Buying advice

pheran

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When buying a 'previously enjoyed' boat, how do you ensure that it is not subject to some finance agreement or lien that could see you parting with huge lumps of wonga to someone when its not their's to sell? I know the Part 1 gives some protection but supposing the boat isn't registered. In the past, I have relied (somewhat naively I guess) on the brokers assurances. But how did he check? And what about buying privately, or abroad? Clearly a previous Bill of Sale will provide some assurance as to ownership but that doesn't mean there isn't finance outstanding. What do I do to avoid sleepless nights?
 

jhr

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Don't think there is an easy answer to this.

Part 1, as you say, provides some reassurance but the only other thing I can suggest is that you write to the main Marine Mortgage providers (Barclays, Lombard, Bank of Scotland in the UK) to see if there's anything on their books.

One only hears of very occasional stories like this, so I guess it's not prevalent, but that's no consolation if you're the bloke who gets taken to the cleaners.

Interested to hear what others think. The only situation that I've had like this was buying a boat that had a current loan secured on it. The broker acted as an intermediary, using the money that I paid for the boat, to pay off the loan, and handing over the balance to the vendor once I had received confirmation that the loan was paid off in full.

But as for a private sale - I really don't know.
 
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Deleted User YDKXO

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You can't ensure absolutely that the boat is free of liens. Yes, obviously Part 1 is supposed to register any mortgages secured on the boat but what about unsecured finance and if the boat is used as security for other loans?
Many years ago I bought a Princess from a finance co who had repossesed it from the previous owner. During my discussions with them and the broker handling the deal, it gradually came out that the previous owner was a bit of a wide boy and the finance co who had repossesed it was one of a couple of finance cos who had tried to take it back. I must admit that I was a bit worried by the risk of buying the boat but I talked to a lawyor and he drafted an agreement which the finance co selling the boat agreed to sign confirming that the boat was sold free of all debt and liens. I went ahead with the purchase and the boat turned out to be an excellent buy. I even made money on her when I sold her 3 yrs later
But I did hear shortly after buying her that the previous owner had not only taken out a mortgage on her but used her as collateral for a bank loan. In addition he had tried to bribe the boatyard where the boat was stored after the repo to put her back in the water. Nice chap. I made a point of changing the boat name and changing all the covers for a different colour
I have also bought a few boats abroad and I think you are even more at risk from outstanding debts as you will have to go thru the local legal system to prove title. My advice is to be physically present with the boat and move it elsewhere, the second the money hits the selling brokers account. Possession is 9/10ths of the law as they say
 

acbruce

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A very good question. I have never got confortable with this. I even rang a well known Scottish Bank pretending to want to borrow, who said that they would lend up to £60k without part 1!

So.. I buy new!
 
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