Order of steps when buying a boat?

[meirriba]

Originally Posted by goboatingnow

I would say that’s obviously a US centric documentation process. Whilst I would agree with the general sequence

I would add

(1) look and narrow down to the boat type you want , ie keep narrowing the search criteria ( keep an open mind of course ) build market price knowledge , if u can’t narrow your search you simply haven’t decided what you’re buying and will bounce all over the place .

(2) if flag state ( ie country ) registering , ensure you understand their paperwork requirements. Many 2nd hand boats has less then pristine paperwork. In my case it eliminated over half the boats I was interested in

( be also informed as to any sales tax ( VAT etc) situations , import fees , regulatory requirements as these can be insurmountable later in the deal )

3) get some representative quotes from your insurers , it gives you ballpark budgets and throws up early issues. ( make up the specs to suit your intended area of purchase , ie what would it cost to ensure a boat type xxx, length yyy, age zzz etc , try to be as specific enough so they actually quote you , make up hull numbers etc and create whatever details so you actually get quoted etc , you will NOT be buying this policy )

4) once you’ve got the boat you want in your sights , make offers based on your market price knowledge , if you haven’t this consider a buyers broker , but be aware in many selling areas you may have to pay this broker.

5) if you reach a satisfactory initial price agreement , review the Sales and Purchase agreement. This should be an “ industry standard “ one ( YBDSA for example on this side of the pond )

6) insert any clauses that matter to you including requirements for particular paperwork. ( in my case I had to have original documents , no copies, notarised or not were acceptable ) sign and pay earnest money , deal in documents in your national language or English but be aware that you may need notarised translations and so forth. English is almost the international language of boat transactions, even in France !!

7) arrange and pay for survey , review survey document with surveyor , ensure the wording in the document suits your intended purpose

8) renegotiate with the seller if appropriate based on survey , don’t nick pick the small stuff. The age of the boat is the age of the boat. You WILL be doing upgrades , you can’t make the owner turn it into a new boat.

9) arrange sea trial, again you may have to bear out of pocket expenses here. A sea trial can include your surveyor if required , don’t expect too much from a sea trials. Most boats sail !!! . I ask the owner to ensure the engine is being started from dead cold , if big expensive engines are involved , consider a separate engine survey.

10) in most countries there are not “ title companies “ so you’ll have to do this Leg work yourself. The contract should have clauses that ensure the boat is free from liens or encumbrances , check these , you may have to check existing flag registries for existing mortgages ( I always do this myself ). Also check of in a marina berth that the berth fees are paid up and check with the yard for any outstanding debts. If necessary you can engage lawyers , expect the commensurate cost to follow that decision

11) ensure you have sight of all documents needed for flag registration , it’s useful to get scans of these and submit to the flag registry in advance to ensure their acceptance. However this isn’t always possible

12) arrange insurance to be active on the closing day , this can be done typically without payment up front.

13) close and pay balance . I would always have the bill of sale notarised , use an industry standard bill of sale ( U.K. MCA for example) in addition to any national bills of sale , I always have at least two bills of sales signed and sealed ( not copies )

14) engage with flag registration process , you or the PO can usually deflag it from its existing registry if needed .

15) open a coke , you can’t now afford champagne , especially with the next phrase looming.

Only my experience after 7 boats. !!

This is an excellent list.
I would add two things (one already mentioned in one of the above posts):
1. Secure a berth, if you plan to keep the boat in the same location for long term.
2. Usually the seller would ask for a down-payment at the stage of signing initial contract (5%-10% in my experience). This should preferably be done through a reliable escrow company.

[sail sfbay]

And do not forget about sending the state tax reverue service a fat check for sales tax with a copy of the bill of sale., if you USGC document vs. state register the boat. If you state refister the boat sales tax will be due at the time you register the boat. This fee is often unspoken by the boat broker so you have to research this yourself, otherwise you will be subject to a 10% penalty plus interest once the state finds you.. Florida's charges 6% sales tax on all boats.

https://floridarevenue.com/Forms_lib...t/gt800006.pdf