Yacht Buying Deposit

Stork_III

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None as of yet, do you have a recomendation?
Presumably a private sale not involving a broker. I recently sold my HR31 privately to a Swede. We agreed between us that he would, prior to final offer, inspect the boat at her home berth. He arranged for the marina to lift and pressure wash her, with my agreement, to inspect the undersides, I put on a new anode whilst in the slings. He then made final offer which was accepted, signed a contract I had prepared, which required him to pay £5K non-refundable deposit to my account within 5 days via interbank payment BIC/SWIFT, balance £58k to be paid by completion date (3 weeks later). Failure to pay voided the contract. All went smoothly, boat left for Sweden 24 days after his first viewing. MCA Bill of Sale completed as well (download from MCA site)

It all depends on your buyer and what you both accept. You are welcome to a copy of my contact if you wish.
 

V1701

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I bought and will be very shortly (tomorrow) be completing the sale of my boat privately using both the RYA and MCA bills of sale. With regard to the deposit and any conditions attached I have discussed and agreed what they will be with the seller/buyer. As long as both parties are in agreement and happy then they can be whatever you want them to be (I'd have thought, maybe not in legal terms though). You may want to formalise it by having something drawn up for both parties to sign, though I haven't done this. I have ended up getting to know sellers/buyers quite well and this has made the process really quite a pleasure, but then I am not talking about big money, prices between 10 and early 20's K, if there's big money involved then best to formalise...
 

jonic

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Wiggy

Usually the deposit is there so that the buyer knows the yacht is his whilst he is investing in a survey. He knows he cannot be gazumped by a higher offer.

From your point of view it shows intent and also gives you a financial cushion if your yacht is damaged by the buyer or his surveyor. Or he instructs the yard to move the boat or lift her and then fails to pay the bill.

There is then an agreed time frame for survey, post survey negotiation and final payment.

(I am an ABYA broker so am telling you how my contract works.)

If the survey throws up unforeseen issues and both parties cannot agree on a price reduction or course of action the deposit should be returned. Less any yard bills.

A deposit could be retained if the buyer defaulted by not coming up with the final payment after all had been agreed or did not keep to the agreed time frame.

Usually common sense prevails.

The RYA sale and purchase contract and bill of sale will cover you.

Hope it all goes well.
 

bluedragon

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To the OP...I'm surprised your buyer is giving you a 10% deposit as a private seller. I wouldn't (and haven't in the past). There's actually no need for any deposit at all and the RYA guidance on this suggests a lot lower than 10% for private sales if I recall. Brokers ask for 10% to cover themselves, but at least you know you're likely to get it back if you pull out for good reasons...with a private seller who knows??
 

duncan99210

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You can ask for any level of deposit you want and the buyer will sit still for... When I bought my latest boat, we paid a 10% deposit which was refundable if we withdrew from the sale for good reason (eg faults found on survey which couldn't be resoved). I have once put a deposit down on a boat only to withdraw from the sale when the vendor wouldn't adjust the price or remedy faults found on the survey; the brokers refunded the deposit in full, although they were a bit miffed that the sale fell through.

If you're making a private sale, then I'd think a lower level of deposit would be OK but you and the buyer should agree when the deposit would be refunded and any deductions you could make if he withdrew from the sale. I wouldn't pay a deposit in a private sale unless my money was protected if I felt that the sale wasn't going well, especially if significant faults appeared in the survey and couldn't be resolved befor completion.
 
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