half his fee to be impartial). And he handled the contract and title transfer, and disbursed funds when the transaction was complete.

[capnorv]

We paid cash for a boat in September from a broker. He kept saying the Coast Guard was behind in documentation. We got our docs just last week, and low and behold in the papers was a bank release of lien filed mid January, on top of that. yesterday I went to state register and they wouldn't accept the docs because there was no HIN number. Called the broker and just got the runaround. Now I'm calling Virginia to try to straighten that out. There are inscrupulous brokers too.Virginia said thats what the master carpenter report says..I say, can you gaurantee they won't confiscate my boat on reentry...no...I have to straighten this out, broker took money and washed his hands of the whole mess wtf

[capn_billl]

My experience with brokers it the second they get your signature, and push you way from the dock, they RUN to the bank to cash that check, and leave the state.

[daddle]

it would not be a bad idea to hold some percentage in escrow, or whatever, until the seller's bogus doc's clear the registrar. I sure got the run-around from my broker and seller. And wow were they ever hard to reach after they got their money.

OP, if you think your broker and seller are good people you might want to consider the possibility that you may be on the road to hell.

[Steve W]

adding to what Capn_bill said, if the amount relaitively low and you are dealing with just a title, I would meet the seller at the county title office and pay him with a cashier's check or cash after the county title office has checked that the title is ok and any loans against the title have been paid off. I would also check with the marina where it is kept to make sure he is current on slip bills and yard repairs, just to make sure there is not a mechanic's lien on it.

[CarlF]

Is the boat in the US and are you in the US?

In that case I would simply engage a lawyer at an hourly rate. Set the lawyer's expectations that you expect to spend about $1000 (or whatever). Be explicit about the maximum hours for each thing you ask them to do.

I would just go to any town with a lot of boats and walk into a few law offices. Most will have substantial experience with boat transaction. All are bound by a lot of ethical rules - they may be greedy but they won't risk their position at the bar just to cheat you.

You'll find that being able to say "I need to run it by my attorney" will help in the negotiation much more than "Let me check with my broker". Lawyers also have escrow accounts. If a seller needs a deposit tell him that you're glad to place it with your lawyer or their lawyer if they have one.

Carl