Bought a used boat through broker. Boat on hard at time of sale. Contract has money in escrow to cover "systems" not functioning properly at time of launch. It took me a while to discover all items wrong with this yacht but have kept the broker involved. I feel the money in escrow can cover the expenses and I have even done the labor on some items and will only ask for cost of the parts. I am getting the "vibes" that the owner may be difficult to deal with and will not agree with my findings. If this turns out to be true what do I do? I have heard maybe to use small claims court? Any thoughts, experiences?
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Do you have it covered in writing?
If not, you may not have a sea leg to stand on. If you do have it writing, it is breach of contract and small claims court should work. If we are talking about major bucks here, then you might want to retain legal counsel and let them hash it out. Either way, I hope you have it spelled out in a written contract.
If not, you may not have a sea leg to stand on. If you do have it writing, it is breach of contract and small claims court should work. If we are talking about major bucks here, then you might want to retain legal counsel and let them hash it out. Either way, I hope you have it spelled out in a written contract.
Did you have a marine surveyor check...
the boat over and give you a written report as part of the condition of sale? This report can help you if it lists in some detail the system(s) issues that need to be resolved before transfer of ownership. If not, then it will become a tough row to hoe much like buying a used car...where is as is. Terry
the boat over and give you a written report as part of the condition of sale? This report can help you if it lists in some detail the system(s) issues that need to be resolved before transfer of ownership. If not, then it will become a tough row to hoe much like buying a used car...where is as is. Terry
The Broker Should Know How to Help You.
If it's in writing, you are "golden". Otherwise, it will probably become a "he said...she said" fight.
If it's in writing, you are "golden". Otherwise, it will probably become a "he said...she said" fight.
My opinion
You do not say how much time has elapsed since launch. If I were the seller in this deal, I would expect the escrow to be released pretty much after a test sail had been done. If it dragged on for several weeks or more, I would feel I was being taken advantage of. On a used boat, I would have intended the escrow to cover engine, standing rigging, instruments, and the integrity of the hull. If it is nickel and dime stuff, I would suck it up and pay for it myself, unless the old owner had explicitly indicated the part was in good order. I bought my present boat used last year from a dealer. After the deal was signed and sealed (surveyed, too) I found the autopilot head unit did not turn on. I felt that was my fault for not checking before I bought. Also, the head hoses smelled - again my problem. It is a used boat and that is how used boats are. I replaced the hoses myself at my expense and feel the dealer had no obligation. I was prepared to do the same on the autopilot, but the dealer offered to split his cost of a new ST6000 with me so for under $500 I got a new autopilot instead of a 20 year old one. This is a used boat you bought and you should not expect it to be in new boat condition.
You do not say how much time has elapsed since launch. If I were the seller in this deal, I would expect the escrow to be released pretty much after a test sail had been done. If it dragged on for several weeks or more, I would feel I was being taken advantage of. On a used boat, I would have intended the escrow to cover engine, standing rigging, instruments, and the integrity of the hull. If it is nickel and dime stuff, I would suck it up and pay for it myself, unless the old owner had explicitly indicated the part was in good order. I bought my present boat used last year from a dealer. After the deal was signed and sealed (surveyed, too) I found the autopilot head unit did not turn on. I felt that was my fault for not checking before I bought. Also, the head hoses smelled - again my problem. It is a used boat and that is how used boats are. I replaced the hoses myself at my expense and feel the dealer had no obligation. I was prepared to do the same on the autopilot, but the dealer offered to split his cost of a new ST6000 with me so for under $500 I got a new autopilot instead of a 20 year old one. This is a used boat you bought and you should not expect it to be in new boat condition.
Second thought
I did not mean my last post to sound so hard nosed. Certainly there are legitimate items that an escrow should cover. Perhaps my auto pilot fell into that catagory.
I did not mean my last post to sound so hard nosed. Certainly there are legitimate items that an escrow should cover. Perhaps my auto pilot fell into that catagory.
Escrow
I had the same terms written into my contract. My boat was on the hard and it was the middle of the winter when the survey was completed. During the survey a few minor items were found and one major. I had a delaminated rudder. The broker and I were able to reduce the cost of purchase to cover the replacement of the rudder. The suggestion that I have the work done myself eliminated the risk of the PO trying to save money and do a sub-standard repair. The escrow was held to cover any "major items" not found by the survey due to the boat being on the hard and covered. The broker was up front in that it was only to cover items such as a seized engine, transmission, blown out sails. Bilge pumps, belts, hoses, running rigging would not be considered as these are "wear items". The old saying "buyer beware" seems appropriate here. The escrow in my case was to cover items that only the sea trial would reveal, and that was months after the sale was completed. After launch I found out the head needed replacement as well as most of the engine hoses. Sure, I tried but was told no way would these items be covered. It never hurts to ask, but I expected to be turned down.
I had the same terms written into my contract. My boat was on the hard and it was the middle of the winter when the survey was completed. During the survey a few minor items were found and one major. I had a delaminated rudder. The broker and I were able to reduce the cost of purchase to cover the replacement of the rudder. The suggestion that I have the work done myself eliminated the risk of the PO trying to save money and do a sub-standard repair. The escrow was held to cover any "major items" not found by the survey due to the boat being on the hard and covered. The broker was up front in that it was only to cover items such as a seized engine, transmission, blown out sails. Bilge pumps, belts, hoses, running rigging would not be considered as these are "wear items". The old saying "buyer beware" seems appropriate here. The escrow in my case was to cover items that only the sea trial would reveal, and that was months after the sale was completed. After launch I found out the head needed replacement as well as most of the engine hoses. Sure, I tried but was told no way would these items be covered. It never hurts to ask, but I expected to be turned down.
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