Unusual Boat Sell Proposal

[NorthCoastJoe]

Now I have to spend time and money in the Court System.

[skipperpete]

Originally Posted by more

and second buyer who don't have now money to buy boat also don't have next 8-9 year money if his income is from only charter

More, you understand “charter” very well! ( as well as engines)

[lestersails]

Originally Posted by danstanford

I once had a banker friend say "there is a price (interest rate) for every deal". Translating and expanding on this, higher risk should have a higher price and I think most people here have pointed out the high level of risk in this deal.

True, and there is a difference between a banker and an individual seller. The bank has a portfolio of loans, priced for risk. They can predict a default rate for each loan and the portfolio overall, some will default, and they still make money (if they correctly priced the risks in each). You are selling one boat. You, as individual, are risking 100% of your capital asset here. No bank would ever put 100% of its assets at risk in a single transaction.

[SuW]

Originally Posted by more

what are you crazy asking something like this.
no money no boat.what you want lose boat,this local have bank ,some goverment program.
what boat and price

also 99,99% this local need boat to transfer refuge from turkey to greec. if cost guard catch him he dont risk nothing becouse he dont pay boat

This!

[Shaneesprit]

I would consider counter proposals - as it sounds like you can live without receiving the funds at point of saie.

1) you take 50% of his charter Business, for a fee he pays you, possibly with an exit strategy where he buys your share at a previously agreed price, more than the boat costs.

2) You rent the boat to him for his business, you retain ownership and insurance.

3) Find a buyer that wants to pay for the boat upfront.

In affect he wants an interest free loan from you lol. I would like one too? Thanks in advance 😝

[lestersails]

And if you continue to be the owner, who carries the insurance policy on the boat? Either you are the insured or this 'borrower' is the insured. I can see serious issues with either approach.

[valhalla360]

Originally Posted by PetrichorKev

Thanks for all the replies so far.

Yes, all of the above mentioned concerns have been raised to date.

A Greek lawyer has been engaged by the buyer with a separate contract drawn up highlighting these issues.

The buyer has sent through passport, driving licence etc. and appears to operate businesses on his home island.

Nothing has been signed, so no panic just yet. It was more understanding the risk and hearing if this thing has been encountered before. Although it can feel like a scam I wondered whether anyone else has had a similar proposal.

Simple he signs over ownership of his home and business free and clear of taxes, debt or other encumbrance and will vacate them prior to transfer and until the loan is paid in full.

If he balks, ask him why you should accept similar terms from him.

[clakiep]

Why you don't propose to operate the boat together with him for maybe 2 or 3 month in the pretended charter operation, than check the minimum requirements concerning insurance, license for comercial operation, his legal and real qualification, his belongings and reputation where he lives...... and than make a decision. I had similar offers, be it for boats and airplanes, and sugesting this they all refused....probbally for good resons.

Capt. Claus Sâo Paulo/BRASIL

[Nic Homan]

There is a saying in England. “Don’t touch it with a barge pole”

You seem to be taking on a lot of risk to get a sale. There are plenty of buyers out there if you have sensibly priced your boat for sale. There are a lot of seriously not nice people out there looking for boats with which to do people trafficking.

[lestersails]

Originally Posted by valhalla360

Simple he signs over ownership of his home and business free and clear of taxes, debt or other encumbrance and will vacate them prior to transfer and until the loan is paid in full.

If he balks, ask him why you should accept similar terms from him.

I LOVE this response - funny, but quite remarkably reasonable. A more serious proposal would be a lien on his home for the value of the boat. The reason why banks like to make loans secured by real estate assets is that they cannot disappear!

[adamant2]

Originally Posted by PetrichorKev

Hello,
There is more detail for this query but the summary is:

• Boat is currently on the hard in Greece
• Potential buyer is from a nearby island
• Wants to take the boat upon initial payment of deposit
• Proposes to pay 50% of price within 3 months
• Outstanding amount to be paid the following year
• Ownership of boat transfer to be made after total payment is received
• Buyer will likely use the boat over the coming year as a charter boat, with funds for final payment coming out of generated income

Buyer will need to obtain insurance for charter operation.

Is there additional items or concern or caveats that should be included in contract for sale?

Thanks

Tell him he’s dreaming

[Icarus]

What possibly could go wrong?
Are you seriously considering handing your yacht over to some guy for a 10% deposit on a promise that he will pay the rest in some form of instalments over a year?
He hasn't got the funds to buy your boat and comes up with the pipedream of chartering ..
Brilliant

[CarlF]

Pay him as a charter agent. He pays a pre-agreed fixed monthly fee (whether the boat charters that month or not) for five years (or whatever). He is responsible for all operating costs. Each charter contracts is signed between you (owner), the agent and the charterer. He's just an agent. You get insurance that covers chartering.

At the end of the five years he gets title. At anytime he can prepay and take ownership immediately.

The moment he doesn't pay the monthly fee the contract is cancelled with no refund or compensation to him.

The contract requires AIS to always be turned on (so you know where the boat is). There are navigation limits in the contract (and if he is going to use the boat privately he signs a charter agreement each time directly with you)

[lestersails]

Originally Posted by CarlF

Pay him as a charter agent. He pays a pre-agreed fixed monthly fee (whether the boat charters that month or not) for five years (or whatever). He is responsible for all operating costs. Each charter contracts is signed between you (owner), the agent and the charterer. He's just an agent. You get insurance that covers chartering.

At the end of the five years he gets title. At anytime he can prepay and take ownership immediately.

The moment he doesn't pay the monthly fee the contract is cancelled with no refund or compensation to him.

The contract requires AIS to always be turned on (so you know where the boat is). There are navigation limits in the contract (and if he is going to use the boat privately he signs a charter agreement each time directly with you)

If he stops paying, you are left holding the bag with a bunch of charter contracts and you suddenly have to be there to oversee the charter business.

I think a lien on his house is more attractive. The boat disappears, the house has to be sold, and you get your security. (Real estate lawyers feel free to tell me I'm wrong here). All that assumes that Greek law is amenable to that and responsive to lien security claims. It also assumes that his real property is not mortgaged to the hilt (which it could well be, or he could borrow against his home equity, right?) - your lien would be worthless if the mortgage holder(s) are first in line.

Oh wait, maybe all of these are stupid because the only reasonable thing is for him to pay you what the boat costs if he wants to buy it.

[Statistical]

Originally Posted by CarlF

Pay him as a charter agent. He pays a pre-agreed fixed monthly fee (whether the boat charters that month or not) for five years (or whatever). He is responsible for all operating costs. Each charter contracts is signed between you (owner), the agent and the charterer. He's just an agent. You get insurance that covers chartering.

At the end of the five years he gets title. At anytime he can prepay and take ownership immediately.

The moment he doesn't pay the monthly fee the contract is cancelled with no refund or compensation to him.

The contract requires AIS to always be turned on (so you know where the boat is). There are navigation limits in the contract (and if he is going to use the boat privately he signs a charter agreement each time directly with you)

or just walk away. If the OP wanted to get into the mess that is chartering he could do it without this "buyer" (using that term loosely because buyer usually implies someone who has the means to buy).