Boat / Yacht Surveys - Do buyer paid surveys get sold to brokers or sellers?

[wully1]

Once upon a time I rejected a boat as it had a bad survey. The broker was very annoyed and he and the owner demanded to see the survey - in full.
I cut and pasted the bad bits that were the reasons for rejecting the boat and sent them that . Three short paragraphs if I remember correctly. (One of them mentioned the mushrooms growing out part of the beam shelf…)They wanted the full survey. I offered to sell it to them - if the owner wanted a full survey he could do what I did and pay for it…

 

[Tranona]

So you could either accept a discount on boat or see if seller will get the boat seaworthy and conduct the sale?
And as for insurance, id there a time limit on how old a survey should be before it is considered insurable?

As I explained, what happens after the survey depends firstly on the contract you have signed - what basis do you have for withdrawing, or more usually negotiation to arrive at a satisfactory compromises that enables the sale to go ahead. With my last sale we declared everything that needed fixing at the time the boat was offered for sale and advised that all those rectifications would be carried out within the asking price - not a lot but reassured potential buyers. Survey showed up a couple of new issues, some of which I did not agree with totally but it was clearly important to the buyer. So we compromised with a reduction that covered most of the estimated cost so that the buyer could have the non urgent work carried out later. This was the sensible thing to do firstly because losing the sale would have likely cost more in the long run and secondly we did not have responsibility for the work. As with all transactional relationships the aim is to have both parties happy with the outcome. Had a lovely email from the buyer saying what a pleasure it was to deal with us (broker and myself) and how pleased he was with the boat and its condition.

As to insurers, practice varies, but 5 years is a common interval between surveys, but they are also interested in the ownership and maintenance history. Insurers require a survey for 3 reasons. First that the boat is seaworthy (that is a condition of offering insurance for a boat in use), second an independent confirmation the boat exists and thirdly support for the value insured. These inevitably change over time and this will affect the validity of a survey.

 

[RJJ]

Just seems like a massive waste of say £500/£900 on a one off payment, why would it not be more economical to sell that on if you did not want to pursue, if you have paid for it surely you can do what you want with it? It's a free market after all.

It is indeed a free market.

It may be the case that a broker required sharing of the survey in order to justify breaking a sale. That does NOT mean (unless contractually stipulated) they get to share it FOC with a subsequent buyer, or with the seller. It's worth money. As the owner of the survey, you could walk in a paper copy and show the relevant paragraphs justifying the walkaway. Leave a letter paraphrasing the issue and stating you have provided the broker with a chance to review the official account. It's for the seller to seek to enforce a contract, and you'll have done enough to demonstrate your reasons ahead of any escalation.

The law tends to be favourable to buyers (within reason) wishing to withdraw from a sale. I think it unlikely a court would support a broker or seller trying to force sale on the basis "he refused to show me the whole survey". You showed the evidence for your material concerns, that's enough.

If the seller wants the survey, they can buy it off you. If a future buyer wants to use your survey, they can buy it off you.

 

[Refueler]

Having provided many Survey reports ... the Report is for Client only.

All reports provided by my services specifically state for Client only and not transferrable.

Should Client decide to pass a copy or report onto another such as Broker - that is Clients choice but does not bind me to the new holder of report in any way or form. If Client 'sells' that report to another - that's Clients choice - but still does not transfer title - my obligation still remains solely with original Client.

There is good reason for this. Consider if my report contains information that causes Client to decline to buy - it is specifically information for Client. Broker or other party may try to argue or disprove that information. I am in the business of protecting my Clients interests - not Brokers or other party.

This next comment - I know some will argue with - but its my position on the matter of Brokers etc.

When approached by potential Client who for example is interested in buying a boat ... I suggest they do not agree to any Contract that restricts their 'walking away' ... if a deposit is required - then to ensure that FULL deposit return without penalty be made in event of faults / damages or whatever found in the boat that are not reasonably allowed for in subsequent negotiations or Client determines are sufficient to not buy.

There are enough boats out there to not get caught up in 'clever contracts'.

Sorry to upset some ....

 

[Tranona]

When approached by potential Client who for example is interested in buying a boat ... I suggest they do not agree to any Contract that restricts their 'walking away' ... if a deposit is required - then to ensure that FULL deposit return without penalty be made in event of faults / damages or whatever found in the boat that are not reasonably allowed for in subsequent negotiations or Client determines are sufficient to not buy.

There are enough boats out there to not get caught up in 'clever contracts'.

Sorry to upset some ....

That is exactly what the ABYA contract allows, and I used it to walk away from an earlier potential purchase. No problem with the broker, just a formal letter following a discussion as to the reasons supported by a copy of the survey report. Deposit returned immediately minus the yard expenses for hauling.

 

[skyflyer]

If there's something on there that was bad enough to make you back out, that's a huge red flag to the next person. Why would I pay £500 to find out why you were desperate to pull out, having paid £900 to find a reason to pull out? Surely if I found out someone pulled out after survey I'd ask why and run!

Because you might be happy to buy the boat (suitably discounted) and get the work done, or you might be happy to wait while the seller gets the work done but the original prospective purchase may not want to wait or may not want to get involved in overseeing the work.
judt because someone withdraws from a sale after survey doesn’t mean the boat is unsellable

 

[Refueler]

That is exactly what the ABYA contract allows, and I used it to walk away from an earlier potential purchase. No problem with the broker, just a formal letter following a discussion as to the reasons supported by a copy of the survey report. Deposit returned immediately minus the yard expenses for hauling.

I have seen Brokers agreements that simply put are bordering on criminal ....

My 'chat' with clients is to avoid such problem areas ....

I have to admit that I am not a great supporter of YBDSA or its sub divisions ..... based on events witnessed in the past ...

 

[Seaway Channel]

Try finding a buyer for a second hand survey on a boat you didn’t buy and report back…