offer to purchase

[Don Crowther]

I'm in the process of filling out an BROKERAGE PURCHASE & SALE AGREEMENT form. Looks like a standard form. On page two of the sale agreement under additional provisions what should go in here? I know the broker will will be working for the owner. So I need help from you. Any suggestions? is this where you put subject to accepting the survey? And any equipment not attached to the yacht? Or do you list everything that is loose onboard?thanks Don

 

[Don S/V ILLusion]

contract provisions

Anything you and the seller agree to must be in the contract. Your "understanding" of what is included is irrelevant so include everything you believe is included not otherwise specified. Also, ensure the language regaqrding the survey is as you prefer, that is, it must be to YOUR satisfaction and acceptance or you have the option of either negotiating or return of your FULL deposit. I don't believe there is such a thing as a standard P&S and you shouldn't just sign something advertized as such.

 

[Paul Akers]

I'd Ask the Broker!

He'll tell you if he's a "clean" broker.

 

[Don Crowther]

Clean Broker?

What do you mean by clean broker?

 

[Paul Akers]

By Clean Broker...

I mean that if he is reputable and lives by a good broker's code, then he is "clean". That's why it is in quotes!

 

[Seattle Scott]

Don, the standard offer form

will have a provision for a 5-10% earnest money deposit. Cross that out and write in $1,000 (US or CAN its the same now)no matter the offer amount and your first offer should be 75% -80% of the asking price, cause the season is coming to close in your parts.

 

[higgs]

Not for the seller

In reality the broker is not working for the seller. He is working for himself. He wants to sell the boat becasue that is how he gets paid. His best bet is to move boats as fast as possible.

 

[camaraderie]

Well...

if there is no provision already you should make your purchase offer contingent on satisfactory completion of survey, sea trial and diesel inspection with full refund of deposit (less any charge for haulout) if boat does not meet your expectations after survey. Also make the broker listing of the boat and equipment part of the contract to insure all specified equipment is included with the vessel. There are several "standard" brokerage contracts available on the web with a google search. It may be interesting for you to search those out and compare them to yours for ideas.

 

[Drew]

What about FSBO?

I'm looking at a boat "For Sale By Owner." How do you make an offer to purchase, contingent upon survey, and who holds the deposit? State is Maryland. As ever, thanks for any insight.

 

[Ross]

You can go to any bank and create an escrow

account. Put everything in plain writing. You can make an offer to purchase for xxxxx dollars IF the following details are satisfactory. You don't need an escrow account but it adds some "arms length" formality to the whole deal. Just as easy to pay by check and when your check clears you take delivery. Delivery details should also be written.Signatures of course.

 

[Drew]

Thanks Ross

Hadn't thought of the bank. Dealing with a seller who has already pulled and winterized his boat. He is understandably apopleptic about wet survey by anybody who is not deadly serious about purchasing. I am just as deadly serious about mutually protective and proper procedures.