Private Boat Sale - How Safe?

[Afraid Knot]

Guys,

I'm looking at buying a boat which is for sale privately - that is no broker involved.

How can I ensure that what I'm buying is legit?

I know neither the seller nor the boat what steps should I take so I'm not ripped off?

Cheers

 

[gjgm]

Guys,

I'm looking at buying a boat which is for sale privately - that is no broker involved.

How can I ensure that what I'm buying is legit?

I know neither the seller nor the boat what steps should I take so I'm not ripped off?

Cheers

Slightly depends on the boat/age/price.
Hopefully he has some paperwork from when he bought the boat.If he has owned the boat for a while, he should have marina fees, service invoices etc, which give some comfort that he owns the boat. It might be SSR registered, or even Part 1 registered if it a big enough ticket.
What is harder to trace is if there is finance on the boat. A mortgage should be on Part 1.
If it is a smaller ticket, you can check online for stolen boats as a precaution. In the end, you just have to get comfortable that there is little reason to think he doesnt own the boat, especially for something say, older and cheaper.

 

[U4]

I guess the steps you would take / the answer to the question largely depends on the value of the boat you are looking to buy..

 

[Afraid Knot]

Thanks so far.

The two we're are looking at are £35k and £70k, so not small lumps of dosh.

 

[rafiki_]

Look at the RYA website. There are notes and tips on there for purchasing, including the docs that you will need. You might talk to a "friendly" broker to get their view too?

 

[gjgm]

Look at the RYA website. There are notes and tips on there for purchasing, including the docs that you will need. You might talk to a "friendly" broker to get their view too?

Some here too
http://www.ybw.com/expert-advice/a-z/500547/buying-a-boat-advice

 

[jimmy_the_builder]

Guys,

I'm looking at buying a boat which is for sale privately - that is no broker involved.

How can I ensure that what I'm buying is legit?

I know neither the seller nor the boat what steps should I take so I'm not ripped off?

Cheers

If you've done it before, and you know what documents to expect, then you should be fine. If you're not sure about the documents, then you could probably find a local broker who will assist you for a small fixed fee?

For myself, I'd be looking for
- builders certificate
- chain of sales invoices showing vat paid somewhere along the line
- chain of bills of sale
- evidence of maintenance history (invoices for services)
- registration documents

The seller might also ask you to sign a purchase contract; if you're not certain about the content you could get advice from a marine solicitor.

Usual steps to ensure identity of seller would also be a good idea.

 

[oGaryo]

Hi, firstly, good luck with the purchase and a pre-emptive welcome to the world of boating.

I purchased my first three boats privately and the last through a broker and in each instance, I look for extensive records as Jimmy says following on with keeping an accurate record of my boat for when I come to sell her.

I've 5 sets of documents for Bizzy Bee

1: a binder containing all documents.
2: a further binder containing all receipts for new equipment and maintenance.
3: a spreadsheet that I log any major expenses especially considering I do pretty much all the maintenance myself. it also has a maintenance schedule listed.
4: the snag list from the original purchase in a detailed spreadsheet showing what had been done to resolve each snag.
5: a case containing manuals for every system on board Bizzy Bee

Looking through my document binder, I have:

1: letter from Ancasta showing what documents came with the boat at time of sale.
2: evidence that vat's paid and there's no outstanding debt on the boat
3: Certificate of survey - merchant ships under 24M
4: Original builders certificate
5: 3 x bills of sale, one for each owner including myself
6: transcript of closed registry of a British ship
7: Hull and Deck survey from when I purchased the boat
8: Engine and Sterndrive survey from when I purchased the boat
9: 2 x Oil Lab analysis reports (one for each engine) from when I purchased the boat
10: Ships radio license application details (MMSI, callsign etc)

The receipts binder has receipts from each owner from the time the boat's bum first got wet all logged in chronological order.

I would expect to see similar if I were to purchase another boat, it gives an air of diligence and organisation when it comes to collating the history of a vessel and indicates the owner would be equally diligent when it comes to looking after their pride and joy.

hope that helps

cheers Gary

 

[petem]

Would also be worthwhile posting the name of the boat here as most boats in the UK will be known to someone here.

 

[julians]

I recently sold my boat privately (ie without using a broker), I provided the following documentation:-

- Original bill of sale from when I bought the boat new
- all receipts for all work/services completed on the boat from new
- I completed the standard RYA bill of sale document with the new owners details
- All instructions/manual for the boat and equipment.

 

[Garold]

I think that there are some posters who are very independent and confident in boat purchasing; possibly because they have done it many times before.

However, if you want to be sure that all the paperwork is correct and present, the advice and assistance of a small broker who is used to dealing with the paperwork may be a wise investment.

Your choice.

Cheers

Garold

 

[omega2]

Get this filled in??

http://www.dft.gov.uk/mca/uksr-msf4705.pdf

 

[alant]

Guys,

I'm looking at buying a boat which is for sale privately - that is no broker involved.

How can I ensure that what I'm buying is legit?

I know neither the seller nor the boat what steps should I take so I'm not ripped off?

Cheers

Who is going to hold your deposit, when you decide to start the ball rolling?

 

[gjgm]

Who is going to hold your deposit, when you decide to start the ball rolling?

I wouldnt expect to pay a deposit.

 

[Afraid Knot]

Again many thanks for suggestions and ideas.

Og - thanks for detailed reply - used to read you comments on the Sealine Forum, not so much now as I sold our 290 ambassador 2 or 3 months ago.

We will let you know how we get on when we are a bit closer to finalising the deal - most likely now in the New Year (Don't think Santa delivers boats to old 'uns)

Cheers all

 

[alant]

I wouldnt expect to pay a deposit.

What, you'r paying the whole amount up front?

 

[jimmy_the_builder]

I wouldnt expect to pay a deposit.

Agreed - I'd rather just take the risk on the cost of the lift-out and survey, and then pay the whole lot if everything stacks up.

 

[gjgm]

What, you'r paying the whole amount up front?

Actually, I did have that on a Windy,, the guy paid me full up front from abroad without even having seen the boat, so it is just whatever works...
However, in OP's case, my point was that you agree a deal, have the boat checked out, and then settle in one go, as JTB clarifies. Yes, you take a small risk that the seller jumps into bed with someone else at a higher price, and you have wasted your survey costs etc, but life is full of dangers...

 

[Canopy Locked]

Just my tuppence worth... based on my experience selling / buying my last few boats. The suggestion re paperwork requirements are spot on. Regards money handling.. £30k or 70k are not small sums of money and, theoretically, there are issues re money laundering regulations. There are also issues for both buyer and seller when it comes to handing over / receiving the money and collecting the boat.

I have used my solicitor in the same way as one would use a solicitor for a house conveyance and I have asked the buy/seller to use theirs. The money can be held by the solicitor as cleared funds and released when the boat is loaded / collected. A simple way to minimise the worry about losing your cash.

 

[jimmy_the_builder]

Just my tuppence worth... based on my experience selling / buying my last few boats. The suggestion re paperwork requirements are spot on. Regards money handling.. £30k or 70k are not small sums of money and, theoretically, there are issues re money laundering regulations. There are also issues for both buyer and seller when it comes to handing over / receiving the money and collecting the boat.

I have used my solicitor in the same way as one would use a solicitor for a house conveyance and I have asked the buy/seller to use theirs. The money can be held by the solicitor as cleared funds and released when the boat is loaded / collected. A simple way to minimise the worry about losing your cash.

Money laundering regulations would only be relevant if the OP was (a) selling and (b) was being paid in cash (which he then wanted to deposit in a bank). As a buyer, he shouldn't have to be too concerned about this.