Sales Contracts & Deposits

Sales Contracts

Whether you buy a brand new Gulet or a used Gulet directly from the owner, outlining the terms of the sale in writing is the best way to protect your interests, since oral agreements are good only as long as both parties agree. If you are dealing with a broker, they usually have a sample contract written with international laws.

A written agreement will eliminate or minimize questions and problems that could later turn a sweet deal at the dock into a sour one in court. By spelling out the obligations of buyer and the seller, as well as the time frame in which the sale is to take place, you have a legally binding, written document of the parties’ intentions.

It’s not necessary to have a lawyer write the contract, although this should be considered, especially if you are buying a high-ticket Gulet or are having one custom-built for you.

Most brokers use contracts printed with their name and address, but fill-in-the-blanks contract forms found in stationery stores will suffice. A handwritten agreement will also serve the purpose. Regardless of the form, both parties must sign the contract. If the sales agreement requires the signature of both the salesperson and owner, make sure both spaces are signed.

Basic Contract Terms

Sales agreements or contracts should include the following minimum information:

• Complete names and addresses of buyer and seller.
• Complete description of boat and engine, including make, model, year, and Hull Identification Number and engine serial number(s). A complete equipment list is a must.
• The purchase price, including a description of any deposits paid by buyer and how the balance will be paid. It should also describe the trade-in boat, if any, and its exact value.
• A firm delivery date describing when and where the boat will be delivered and the deal finalized.
• The boat’s condition at the time of delivery, including a complete list of the accessories and items that convey with the boat.
• A full description of any warranty from the dealer or manufacturer. When boats are sold in “as is” condition, recourse may be impossible if problems arise.
• Buyer’s contingencies: Spell out that the sale hinges on a satisfactory survey and sea trial and the ability to obtain acceptable financing and marine insurance.
• A statement that the boat is free of all liens and encumbrances. The seller should also assume all responsibility for debts incurred during his ownership.

Deposit

Most brokers and dealers require a 10% cash payment on a used  Gulet but a nominal deposit is enough to get the dealer to write a contract. Often, the deposit is placed in an escrow account, but this is less common with private party sales.

The seller may have a right to keep all or a portion of the deposit if the buyer backs out of the deal without cause. As a buyer, you should include as many contingencies as necessary to protect your interests, including satisfactory survey and sea trial, clear title, and ability to obtain financing and insurance. On new boats, a written delivery date is crucial.

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Financing and Marine Insurance

Financing a new or used Gulet is a fairly straightforward process if you’ve got a good credit history and the 15-25% down payment. You may even want to pre-qualify for a loan before you go boat shopping to give yourself some extra leverage when it comes to negotiating prices with dealers.

On a new Gulet, the Manufacturer’s Statement of Origin certifies that it has had no other retail owner. With used boats, lenders check for a clear title or record of ownership. In addition, information about pending liens or unpaid debts may be recorded in the county court where the boat is kept or where the owner resides.

Basic marine insurance includes Hull Coverage for damages to the boat whether it is on land or in the water.
Insurance costs are affected by length of boating season, area of navigation, previous insurance claims, and boating experience. Expect to pay more if you own a “muscle” boat, a wooden boat or if you live aboard or cruise offshore.

Impartial Advise

There are internationally recognized independent surveyors and experts working for insurance companies in Turkey who can assess the condition and suitability of the Gulet for its intended purpose. The insurance surveyors, They exist on their expertise and independence. They all have personal experience of the majority of boatyards and repair facilities in Turkey and understand the Gulet charter business.

Gulet Condition

Gullets come in all manner of shapes and designs! Though some have been built and equipped to withstand the rigors of an ocean crossing, the majority have been constructed for coastal cruising.

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The Cost Of Owning A Gulet

Prices

In between May and September is charter season in Turkey and the Gulet owners accept the heights price. There for from October to April is the best time to purchase a Gulet. Make sure that you use recently updated brokerage web sites to compare the prices. If you are interested in new construction, check first 1 or 2 years old ones to have an idea about the costs. Please note that it should b e same size, material, labor and equipment.

The profit margin

When it comes to bargaining, keep in mind that, although mark-up rates vary according to owner volume, profits on new boats are generally 15-20% over construction cost and labor about 25%. After-market equipment installed by the owner is marked up roughly 40%. The going broker commission rate on used boats is 10%, so buying directly from a builder can reduce costs but a good broker can have a better price from the owner as well so you will be protected for possible problems by a broker.

How do you know it’s a fair price?

A good broker can give you an idea about value of the Gulet you are interested in. If you are still not confident, have your boat inspected before purchase. A marine surveyor will give a valuation as part of a written report.

The cost of owning a Gulet

Your boat’s price tag and the interest on your boat loan, if you have one, are foreseeable, obvious costs of ownership. It’s the not-so-obvious costs, however, that can take the wind out of your sails if you have not budgeted for them. These include one-time fees, like sales tax, or recurring ones, like storage, personal property taxes, slip rental, maintenance and insurance.
Keep in mind that the yearly cost of operating, maintaining and repairing or replacing equipment averages could cost as much as 10% of your boat’s value. Age, use (racing, rather than daytrips, for example), hull material, and quality of construction all affect annual expenses.

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New or Used Gulet

Personal finances are often a key factor in the decision to buy a new or used Gulet. However, other factors should be considered.

After-sale service 

The retail cost of a new boat includes the cost of providing warranty service. When a used Gulet is sold “as is,” the only thing that’s guaranteed is that the buyer will pay to fix any problem that crops up.

Financing

New and used Gulet are treated equally in terms of interest rates and down payments.
However, expect some extra financing hurdles if you’re buying a boat over 15 years old or one that requires a lot of repairs.

Depreciation

Depreciation on new Gulets is at its highest during the first season of use. However, depreciation on a used Gulet kept in good condition should level out with proper maintenance and equipment improvements.

Beauty may be only skin deep

Cosmetic flaws caused by age and wear are hard to hide when a boat hasn’t been properly cared for, but structural defects and mechanical problems are harder to detect. Ask the owner’s mechanic for the repair history. Have the boat surveyed. Similarly, the owner of a new boat could also be testing uncharted waters. Dealers say an average of a dozen problems, both big and small, crop up on every new Gulet they sell.

If you patient 

The procedure of building Gulets today has changed very little over the centuries. The changes to the basic plank-on-frame method are superficial but significant: advanced tools now allow craftsman to design and deliver far more precision than they used to be able to by hand, and laminated epoxy materials allow for fantastic durability.

In Turkey it is possible to build steel or laminated hull Gulets up to 45 meters length, there are some shipyards that their establishment has approved its quality especially on building traditional Turkish type motor sailors. (Gulets).  Depending on the Gulet size, the construction of a Gulet may take from 8 months to 24 months.
I you do not want to wait that long, there is always a used one suits to your search and waiting for you.

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23rd International Marmaris Race Week - Results

It was the last day of 23rd International Marmaris race week and find below the results.

Marmaris International Race Week is underway in one of Turkey’s tourist hotspots. Teams and boats have splitted into eight groups and the many sailors gathered in this popular port town in the Mediterranean coast for the 23rd edition of this exciting event.

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23rd International Marmaris Race Week

MIRW (The Marmaris International Race Week) is an annual yachts event that organized by MIYC (The Marmaris International Yacht Club).

The Marmaris International Yacht Club was founded in 1992 by the yachtsmen and women of Marmaris. Prior to the formation of the club, these people would hold various amateur races between themselves but once the club was set up, they saw an opportunity to create an official get-together and organised the first Marmaris Race Week.

The MIYC has about 80 members today and each year during the Marmaris Race Week, hosts around 120 yachts and 1000 racers from all over the world.

The MIYC has also been the main body responsible for the organisation of the Marmaris Yacht Festival for many years. This is an international event which gives the local crewed charter yachts and local agencies to promote themselves and the Turkish coast as a charter destination.
MIYC has started the Yacht and Yacht Equipments Fair with a couple of stands on the first years of the festival. Now it has expanded its activity range with the yacht and yacht equipments fair by organising it as a separate event since 2001. The fair is organised by the time of festival each year and it provides an extra potential to the region’s existing maritime business.

2012 MIRW HIGHLIGHTS

Today is the last day of the race. Please enjoy the video about the 2012 race. I will be announcing the result tomorrow.

29/10/2012 - MONDAY

30/10/2012 - TUESDAY

31/10/2012 - WEDNESDAY

31/10/2012 - WEDNESDAY

02/11/2012 - FRIDAY

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