How to close a private sale

[procellous]

We have negotiated a price on a private sale of a 42' sailboat. Just wondering how to go about the next steps - should we employ a buyer's broker or lawyer to close the deal? The sale will take place in Canada - we are Canadian citizens as are the sellers. But they have moved to a different country - hence the reason they are selling the boat!

[Shrew]

A Broker will take 10% of the sale price as commission. Find a lawyer that will do a title search and handle escrow.

[cr180]

We’ve used Yachtclosers.com twice with excellent results. The last time was 4 years ago when we purchased a broker listed boat. The broker used them for all his boat sales and since we’d used them another time for a boat we sold ourselves we were fine with that. They held the escrow money (down payment) and pretty much did everything. Talk to them and see if they would do a Canadian sale….don't have anything to lose….
Good luck!

[gonesail]

you (the buyer) will most likely need a vessel documentation and title service to handle the paperwork. once the funds are transferred then seller completes the deal with bill of sale.

[thinwater]

Search "yacht title company."


I did a private sail of a ~ $150,000 boat, and they did the title work, documentation transfer, closing, and escrow for far less than broker commissions. It seemed like a very good way to handle a private sale. The one I used was in Annapolis, MD, but there should be something most places.

[Mike OReilly]

It's not that complicated. You can transfer ownership with the necessary documents (Purchase Agreement, Bill of Sale, backed with proper ID). There are slightly different processes for boats that are licensed vs registered, but it's not that complicated, and can be done online.

Registered:
https://tc.canada.ca/en/marine-trans...tion/how-apply

Licensed:
https://tc.canada.ca/en/marine-trans...ansfer-licence

You can do lien searches online as well... I don't have links ready for those, but I did them when I bought my boats.

I've never used escrow services, but I understand they are available for a fee. My transactions were done directly (both buying and selling).

You can pay brokers or lawyers to do all this stuff, or you can do it yourself and save the bucks.

[Motesier]

Originally Posted by Mike OReilly

It's not that complicated. You can transfer ownership with the necessary documents (Purchase Agreement, Bill of Sale, backed with proper ID). There are slightly different processes for boats that are licensed vs registered, but it's not that complicated, and can be done online.

Registered:
https://tc.canada.ca/en/marine-trans...tion/how-apply

Licensed:
https://tc.canada.ca/en/marine-trans...ansfer-licence

You can do lien searches online as well... I don't have links ready for those, but I did them when I bought my boats.

I've never used escrow services, but I understand they are available for a fee. My transactions were done directly (both buying and selling).

You can pay brokers or lawyers to do all this stuff, or you can do it yourself and save the bucks.

You have to be much more careful in the US .

[more]

Originally Posted by procellous

We have negotiated a price on a private sale of a 42' sailboat. Just wondering how to go about the next steps - should we employ a buyer's broker or lawyer to close the deal? The sale will take place in Canada - we are Canadian citizens as are the sellers. But they have moved to a different country - hence the reason they are selling the boat!

I before couple day bay for me new used boat.
I am in Croatia,seller Czeh, Czech registered boat. boat is in Croatia.
we arrange meet in half. the seller must come on croatia border. i come on croatia border.

if I be on your place I demand owner must come to Canada or he must take lawyer in his name. don't forget this is buyer market. million boat on market maybe 1000 buyer.
don't trust nobody.

[chris mac]

We did the same as mike O'Reilly. It's a pretty simple process thru transport canada. It will take time though.

[Shrew]

Originally Posted by Mike OReilly

It's not that complicated. You can transfer ownership with the necessary documents (Purchase Agreement, Bill of Sale, backed with proper ID). There are slightly different processes for boats that are licensed vs registered, but it's not that complicated, and can be done online.

Registered:
https://tc.canada.ca/en/marine-trans...tion/how-apply

Licensed:
https://tc.canada.ca/en/marine-trans...ansfer-licence

You can do lien searches online as well... I don't have links ready for those, but I did them when I bought my boats.

I've never used escrow services, but I understand they are available for a fee. My transactions were done directly (both buying and selling).

You can pay brokers or lawyers to do all this stuff, or you can do it yourself and save the bucks.

The danger isn't just in the title search for liens. That only ensures a clean and clear title. How do you handle the money?

The seller wants cash in hand. The buyer wants a clean and clear title. Neither is willing to hand-over with the other.

wire transfers and bank checks can be faked or recalled. Titles can be forged.

[Mike OReilly]

Originally Posted by Shrew

The danger isn't just in the title search for liens. That only ensures a clean and clear title. How do you handle the money?

The seller wants cash in hand. The buyer wants a clean and clear title. Neither is willing to hand-over with the other.

wire transfers and bank checks can be faked or recalled. Titles can be forged.

As I said, all my transactions have been direct with the people involved. No escrow. No lawyers. There was no problem awaiting the other side to act.

Naive… perhaps. But I wouldn’t want to deal with someone I didn’t feel I could trust. So far, it’s worked for me. Heck, I just bought a house the same way.

[boatpoker]

Originally Posted by Mike OReilly

As I said, all my transactions have been direct with the people involved. No escrow. No lawyers. There was no problem awaiting the other side to act.

Naive… perhaps. But I wouldn’t want to deal with someone I didn’t feel I could trust. So far, it’s worked for me. Heck, I just bought a house the same way.

Canada is not the US and not Croatia. Mike is correct. It's a very simple process here that requires no middlemen.

... Currently at anchor south of Kent Narrows, MD.

[Jammer]

If you trust that the other party isn't actively trying to rip you off, it's easy, even in the USA.

For vessels that are currently USCG documented, the buyer and seller can fill out the form on the back of the certificate of documentation in the presence of a notary, have the notary stamp it, and mail it into the USCG documentation center along with a completed form CG-1258 and a check. That's it. That is the process I followed when I bought my Tartan, except that the broker filled out a bill of sale and had it notarized by the seller in advance instead of using the form on the certificate of documentation.

For vessels that are state titled, the buyer and seller can fill out the form on the bottom/back of the title, and the buyer can take it to whatever state/county/parish/deputy office handles such matters in the state where the boat will be registered and titled by the buyer -- or can mail it in with the proper application and fees. For vessels that are neither documented nor titled, all you need is a bill of sale that clearly identifies the vessel being sold and you again go to the local state/county/whatever office, or mail it. I've done that lots of times too.

Now, if either the buyer or seller think the other one is maybe going to try to rip them off, then it gets hard and you might need an attorney and a title search and escrow accounts and so forth.

In most cases, if you know the history of the boat and you know something about the seller (or buyer, as the case may be), like where they live, who they work for, and who their friends are, your chances of getting ripped off are low.

[CarlF]

The only thing that would worry me is that the seller is in another country. No matter how much you trust him, I wouldn’t wire money outside of Canada until you have the a clear title in your hand.

The seller may be OK with the wire happening after the title changes. If not, any lawyer can arrange escrow of the funds for much less than a broker commission. You could agree to split the escrow fee or tell the seller it’s part of his cost (since normally the escrow would be done by the seller’s broker as part of his commission).

[newhaul]

Originally Posted by Motesier

You have to be much more careful in the US .

I didn't ever see any issues in the USA bought several and sold several private sales .
Did my own lien search its not difficult . Then just exchange money and title at title office then transfer into my name or when selling their name .