The New Generation


The New Generation


The New Generation

Jasmin Forever

The New Generation

Dolce Mare

The New Generation

Tuesday, March 19, 2013

The Sales Agreement

Selling your boat can be a relaxed, positive experience, but don’t rely upon a handshake and a “gentlemen’s agreement” when it comes to finalizing the deal.

First, write a sales agreement, outlining the terms of the sale and the obligations of the buyer and seller. Refer to “Sales Agreement” at for more details.

Ask for cashiers or certified checks for both the deposit and the final payment. Stick to an agreed-upon closing date.

Be prepared to renegotiate the sales price when it comes to items that need repair or when the boat has a less-than-satisfactory marine survey.

If you agree to make repairs prior to the sale, for your own protection, spell out your obligation in terms of exactly what is to be done and how much you will spend. Written estimates are helpful.

Do you have personal items on the boat — the ship’s clock that’s been in your family for generations, for example — that you don’t plan to include? Attach to the sales agreement a list of all the accessories that convey and have both parties sign it.

Unless you can afford the loss, don’t offer to finance the boat! The risk involved is not worth the often small amount of interest you stand to gain. And, if you have a boat loan outstanding or hypothec, the lender may not permit this arrangement.

A Yacht Broker can help close the sale of your yacht. Between the initial sales agreement and closing, problems may arise. For example, unexpected repairs are required or a query in the title is discovered. The paperwork can be overwhelming for some sellers. A yacht broker is the best person to help you resolve these issues and finally sell your yacht.

The Seller's Obligations

A serious buyer will want to have your Gulet inspected by a marine surveyor and possibly have the engine looked over by a marine mechanic. This will involve haul-outs and sea trials.

These expenses are normally borne by the buyer and any “destructive testing” — for example, scraping bottom paint to look for osmotic blisters — must be repaired by the buyer.

Ordinarily, there is no obligation on the seller’s part to volunteer information the buyer doesn’t ask for, but this doesn’t give the seller carte blanche to withhold information about a known defect or condition that renders the boat/yacht “Gulet” unsafe.

Remember, there is a fine line between passive failure to disclose information and active concealment. If an accident occurs later, previous repair records or complaints to the builder may come back to haunt  you.
This is also true for liens and other debt encumbrances that might cloud the transfer ownership.

Selling your boat/yacht  in “as is” condition may be protection against nitpicking later on, but it may not protect you if a serious problem arises.

What Can The Seller Do To Expedite The Sell

As noted above, the most important thing the seller can do is price the boat realistically. Beyond that, it's critical that the boat show well.

You can't underestimate the importance of a sparkling boat! Purchasing a yacht is largely an emotional decision (who actually NEEDS a boat?!) and first impressions are important. Anything you can do to bolster this first impression will result in a faster sale at a better price.

The most common reason boats are put up for sale is that they're not being used, and often it's been quite some time since anyone was even on board. Under these circumstances, the boat probably won't sell quickly or for anywhere near top Euros. What you need is a plan of action:

1. First, get all your stuff off the boat! Most boats collect an amazing assortment of foul weather gear, toys, dirty clothes, supplies and just plain junk over time. While empty homes look stark, boats have smaller spaces and built in furniture; they look best empty and uncluttered. So GET RID OF EVERYTHING! What you can't get rid of, hide! Then...

2. Give her a good cleaning inside and out! Most sellers wouldn't dream of showing their house to prospective buyers without tidying and cleaning, and the same holds true with boats. Second only to setting a realistic asking price, this is the single most important thing you can do to ensure a quick sale for top Euros. Take extra care to...

3. Make sure the head is clean and the toilet works. The holding tank should be empty and the toilet and lines filled with FRESH WATER with a bit of chlorine bleach added. You'd be surprised at how often this seemingly common-sense advice is overlooked and the dire consequences thereof! Also...

4. Clean the bilges. The bilge is too often "out of sight, out of mind" to owners, but rest assured the surveyor and buyer will take notice.

5. Have you deferred maintenance for a couple--three years? More? Sorry, this is when your sins come home to roost! Deferred maintenance must now be addressed with a vengeance:

* Varnish the exterior bright work, oil the interior teak, refinish the teak and holly sole. If you don't have the time or inclination to do this, have your broker coordinate the project for you.

* Keep the batteries charged so the engine(s) start for the sea trial. It's a good investment to replace starting battery(s) if they're more than a year or so old--dead batteries can kill the sale.

* Service the machinery (engines and generator) by changing the fluids (oil and water) and filters. Aside from the hull, machinery is the most expensive component of a boat; any problem here will seriously jeopardize a sale (so now's the time to replace that old starting battery!).

* Keep the bottom clean and zincs fresh. You should have a diver scrub the bottom and check zincs regularly while your boat is for sale. A significant beard on the bottom says the boat has been ignored, and this isn't the message you want to send.

* Remove all canvas, covers and accessible lines and wash in a commercial front-loading washing machine.

* Have all safety equipment up to date. This includes flares, fire extinguishers and life jackets, as well as bilge pumps and blowers.

While sellers are often reluctant to spend money on a boat they're selling, money spent preparing her for market is well spent; the investment is usually more than recouped in a higher selling price. Also, most of the cosmetic items above can be accomplished with nothing more than a few hours and some elbow grease!