Buying a boat in Fiji

[chasingwaves]

Hi, I'm thinking of buying a USCG documented boat that's in Fiji (not imported) and transferring the documentation to my name (I'm American). The boat owners have suggested two possible plans for an offshore closing (private sale):

(1) I complete the monetary transfer for the boat in Fiji but don't officially take ownership of the boat. Then, the owners return to the US and start the USCG documentation transfer. I sail out of Fiji in a few months as the owners' crew, then I sail into Wallis and Futuna with new papers stating that I'm the owner.

(2) The owners and I complete all the documentation paperwork beforehand and complete the monetary transaction before my arrival in Fiji next month. Then, once I arrive, we sail together to Wallis and Futuna. We clear out of Fiji with me as their crew and into Wallis and Futuna with me as the owner.

My understanding is that we cannot close the sale in Fiji unless the boat has been imported. And, that only the owner who checked in for the temporary admission can export (clear out) of Fiji?

My question is, assuming surveys, etc. check out, what kinds of pitfalls do I need to watch out for? And, are there any better ways of doing this transaction? Seems to me like both ways that the owners suggested seem to be a bit precarious for me. In the former, I don't actually own the boat until I sail into Wallis -- pending any possible hiccups in entry paperwork there. In the latter, I'm basically paying for a boat I haven't seen.

Also if we close the deal in international waters, what kind of paper work would I need? Do I need to sail to Wallis and Futuna or just do the transaction in international waters?

So given this scenario, does anyone have any words of wisdom to help me navigate this legal/bureaucratic minefield?

Thanks in advance

[Shrew]

I want proof of ownership, including a clean and clear title (no liens against USCG title) to pass hands at the same time as money.

Option #1 has you sitting Fiji with no cash and no boat ownership

Option #2 has you swimming in the south pacific with no cash and no boat ownership.

Have the owner sail to a location where the closing can occur. Hire a reputation 3rd party to hold the money and title in Trust for the closing.

[chasingwaves]

Originally Posted by Shrew

Have the owner sail to a location where the closing can occur. Hire a reputation 3rd party to hold the money and title in Trust for the closing.

Thanks Shrew. Do you have any suggestions as to a location? Looks like it'll have to be in international waters, unless I'm incorrect in understanding that you can't close a sale in a country without importing the vessel?

[donradcliffe]

I'd give Dona Jenkins a call--https://donajenkins.com/services/

She has been in the boat documentation services business a long time, and should know the ropes. She was handling the documented boat I delivered this week, and for that boat the cleanest solution was to bring it up to the US.

[wholybee]

This might be more simple than you think. You don't need to turn in the old USCG document when you transfer ownership. Get an abstract of title from the USCG before completing the sale. The abstract of title is proof that the sellers own the boat and should list liens etc. That documentation is in their name is not proof of ownership. Complete the sale in Fiji. Get a USCG bill of sale filled out for the USCG. Send it to them with everything required to transfer the document to your name. Your document will take several months to arrive.

When you leave Fiji, you still have the original owners USCG document. And your bill of sale. You leave as a delivery captain, delivering the boat to the next location with the original owners bill of sale. You will need a letter from the old owners authorizing you to do this.

When you arrive in Wallis and Futuna, you will still not have your boat document, unless you plan to stay in Fiji for 6 months. So either you are the new owner with Bill of Sale in hand, or you are a delivery captain sailing someone else's boat. Your choice, and it probably depends on what officials at Wallis and Futuna prefer. Some places might not like a bill of sale.

Of course, and escrow company of some sort to handle the money is always a good idea.

[wholybee]

Originally Posted by chasingwaves

Thanks Shrew. Do you have any suggestions as to a location? Looks like it'll have to be in international waters, unless I'm incorrect in understanding that you can't close a sale in a country without importing the vessel?

It depends on the country. Check with NZ and Australia. I might be wrong, but I think they allow a transfer as long as neither party is a citizen of that country. I was once interested in a boat for sale in Australia, listed as only able to be sold to an American citizen for that reason.

[NorthCoastJoe]

I just bought a boat in French Polynesia in December. We used a USCG bill of sale notarized by the American Consulate in Papeete. We also used an escrow account set up by a broker. The boat was not imported.