Order of steps when buying a boat?

[KingGuppy]

We're pretty clueless on the order of things when purchasing, and have only made it to the looking at part. Now that we've narrowed it down to buying, we wanted to know what the steps were.

Below is the list I had assumed, but I know theres probably things Im missing, and the Get Insurance part is maybe a lot earlier, or at least finding insurance, because I see others suggest finding a surveyor from our insurance agent.

1. Look at boat
2. Make an offer
3. Get Survey
4. Buy Boat
5. Get Insurance
6. Register Boat

[nightowle]

The tasks and order do depend a bit on the price range you're looking in and if you are getting a loan or paying cash. But basically, in the broker world it goes like this:

1. Look
2. Make sure you can get insurance for the particular vessel and/or loan. Find out if there are any survey requirements beyond the standard.
3. Make an offer using a standard Purchase and Sale agreement. Usually, a 10% good faith deposit is made with the offer.
4. Arrange survey.
5. If there are serious deficits found in the survey either reject the vessel or negotiate to have seller make the repairs or provide some discount to handle the repairs after closing.
6. Test sail.
7. Call marine title company to prepare paperwork regarding transfer and obtaining an abstract of title (particularly to see if there are outstanding liens beyond a loan).
8. Submit balance of payment due to title company.
9. Open champagne.

[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. !!

[Oeanda]

[Rockinar]

Originally Posted by KingGuppy

We're pretty clueless on the order of things when purchasing, and have only made it to the looking at part. Now that we've narrowed it down to buying, we wanted to know what the steps were.

Below is the list I had assumed, but I know theres probably things Im missing, and the Get Insurance part is maybe a lot earlier, or at least finding insurance, because I see others suggest finding a surveyor from our insurance agent.

1. Look at boat
2. Make an offer
3. Get Survey
4. Buy Boat
5. Get Insurance
6. Register Boat

That's pretty much it. Its basically just the same as buying a house. Some things to keep in mind is surveyors can be a pain, most suck, and finding a good one in the time allowed can difficult at best. The second your offer is accepted, don't procrastinate and say "I have 3 weeks to find a surveyor" because you will find yourself having to use anyone who will say "yes" which os not good. Even the bad ones may be booked full.

Insurance in my experience will want to see your survey. It can be really hard to get insurance if you want full coverage. I've never had any problem just getting liability. All marinas will require you to have liability at least.

If you're using a broker, they will handle all the paperwork and registration, you just sign all the forms and write checks.

[marcjsmith]

If you are stateside. I would look into the insurance sooner rather than later, and I would also add that looking for a slip/mooring high on the list.

[Sailor Sailor]

Many of us have discovered the hard way that you cannot rely entirely on a surveyor. I would suggest the following additional steps before you make an offer:

1 Buy Don Casey's Complete Illustrated Sailboat Maintenance Manual and read Chapter 1: Inspecting the Aging Sailboat or a comparable work;
2. Find the owner's listserv for the make of sailboat in which you are interested and read all the repair posts of current owners so you can recognize problem areas;
3. Try to get the current owner to make comprehensive written representations of boat condition before signing a contract or include in contract;
4. Make owner show you the title documents evidencing ownership;

[gonesail]

Originally Posted by KingGuppy

1. Look at boat
2. Make an offer
3. Get Survey
4. Buy Boat
5. Get Insurance
6. Register Boat

those are legitimate steps. but there are a few more you can take as well. in advance .. apply for insurance .. and decide where you will keep the boat .. before you buy the boat.

[Fullbore]

As Marcjsmith (#6) said, include securing a home (slip, mooring) on your list.

[c.K.]

Originally Posted by KingGuppy

We're pretty clueless on the order of things when purchasing, and have only made it to the looking at part. Now that we've narrowed it down to buying, we wanted to know what the steps were.

Below is the list I had assumed, but I know theres probably things Im missing, and the Get Insurance part is maybe a lot earlier, or at least finding insurance, because I see others suggest finding a surveyor from our insurance agent.

1. Look at boat
2. Make an offer
3. Get Survey
4. Buy Boat
5. Get Insurance
6. Register Boat

have a slip in a marina

[sail sfbay]

My experience:
1. Look at boat
2. Make an offer - sign Purchase and Sale Agreement with 10% deposit (typical)
3. Secure loan, if you need one
4. Get insurance
5. Get a marina slip
6. Sea Trial
7. Survey - marine and engine, electrical, rigging (sailboat) optional but recommended
8. Request Repair Allowance, if the survey finds undisclosed repair(s) and sign Conditional Acceptance with Survey Allowance
9. Sign Buyer Closing Statement and wire transfer balance to broker (or Buyer)
10. Sign Insurance Compliance Certification that you have or will resolve survey recommendations
11. Obtain insurance binder AND certificate naming marina as an additional insured and submit to marina
12. Obtain title search from marine title company
13. Submit application to USCG to document boat
14. Obtain notirized Bill of Sale and submit to marina for proof of ownership
15. Register boat with state OR obtain Running Letter from marine title company

[ebs001]

Get yourself a buyer's broker. It's free (he gets paid by the seller). He knows all the ins and outs of buying and selling and can give you advice every step of the way.

[OS2Dude]

Is that Stagger, Stagger, Crawl or Crawl, Stagger, Crawl?

[Scrimshaw4]

I would add the following:
Determine how you are going to use the boat vs your level of expertise. You might not want to start with the dream boat first.
Make 3 lists regarding boat selection criteria: 1) Must haves 2) Nice to have 3) Absolutely not!
Once you've' narrowed down the boats that meet the criteria see if you can get some time on board actually sailing them to test perspective vs reality. Then start the search v/ buying steps that have been previously mentioned. FYI: slip mooring availability and cost can be an issue depending on where you are.
JMHO

[motion]

Make sure you get a US coast guard bill of sale
Take care. Sail safe and have a good time
Motion