John Rodriguez YACHTS WWW.JRYACHTS.COM Cruising and Bluewater Yachts For Sale |
John Rodriguez ABYA Broker Ocean Cruising Club Member SAIL AWAY THE BOOK |
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Buying a brokerage boat can sometimes be more complicated and involved than a property transaction.
Therefore It is important to work with an accredited yacht broker who carries professional indemnity insurance
and operates a correctly set up client account.
The following summary will help explain the process of buying a used brokerage boat .
Unlike a property transaction where an agent will market the property and then hand over to the conveyancing
solicitors, the ABYA yacht broker continues with the process after the offer has been accepted. He will ensure
that the legal transfer of title, contract management, holding of deposits and distribution of final funds are all
handled correctly and that the boat's previous title history, RCD status and VAT status have been examined.
Usually the purchase is made by using a conditional Sale & Purchase agreement. Buying a yacht this way can
be less stressful than the current English system of property buying, as everything is agreed in writing at the
beginning. Once an offer is accepted and a deposit is paid, the yacht is then removed from the market. At that
point no other offers can be accepted whilst the agreement is in place.
The usual sequence of events is set out below:
It all works very well for both parties. The seller knows he has a committed buyer and financial protection. The
buyer has time to find out exactly what he is buying and the knowledge that any money he spends on surveys
will not be wasted by the boat being sold elsewhere during the process. There is a clear written framework, with
a professional yacht broker as a third party to administer it, and a safe method of distributing the funds.
It is also possible to use an unconditional contract if not having a survey or to insert an optional seatrial clause.
Although it is for buyers to satisfy themselves on the history and status of a used vessel, John Rodriguez
Yachts will make checks on all yachts with regard to VAT status, RCD status and Title history and present these
findings to a prospective purchaser.
The ABYA code of practice requires that all deposits and final payments are processed through a dedicated
client account solely for this purpose. The John Rodriguez Yachts client account conforms to this requirement
and is written in trust at Lloyds TSB. It is also a requirement that all ABYA brokers carry professional indemnity
insurance. John Rodriguez Yachts is insured for up to £2 Million.
Further information from ABYA about buying a used boat can be found here
YACHTS FOR SALE
SELL YOUR YACHT
VAT & RCD
TESTIMONIALS
CONTACT
Therefore It is important to work with an accredited yacht broker who carries professional indemnity insurance
and operates a correctly set up client account.
The following summary will help explain the process of buying a used brokerage boat .
Unlike a property transaction where an agent will market the property and then hand over to the conveyancing
solicitors, the ABYA yacht broker continues with the process after the offer has been accepted. He will ensure
that the legal transfer of title, contract management, holding of deposits and distribution of final funds are all
handled correctly and that the boat's previous title history, RCD status and VAT status have been examined.
Usually the purchase is made by using a conditional Sale & Purchase agreement. Buying a yacht this way can
be less stressful than the current English system of property buying, as everything is agreed in writing at the
beginning. Once an offer is accepted and a deposit is paid, the yacht is then removed from the market. At that
point no other offers can be accepted whilst the agreement is in place.
The usual sequence of events is set out below:
- The boat is offered for sale based on the condition the boat is known or thought to be in. An offer is
received "subject to survey" and accepted.
- The seller and buyer enter into an agreement drawn up by the yacht broker. A 10% deposit is taken and
held in an independent account. The deposit protects the seller if his boat is damaged during the survey
or if any associated lift out/yard bills are not settled by the buyer.
- The buyer is also protected as the seller is now agreeing to sell to that buyer at an agreed price and
within an agreed time frame. The seller can not change his mind or sell to a higher bidder whilst the
buyer is spending money on a survey and this agreement is in place.
- As we are dealing with the sale of second hand goods between two private individuals that are not
warranted, having a survey gives the buyer independent knowledge of what he is buying. The
agreement allows him to re-negotiate the price or have his deposit refunded if the survey shows the boat
to significantly not be in the condition that both he and the seller thought she was in.
- The buyer pays for his survey and any associated lift out costs etc. After the survey the owner may no
longer use the vessel until the agreement is completed.
- After the survey and if no significant defects are found the boat is sold at the previously agreed price.
- However if significant defects are found, an agreement is reached between both parties where the owner
makes repairs or reduces the price. In the unlikely event of an agreement not being reached within 14
days, the contract may be rescinded and the buyers deposit refunded. The boat is then free to be re-
marketed. The 14 day period may be extended by mutual consent.
- Once the sale is agreed, the balance payment is made to the yacht broker’s client account. The yacht
broker executes an MCA Bill of Sale in the name of the new owner. He then collates the paperwork and
title documents to hand over with the yacht, whilst simultaneously transferring the funds.
It all works very well for both parties. The seller knows he has a committed buyer and financial protection. The
buyer has time to find out exactly what he is buying and the knowledge that any money he spends on surveys
will not be wasted by the boat being sold elsewhere during the process. There is a clear written framework, with
a professional yacht broker as a third party to administer it, and a safe method of distributing the funds.
It is also possible to use an unconditional contract if not having a survey or to insert an optional seatrial clause.
Although it is for buyers to satisfy themselves on the history and status of a used vessel, John Rodriguez
Yachts will make checks on all yachts with regard to VAT status, RCD status and Title history and present these
findings to a prospective purchaser.
The ABYA code of practice requires that all deposits and final payments are processed through a dedicated
client account solely for this purpose. The John Rodriguez Yachts client account conforms to this requirement
and is written in trust at Lloyds TSB. It is also a requirement that all ABYA brokers carry professional indemnity
insurance. John Rodriguez Yachts is insured for up to £2 Million.
Further information from ABYA about buying a used boat can be found here
YACHTS FOR SALE
SELL YOUR YACHT
VAT & RCD
TESTIMONIALS
CONTACT
| GUIDE TO BUYING A BROKERAGE BOAT |
