Buying a boat in winter.

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Ross

Ross

.
Jun 15, 2004
14,693
Islander/Wayfairer 30 sail number 25 Perryville,Md.
Scott , The buyer may not take possession and not release the escrow.

If you sell a boat contingent on certain conditions the entire purchase price is paid into escrow. The buyer then has a choice accept the boat as it performed or reject it. If the buyer take, possession of the boat title then transferrs to the buyer and the escrow is paid to the seller. Paying money into escrow is a show of good faith by the buyer. Agreeing to a condition of performance is a show of good faith by the seller. If the boat fails to meet expectations the deal is off the money is returned to the buyer and the boat is returned to the seller.
 
Ross

Ross

.
Jun 15, 2004
14,693
Islander/Wayfairer 30 sail number 25 Perryville,Md.
Scott , The buyer may not take possession and not release the escrow.

If you sell a boat contingent on certain conditions the entire purchase price is paid into escrow. The buyer then has a choice accept the boat as it performed or reject it. If the buyer take, possession of the boat title then transferrs to the buyer and the escrow is paid to the seller. Paying money into escrow is a show of good faith by the buyer. Agreeing to a condition of performance is a show of good faith by the seller. If the boat fails to meet expectations the deal is off the money is returned to the buyer and the boat is returned to the seller.
 
S

Scott

But Ross ...

all the discussion so far has indicated that only a small fraction is placed in escrow. This indicates that the transaction takes place and only the small amount in escrow is withheld pending the sea trial. Go back and read the responses if you think that I am understanding this wrong. Still, what is the point of putting the full amount in escrow. The seller should tie up his boat over the winter (at a winter time price point) while he waits for the buyer to decide if likes it in the spring? Again, none of this makes any sense for the seller.
 
S

Scott

But Ross ...

all the discussion so far has indicated that only a small fraction is placed in escrow. This indicates that the transaction takes place and only the small amount in escrow is withheld pending the sea trial. Go back and read the responses if you think that I am understanding this wrong. Still, what is the point of putting the full amount in escrow. The seller should tie up his boat over the winter (at a winter time price point) while he waits for the buyer to decide if likes it in the spring? Again, none of this makes any sense for the seller.
 
Ross

Ross

.
Jun 15, 2004
14,693
Islander/Wayfairer 30 sail number 25 Perryville,Md.
Scott, you have NOT misread the prior posts

and I think it absurd that a buyer would ask a seller for such a concession. For my mind boats should be sold as is and where is. If the seller is serious he will permit the buyer to have the boat surveyed. The buyer can read the survey report and decide if he wants to go forward with the sale or not. If the survey indicates a sound boat and inspection of the engine and sails is satisfactory then it is time to decide if you trust the surveyor and either write the check or walk away. I presume that a person doesn't buy a boat without knowing at least a little history of the builder and the designer. I certainly would not buy a J-24 and expect it to be in the same class as a Hunter 24. Different boats for different needs. What will a seatrial really tell you about a boat? You should already know that this design is under canvased or that design was built as a blue skies, fair weather daysailer, even though it sleeps 6 and has only a two burner stove and no oven and a 6 gallon portapot.
 
Ross

Ross

.
Jun 15, 2004
14,693
Islander/Wayfairer 30 sail number 25 Perryville,Md.
Scott, you have NOT misread the prior posts

and I think it absurd that a buyer would ask a seller for such a concession. For my mind boats should be sold as is and where is. If the seller is serious he will permit the buyer to have the boat surveyed. The buyer can read the survey report and decide if he wants to go forward with the sale or not. If the survey indicates a sound boat and inspection of the engine and sails is satisfactory then it is time to decide if you trust the surveyor and either write the check or walk away. I presume that a person doesn't buy a boat without knowing at least a little history of the builder and the designer. I certainly would not buy a J-24 and expect it to be in the same class as a Hunter 24. Different boats for different needs. What will a seatrial really tell you about a boat? You should already know that this design is under canvased or that design was built as a blue skies, fair weather daysailer, even though it sleeps 6 and has only a two burner stove and no oven and a 6 gallon portapot.
 
D

David

Sea trial

Many surveys include a sea trial requested by the purchaser or insurance company or the financing institution. As a buyer I would want a sea trial as I have seen too many things go wrong or not perform as represented. It was not unusual when I surveyed vessels in winter for a percentage of the purchase price to be held in escrow for a specific period of time and for a specific reason. For example, a buyer purchasing in the north in December while the boat is on the hard may want a complete engine and drive train performance trial. Done properly this could require 30 to 40 minutes of on the water operation. This type of transaction was not the most common but again, it was not unusual.
 
D

David

Sea trial

Many surveys include a sea trial requested by the purchaser or insurance company or the financing institution. As a buyer I would want a sea trial as I have seen too many things go wrong or not perform as represented. It was not unusual when I surveyed vessels in winter for a percentage of the purchase price to be held in escrow for a specific period of time and for a specific reason. For example, a buyer purchasing in the north in December while the boat is on the hard may want a complete engine and drive train performance trial. Done properly this could require 30 to 40 minutes of on the water operation. This type of transaction was not the most common but again, it was not unusual.
 
Ross

Ross

.
Jun 15, 2004
14,693
Islander/Wayfairer 30 sail number 25 Perryville,Md.
I presume that purchase price is a driving factor

in the range of demands made by buyers. The more costly the boat the greater the expectations of the buyer. If you are dealing with honorable buyers and sellers these things are easy to resolve.
 
Ross

Ross

.
Jun 15, 2004
14,693
Islander/Wayfairer 30 sail number 25 Perryville,Md.
I presume that purchase price is a driving factor

in the range of demands made by buyers. The more costly the boat the greater the expectations of the buyer. If you are dealing with honorable buyers and sellers these things are easy to resolve.
 
Rich (P303)

Rich (P303)

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Jun 1, 2005
772
Pearson 303 Robinhood, ME
It is up to...

the buyer to get it surveyed... put it in the water... sea trial... and back up where he found it. There is a considerable expense undertaken by the buyer... especilly if it is at the sellers house. Seller has no expense (except the vessel being tied up... however should be taking back up offers). Buyer could have $1,000 dollars into it before he accepts or rejects. And can reject it for ANY reason. It is in everyones best interest to see the deal go through. If you have a good broker... things will go smoothly.
 
Rich (P303)

Rich (P303)

.
Jun 1, 2005
772
Pearson 303 Robinhood, ME
It is up to...

the buyer to get it surveyed... put it in the water... sea trial... and back up where he found it. There is a considerable expense undertaken by the buyer... especilly if it is at the sellers house. Seller has no expense (except the vessel being tied up... however should be taking back up offers). Buyer could have $1,000 dollars into it before he accepts or rejects. And can reject it for ANY reason. It is in everyones best interest to see the deal go through. If you have a good broker... things will go smoothly.
 
Scott B

Scott B

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Sep 20, 2006
2,953
Hunter 33 Georgian Bay, Ontario, Canada
we did this just last year

Bought our boat in March, had a survey completed on the hard and closed the deal with a fixed amount held In Trust pending a successful sea trial. The final amount was released in early May after launch ( after the ice was gone) and we took the boat out for a good run. This was as recommended by the broker selling the boat.
 
Scott B

Scott B

.
Sep 20, 2006
2,953
Hunter 33 Georgian Bay, Ontario, Canada
we did this just last year

Bought our boat in March, had a survey completed on the hard and closed the deal with a fixed amount held In Trust pending a successful sea trial. The final amount was released in early May after launch ( after the ice was gone) and we took the boat out for a good run. This was as recommended by the broker selling the boat.
 
Stillraining

Stillraining

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Dec 8, 2007
478
Irwin 41 CC Ketch LaConner WA
Scott;

I was talking about "ALL" the money eather going into escrow or a set amount going into escrow to be held , ONLY to hold the boat, and no title change untill after sea trial and all parties happy with the deal. But you can still set a Maximum allowance you are willing to dicker with if you wanted to in advance but that just complicates this particular senario. I personally would not and just let the chips fall where they may, accept his final offer or decline it, it's that simpel. He dosent even no until after the sea trial if he wants it, so why would you sign over ownership? You do not have to compleat a sale to use an escroew service. This is what I ment by this being a little different senario. Sorry for the confusion, but that is the only way I would hold a boat for a guy for 3 months. He has to show me he is more then a lookie-loo and by placing the money in escrow he has done that. But the boat is still yours. I think we have missunderstood each other. There is no way I would close on a deal that would alow a buyer possesion of my vessel ,have use of it for 3 months and then get togather with him 3 months down the road to do a sea trial togather to find out what he thinks. This is also what I ment about the buyer taking a risk also , his mony is tied up untill he decides to do a sea trial or take it as is. I hope this get us on the same page...:) PS: You mentioned that this was not good for the seller, well that all depends. 1) How long have you been trying to sell it. 2) Its winter, not many buyers 3) You have a buyer VERY interested, enough so to put the money in escrow. 4) So you are half way Sold at this point , thats more then you had.
 
Stillraining

Stillraining

.
Dec 8, 2007
478
Irwin 41 CC Ketch LaConner WA
Scott;

I was talking about "ALL" the money eather going into escrow or a set amount going into escrow to be held , ONLY to hold the boat, and no title change untill after sea trial and all parties happy with the deal. But you can still set a Maximum allowance you are willing to dicker with if you wanted to in advance but that just complicates this particular senario. I personally would not and just let the chips fall where they may, accept his final offer or decline it, it's that simpel. He dosent even no until after the sea trial if he wants it, so why would you sign over ownership? You do not have to compleat a sale to use an escroew service. This is what I ment by this being a little different senario. Sorry for the confusion, but that is the only way I would hold a boat for a guy for 3 months. He has to show me he is more then a lookie-loo and by placing the money in escrow he has done that. But the boat is still yours. I think we have missunderstood each other. There is no way I would close on a deal that would alow a buyer possesion of my vessel ,have use of it for 3 months and then get togather with him 3 months down the road to do a sea trial togather to find out what he thinks. This is also what I ment about the buyer taking a risk also , his mony is tied up untill he decides to do a sea trial or take it as is. I hope this get us on the same page...:) PS: You mentioned that this was not good for the seller, well that all depends. 1) How long have you been trying to sell it. 2) Its winter, not many buyers 3) You have a buyer VERY interested, enough so to put the money in escrow. 4) So you are half way Sold at this point , thats more then you had.
 
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