Selling privately

[gjeffery]

Any help on the protocol for buying and selling without a broker would be appreciated.

When selling privately, do you:
a) take a deposit to secure an offer, or is the prospective purchaser's intention to commission a survey sufficient display of intent?

b) let other prospective purchasers see the boat while it is under offer?

c) require a prospective purchaser to complete a contract to purchase?

d) for how long does an accepted but apparantly inactive offer buy exclusivity, before you accept offers from an alternative purchaser?

e) if you end up with two offers at the same time, do you make an immediate choice, or do you try to improve them?

f) if you were holding an offer that you had not accepted, should you tell a viewer who may make an offer that you are holding an offer?


<hr width=100% size=1>

 

[SimonD]

I'm no expert, but an offer is considered a verbal contract. Hence a wise buyer would offer you £n subject to survey. A wise seller would then draw up a written contract (assuming the offer is accpeted) giving the buyer a sensible period of time to arrange a survey. A deposit isn't really necessary. Since a verbal contract has been entered into, you should not then entertain counter offers.

If you want chapter and verse, I can highly recommend the RYA book called "Buying your first Cruiser" (or somesuch). Available from most chandlers.

Simon

<hr width=100% size=1>

 

[MIKE_MCKIE]

The RYA book "buying your first cruiser" is sitting in my bookcase & yours if you give me your address. I found it very useful when I bought my boat last year.

Send me a PM & I'll get it to you soonest.
brgds
Mike

<hr width=100% size=1>

 

[wooslehunter]

I've just bought through a broker but I did do some research from the buyers point of view when I looked at a couple of boats privately.

There's really no difference between selling privately and through a broker apart from the fact that the broker should do the legwork.

a. Deposits.
If you accept a verbal offer you are asking for trouble. True a verbal contract has as much validity in law as a written one. Try to prove a verbal contract though. It's in the buyers best interest to offer a deposite since it will stop you selling to anyon else. It's in your best interest to get a deposite since it will stop a buyer going elsewhere.

b. There's no reason why you cannot show anyone else around although you should make it clear that the boat is under offer. Once you have accepted an offer you may find yourself in the poo if you try to pull out and accept another for no valid reason. There's no harm in a safety net though.

c. As with deposits a contract protects both parties. There's a good one available from the RYA. Strangely enough the broker contract I signed was almost the ame as the RYA one.

d. It's detailed in the contract.

e. When I was buying, the owner tried to say he had a private purchaser interested. He used this as a negotiating point. Once I reached my ceiling, the other buyer seemed to disappear. From the sellers point of view, there's nothing wrong with playing the game. In fact as a buyer I half expected it.

f. Absolutely, it may get you a better price. Buyers are out to get the boat at the lowest price and you're out to get the highest price. Don't be unreasonable but everyone expects to negotiate. Once you get the offer, it doesn't stop there. Be prepared to negotiate around any survey points.

The book suggested above is great. I read it and it proved really helpful. Good luck.

Dave

<hr width=100% size=1>

 

[qsiv]

<verbal contracts>

As I was taught - they're not worth the paper they're written on ..

<hr width=100% size=1>

 

[craigbalsillie]

I believe that they are in Scots Law, but difficult to prove , unless of course there are witnesses.

<hr width=100% size=1>

 

[BootleBumtrinket]

Pompous git - me

For pointing out that a verbal contract is one made with words: apart from a punch in the face, I can't think of a contract that doesn't involve them

An oral contract is spoken, not written, but I think the phrase has gone out of fashion because of a more modern and more entertaining association of the O-Word



<hr width=100% size=1>

 

[craigbalsillie]

Re: Pompous git - me

I am aware that a verbal contract is a spoken one.,

My point was that.. under Scots Law a verbal ie spoken contract is legally binding.
As long as you can prove that an offer was made and "unconditionally" accepted then you have a case..

Proof is the difficult part...

So yes, you are a pompous git!!

<hr width=100% size=1>

 

[BootleBumtrinket]

contracts

You miss my point, but it does seem true that most legal things are ordered better in Scotland

<hr width=100% size=1>

 

[craigbalsillie]

humble apologies...

I really should read these posts twice before replying..

I thought you were being a smart arse... I apologise.
Having re-read your post I see you were attempting to inject a string
of humour to the thread...


I suppose it's me thats the pompous git now...



<hr width=100% size=1>

 

[Joe_Cole]

Pomposity

I thought that it was the same under English Law. Verbal or written it's still a Contract....proof of the verbal one may be another matter. Personally I'd never accept the word of a Scotsman.

I think I'll go now!

Joe

<hr width=100% size=1>

 

[craigbalsillie]

Re: Pomposity

I agree with you totally Joe..

I wouldn't take the word of a Jock either .. and technically I am one...

A verbal contract isn't legally binding in English Law.. as far as I know

<hr width=100% size=1>

 

[andy_wilson]

Human Nature

a and c. No deposit = no commitment. 10% is the norm accompanied by standard contract to sell / buy, subject to survey within 2 weeks, remedies (or price adjustment) agreed within further 2 weeks. Deposit refundable if sale falls through for genuinely insurmountable survey reasons. See if a solicitor will hold monies in client account for less than a broker charges. Survey at buyers expense including haul out. If ashore, launch for sea trial at buyers expense, including re-haul if rejected. Consider these costs versus value of deposit held in case they decide to just walk away without settling up. Hence value of independant stakeholder and terms clearly set out.

b. Why not if you can be 4r5ed, or feel a standby may be worth having due to less than apparently commited first party. Make sure second party knows the position though.

d. Hence the time factors 'of esscence' in the contract.

e. The latter. Always maximise pre-survey price.

f. Yes, tell them the offer is from an expert in this class of yacht, and a most discerning one too, and when they ask how much the existing offer is, don't forget to apply the centigrade to fahrenheit conversion factor.

Treat 'em mean, keep 'em keen!

RYA do a standard contract for sale of yachts.

<hr width=100% size=1>

 

[chippie]

A clause I have inserted into real estate transactions is the 'cash out clause ' which states that in the event of a cash offer(with much quicker settlement) being made I have the right to take it rather than waiting for a prospective purchaser to gain loan approval, sale of property etc. The clause remains inactive unless I wish to activate it.
I wonder if a variation of this could be appropriate in the sale of a boat.

Just a thought.

<hr width=100% size=1>

 

[gjeffery]

Thanks all who replied for some very helpful information about the custom and practice of selling boats.

<hr width=100% size=1>

 

[andy_wilson]

A contract for sale binds both parties.

What compensation would you propose to the party who having paid for a haul out and survey, is then left without a yacht to buy?

<hr width=100% size=1>

 

[chippie]

In those particular circumstances the deal would be virtually done if it had got that far and there would be little advantage in selling the boat to someone else. I was thinking of a couple of people that I knew who had their boats for sale for some time and were then made a conditional offer which would have been a bit of a drawn out affair, only to have another keen prospective purchaser come along who could do a quick purchase which was definite versus one that was conditional and could still potentially fall over. Hence the real estate analogy.
I agree that a contract binds both parties --the clause is in the contract.
As I said, just a thought.

Cheers

<hr width=100% size=1>