Buying a boat privately need help

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Boater On Thames

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Potentially, I maybe buy a boat privately from another boater. What ESCROW is usually used for a private boat deal? Hire a boat broker? Or a solicitor like buying a house? Or something else? What is the best way? Thanks.

Edit: It is around £200k transaction.
Edit: The boat is in the UK and it will continue to keep in the UK. I also live in the UK.
 
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I guess it depends a bit on the value of the boat in question.

I have bought a yacht and a dinghy in the last 12 months, both privately. Neither involved a solicitor or an escrow facility. I did a bit of due diligence on the sellers and paid by bank transfer (BACS). Both transactions went smoothly.

Edit:

For the yacht, we used the RYA bill of sale. For the dinghy, the seller and I agreed a simple details of sale document via email.
 
A lot depends on the value. How much do you know about boats? I would suggest a survey for anything other than a real cheapie and/or a knowledgeable friend to help spot problems and keep your feet planted in reality.
 
I seem to have just done the same
There was no escrow or anything, I transferred the money to his account (online) and took the keys.
There is an element of trust involved.
You might do some research about the seller.
If we are talking about bigger sums of money then maybe it's different.

The bit where you feel exposed is perhaps when you pay a 10% deposit and get nothing physical, when you pay the balance and physically control the boat, it's like a 'closure'?
 
I might at 200k be tempted to ask a broker to hold the cash. How do you know the seller has good title ? Selling dinghies people can do transfers via a Monzo account but I know transferring large cash amounts is a right hassle .
 
The title may only ask the seller to present the bill of sale when he purchases the boat. And maybe any other older bill of sale before his ownership to track the history. As a boat is not like a house to have an official land title registration holding in the Gov. So it is really can ask for the previous documents and judge by experience and gut I think.

When I purchased my current boat from a broker, they also don't have an official way to verify whether the document and title is true or not. Looks like they only judge by experience, they said: everything looks okay, we have held the keys and documents, you can bank transfer the balance to the seller now! So basically I still pay the money directly to the seller, but just the broker gets the keys and documents for me for a while, then the broker gives me the keys and documents after I paid the seller.

So, can I simply go to a notary service (they usually only charge a few pounds), let them hold the keys and documents, then I paid the seller in front of them, then take the keys and documents from the notary. Is this practical?
 
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My yacht was purchased privately and the deposit was minimal with the balance paid at time of handover and I was physically on the boat with the seller and did transfer online and he then checked online to confirm receipt.

I was able to pay from my business account (dividends) you may need to check what the payment limit is if using a personal account.

We had a servey and test sale and I also contacted Marina to confirm once I was legal owner there was no money owing that would prevent me taking the boat away.

The other concern was any secured finance on boat, mine was on part 3 register SSR and most finance houses insist on part 1 registration so their interest can be noted but not all so I researched all companies that lend against boats and emailed an enquiry whether they had an interest in the boat in question.

As said do due diligence on the owner confirming his home address and everything matches, fortunately my seller was registered with companies house.

You need to inspect all paperwork and needs to be originals of ideally all bills of sale, need original vat invoice and manufactures build document. If not CE registered you meed additional paperwork but only on older boats not CE approved.

I consulted with a broker but ended up completing the purchase myself using RYA contract and MCA bill of sale which you need for SSR registration.

It was nerve wracking doing it myself but on the plus side I got to know a lot more about the boat direct from the previous owner and I have been able to text or call with any questions.

Don’t forget to register with SSR and get radio licence from OFCOM (which was unbelievably quick and easy online.)

Good luck
 
The main advantages of using a broker to handle the finances for a fee is that they may do a better job on checking title and any outstanding checks than you could on your own plus act as a stakeholder through their client account to hold any deposits and deal with expenses such as yard bills. However there is no reason why you can't do it yourself if you have arranged a means of transferring the cash safely in return for the keys and paperwork.

it depends really on how confident you are that you will get clear title in exchange for the final payment. £200k is a lot of money, even these days and paying a broker a few hundred may well be a good idea.
 
Lucas Gan said:
It is around £200k transaction.
Click to expand...
Different league to me then!
At that money, I would either consider a broker as others have suggested, or a solicitor who knows about boats perhaps?
What do you actually want?
I would want be sure the seller owned the boat with no debts or liabilities attached to it and a mutually trusted middleman to hold money in a client account.
Like buying a house really.
 
Mooring fees for a boat go with the boat.You could be hit with a substantial mooring or yard fee after you take ownership.
 
graham said:
Mooring fees for a boat go with the boat.You could be hit with a substantial mooring or yard fee after you take ownership.
Click to expand...
That is the purpose of "due diligence" - to ensure that does not happen. It is not as simple as you make out. The contract for such fees are with the existing owner and that is who they will pursue first, although the contract will allow them to stop the boat from leaving the premises before they are paid. So unlikely a buyer will take possession without being aware of this. If however the debts were incurred elsewhere it could get more complicated, but the process of getting the debt attached to the boat is long winded and expensive as it needs to go through the courts.
 
If I were in your shoes, I would get a Solicitor to draw up a simple sale and purchase agreement, with a disclosures section (where the seller discloses and known charges, faults, etc.). You can then use their Escrow account for payment.

I would have thought that this would cost you less that £1,000 to do, and then at least you have a proper legal signed contract with the seller.
 
English doesn't seem to be your native language - that isn't a criticism, you're doing great, but it does suggest the transaction may not be in the UK. If it isn't, while the general advice here may be valid, legal requirements may be different, so the first question is where do you expect to buy, and where do you expect to keep the boat?
 
Whatever you do make the sale 'Subject to Survey'
I trust you have already done your homework anyhow typically asked for a copy of any previous surveys as its amazing as to what you learn,
Also ask when the standing rigging was last replaced (and check invoice) as not cheap to replace, check windows for signs of leakage and if any doubts about the engine get a qualified marine mechanic to check it over as a surveyor will not check everything mechanically in detail.
 
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