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.


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