Completing on the purchase of a Yacht in UK

Chris_Robb

Chris_Robb

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I am about to complete - following the survey next week - assuming no problems - and pay the final money to the brokers. In the contracts are listed a number of documents - VAT invoice, Ownership proof etc. I have asked to see these documents before I complete, to be met with incredulity "we look after all these documents - we will make sure you have them, you don't need to see them"

Am I a complete idiot in thinking that as I have no contractual relationship with the brokers, I should therefore personally ensure that the documents are complete and valid and not rely on the word of a broker - who I cannot sue unless he has been negligent in his duty of care?
 
If the boat is Part 1 registered then that will prove both ownership and the presence or otherwise of mortgages. If not then will your broker confirm to you in writing that you will obtain good and proveable title to the boat, clear of all mortgages and liens, and with proof of VAT payment? If not, then you do need to see the documents, and ensuring that the boat is free from liens is a particularly tricky issue. If it is at a marina or boatyard, confirmation from them that there are no outstanding bills is a good starting point.
 
Your no idiot. You check everything you can especially the documents mentioned. Brokers are slippery buggers and their first priority is to complete the sale and get your money so that they can take their 8%. After the sale is completed they will barely recognise you. Buyer beware.

Howard.
 
Any reputable broker will have wanted these docs from the vendor before selling the boat, he should have them. If you buy the boat and there is no bill of sale, original VAT document, you COULD find yourself liable for the VAT.

Get sight of the documents before you incure survey costs.
 
On my last boat they were in a folder on the chart table, along with the receipts and manuals for all the accessories purchased.

When I sold, the broker held them for safe keeping but also provided faxed or copied versions for buyers. They were given past surveys as well.

Why not just phone the owner and tell them the broker isn't helping your potential purchase?
 
Have you signed a contract of sale? I think the RYA provide a good template which is probably available on their website. It has clauses covering the the points raised by Norman_E.
 
I cannot find out if it is Part 1 at the moment. It has been in this ownership since new, and at the same yard - so I am not expecting to find anything - however not to even look sounds like stupity to me.

If there is no VAT invoice - then what will I need to show Customs in Greece Spain etc - where they are especially anally retentive?
 
Don't even think about it. They should be keen to show you this stuff, in fact it would have been better to see it before the survey. Also any significant repair bills.

Original VAT Invoices

Builder’s Certificate

All previous Bills of Sale with a complete trail

SSR Certificate or Part 1 Certificate of Registry

plus a letter guaranteeing no liens on the boat.
 
Rob

Is it an ABYA contract/broker?

If so this should be in the contract.

7 Completion
Upon acceptance of the vessel by the Purchaser, the deposit shall be treated as part payment of the purchase price and within 7 days of acceptance:-
(i) The Vendor shall
(a) in the case of a Registered vessel provide the Brokers with the Certificate of Registry, correct and updated, together with any other documents appertaining to the vessel and shall execute a Bill of Sale in favour of the Purchaser or his nominee, showing the vessel to be free from encumbrances and in such form as to ensure transfer on the Register. Should the Purchaser so require, the Vendor shall provide the Broker with a Deletion Certificate, or sufficient instructions to cancel the existing registry and enable the vessel to be re-registered by the Purchaser.

or in the case of an unregistered vessel or vessel registered on the Small Ships Register, provide the Brokers with an executed Bill of Sale in favour of the Purchaser or his nominee showing the vessel to be free from encumbrances and such other title documents as are set out in the schedule to this Agreement, together with any other documents appertaining to the vessel.
(b)Deliver to the Brokers a Value Added Tax invoice, if applicable, and any necessary delivery order or other authority enabling the Purchaser to take immediate possession of the vessel.
(c)By delivery of documents in (a) and (b) of this Clause, be deemed to covenant that he has the power to transfer property in the vessel and that the same is free from encumbrances, duties, taxes, debts, liens and the like as are the responsibility of the Purchaser under Clauses 4 and 8 here of.


Also he should have a signed undertaking when he listed the boat, that all would be provided by the vendor.

However it would not be unreasonable for you to have sight of the documents before survey.
 
The owner is away for another week. The broker says that the owner has indeed signed in the contract that these will be supplied and has acknowledged that they are available, however the broker does not hold these documents and says he never does until completion.

So I will have to risk the survey going ahead.

I do think it is actually bad practice by brokers not to hold these documents, as I have signed a contract which lists the documents, but have not seen them yet. I would noprmally like to see relevant documents at the point I sign.
 
[ QUOTE ]
Your no idiot. You check everything you can especially the documents mentioned. Brokers are slippery buggers and their first priority is to complete the sale and get your money so that they can take their 8%. After the sale is completed they will barely recognise you. Buyer beware.

Howard.

[/ QUOTE ]

I bump into the broker through whom I bought Merit quite regularly and he always stops and says hello. Perhaps he thinks I am a good bet to be trading up in a couple of years.
 
You're the one handing over large amounts of sponduliks, you should be entitled to see everything you ask for. If broker still refuses to show the documents to you, ask him why.

If you are not satisfied with his response, you should -at least threaten to- walk away.

At this point I should say that I have never bought a boat through a broker, but I have a great distrust of people who say "oh, you don't need to bother with that" as it often means that you do!
 
[ QUOTE ]
I do think it is actually bad practice by brokers not to hold these documents, as I have signed a contract which lists the documents, but have not seen them yet. I would noprmally like to see relevant documents at the point I sign.

[/ QUOTE ]

Not sure I'd trust a broker with such important documents. Would you, considering what you read about most brokers? I agree that you'd want to see them before signing though.

Rick
 
Yes - that is in the contract - just that I thought it would be good practise to see it before I spent money on surveys etc. Anyway owner is out of country for another week so I have decided to go ahead with the survey anyway.

What gets my goat is that the broker says it is his responsibility and that I should not need to even inspect these documents! Some people are very trusting.....
 
Do nothing until you have had sight and a copy of the documents.

These people are like dentists - think they own your x-rays when you paid for them
 
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