Urgent: buying Canadian boat now in USA

[Montanan]

Saddened to hear that the purchase was not able to be completed.

So the boat has been relocated, but seemingly may still be available for sale, just now in Canada instead of the USA and presumably the owner remains willing to sell their pride and joy to you. It seems like just a mere deferral of a transaction not an end of transaction, if you are still inclined.

There is an apparent lack of knowledge of customary vessel sale procedures and requirements which became a factor for both parties. Simple matter to research such and become pseudo-experts on each and every aspect there of. Sounds like both parties to the transaction are boat owners so this should not be new ground to navigate having already been there down that.

It remains unclear to all us forum members why a broker was engaged when the boat appears to have been initiated as a private sale transaction, i.e., "Hey, nice boat you have there. Would you be interested in selling it to me?" Yes the moment the owner said he would enter into a prospective offer for sale, the cruising license was departed from and an import was deemed. Just a simple fact that the character of presence of the boat had changed in the instant. A call to the CBP was in order and they would have walked y'all through the requisite requirements and procedure. One does not need a cruising license to navigate in the waters of the USA, it simply provides a degree of waiver from having to check in with the CBP.

An experienced and knowledgeable broker could be a facilitator to the transaction [they not being needed as a marketing channel in this affair], performing such duties as providing for standard contractual buyer's contingent offer; arranging for a survey, if the buyer desired such inspection and reports; providing for Bill of Sale documentation and title transfer documentation, arranging for escrow of earnest money, preferably a third party escrow agency; researching any liens, and arranging payment of settlement for any lienholders and attaining release of liens to title; and closing the transaction; and subsequent assistance in the buyer's Use taxation filing and payment. 10% is a customary vessel broker's fee [subject to negotiation], and if there was a desire to have independence of representation and advise, separate buyer's and seller's brokers could have been employed with the 10% fee then split to be 5% to each brokerage being the custom [again negotiable between all parties]. Or a simple consultancy, non-broker, relationship could have been implemented, generally at a lower fee given the reduced role and professional exposure associated with a limited engagement.

Separately, a customs broker could have been engaged if one felt compelled to use such, otherwise simply making a declaration to the Customs agency and asking for their assistance in the requisite assessment, documentations and payments would have checked off that simple matter of performing a cross border transaction. There really isn't that much to it. Heck, when you fly into an airport from abroad, or depart from a cruise ship, you have to file a declaration document upon arrival and any duty that is due on the imported articles is assessed and simply paid on site. Given the boat was USA made there would be no duty on the boat, there is potential duty on the apportunances associated with the boat and yes each and every one of them which were to be a part of the transfer for consideration would need to be itemized and a value assigned but that is rather standard for a boat as it is typically a long list of items, sails, dinghy, anchors, rode, outboard, EPIRB, appliances, electronics, software, lifeboat, PFDs, furniture, batteries, generator, water maker, liquor in the cabinet, etc. but only the imported items need to be assessed for possible duty charges.

Yes the timing was not ideal as to Covid making travel across the border being limited to essential travel, but not a limiting factor for the Canadian owner to repatriate to their home country, albeit sans their vessel, just transporting their personal goods and body[rent a car and drive]. The vessel was in the USA, it did not need to be transported to Canada and returned Stateside.

The 4th of July was on a Saturday so should not have been a factor as to availability of access to government personnel or offices.

So the ship has sailed, that only means it has gone up north a bit, but if it remains available for purchase it is a simple matter to close a cross border transaction. You simply take title in Canada instead of the USA and make arrangements for its delivery to the USA, albeit following the requisite Covid -19 protocols. The New Normal which the entire world is dealing with each and every day.

If it is the boat you truly want, I encourage you to go for it.

Just be prepared in the knowledge that all the ordinary matters of a transfer of vessel ownership will apply. There truly being nothing unusual regarding the transaction opportunity that you fortuitously happened upon. A willing buyer and a willing seller, that is the prerequisite for any sale, the rest is just details. All of the requisite documents can be handled by courier, there being no need for the parties to the transaction to ever meet each other and in Covid-19 times it is better to not actually meet with anyone directly, simply utilize phone or video conference which is now the preferred norm for business and personal relationships. It is WFH time. Or even by internet correspondence, such as a PM from the CruisersForum.

Good luck and Godspeed.

Stay healthy.