Hi All, I am in the process of buying a boat, the company handling the documentation for the bank (both loan app and USCG docs) has sent the all documents to both me and the seller. I have had the necessary documents notarized and sent them back to the bank. She has signed and sent everything back except for the limited power of attorney. The seller is refusing to sign it. I have not spoken with her directly since she is selling through a broker. The documentation company is telling me that this document is needed and there is no way around not signing it. They have tried to tell the seller exactly what is for, but she still is refusing to sign it. The broker has not had this happen and does not know what to do, he is currently trying to convince her to sign it. Does anyone know if there is a way around this? If the deal does not go through I have wasted a months time and money for the survey.
limited power of attorney
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POA to whom and for what purpose?
Can you explain what the POA is intended to convey to someone and who that is?
Can you explain what the POA is intended to convey to someone and who that is?
re
According the documentation company, the POA is needed to transfer the lein and make any changes needed for the coast guard when doing the documentation. I am not really sure of all the reasons of why its needed, but from what I am understanding is that its very common when buying/selling a documented boat.....
According the documentation company, the POA is needed to transfer the lein and make any changes needed for the coast guard when doing the documentation. I am not really sure of all the reasons of why its needed, but from what I am understanding is that its very common when buying/selling a documented boat.....
There is a way...
but the doc company doesn't want to do it, and I don't blame them. The LPOA give the company the ability to sign on behalf of the seller to record with USCG and others. Withouth it, the Seller has to sign everything directly. All docs would have to be sent to/from the seller and that gets expensive and cumbersom. The LPOA is a shortcut. Are you a member of BoatUS? If so, they have a pretty big loan/doc center and might be able to explain things better and/or offer some options. You might also call other lenders/doc centers and find out if they require the LPOA, just for your own peace of mind. Also read your contract closely, in most the Seller agrees to "execute all documents necessary to consummate the transaction." Her refusal to do so may constitute a breach and you could sue her for damages - expenses, mental suffering
. A well-founded threat to sue is often a good catalyst to get someone off the stick. Good luck. Others here may have more direct experience.
but the doc company doesn't want to do it, and I don't blame them. The LPOA give the company the ability to sign on behalf of the seller to record with USCG and others. Withouth it, the Seller has to sign everything directly. All docs would have to be sent to/from the seller and that gets expensive and cumbersom. The LPOA is a shortcut. Are you a member of BoatUS? If so, they have a pretty big loan/doc center and might be able to explain things better and/or offer some options. You might also call other lenders/doc centers and find out if they require the LPOA, just for your own peace of mind. Also read your contract closely, in most the Seller agrees to "execute all documents necessary to consummate the transaction." Her refusal to do so may constitute a breach and you could sue her for damages - expenses, mental suffering
. A well-founded threat to sue is often a good catalyst to get someone off the stick. Good luck. Others here may have more direct experience.And advise her to consult a maritime atty
The LPOA is used not only in maritime, transactions, but in many, many commercial transactions everyday. As Don said, the sales contract probably obligates her to to execute whatever docs are required to consumate the sale. If she's unclear on what she should/should not do, she can contact a maritime attorney, who can advise what's right & not right. But then she'll pay X hundred dollars an hour to the atty to tell her that the broker (her agent) is liable to her if he does anything in contravention to her interests and to the contract she signed! She should trust the broker, who she's paying, after all, to act in her best interests. That's what she pays him for, and what he's required to do. If she still refuses to sign, and you have a good contract, a threat of a "specific performance" action by you (essentially a lawsuit asking the court to require her to perform under the contract she made) is an option, albeit somewhat costly to you. And, her broker should be consulting his attorney as well, since he's the one who immediately stands to gain or lose from this; you may have an action (Or at least a threat of action) against him, too. Good luck!
The LPOA is used not only in maritime, transactions, but in many, many commercial transactions everyday. As Don said, the sales contract probably obligates her to to execute whatever docs are required to consumate the sale. If she's unclear on what she should/should not do, she can contact a maritime attorney, who can advise what's right & not right. But then she'll pay X hundred dollars an hour to the atty to tell her that the broker (her agent) is liable to her if he does anything in contravention to her interests and to the contract she signed! She should trust the broker, who she's paying, after all, to act in her best interests. That's what she pays him for, and what he's required to do. If she still refuses to sign, and you have a good contract, a threat of a "specific performance" action by you (essentially a lawsuit asking the court to require her to perform under the contract she made) is an option, albeit somewhat costly to you. And, her broker should be consulting his attorney as well, since he's the one who immediately stands to gain or lose from this; you may have an action (Or at least a threat of action) against him, too. Good luck!
LPA for Documentation- ways out
LPA is so loan company can get the boat documented and secured as collateral on the loan. The one way out is if the boat is purchased without documentation. You can either see if you local bank will finance it w/o documentation or see if the seller wants to finance the boat (doubt it). I doubt if a local bank will/can meet the terms you have set up so she would need to give you a discount to make things fair. I think when you start to walk she will sign. Some sellers are penny wise and pound foolish. So far you are the only buyer and there ARE other boats! Whatcha buyin' anyway?
LPA is so loan company can get the boat documented and secured as collateral on the loan. The one way out is if the boat is purchased without documentation. You can either see if you local bank will finance it w/o documentation or see if the seller wants to finance the boat (doubt it). I doubt if a local bank will/can meet the terms you have set up so she would need to give you a discount to make things fair. I think when you start to walk she will sign. Some sellers are penny wise and pound foolish. So far you are the only buyer and there ARE other boats! Whatcha buyin' anyway?
Out of contract
The seller is out of contract by not proceeding for this reason. Does the seller WANT to sell the boat? I can't imagine that they would blow the deal this time of year on the east coast. I would withdraw my offer and demand all deposits returned. Nothing worse than an uncooperative, unreasonable seller. Peter is correct you could pursue remedy for damages due to breach but I think that just the threat of ending the transaction would light a fire under the broker. I am sure they don't want the deal to go away. Good luck. And yes, what kind of boat is this?
The seller is out of contract by not proceeding for this reason. Does the seller WANT to sell the boat? I can't imagine that they would blow the deal this time of year on the east coast. I would withdraw my offer and demand all deposits returned. Nothing worse than an uncooperative, unreasonable seller. Peter is correct you could pursue remedy for damages due to breach but I think that just the threat of ending the transaction would light a fire under the broker. I am sure they don't want the deal to go away. Good luck. And yes, what kind of boat is this?
Documentation can be gotten immediately after sale
Unless you're buying a big cruiser that you seriously intend to take offshore, documentation is no great thing anyway. If the LPOA is only about that, why not ask the broker to handle the documentation for you after the sale? My broker did that when I changed my mind about documenting just after the sale (which in hindsight wasn't worth it). Nobody is going to use that number again until the next time someone documents that vessel, so it's not like you lose the number.
Unless you're buying a big cruiser that you seriously intend to take offshore, documentation is no great thing anyway. If the LPOA is only about that, why not ask the broker to handle the documentation for you after the sale? My broker did that when I changed my mind about documenting just after the sale (which in hindsight wasn't worth it). Nobody is going to use that number again until the next time someone documents that vessel, so it's not like you lose the number.
Document after the sale
I also did as Rich suggested. I don't recall that the seller was even asked to sign a POA. Another difference in my transaction was that I was not financing the boat. I paid for it outright. Your bank may not allow you to document later. You should check with them. My broker handled all my CG documentation for me (without a POA) and the documentation showed up in my mail about 60 days later. Good Luck!
I also did as Rich suggested. I don't recall that the seller was even asked to sign a POA. Another difference in my transaction was that I was not financing the boat. I paid for it outright. Your bank may not allow you to document later. You should check with them. My broker handled all my CG documentation for me (without a POA) and the documentation showed up in my mail about 60 days later. Good Luck!
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