When should it be "Sale Pending"?

[Hard A Lee]

We put an offer in on a boat, which was accepted! The schedule has been stretched out a bit by the seller, which we are fine with. However, when we put our deposit down, the boat was marked as "SALE PENDING" on Yachtworld. Then, last week, I noticed that it was no longer marked that way.

The way I understand it, once an offer is accepted and a deposit received, it is marked "Sale Pending" and no other offers can be entertained and the boat cannot be shown unless the buyer backs out.

Is this correct? I'm getting a different answer from the broker.

[exMaggieDrum]

Originally Posted by Hard A Lee

We put an offer in on a boat, which was accepted! The schedule has been stretched out a bit by the seller, which we are fine with. However, when we put our deposit down, the boat was marked as "SALE PENDING" on Yachtworld. Then, last week, I noticed that it was no longer marked that way.

The way I understand it, once an offer is accepted and a deposit received, it is marked "Sale Pending" and no other offers can be entertained and the boat cannot be shown unless the buyer backs out.

Is this correct? I'm getting a different answer from the broker.

Carefully read the contract you signed with the broker. I'm not a lawyer but contracts can be written so that you have the right to complete the sale if certain conditions are met, on time, as stated in the contract. It may be that the contract says that if X is not done by Y date then the contract is void. There are many ways to do all this so read your specific contract. If you don't see a way for the seller to back out and you have done all you are supposed to do (by Y date, etc.) then it should still be yours to buy, even if you have yourself "outs" like accepting the boat as is after a survey. If you make additional conditions, such as, I want you to fix the hot water heater or something then the original contract is void unless the seller agrees to the new offer (with conditions). But read your contract.

In any case, the broker may have his doubts that the sale will go through and is continuing to market the boat. If your contract is still valid he, and the seller, can't enter in to another sale contract (even if it is better) over yours, unless it is subject to you rejecting the boat and your contract. I think brokers will continue to show boats that are pending in my experience. House brokers will do the same thing, but they should notify the potential buyers of the pending contract.

If in doubt get a lawyer. I wouldn't worry so long as you follow what you are supposed to do to close the contract. If you don't all bets are off. If you caused the delay for some reason you may have given up any rights to the boat you have. But you, at least, should get your deposit back.

If the broker sells "your" boat and you have a valid contract your recourse is to sue. But, hey, I'm not a lawyer but have spent a lot of time trying to buy boats. Get legal advice if needed.

[newhaul]

The answer usually is it depends on the reason that the sale is not final yet. If the sale is depending on bank financing it is common to get one or two backup offers in the event that financing falls through. However if the reason is simply surveys then backup offers are not to common. What is the broker telling you?

[Hard A Lee]

He is saying that a boat is not marked sale pending until after a survey and sea trial have been done and that he is able to show and accept backup offers. That does not explain why it was marked sale pending as soon as they got our deposit. So far, we haven't caused any delays. We are still within the timeline set out by the seller...

He did say that we are still first in line, so maybe it's not a big deal. just seems shady

[Mike OReilly]

Sounds a bit shady to me (assuming we're getting the full story here). If the delays were due to you, the buyer, then I can see why the "sale pending" could come off. But if the delays really are due to the seller, and the broker is the seller's broker and not just some third-party broker who re-lists other listings in the hopes of scooping a commission, then yes, I would be ticked off.

[sailorboy1]

Originally Posted by Hard A Lee

The way I understand it, once an offer is accepted and a deposit received, it is marked "Sale Pending" and no other offers can be entertained and the boat cannot be shown unless the buyer backs out.

I feel that till the sale is final all you have is the first right to buy the boat under the price & conditions listed in your agreement. Nothing in that means that the seller can not continue to show and accept back-up offers.

[Caribbeachbum]

Many brokers never mark a boat as PENDING. Reason? Sales fall through for many reasons, but potential buyers out there watching the listing are likely to believe -- or so the brokers think -- that there must be something wrong with the boat if the sale didn't go through.

If you have a contract for the sale, and a deposit down, then you're going to be buying the boat if you so desire. However, I'm willing to bet real money that there is nothing in the contract that prevents the broker from continuing to show the boat until the sale is complete and it belongs to you.

Since sales do fall through, and for many reasons, this is simply good business.

[newhaul]

Seems a bit nonstandard to me sale pending usually means that they have accepted an offer from a buyer pending the conditions the buyer has stated ( things like a sea trial, structural survey,mechanical survey, and if a sailboat rigging survey.). If I may ask what area is the boat located?

[Mike OReilly]

If the offer has been accepted, then there is an agreement (contract) in place between the seller and the buyer. The terms of this contract are generally that the seller and buyer agree to transfer ownership of the boat at the agreed-upon price once certain conditions are met; typically a satisfactory survey and sea trial.

This should all be in writing: An agreement to purchase based on these conditions being met.

And sure ... a broker could continue to list and show the boat until the sale finalizes, but that seems like a poor use of a broker's time, as well as the time of the potential other buyers. How ticked off would you be if you spent the necessary time researching, visiting, and initial-surveying a boat, only to learn that there was already a sale pending? I'd be be pretty annoyed.

This might be technically legal for the broker to do, but it's certainly unethical, and marks this broker as a poor business person. I doubt this kind of broker would remain in business for long.

... unless they have real reasons to believe the sale won't go through. In which case you may not be getting all the information.

[Mystic38]

brokers can do pretty much whatever they like.

A sale may well be pending, but they have no legal obligation to state so on a yachtworld listing.. who knows, they can attract a backup offer, or sell an inquiring client on something else.

[Shrew]

To me it would come down to this......Do YOU have the opportunity to back out of the sale with no repercussions at this point? IF so, then the seller should be i a position to do as they please as well, including showing and accepting offers.

To me, the sale isn't 'pending' until the stipulations of the contract have been met and a closing date has been established. Has a closing date been established? Have all issues, e.g. 'repairs' and 'final price' been agreed upon?

Has that been the case? Because if you're still hammering out a potential reduction in sale price to cover work that needs to be done as identified in the Sea Trial, then you're not really 'pending' anything at this point.

I also agree, your P&S has nothing to do with the posting on a online brokerage site.

[Cheechako]

Originally Posted by Hard A Lee

He is saying that a boat is not marked sale pending until after a survey and sea trial have been done and that he is able to show and accept backup offers. That does not explain why it was marked sale pending as soon as they got our deposit. So far, we haven't caused any delays. We are still within the timeline set out by the seller...

He did say that we are still first in line, so maybe it's not a big deal. just seems shady

There's nothing to keep a seller from showing the boat until you buy it. I sold a boat once at full price with a first offer that I had declined. The first buyer had not accepted my counteroffer. He was a bit pissed.
A deal is not a deal until it's done. Nothing unethical about the broker continuing to sell the boat. I'm not sure why the deal is being extended out though, I "smell a rat" there if the Seller wants to extend the time.... not sure why a seller would do that.
You need to "get 'er done".
The good news is , once you survey and if you find some things needing repair etc, most new potential buyers will want to know why the boat didnt sell if your deal doesn't finalize or you have to negotiate. By the same token there is more pressure on you to accept less in the negotiation. That is why you need to get the deal done quickly.

[Jdege]

Originally Posted by Hard A Lee

That does not explain why it was marked sale pending as soon as they got our deposit.

Could be as simple as a new clerical staff changed the status, and then was told "we don't do that, yet."

[Hard A Lee]

So, there was a scheduling issue on the seller's end that pushed the dates out, but we are still well within those dates.

Thanks for all the replies. Sounds like I don't need to be too worried. We have a signed contract and I'm assuming we're still sticking to that.