Offer accepted - Advice on process...

[AAF]

Advice/comments please

My offer on a boat has been accepted (and it is my first boat purchase other than a small day boat new from the dealer, so a novice in this). I am organising Surveyor and Engineer for the engine survey. A sea trial is part of the purchase process.

Standard BMF contract envisaged.

The broker has asked me to put a small deposit down now, doing the survey and then signing the contract after survey, then paying balance of deposit after signing and the balance of the purchase price as and when (guess all that depends if anything needs to be rectified).

It looks like the survey and the sea trial will be on the same day.

Anyone see any major problems with following this process?

In theory I am exposed to the seller accepting another offer or changing his mind, but that works both ways doesn't it? And I suspect its a small risk anyway

I only enquire as I expected to be asked to sign the contract before anything happened, so mildly surprised and thought the Forum could help ease my mind.....

 

[sharpness]

In my opinion all seems fine to me. Usual process is make offer subject to satisfactory survey and sea trial, and engine inspection/survey if you having one done. If offer is accepted, usually a 10% deposit is paid and the necessary surveys and trials are carried out (these expenses are paid by you). If anything serious is highlighted during the surveys, then usually a negotian on the offer or the seller gets the faults rectified. Good thing about the deposit is it shows commitment on both sides of the deal.
Hope it all works out well for you.

Edit: though reading your post again, answering your last question, yes I would have expected you to sign some form of contract ref the terms of offer made, deposit and subject to survey etc.

 

[KINGFISHER 8]

What I don't quite understand when searching for a new (used) boat .... what if I have a shortlist of, say, three boats and want to check them out ... do I have to pay deposits on all of them before I can decide? Take them one at a time I suppose ... what happens if I just don't like a boat after a sea trial? ... get the deposit back? How does it all work?

 

[Seastoke]

I would expect to have a contract that says if the survey is not good you could have your deposit back

 

[landlockedpirate]

What I don't quite understand when searching for a new (used) boat .... what if I have a shortlist of, say, three boats and want to check them out ... do I have to pay deposits on all of them before I can decide? Take them one at a time I suppose ... what happens if I just don't like a boat after a sea trial? ... get the deposit back? How does it all work?

Its been discussed quite a lot before, sea trialing boats is not like test driving a car. With a car you can take a few for a spin and then decide what you like, with a boat you have to decide what boat you want without the joy ride. Once you put a deposit on a boat you are usually contracted to buy it subject to the sea trial, IMHO you can only reject it if there is some kind of material defect.So if you put deposits on 3 boats and they all perform without a fault you would have to buy all 3.

Why is it like this ? Mainly cost, test driving a car costs the dealer less than a tenner and 15 mins time. Sea trialing a boat can cost £1000's and take best part of a day. The other reason is to avoid fender kickers just fancing a free day on the water in the sun.

 

[Tranona]

What I don't quite understand when searching for a new (used) boat .... what if I have a shortlist of, say, three boats and want to check them out ... do I have to pay deposits on all of them before I can decide? Take them one at a time I suppose ... what happens if I just don't like a boat after a sea trial? ... get the deposit back? How does it all work?

This is a well trod path with long threads arguing pros and cons. The "normal" process is that you decide you want to buy a boat based on the description and your inspection. You agree a price, sign a contract that is subject to conditions, the usual being survey and seatrials, but no reason why it cannot include other specific conditions if both parties agree. The deposit is a sign of faith and also protects the owner if, for example the buyer does some damage or does not pay bills. It also means the seller is committed to selling to you. The purpose of the sea trial is normally to check that everything operates as described - particularly important with expensive engines.

The issue of trying a boat first is contentious. Usually private sellers do not offer this because there are costs and risks and often the boat is not in the water anyway. Other owners may, however be willing to take you out if they think it will clinch the sale. The danger there is that there is no commitment and the seller could end up giving rides to time wasters. Boats for sale by dealers are often different as a dealer, who owns the boat may well be more prepared to let somebody try a boat to get a sale.

In many ways it is like a house. Most boats are privately owned, like houses and you would not expect to try somebody's house out before buying.

As with every transaction between private individuals there might need to be flexibility on both sides. So a buyer should satisfy himself that the boat is what he wants before making a binding offer. Equally the seller is within his rights not to accept an offer without a level of commitment from the potential buyer.

For the OP, there is a big risk attached to the proposal of not signing a contract before spending money on a survey. The seller is not committed to him and could quite easily accept an offer from somebody else. So he loses his survey money and does not get the boat.

 

[AuntyRinum]

To the OP, a boat is a chattel and a purchase is not treated in the same way as it would be if it was a property. The procedure you are following is the correct one, even though it probably feels a bit scary.
As soon as you make an offer which is accepted you have created a binding contract which is why any offer should be made subject to survey. If not subject to survey you have no get out if there's something wrong with it and have to buy it anyway.
From a purchaser's point of view it is always safer to buy through a broker, because they have a legal obligation to act correctly. I've bought three boats and, with the present one, I transferred £70,000 to the broker's client account after survey before the vendor had actually signed the contract, because a contract existed.
Whether buying through a broker or not, the most difficult thing to establish is that the person selling actually owns the boat and there is no outstanding finance on it. If it is Part 1 registered then that is easily established, but for anything else you're on your own. Even a broker can't help with that. The finance companies won't help you for some reason, so you need to take care.

 

[superheat6k]

Its been discussed quite a lot before, sea trialing boats is not like test driving a car. With a car you can take a few for a spin and then decide what you like, with a boat you have to decide what boat you want without the joy ride. Once you put a deposit on a boat you are usually contracted to buy it subject to the sea trial, IMHO you can only reject it if there is some kind of material defect.So if you put deposits on 3 boats and they all perform without a fault you would have to buy all 3.

Why is it like this ? Mainly cost, test driving a car costs the dealer less than a tenner and 15 mins time. Sea trialing a boat can cost £1000's and take best part of a day. The other reason is to avoid fender kickers just fancing a free day on the water in the sun.

Time to get real, not sure how sea trialling a boat will ever cost thousands, unless there are some major issues to switch the thing on. I agree fender kickers are a pain, but if i look seriously at a boat and then decide its not for me then presumably i'm a fender kicker, but i am still a serious buyer. Indeed the most annoying factor to get up my nose at boatshows is being 'screened' before i can view a boat.

I bought my current boat unconventionally - survey before offer. If i want a ride on the next one first, well its up to the seller to decide. but if i can't fully decide if its for me first then its his lost sale.

 

[jac]

Time to get real, not sure how sea trialling a boat will ever cost thousands, unless there are some major issues to switch the thing on. I agree fender kickers are a pain, but if i look seriously at a boat and then decide its not for me then presumably i'm a fender kicker, but i am still a serious buyer. Indeed the most annoying factor to get up my nose at boatshows is being 'screened' before i can view a boat.

I bought my current boat unconventionally - survey before offer. If i want a ride on the next one first, well its up to the seller to decide. but if i can't fully decide if its for me first then its his lost sale.

If the boat is ashore, several hundred to put her back in and then several hundred to lift her back out. Add in some fuel. Obviously as a Raggie the fuel will cost less than a bag of chips at the nearest fish and chip emporium but for you boys....

Several thousand though does seem excessive unless you're planning on burning hundreds of litres of fuel or need to pay for crew.

 

[landlockedpirate]

Time to get real, not sure how sea trialling a boat will ever cost thousands, unless there are some major issues to switch the thing on. I agree fender kickers are a pain, but if i look seriously at a boat and then decide its not for me then presumably i'm a fender kicker, but i am still a serious buyer. Indeed the most annoying factor to get up my nose at boatshows is being 'screened' before i can view a boat.

I bought my current boat unconventionally - survey before offer. If i want a ride on the next one first, well its up to the seller to decide. but if i can't fully decide if its for me first then its his lost sale.

The number was real. based on a 50ft sportscruiser in the South of Spain. It included lift in, mooring for 3 nights over weekend, lift out,rechock. Marina had 1 crane and stupidly expensive fee structure.

First time I sold a boat privately I offered a test drive to a very keen prospective purchaser. Dragged boat all the way to Windermere, slip fees, overnight marina, 2 days of my time. Trial went perfectly, nothing went wrong, buyer, his wife and family loved it and very impressed. Never saw or heard from him again. Cost me around £400 on a boat worth £10k. No more free joy rides from me. I accept that you are a real buyer, the problem is for every real buyer, there are 10 fender kickers.

 

[AAF]

Thanks for all the comments. The purchase process is proceeding with your thoughts in mind....

 

[rafiki_]

Very best wishes. Whe I sold my last boat, the broker took a deposit before I did the sea trial with the purchaser at my cost.
When I bought my current boat, I paid a deposit, then paid for a lift, wash and survey, prior to the sea trial. I took a technician with me for the trial, and we found a few issues, which the vendor corrected before we closed the deal.
I think this was pretty standard practice, and I was happy with the process. The broker was really first class (Adam Baker at Global Yatcht brokers).

Don't expect the survey to uncover all issues with the boat. There are always 1 or 2 things that emerge with ownership.

 

[AAF]

UPDATE....... Well the process went all right and from this afternoon I own the boat.

Some minor issues found at survey to put right, (probably just in time for the British summer to properly begin with gales rather than this current fine spell).

Thanks to everyone for their input and see you on the water...

 

[superheat6k]

Well you can't leave us all hanging ! Photos, model etc (not price of course !)

 

[AAF]

Sorry....

Embarrassingly no photos, well only ones looking like a dose of measles with paint removed for survey and floor boards up for engine access.

Will do better later this week. She will get a name change though.

Broom 39KL 2005 model.

 

[TommieDee]

Sorry....

Embarrassingly no photos, well only ones looking like a dose of measles with paint removed for survey and floor boards up for engine access.

Will do better later this week. She will get a name change though.

Broom 39KL 2005 model.

Congrats on the new boat. I have a 39Kl too and it is a great boat. As you will know by now, Brooms are really well built solid boats with a semi displacement hull that keeps you comfortable and safe when the going gets rough and planing boats of a similar size have to turn back.

I've had mine for nearly 5 years and have never had any problems - until an issue this week with port engine that won't now switch on! Currently getting advice from the wonderfully helpful forumites here.

I wish you many years of happy boating.
T