ragtop
New Member
we are about to purchase a boat via a broker how do we ensure that all outstanding loans on it are paid, and that noone else has title to it,any advice please ?
vat and outstanding loans on used yacht
- Thread starter ragtop
- Start date
poter
Well-Known Member
Your broker should ensure that the boat is clear & free title & also has the VAT paid
see the RYA site Here Excellent source of information...
good luck
poter
see the RYA site Here Excellent source of information...
good luck
poter
ragtop
New Member
Thanks for that, it's been a bit difficult getting a straight answer from the broker. I don't think he means to be unhelpful, just that for us it's a massive investment and he assumes everyone knows all the procedures so doesn't think to explain.
Regards
Wendy
Regards
Wendy
G
Guest
Guest
Not unusual Broker attitude.
I don't know how legal it is and whether it can be used in event of "surprise" ..... but I always had a Bill of Sale signed by Seller stating clearly that :
Seller agrees and hereby states that there are no liens, debts, levies, incumbences, shares, credits or other obligations upon the vessel here named. The Seller hereby states to accept responsibility for any Credits, Liens or other obligations on the vessel that may be outstanding and to clear all these matters before sale of named vessel.
I don't mean to frighten - but a boat may have invoices against it for repairs, marina fee's etc. Unlikely - but could happen that you part with readies ... get on board to move boat - find a notice on board preventing you moving her till marina fee's paid !
Make sure with Seller - get a written signed letter from him stating clearly no debts etc. And a Bill Of Sale with his accepting responsibility...... to make sure all cleared.
I don't know how legal it is and whether it can be used in event of "surprise" ..... but I always had a Bill of Sale signed by Seller stating clearly that :
Seller agrees and hereby states that there are no liens, debts, levies, incumbences, shares, credits or other obligations upon the vessel here named. The Seller hereby states to accept responsibility for any Credits, Liens or other obligations on the vessel that may be outstanding and to clear all these matters before sale of named vessel.
I don't mean to frighten - but a boat may have invoices against it for repairs, marina fee's etc. Unlikely - but could happen that you part with readies ... get on board to move boat - find a notice on board preventing you moving her till marina fee's paid !
Make sure with Seller - get a written signed letter from him stating clearly no debts etc. And a Bill Of Sale with his accepting responsibility...... to make sure all cleared.
S
Skyva_2
Guest
The broker should provide you with a statement from the previous owner that the boat is VAT paid (with invoice) and that the boat is free from encumbrances. The RYA booklet is quite good - I have a spare copy I could send for £2.00 to cover P&P.
BOOKS FOR SALE
BOOKS FOR SALE
G
Guest
Guest
Trouble is not all Brokers do ...
I've bought 1 boat and know others via Brokers that they didn't give such documents ....
Probably thought - If Buyer asks - we'll make effort, if they don't - forget it !
It's why I have my own BoS that I knock up to try and cover me ... as earlier post.
I've bought 1 boat and know others via Brokers that they didn't give such documents ....
Probably thought - If Buyer asks - we'll make effort, if they don't - forget it !
It's why I have my own BoS that I knock up to try and cover me ... as earlier post.
rhumlady
Well-Known Member
Re: Trouble is not all Brokers do ...
I the boat is full part one registered then any outstanding mortgages will be registered. The Broker is being paid to do this for you and you should insist on him doing what he is paid for.
Derek
I the boat is full part one registered then any outstanding mortgages will be registered. The Broker is being paid to do this for you and you should insist on him doing what he is paid for.
Derek
Talbot
Well-Known Member
Make sure that the VAT certificate you get is the original, not a copy. Otherwise you may fall foul of the french customs. If they cant produce the original, reduce the offer on the boat by the amount of VAT you will have to pay.
RYA do a good bill of sail, use it as an example to compare with that offered by the broker.
Dont except a no can do answer, either get it or walk away, there are plenty more boats out there.
RYA do a good bill of sail, use it as an example to compare with that offered by the broker.
Dont except a no can do answer, either get it or walk away, there are plenty more boats out there.
mjkinch1
Well-Known Member
Re: Trouble is not all Brokers do ...
I will echo the part one bit - but check that if the boat is registered as part 1, that it is either owned as 'parts' or as joint owners. We had our sale agreement signed as they sellers being 'joint owners' but in effect they owned '64ths' so the MCA rejected our first attempt at reregistration in our name, and we had to get new bills of sale signed by each owner of the '64ths'. This took a month or so to sort out. Ask to see the part1 registration if it exists, and chack the status of ownership - you can also phone the MCA direct with the boat details and they will tell you if it has finance against it or not.We also found out that the mortgage was not cleared for a month or so after we purchased the boat, but the broker sis a good job of ensuring it was eventually all tied up.
Martyn
I will echo the part one bit - but check that if the boat is registered as part 1, that it is either owned as 'parts' or as joint owners. We had our sale agreement signed as they sellers being 'joint owners' but in effect they owned '64ths' so the MCA rejected our first attempt at reregistration in our name, and we had to get new bills of sale signed by each owner of the '64ths'. This took a month or so to sort out. Ask to see the part1 registration if it exists, and chack the status of ownership - you can also phone the MCA direct with the boat details and they will tell you if it has finance against it or not.We also found out that the mortgage was not cleared for a month or so after we purchased the boat, but the broker sis a good job of ensuring it was eventually all tied up.
Martyn
andy_wilson
Well-Known Member
Nigel (Small-boat-Champ) raises an important point which I would take further.
Is there any evidence of work recently done?
I would take the trouble to call upon or ring round any local marine businesses to find out if any bills remain unpaid for work done. Also sailmakers, chandlers and anyone else who could deliver goods orservices to the yacht, and therefere attempt to hold a charge on the vessel.
Is there any evidence of work recently done?
I would take the trouble to call upon or ring round any local marine businesses to find out if any bills remain unpaid for work done. Also sailmakers, chandlers and anyone else who could deliver goods orservices to the yacht, and therefere attempt to hold a charge on the vessel.
G
Guest
Guest
Ringing round ??
You only need to miss one and that may be the one he failed to pay.
My solution is a signed letter as above by him stating that all debts etc. are cleared and that he remains responsible for any outstanding .... at least that gives you something in hand to hold back the bailiffs when they want the boat !! Sorry shouldn't jest - this can be a serious matter ......
Trouble is - how legally enforceable are any of thses docs, mine, brokers etc, when crunch comes to crunch ? We've all heard stories in past about Credit Recalamations of cars etc - middle of night "collectors" forcing car doors and driving off etc. - poor buyer left with nought but broken glass in the road / driveway.
S'pose it happens with boats ......
You only need to miss one and that may be the one he failed to pay.
My solution is a signed letter as above by him stating that all debts etc. are cleared and that he remains responsible for any outstanding .... at least that gives you something in hand to hold back the bailiffs when they want the boat !! Sorry shouldn't jest - this can be a serious matter ......
Trouble is - how legally enforceable are any of thses docs, mine, brokers etc, when crunch comes to crunch ? We've all heard stories in past about Credit Recalamations of cars etc - middle of night "collectors" forcing car doors and driving off etc. - poor buyer left with nought but broken glass in the road / driveway.
S'pose it happens with boats ......
