Steps Involved In Yacht Purchase

Steps Involved in Yacht Purchase
1 Inspection. Inspect the boat, consider inventory and decide in principle whether she is the yacht for you. Determine how much you would be prepared to offer, based on the asking price indicated by the vendor and your own perception of the market value. 2 Offer. Contact me to submit an offer for the boat, which would generally have one or two conditions attached, such as: subject to structural survey subject to engineering check, or (if you do not want a survey), "as is, where is". 3 Yacht sale agreements. If the offer is accepted, I will make out a Brokerage Agreement to confirm what has been agreed verbally (nb: in the case of boats and indeed most things except houses, you can have a perfectly legal verbal agreement, but all reputable yacht brokers will confirm in writing). The Brokerage Agreement will be in three copies (vendor, buyer and MLY), with boat specification sheets, plus inventory sheet attached, if appropriate. I will also send a list of local YDSA approved surveyors if required, all of whom accepted by insurance companies. Sign and return to "Mike Lucas Yachting" the Brokerage Agreement, plus a 10% holding deposit, which secures the boat for you, pending survey. 4 Deposit. The deposit cheque, payable "Mike Lucas Yachting Client Account" will be held in a separate client account "in escro". Incidentally, if the boat is being bought unconditionally ie "as is, where is"), the 10% is not a "deposit", but represents the first stage payment. 5 Survey. Approximate cost of a survey will be £(L x B) ft x 1.1, plus VAT, plus slipping charges if appropriate. If yard facilities are being used and the yard is hauling out the boat on a travel lift, this will cost between £70 and £120, according to size of boat and sophistication of the yard. You would normally be allowed up to three weeks in which to complete the survey. 6 Survey report. The surveyor will do his survey and send his report to you. In the light of this report, one of three things will happen: (a) The survey will be as expected for a boat of its age and price (ie nothing of serious consequence will have been found) (b) Various matters require work to be done and expensive enough to expect a reduction in the agreed price – either relating to structural problems or matters affecting seaworthiness of the yacht (c) The survey is so seriously critical of the boat (what is known in the trade as "with material defects"), that you would not want the boat at any price. You can then withdraw and recover your deposit money. In the case of ‘b’, the price will normally be renegotiated to everyone’s satisfaction and the sale goes through. 7 Discussion period. From the time of survey to completion, the duration can be quite short or sometimes up to fourteen days from date of survey. This is "estimating" and "thinking" time, and negotiation if necessary. A longer period can be mutually agreed if required. 8 Title checks. Meanwhile, I will be checking title through the Registrar of British Ships if she is Part '1' registered, or by other means if registered with SSR (SSR is not proof of ownership). I will then prepare the Bill of Sale and collect relevant documents (such as proof of VAT payment), so that once the yacht is yours, you can legally demonstrate your ownership, free of encumbrances. 9 Sale completion. Once the final payment is agreed, you will pay the balance of the purchase price in to my Client Account. Title is transferred once your final payment has cleared my account and you have checked through the boat and inventory with the vendor, who will then hand you the keys to the boat. We will then send you the Bills of Sale, Certificate of Registry (if applicable), VAT documents and relevant receipts/maintenance records. I hope this adequately explains the procedure for purchasing a boat and if I can be of further assistance, please do not hesitate to give me a call - Mike Lucas on 01803 212818.

Steps Involved in Yacht Purchase

1 Inspection. Inspect the boat, consider inventory and decide in principle whether she is the yacht for you. Determine how much you would be prepared to offer, based on the asking price indicated by the vendor and your own perception of the market value.

2 Offer. Contact me to submit an offer for the boat, which would generally have one or two conditions attached, such as:

subject to structural survey
subject to engineering check, or
(if you do not want a survey), "as is, where is".

3 Yacht sale agreements. If the offer is accepted, I will make out a Brokerage Agreement to confirm what has been agreed verbally (nb: in the case of boats and indeed most things except houses, you can have a perfectly legal verbal agreement, but all reputable yacht brokers will confirm in writing). The Brokerage Agreement will be in three copies (vendor, buyer and MLY), with boat specification sheets, plus inventory sheet attached, if appropriate. I will also send a list of local YDSA approved surveyors if required, all of whom accepted by insurance companies.

Sign and return to "Mike Lucas Yachting" the Brokerage Agreement, plus a 10% holding deposit, which secures the boat for you, pending survey.

4 Deposit. The deposit cheque, payable "Mike Lucas Yachting Client Account" will be held in a separate client account "in escro". Incidentally, if the boat is being bought unconditionally ie "as is, where is"), the 10% is not a "deposit", but represents the first stage payment.

5 Survey. Approximate cost of a survey will be £(L x B) ft x 1.1, plus VAT, plus slipping charges if appropriate. If yard facilities are being used and the yard is hauling out the boat on a travel lift, this will cost between £70 and £120, according to size of boat and sophistication of the yard. You would normally be allowed up to three weeks in which to complete the survey.

6 Survey report. The surveyor will do his survey and send his report to you. In the light of this report, one of three things will happen:

(a) The survey will be as expected for a boat of its age and price (ie nothing of serious consequence will have been found)

(b) Various matters require work to be done and expensive enough to expect a reduction in the agreed price – either relating to structural problems or matters affecting seaworthiness of the yacht

(c) The survey is so seriously critical of the boat (what is known in the trade as "with material defects"), that you would not want the boat at any price. You can then withdraw and recover your deposit money.

In the case of ‘b’, the price will normally be renegotiated to everyone’s satisfaction and the sale goes through.

7 Discussion period. From the time of survey to completion, the duration can be quite short or sometimes up to fourteen days from date of survey. This is "estimating" and "thinking" time, and negotiation if necessary. A longer period can be mutually agreed if required.

8 Title checks. Meanwhile, I will be checking title through the Registrar of British Ships if she is Part '1' registered, or by other means if registered with SSR (SSR is not proof of ownership). I will then prepare the Bill of Sale and collect relevant documents (such as proof of VAT payment), so that once the yacht is yours, you can legally demonstrate your ownership, free of encumbrances.

9 Sale completion. Once the final payment is agreed, you will pay the balance of the purchase price in to my Client Account. Title is transferred once your final payment has cleared my account and you have checked through the boat and inventory with the vendor, who will then hand you the keys to the boat. We will then send you the Bills of Sale, Certificate of Registry (if applicable), VAT documents and relevant receipts/maintenance records.

I hope this adequately explains the procedure for purchasing a boat and if I can be of further assistance, please do not hesitate to give me a call - Mike Lucas on 01803 212818.