Inherited Yacht, Selling Abroad - Advice?

[jc86]

Hi,

Hoping for any advice anyone can give.

My father passed away last year, leaving his relatively small, old yacht. It isnt expensive, but was very well maintained, and actively sailed from the UK around the baltic and med, and is currently moored in Italy. We've cleared it all out, transferred RYA registration to my mother, and advertised it for sale privately on Apollo Duck etc.

We have a guy interested in buying it, but I am now trying to get my head around the logistics of doing so. The guy seems knowledgeable, and is proposal what seems to be a standard contract, with deposit, survey and sea trial, and balance on completion.

Being naturally wary, I dont want to sign over any paperwork until I am sure that the funds have cleared in our account. I presume that the RYA will need to transfer ownership from my mother to the buyer, and we should only sign and hand over that form once the full balance is paid? We have various other documentation which the proposed contract asks for (insurance, proof of previous purchase etc).

Just after any advice about the process, and sequence of events if at all possible, its made much harder by the fact that its in Italy and not the UK!

Thank you!

 

[Pete7]

Just one small point, the registration is done through the MCA not the RYA, have a read of this:

https://mcanet.mcga.gov.uk/ssr/ssr/contacts.asp

There are two types of registration, Part 1 and Part 3 so have a look at the existing registration to see which type you have.

 

[rob2]

I really don't have the experience to give a definitive answer, but will get the ball rolling by suggesting you
visit the RYA website and read their pieces on buying and selling. There may be some complications as the sale is actually taking place in Italy - although if the deal is struck in the UK, I believe you can follow our laws. Apart from the continental liking for "notarising" documents, I should think the basic process is very similar.

I can't remember the exact sequence and timimg, so check for details on the website. The contract which you should offer is available in standard form from the RYA - I think you can download it. This can be altered after discussion with the buyer to suit the exact situation. It should stipulate the sequence and timing thereafter and any conditions agreed between you. I believe a sea trial is not in the standard format. So that deals with a document (signed copy for each party) agreeing the sale in principle, subject to the satisfactory completion of the later stages. The deposit is paid to start the process and the buyer then has a stated period to get a survey done, etc. The price may be renegotiated if anything not previously stated comes to light during this period, based on the surveyor's assessment of what remedial work or replacements are needed. All the other paperwork remains with you until the deal is completed, at which point you should both sign a Bill of Sale (download from RYA) transferring ownership to the buyer and hand over the historical paperwork as agreed. Particularly with the remote location of the boat, the logistics may dictate that you require payment by bankers daft or similar to confirm cleared funds.

Good luck with the sale.

Rob.

 

[Tranona]

Good advice to look on the RYA site as there is good advice on the paperwork and procedure. There is a section on inheriting yachts and passing title. There needs to be a Bill of Sale from the your father's executor transferring title from your father's estate to your mother who then becomes the vendor, although, if you have not done this yet, the executor can sell the boat direct to the buyer with a Bill of Sale.

The follow the process, using the model RYA contract. If the boat is Part 1 registered you will then need to register the transfer with the MCA. if however it is registered on the SSR you just need to cancel the registration and the new owner can register it where and how he wishes.

The sea trial is part of the survey and is usually just to check that the engine works and everything on the boat that you claim works, does so when in the water. The buyer is responsible for all the costs of survey and launching and it is best to get a deposit when the contract is signed in case he fails to pay the boatyard bill, for example. When the boat is launched, or he takes possession, the transfer of funds to you and documents to him takes place. The actual mechanism for this will depend on how best to be secure. As an example, on my last purchase, I sat in the broker's office as all the documents were laid out and the Bill of Sale signed, then I paid with a debit card with a call to the bank for authorisation, but it could just as easily be a bank transfer from a phone call. If you are doing it remotely you might want to pay a lawyer or a local broker to do this bit for you. Try to keep the arrangements as simple as possible consistent with being secure.

 

[PuffTheMagicDragon]

The boat is an Albin Vega 27 that is absolutely crammed with goodies like radar, fridge, water maker, new Beta, SeaFeather, Yaesu SSB, flat screen TV, washing machine, double glazing, etc., etc. and all for the asking price of £8,500! The only thing that I didn't like was the tall structure aft that supports the PV panels.
Some(lucky)body has made a good bargain!

https://onedrive.live.com/?authkey=...5234!2838&parId=884A8C622C025234!2828&o=OneUp

 

[superheat6k]

I recently assisted a dear friend's widow dispose of his boat, indeed to another forumite.

To complete that transaction we used the standard MCA form of contract, although it was done on a 'sold as seen' basis and a price that reflected the need for a swift sale.

Can you please ensure you have accurately represented the boat. Years ago I travelled by ferry and car to St Malo to see a boat shall we say not quite as described. I have also been to Cornwall, Rochester and Ipswich on similar forays of disappointment.

That boat was not beyond redemption but was worth something way below the asking price, but the UK based inheritors were not interested in any offers.

They did then contact us about 8 months later seeking out our offer. We politely declined to reinstate it, and had by then acquired a cracking Sabre 27.

If you can get the stated amount for this boat then do no make life too difficult for the buyer. You are not in a good position, and even 2/3 this sum would be a good deal for you.

As far as selling is concerned, unless it is Part 1 registered there is no formal registration process, just the Bill of Sale and MCA contract. A wise buyer would want to see proof of prior purchase and that probate allows the disposal by the inheritor.

 

[PuffTheMagicDragon]

If you can get the stated amount for this boat then do no make life too difficult for the buyer. You are not in a good position, and even 2/3 this sum would be a good deal for you.

With all due respect, I don't see any reason why Jonathan should accept 2/3 of what he is asking. That would be like giving it away.

 

[jac]

With all due respect, I don't see any reason why Jonathan should accept 2/3 of what he is asking. That would be like giving it away.

Depends how many offers are on the table and how quickly one wishes to sell. No-one gets asking price - it is expected that a small amount will come off - it just depends where on that continuum between 10% of asking and 99% of asking you settle.

Remember as well that with a probate sale there may not be someone around to keep the boat up to scratch. Look how rubbish boats look after a couple of months ashore. Add that to yard bills and taking a couple of grand less now may actually be the same nett as taking best price in 3 months time.

 

[jc86]

Thanks for all the replies - very helpful. I understand the sale process much better now!

In terms of price, MCA registration, probate etc etc, thats all under control, but thanks for the thoughts.

 

[bjl]

When you've had enough and want a break, watch the film 'Captain Ron' for some light relief. It's about inheriting a yacht abroad and trying to sell it.

 

[SvenH]

No-one gets asking price - it is expected that a small amount will come off - it just depends where on that continuum between 10% of asking and 99% of asking you settle.

Everything is negotiable. Everything.

And not budging on price is just as much an option as trying to get a bit off.

When I sold my first cabin sailor, the buyer was not very skilled and had missed out on an earlier deal because they were not quick enough.
Then said I'll buy it, followed by asking money off. Naturally I declined and the deal still went through. Was a cheap small but good boat anyway.

And when I sold my first business, the buyer must have liked me because he rounded my asking price UP.
It wasn't a huge sum in business terms but still....