123’s of a Long Distance Boat Purchase

27 02 2010

Almost every time Brilliant Yachts helps a client buy or sell a boat, negotiations are communicated via phone, email and/or fax, and the closing is transacted in a ‘long distance’ manner. (Versus ‘sit down’ or ‘face to face’)

While every boat transaction is unique, here are the basic steps of a long distance boat purchase.

1. Buyer makes a written offer on a boat they wish to purchase – specifying price and terms

a. Purchase Price
b. 10% refundable deposit – held in escrow
c. Terms: Personal Inspection, Survey, Confirmation of Inventory, Financing,
Closing Deadline, Delivery location, Offer Expiration Date, etc.

2. Due diligence performed

a. Seller is responsible to deliver vessel to boatyard, if necessary
b. Buyer is responsible for survey, haulout and/or mechanic’s inspection costs
c. If survey is an all day affair, Broker provides beverages and gourmet lunch

3. After due diligence results are reviewed, Buyer has three options:

a. Acceptance of Vessel
(agree to close per price and terms of Purchase Agreement)
b. Conditional Acceptance of Vessel
(agree to close, but with changes to price and/or terms)

    i. If changes are acceptable to Seller; transaction proceeds to closing.
    ii. If changes are not acceptable to Seller; transaction is terminated and
    earnest deposit returned to Buyer.

c. Rejection of Vessel
(transaction is terminated, earnest deposit returned to Buyer)

Brilliant Yachts incorporates the services of a third party marine titling company to ensure transfer of funds and ownership paperwork are handled promptly and professionally.

4. Closing

a. Seller is responsible for storage or dockage until date of closing
b. Buyer is responsible for closing costs and insurance
c. Titling company coordinates all aspects of closing – funds and paperwork

    i. Prepares transfer of ownership paperwork – prepared in advance of closing,
    signed by Seller and returned to Titling company
    ii. Collect all funds from Buyer and/or Buyer’s lender
    iii. Prepares closing statements for Buyer, Seller, Broker, Lender(s) –
    for review and signature prior to closing
    iv. When the Closing company has signed closing statements and properly signed ownership transfer paperwork in their possession and funds on account – closed and sold!
    v. Closing company notifies all parties, forwards funds via wire transfer
    and processes transfer of ownership paperwork.

5. Enjoy!

Broker assists Buyer with all aspects of taking delivery of vessel –
dockage, storage, shipping, service, etc.

With cooperative parties, good communications and professional services and support, every boat sale is a ‘brilliant’ event!

When you and your crew are buying or selling, let Brilliant Yachts assist with your boating adventures!

Jon Shattuck
Yacht Broker/President
Brilliant Yachts, Inc.
843-276-0852 cell/text