deposit advice

[dignity]

I'm just in the process of selling my boat in which I have received a deposit and awaiting final payment. To complicate things I have chance of a boat at a very good price I want to put a deposit on this boat to secure it. The only concern I have is if my buyer does'nt come up with the dosh, would I lose the deposit I've placed on the other vessel, as it would be a fair sum of money I rather not lose it. Or could I make the deposit subject to finance, I can't make it subject to survey because I know what's wrong with the boat.

Any advice would be gratefuly received, because I'm getting hitchy feet!

P.S. The one I want to buy is through a broker.

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[oldharry]

Thats a horrid psition to be in - and one many of us know well! However, nothing is sold until its been paid for and only you can guess a) whether your buyer is serious, and b) what would happen if he doesnt come up with the cash on time.

Is there a broker involved in either deal? If so, talk to him and see what he thinks of it all.

If you were to put a deposit on the new boat, maybe a Solicitor could draft things for you to secure your cash in the event of the deal falling through. But then you may find the seller unwilling to accept a returnable deposit if he thinks you may not be able to complete the deal in a reasonable time.

After all, he too may have his eye on his 'ideal' new boat too....

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[ccscott49]

Use the deposit from your boat, if the sale doesn't go through, he loses his deposit and you lose the money to the other person, so no loss to you, I think that makes sense??

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[dignity]

The only trouble with that is my deposit is around 2k more than the deposit I've received!

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[ccscott49]

Now that could be a problem, as has been said, I'd have a word with the broker.

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[oilyrag]

Be very wary of putting down a deposit on the boat you wish to buy through a broker. Once you have paid a 10% deposit and signed the broker's sale agreement you are legally obliged to complete the transaction within an agreed period. (Much like exchanging contracts on a house purchase). If you could not complete the sale you would certainly forfiet the deposit and could be sued for the balance to boot! The only get out is if a survey were to turn up something nasty and you could not negotiate a sensible reduction in price.
You could end up with 2 boats!

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[PeterGibbs]

Once you've entered into a contract to buy you are obligated. Verbal or written, makes no difference in principle. If you back out without due cause your deposit could be retained by the vendor and you would have virtually no recourse. He would be within his rights to withold.

Just like house sales, I would play it straight with the vendor and ask for some time, he may be willing to play ball - after all you may well be a great (maybe the only) purchaser in his eyes.

Technically you could put the deposit into escrow - a device where he could not take it without your approval, but it's unlikely he would agree to such a device, and becasue a solicitor is involved, it will cost a bob or two.

Regarding your purchaser, there's nothing you can do there. The more pressure you apply the more likely he is to smell a rat - even if none is there; what would you think under such circumstances? - try to reduce the price... not what you want.

At the end of the day, there's always another deal...

PWG

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