Boat offer

M

Maxwell

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We have an offer in on a used boat. Everything looks good with the exception of the seller/his broker not agreeing to a condition that we had in our offer to purchase. We asked that any major items that are identified as a result of the survey were fixed at the sellers expense. I am by no means looking to nickel and dime the seller over small things however we have offered a reasonable purchase price on a vessel as it is represented (operational/free of defects)and if the boat has major problems that are identified during the sea trial/survey that would obviously change our position. The seller/broker said that this is not how things work where they are (Chesapeake Bay) and they wanted to remove this contingency.

This only the second boat that I have purchased. Do any of you guys have any input you'd be willing to share?

max
 
I would not be afraid to walk!! There are a TON of good deals out there that are not going to go away. If the seller is not willing to stand behind their representation of the condition of the boat my guess they may be hiding something. They are asking you to ignore the results of the sea trial/survey.
 
You can condition the sale on acceptance of inspection, survey and sea trial. In my past contracts, the seller had the option 1) to repair (remedy) items that were found at seller's expense, 2) adjust price to a mutually agreeable price, 3) refuse repair or price adjustment at which point the buyer could go through with the purchase or recover any deposit and walk.

Once acceptance was complete the sale was treated as an "as-is" sale with no warranties except those that were transferrable by the hull/equipment manufacturers.
 
quote:
Originally posted by gerrys

You can condition the sale on acceptance of inspection, survey and sea trial. In my past contracts, the seller had the option 1) to repair (remedy) items that were found at seller's expense, 2) adjust price to a mutually agreeable price, 3) refuse repair or price adjustment at which point the buyer could go through with the purchase or recover any deposit and walk.

Once acceptance was complete the sale was treated as an "as-is" sale with no warranties except those that were transferrable by the hull/equipment manufacturers.

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Right- I've bought a boat under the same agreement and I thought it was fair to both parties.

As a seller, I would not simply agree up front to fix anything that a survey/inspection turns up.

My .02
 
Same here.

The option to walk if they don't repair is what you want.
 
no reasonable person is going to sign an agreement requiring them, upfront, to make repairs to anything/everything discovered. As others said, give the seller the option to either repair/remedy, or the right to do nothing and then you have the right to walk and receive all deposit money back in full which I HOPE you have placed in a dedicated escrow account and not in the hands of the seller of the broker's general account. Do yourself a huge favor and make sure the deposit IS in an escrow account. I'll never understand how people are ok with just giving that deposit to whomever with no protection.
 
Max,

As you know, we are currently going through the same process. We have completed the hull survey and are scheduling the engine surveys. However, being in the winter climes right now, we obviously can't sea trial the boat. To get around this, we are having the diesel tech do as much as possible now, and then putting a specified amount of money in escrow for potential issues at sea trial. This way, we can decide whether we're comfortable closing before or after sea trial, based on surveys and escrow amount.

Jeff
 
Woodsong is dead center on. What you requested is unnecessary, redundant and, as the broker suggested, not how things are done. Make certain that the agreement has a condition that allows for a hull survey, mechanical survey and sea trial with the allowance to walk if no agreement can be reached on how any negative findings are mitigated. Simple and clean. If you don't mind or would like, drop me a PM and let me know where the boat is and who the broker is. I might be able to put an eyeball on it for you.
 
I wouldnt agree to your terms they are all one sided and openended. Make it subject to survey then whatever is discovered you can negotiate or walk.
 
You've got your good advice. Now it is up to you to decide if you want to move along and keep the deal working. I suggest, as others have done, that you attempt to work out a provision that safeguards your interests as well as those of the seller. Otherwise you will face an upwind situation on this sale and any others in the future. Good Luck.
 
You are in effect asking for a warranty on a used boat.
 
Thanks for the input guys. Below is the exact text from the offer to purchase contract in question that my broker used:

All items noted in the recommendations page from the surveyor shall be reported to the buyer and seller. The seller would then have the option to repair said items, and if the seller opts to not repair said items from the survey, the buyer would then reserve the right to repair the items, or walk away from the contract based on that the survey has become unsatisfactory.
 
That's pretty much standard. If the survey brings up any issues you might want to take care of repairs yourself in which case you could ask to negotiate a cost reduction to cover the repairs.
 
quote:
Originally posted by MikeeH

That's pretty much standard. If the survey brings up any issues you might want to take care of repairs yourself in which case you could ask to negotiate a cost reduction to cover the repairs.

Click to expand...


Thats pretty much where my head is at as well. I have a lot of confidence in the boat brand and truly do not want to nit pick small things on the boat. However if the survey results on substantial items are less than favorable (which I doubt they will be), I feel like its fair to give the seller the option to renegotiate or remedy the items as well as not bind us into purchasing a vessel that is not up to the standards at which it was advertised.
 
Maxwell, your intent is in there and it is reasonable but I honestly would clean that language up to be a lot more precise and clear. Among other items in the language, the phrase "walk away" is very vague. Seller and listing broke could interpret that to mean you are "walking away" from your deposit which they would get to keep. Before a contract is executed I would really suggest cleaning that text up to be be very precise but that is just my two cents worth. :)
 
Excellent input. Thanks Woodsong.

This was handled in a different part of the contract that talked about "in the event the closing is not consummated..."

ms
 
"Seller and listing broke could interpret that to mean you are "walking away" from your deposit which they would get to keep. "

Ah, I think you've got a point there! :)
 
How well do you know/trust your broker? As others have said, the languaue in your offer was a bit DIY'ish, which is probably what had the other broker concerned. As long as the offer clearly states that you have the right to terminate the agreement based on the results of the survery, with a full return of the deposit, you are covered.
 
hi max

that language is pretty standard and I think the seller is sending the message that he will not negotiate any further.

as long as the contract make it clear that you can reject the boat shall the survey reveal issues, it's no big deal.

that said, based on the signal the seller is sending, i'd be a little reluctant to spend a couple of thousand on a haul out and surveys without a first sea trial to make sure everything is working and that there will not be any issue preventing a complete survey (ex... bad props, dirty bottom, overheating engine, etc...)

it's always tricky when traveling but you can probably schedule a short sea trial one day, and then schedule the survey the next.
 
As a seller I’m not about to provide a perfect bottom to every sea trial. Sea trials have, for me at least, been after bottom inspection and pressure wash. I wanted to know how well the boat performed not how well the owners diver was doing.
 
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