Offer to Purchase

higgs · Mar 24, 2014

What's wrong with a bill of sale that adds: Contingent upon test sail and survey? I would add that buyer is responsible for the cost of a haul out and relaunch.

Joe · Mar 24, 2014

Here you go.... email this link to your buddy... he and the buyer get together with you on the phone... a copy of the offer in front of all... work out the details, sign the agreement... etc. http://www.oceanmarinellc.com/brokerage/PurchaseandSaleAgreement.pdf

A proper purchase agreement will protect both parties... it's called a bilateral contract. Just like buying a house.

Jackdaw · Mar 24, 2014

If the prospective buyer does not want to sign an agreement before a sail, offer them a charter sail, with the cost deductible from a purchase price.

Keeps the tire kickers away.

rgranger · Mar 25, 2014

Jackdaw said:
If the prospective buyer does not want to sign an agreement before a sail, offer them a charter sail, with the cost deductible from a purchase price.

Keeps the tire kickers away.

Good idea, but legally you need a captain's license to charter.

Gunni · Mar 25, 2014

rgranger said:
Good idea, but legally you need a captain's license to charter.

Ha! Sadly no. You need a credit card with plenty of ceiling...and some blarney!

rgranger · Mar 25, 2014

Gunni said:
Ha! Sadly no. You need a credit card with plenty of ceiling...and some blarney!

Yeah...

Okay, point of clarification. You can charter your boat as a bare boat without a captain's license but if you wish to be on board during the test sail then you need at minimum a "6-pak" captain's license if you are charging a fee.

Scott T-Bird · Mar 25, 2014

So call it a non-refundable down payment. If both parties are working towards a deal, the details are going to be managed.

Benny17441 · Mar 25, 2014

I don't blame your friend, he is assuming the responsibilities of a boat broker without a contract as your agent. I would recommend you engage a professional broker and let him deal with the sale and the closing and relieve your friend from such duties. Regarding, keeping away tire kickers you could incorporate in the contract that a licensed Captain would need to conduct the sea trial with the expense to be borne by the buyer. It might sell better if you offered to pay for half of the Captain's hire. It is pretty standard that buyers will pay for the survey and haul out and that should scare no one away. Just make all that part of the contract.

tommays · Mar 25, 2014

It would seem to me IF there willing to pay for the sea trial haul and a survey there pretty serious

BUT IMHP a sea trial is a system FUNCTION TEST not to see if you like how well the boats sails

Joe · Mar 25, 2014

tommays said:
It would seem to me IF there willing to pay for the sea trial haul and a survey there pretty serious

BUT IMHP a sea trial is a system FUNCTION TEST not to see if you like how well the boats sails

Exactly, it's like a home inspection, to make sure major systems are working, more an extension of the survey.... not a test drive.

wflowe2 · Mar 26, 2014

I enjoy taking folks sailing whether they want to buy the boat or not. The haul out, survey etc is on them so what's the problem as long as you set the schedule?

Winkfish · Mar 26, 2014

The agreement Joe posted is excellent. Simple, covers foreseeable problems, and leaves room to add any other conditions.

Scott T-Bird · Mar 26, 2014

Except ...

Joe said:
Exactly, it's like a home inspection, to make sure major systems are working, more an extension of the survey.... not a test drive.

A sea trial can be anything you want it to be depending upon the agreement between buyer and seller. In that regard why can't it be a test drive? Maybe it's conventionally just an extension of the survey, but if buyer is willing to pay for a test drive, and the seller agrees, then why not?

In fact it makes some sense to me ... how are you supposed to know how a boat feels under sail if you don't have an opportunity to sail it before committing?

Joe · Mar 26, 2014

Scott T-Bird said:
A sea trial can be anything you want it to be depending upon the agreement between buyer and seller. In that regard why can't it be a test drive? Maybe it's conventionally just an extension of the survey, but if buyer is willing to pay for a test drive, and the seller agrees, then why not?

In fact it makes some sense to me ... how are you supposed to know how a boat feels under sail if you don't have an opportunity to sail it before committing?

Scott... that is a sensible question. What you're really wanting to know is if you even like the boat you're thinking about buying. You want a demonstration, or test ride. But that's not what a sea trial is for...

Rather than a home inspection, as I mentioned before, the sea trial is akin to a final walkthrough inspection. It's to verify that all repairs have been made and that the boat hasn't been damaged since the survey and still has all the equipment agreed to in the contract... i.e. that you're getting what you paid for. It's also the time that the owner/broker goes through the boat and explains all the systems, spare parts locations, operating procedures, etc...

If you're looking for a demonstration ride.... you do that before you submit an offer. Not after the contract has been signed and the boat taken off the market.... losing any potential buyers during that time...

If your were really keen on selling your boat, would you take potential buyers out for an hour's sail to show them what your boat is all about? I would.... because I'm in sales... and the demo would be like a sales presentation...and that's when you close.

As a seller, though, I would qualify my prospect before I took him out. Getting his financial and motivational data to determine if it's worth your time to make the presentation..... so you have to ask some tough questions... and if they aren't willing to answer or show proof of financial ability... they aren't serious.

The bottom line is this... if you are a serious buyer you should have no problem getting a demonstration ride. If you're just looking around at different boats you may want to purchase some day.... go to a boat show.

shemandr · Mar 26, 2014

tommays said:
... a sea trial is a system FUNCTION TEST not to see if you like how well the boats sails

Amen.
By the time you have a sea trial the seller should have executed a sales contract and he should have 90% of the money - not in an escrow account - in his pocket. The remaining 10%, or whatever was agreed to, is contingent on the trial. The buyer already owns the boat but likely hasn't taken possession of it. That involves the yard bills which is another area of possible contention.