Winter pre purchase survey

Capt jgw · Feb 19, 2015

Sounds like a waste of time and money. There's a lot needs to be checked, but how thorough can he be when he's freezing his ass off. I'd wait a few weeks.

TENACITY CS36T · Feb 19, 2015

Info is correct, you will need to wait if you want to be sure, accurate etc.....perhaps you could come to an agreement with your offer to reflect the necessity to perform the checks when better weather comes. On condition of course.

knot smart · Feb 19, 2015

+1. Agreed..

Claude L.-Auger · Feb 19, 2015

Realizing that it will be the same situation for all boats you find in the area, if you are really interested in this one, make a conditonal offer to the owner. You can put any conditions you want in your offer. One you want for sure is make the offer valid pending the results of a survey. Your offer should mention in writing the impossibility of surveying and sea trials until thaw out period has come and gone. If owner refuses, walk away.

Kings Gambit · Feb 19, 2015

Ted said:
How would you as a buyer handle a pre-purchase survey in an area with sub freezing temperatures? A sea trial can't be performed because the bays are frozen. The engine can be run on land but not under load. A surveyor told me he can't perform a moisture test until the hull and deck are at least 40 degrees for 48 continuous hours. He said that soundings from his plastic mallet will not detect de-laminated sections if the core is frozen. Are there ways to continue the purchase process that may satisfy both the buyer and seller. Buying in the north at this time of year can be challenging.

Well, if you really wanted to pursue it you might cover most of the boat with a big, heavy tent and heat up inside the tent w/propane heaters to 40 deg F; and put electric heaters in the boat as well at the same time. You don't say how big, but if on a trailer w/mast down take it inside a garage/warehouse and heat it up there. If you get a separate engine survey you might not need to put it in the water. You can probably rent all of that stuff I mentioned more cheaply than a haul out would cost later in the year if she goes back into the water.

Kings Gambit · Feb 19, 2015

Ted said:
The boat is 36 feet long so tenting it would be a project in itself. There may be the option of bringing it inside to warm it up. The other concern is testing the engine and transmission under a load. Is it common practice to put money in escrow to cover potential problems until a sea trial is done later on? I don't see how anyone would buy a boat without a sea trial.

You hire some lumpers to put the tent up for you. Yes, but if you require a sea trial b/f buying the boat and cannot get a 2-mo "escrow", then I guess there's no way to proceed. Also, FYI, if you're not using a yacht broker beware that self-made escrows & contingency contracts are risky and much more likely to lead to litigation than those of the brokers, so I've read. The potential buyer puts money into the escrow as earnest money to compensate the seller for removing the boat from the market during the survey period in case the buyer suddenly backs out. That is, the buyer would forfeit his earnest money if he backed out of the deal in a way not permitted by the contingency contract.

uncledom · Feb 19, 2015

I have, with a broker, put money into escrow in case of issues that can only be resolved with a lengthy sea trial / test. After my last purchase, I think you should always hold some of the money back in escrow to make sure the seller doesn't try anything funny. The transfer of the merchandise, the boat, is not always done in a timely manner nor under your constant supervision and the escrow money is insurance. Just saying it can never hurt and if the seller is above board it is not an issue.

Kings Gambit · Feb 19, 2015

uncledom said:
I have, with a broker, put money into escrow in case of issues that can only be resolved with a lengthy sea trial / test. After my last purchase, I think you should always hold some of the money back in escrow to make sure the seller doesn't try anything funny. The transfer of the merchandise, the boat, is not always done in a timely manner nor under your constant supervision and the escrow money is insurance. Just saying it can never hurt and if the seller is above board it is not an issue.

The escrow money is under the control of the escrow agent; usually the broker. A buyer does not have any ability to do anything with the money that he put into escrow. It is applied to the purchase price of the yacht if the buyer's contingencies are met, or it is returned to him by the escrow agent if the contingencies are not met. The contingencies are specified in the contract--usually to highly favor the buyer, however.

uncledom · Feb 20, 2015

Kings Gambit said:
The escrow money is under the control of the escrow agent; usually the broker. A buyer does not have any ability to do anything with the money that he put into escrow. It is applied to the purchase price of the yacht if the buyer's contingencies are met, or it is returned to him by the escrow agent if the contingencies are not met. The contingencies are specified in the contract--usually to highly favor the buyer, however.

O
That's exactly my point. A neutral party holds back money to be used to repair/replace anything that could not be tested at the time of closing. It ensures the buyer doesn't get caught holding the bag because lets just say the engine couldn't be run because it was on the hard.

Scott B · Feb 20, 2015

We bought in February with a sum of money ( I forget how much ) held until a successful sea trial and survey in Spring. Money was held in Trust by the Broker and released when I signed after May launch.