pre purchase valuation

[abdiel]

Hi there, Im in the process of buying a secondhand yacht, I have met the owner and made an offer subject to survey and valuation. If the valuation is lower than the offer does the
seller have to stand by the valuation, or the buyer stand by the offer?

 

[Tranona]

The basis for the purchase is your offer, and that is what the contract says, but of course it is subject to a satisfactory survey. If the survey shows that the boat is not as describded when you made your offer then the price is subject to negotiation. The vendor can either put right what is agreed as being wrong or the price can be re-negotiated - or in extreme cases you could withdraw. When you signed the contract the assumption is that you have valued the boat at your offer price.

 

[jbweston]

Short answer: you need to look at the terms of your agreement/contract.

Longer explanation:

Assuming you are buying under English Law (and if you, the seller and the boat are all resident/moored in the UK it would be hard not to), you can agree more-or-less what you like in the contract.

Typically the parties (or the broker) make the agreement on the basis of one of the standard written contracts for the sale of a secondhand boat - often the YBDSA or RYA forms. From memory these bind you to go ahead at the price you agreed except in the case of defects that will cost above a certain proportion of the purchase price to remedy. I don't think 'not worth what we agreed' is going to count - but of course 'not worth what we agreed because of defects a, b, c found by the surveyor' will work.

However do bear in mind these forms of contract don't apply automatically. You and the seller have to agree what contract terms you want to apply. If there's a broker, he'll want the parties to use a form.

Also, some people use a modified form, so you can't guess what's in a contract, you need to see it. Which of course you normally do because you sign it.

Finally, under English law you can contract without anything in writing at all on more or less what terms you want - including (should someone be so stupid) an unconditional contract to buy the boat for a fixed price. If it's a private seller, that would most likely bind the buyer to accept a boat with serious defects. Which is why people use the accepted written forms of contract that give better rights.

If the agreement is under foreign (ie not English) law, I have no idea of the answer to your question and you'll need to ask someone who knows about the law of that country.

 

[Lakesailor]

Hi there, Im in the process of buying a secondhand yacht, I have met the owner and made an offer subject to survey and valuation. If the valuation is lower than the offer does the
seller have to stand by the valuation, or the buyer stand by the offer?

You don't mention brokers or contracts.
Is this verbal?

 

[Ex-SolentBoy]

Hi there, Im in the process of buying a secondhand yacht, I have met the owner and made an offer subject to survey and valuation. If the valuation is lower than the offer does the
seller have to stand by the valuation, or the buyer stand by the offer?

Please explain what you mean by "subject to valution".

Did you not agree a price as part of your offer? If so, you can negotiate price based on survey.

If you said you are happy to buy it, based on someone else's valaution, then you cannot negotiate the price, but the seller can of course refuse to sell it at the valued price.

 

[CreakyDecks]

I doubt very much whether the seller has to stand by any valuation that you, or those in your employ, make! If the surveyor's valuation is double what you offered are you going to pay him that?
I'd say that if the survey shows up significant faults that lower the valuation then the deal is just off. It would be entirely up to him whether he sells at the lower price or tries to find a less careful buyer!

 

[Caer Urfa]

Hi there, Im in the process of buying a secondhand yacht, I have met the owner and made an offer subject to survey and valuation. If the valuation is lower than the offer does the
seller have to stand by the valuation, or the buyer stand by the offer?

It is assumed when you are looking at any boat you are going to view/buy you have done your homework 'before' you view her, OR take someone with you that does know what they are looking at.

When buying any boat making an offer is fine, BUT, the offer should always have the magical words added 'Subject to survey'.

It will be a poor surveyor that does not find anything wrong with any second hand boat he is surveying, BUT, it depends on what he finds.

Replacing one or two seacocks is nothing, finding the boat had needs all the rigging replacing is another, you have made an offer, if the survey 'in general' is ok go ahead and buy it, anything that need repairing/replacing that's going to cost a £1.000 plus I would certainly re-Negotiate!

Also remember 'some' (not all) surveyors do not even 'run the boats engine' or make a condition report of it, I do 'Pre-buying Inspection Visits' only on Colvic Watsons for new buyers and my advice to any new buyer is make a mistake with the engine or the hull condition will seriously dent your bank balance later !

Mike

 

[abdiel]

Re pre purchase valuation

Thank you all for your advice, I will bear it all in mind . Story is I have seen a yacht (Fantasie 19) and looked it over, and agreed on a price subject to survey and valuation.
This is all verbal bye the way. I was wondering, if the surveyor thought the valuation was lower than the offer would the owner be obliged to drop his price. Thanking you
Abdiel

 

[nimbus29]

And if he says that it is worth more than you offered, will you pay him that price?. You can't expect to have it both ways.

 

[Lakesailor]

We aren't talking a lot of money here.
If the report says it's worth less, offer less.
If he doesn't like that he'll refuse it.
It's just a matter of negotiation. Don't get involved in making it complicated.

 

[westernman]

He made a contract subject to survey and valuation.

If the valuation does not confirm that the purchase price is reasonable, he is perfectly entitled to withdraw from the purchase in exactly the same way if the survey throws up something unexpected and nasty.