buying in Florida

[dhenline]

OK I need the wisdom of the forum now.
I have been slowly looking to buy a boat to prepare for a big sailing trip with my friend starting in Jan2025. Our plan is to sail from Caribbean to Australia.
I found a boat on Yacht world that I think fits the bill and am considering going down to look at it.
I have spoken to the broker and she says if I can fly out to see the boat (I live in Seattle) but in order for her to take it out and sail it around I will need to have a signed agreement with a 10% deposit. My questions are as follows.
1) is this standard? I would have thought flying across the country shows enough interest
2) she says she has her own escrow account and that there are no escrow agencies in FL for boats, only brokers have escrow accounts. Seems a bit odd?
3) She also says I can keep the boat for 6 months in florida with no tax implication, for a fee of $400? some form to fill out? Anyone with any experience in this?
4) the boat is a Knysna 500SE. Any one with any personal information on this boat?
5) If I like the boat, I would need a survey, Anyone have a recommendation on a very straightforward honest Surveyor? Area is Ft.Lauderdale.
6) She uses an AP called Yacht closer and implied that was either some regulation or not sure what. Appears to be an app from what I can see

Currently I am not using a buyers broker but....... I can if I need to

[Caribbeachbum]

Every broker thing in your list is dead standard here. The tax thing is wieird, but she's not having you on. You can keep it here for 30 days, I think, with no tax implications. Then you pay that extension fee and get six months. Otherwise you have to pay the full state sales tax on the sale.

[dhenline]

So I need to use her escrow account? that seems strange to me. How do I know she is secure?

don

[Caribbeachbum]

It will be her brokerage escrow account, not some personal bank account that she calls her escrow account. She's a licensed broker at a licensed brokerage, but yes, it's possible that she'll abscond with your deposit. That would remain true no matter how thorougly you vetted her and the company she works for. It's very, very unlikely, though. Every brokerage has an escrow account, and they all work just as you described in your original post. Including that business of not getting a sea trial without a signed contract. (Otherwise people would set up day trips just for fun as a part of a Fort Lauderdale vacation.)



That yacht looks like a sweet ride, by the way.

[Sand crab]

Florida and California are the only states with strict laws regarding brokers. They screw up and they can go to jail. Escrow is a big part of that.

You can pay $400 and get a 180 day extension to stay in the state.
Florida also caps the sales tax at 6% of the first $300K so if you keep it there it's $18,000.

[dhenline]

thank you

I guess I just find it "strange". When I buy a house, we use a third party escrow. when I buy and sell a Plane, we use third party escrow.
Now when I buy a boat, No third party company?
I always loved the third party aspect. No dog in the fight. Just this is what the contract says etc.
the escrow third companies also would hold and transfer title etc. but OK.

[Sand crab]

It's all here:
https://floridarevenue.com/Forms_lib...t/gt800005.pdf

[Sand crab]

And here on the brokers escrow:
https://law.justia.com/codes/florida...IV/ch0326.html

[Caribbeachbum]

Come for a visit. Set yourself up to look at several comparable catamarans in addition to the one you really want. That gives you a nice base of what is available and the condition the boats are in. Do your hard drinking at The Parrot. Get your best burger (best in the world) at Le Tub. Have a nice vacation. Avoid covid, it sucks. But best of luck on that, south Florida is a top-tier hot zone.

[dhenline]

LOL: I am just getting over covid. For me it wasnt too bad.
Thank you VERY MUCH for the links. Very helpful.
Any thoughts on the offer price? Seems with the market tanking, a full price offer would not be needed but what do I know?
don
PS: I love Cheese burgers

[ItDepends]

There are a lot of online resources, including pages from the Florida state tax office.

Google is your friend. I say that not to be snotty, but you should read the tax documents for yourself instead of take the words of random strangers. There might very well be things in there that are specific to your case that you haven't mentioned and even the most informed and well meaning advisor will not think to tell you.

I don't understand why you are suspicious of a professional licensed boat broker, but are willing to accept the word of an internet stranger (like me...)

And, no you do not ANYWHERE get free rides on boats just because you are thinking of buying it. No matter how far you are coming from. Just to start, who is going to drive the boat for you? Based on your level of experience I wouldn't let you touch the helm of my boat until AFTER you bought it. The broker is not necessarily qualified, so who? The owner? Somebody should hire a captain for you? What?

There are a zillion articles out there on how to buy a boat, and a bunch of youtube videos if reading is too much trouble.

[dhenline]

New experience for me. Boats are different a bit I guess and I am finding out about the brokerage.
So far I have read the documents linked above and they are helpful.
Listen: I am not totally stupid. I have bought and sold several airplanes. Believe it or not, I flew both of them before buying or having a contract/escrow. One plane was a cheap Cessna but the other was a very pricey Cirrus. So I dont think I am completely naive.
Anyway, I ask on this forum because I have found the knowledge base to be deep and generally helpful. Afterall, I learned where to get a good hamburger.
don
PS:

[mvweebles]

If it helps, you can check-up on your broker through the Florida State license agency. I believe they are licenced through the DBPR. Chances are, they have a lot more to lose than you do by scamming you out of a deposit.

Every boat transaction I've been a part of has required an agreed price and deposit prior to even starting an engine let alone a sea trial or survey. FSBO are more relaxed, but if brokered, the cadence is pretty routine.

[MicHughV]

Why in the world would you want to look at a boat in Florida, when there must be 100's in your neck of the woods.

You will need to figure in airline ticket prices, hotels, rental cars, food, etc, to come see this boat...it all adds up.

Then you need to do it all over again for sea trials, etc.

And maybe a third trip for the final sale.

Once you've bought it, you'll be on the hook for dockage, insurance, etc, and you'll be in Seattle.

I don't see where you think this is a good financial deal for you....

There is always the chance you won't like the boat. Often the case, a boat listing on a brokerage website rarely mimics the real thing.

Then what ??

[smj]

Originally Posted by MicHughV

Why in the world would you want to look at a boat in Florida, when there must be 100's in your neck of the woods.

You will need to figure in airline ticket prices, hotels, rental cars, food, etc, to come see this boat...it all adds up.

Then you need to do it all over again for sea trials, etc.

And maybe a third trip for the final sale.

Once you've bought it, you'll be on the hook for dockage, insurance, etc, and you'll be in Seattle.

I don't see where you think this is a good financial deal for you....

There is always the chance you won't like the boat. Often the case, a boat listing on a brokerage website rarely mimics the real thing.

Then what ??

Seattle doesn’t have a huge catamaran market?