Boat purchase checks

[Graham_Wright]

What is the best (cost v security) of ensuring a boat you wish to buy is free from financial encumbrances?

 

[sarabande]

the oft-derided BMF has some background info

http://www.onthewater.co.uk/pdf/Boat Buyer Guide.pdf


as does the more frequently-derided RYA, though typically you have to belong before accessing it. You might know someone who is a member who could do it as an example of the value of joining the oligarchic organisation.

http://www.rya.org.uk/infoadvice/buyingaboat/Pages/default.aspx

 

[Tranona]

What is the best (cost v security) of ensuring a boat you wish to buy is free from financial encumbrances?

There isn't a totally fool proof method, just a series of questions to show that you have applied "due diligence". Charges take many forms, the most common being secured mortgages, unsecured loans, payments due to others such as berthing fees and third parties having a financial interest or other claim on the boat.

The first is relatively easy to deal with as in most cases the mortgage will be registered, or if the boat is company owned will show in the company accounts as a registered charge. The second is more problematic, but not common as professional lenders would not normally lend without ensuring they have some way of controlling the asset, such as retaining the paperwork relating to the boat (Bill of Sale, registration papers etc) to ensure any buyer knows of their interest. Other claims are usually easy to check by asking the marina where the boat is based. The final catch all category is more difficult (and probably rare) and might include, for example the boat being part of disputed assets in a divorce case.

The vendor has to sign that the boat is free on the Bill of Sale, so the buyer has recourse to him if it turns out not to be the case. It is not easy for somebody to enforce an unregistered charge against a boat so if your searches are thorough there is unlikely to be a problem.

If you are concerned about a boat, engage a professional such as a broker or a marine solicitor to do the searches for you.

 

[jonic]

If you are concerned about a boat, engage a professional such as a broker or a marine solicitor to do the searches for you.

It is also worth having one of the above do the full transfer so you have a correct paper trail if there is a dispute that comes to light further down the line. There are some useful notes in the buyers guide section of my site.