Sample sales agreement?

[boatman37]

Somebody mentioned the other day that they have sample sales agreements that they would share. I will be financing with about 10% down (about a $30-$35k loan, maybe push $40k for the right boat) and would be getting a survey, sea trial, and mechanical inspection (possibly oil samples). Essex suggested to find the boat first then apply before going any further? Their rates were a little high (6.25%) so will be shopping around. I called a few credit unions when we bought this one and both were over 10% and my bank doesn't do boat loans so limited to specialty institutions.

Anyone have or know where I can download good templates for sales agreements?

Thanks!

 

[NorCal Boater]

For shits and giggles I just did a Google search for "Boat Sales Agreement" and a ton of stuff popped up. I would also search for "Boat Purchase Agreement" or even "Vessel Purchase Agreement".

Also for financing check SunTrust Bank out of Florida.

 

[yobub]

Somebody mentioned the other day that they have sample sales agreements that they would share. I will be financing with about 10% down (about a $30-$35k loan, maybe push $40k for the right boat) and would be getting a survey, sea trial, and mechanical inspection (possibly oil samples). Essex suggested to find the boat first then apply before going any further? Their rates were a little high (6.25%) so will be shopping around. I called a few credit unions when we bought this one and both were over 10% and my bank doesn't do boat loans so limited to specialty institutions.

Anyone have or know where I can download good templates for sales agreements?

Thanks!

Here is a link to a BOAT US site that explains the process.

http://www.boatus.com/buyer/guide/buyer/contracts.asp

On that page is a link to their samples. You might find benefit in reading both the buyer's information and also the seller's information, to understand what your seller may be thinking. http://www.boatus.com/buyer/guide/buyer/contracts.asp

They also have a PDF called the boat buyer's toolbox here: http://www.boatus.com/assets/pdf/boat-buyers-guide.pdf

It has alot of good information.

You can also message me and I can send you the last contract I used.

Best of luck!

 

[boatman37]

For shits and giggles I just did a Google search for "Boat Sales Agreement" and a ton of stuff popped up. I would also search for "Boat Purchase Agreement" or even "Vessel Purchase Agreement".

Also for financing check SunTrust Bank out of Florida.

Thanks. I went with Lighstream for my current boat (division of SunTrust) but Lightstream only goes out 7 years on their loans. Been sick all week with a nasty cold but the boat is going tonight so next week I will start shopping lenders.

 

[yobub]

Somebody mentioned the other day that they have sample sales agreements that they would share. I will be financing with about 10% down (about a $30-$35k loan, maybe push $40k for the right boat) and would be getting a survey, sea trial, and mechanical inspection (possibly oil samples). Essex suggested to find the boat first then apply before going any further? Their rates were a little high (6.25%) so will be shopping around. I called a few credit unions when we bought this one and both were over 10% and my bank doesn't do boat loans so limited to specialty institutions.

Anyone have or know where I can download good templates for sales agreements?

Thanks!

You may also quickly get to the question of "how do I find a surveyor". Here is a link to a site that will list accredited surveyors in your area.

http://www.marinesurvey.org/index.php?option=com_storelocator&Itemid=303&view=map

Find a few options for surveyors, review their websites, and then call them to talk through the process. You will want to understand how familiar they are with the type of boat you are purchasing. If the seller is working with a broker, the broker will likely recommend surveyors. Personally I completely ignore these recommendations because I don't know anything about the relationship between the broker and those surveyors. The broker may be completely honest, but also may recommend surveyors that he knows will "help the sale along".

Depending on the size of the boat and the type of engines, it isn't unusual to hire one surveyor to survey the hull and all of the systems, and another surveyor specifically to survey the engines. You can read this board and others to find specific surveyor recommendations. Unless you are buying a fairly large yacht, you will want to find surveyors that are local to the area where the boat currently resides.

 

[boatman37]

You may also quickly get to the question of "how do I find a surveyor". Here is a link to a site that will list accredited surveyors in your area.

http://www.marinesurvey.org/index.php?option=com_storelocator&Itemid=303&view=map

Find a few options for surveyors, review their websites, and then call them to talk through the process. You will want to understand how familiar they are with the type of boat you are purchasing. If the seller is working with a broker, the broker will likely recommend surveyors. Personally I completely ignore these recommendations because I don't know anything about the relationship between the broker and those surveyors. The broker may be completely honest, but also may recommend surveyors that he knows will "help the sale along".

Depending on the size of the boat and the type of engines, it isn't unusual to hire one surveyor to survey the hull and all of the systems, and another surveyor specifically to survey the engines. You can read this board and others to find specific surveyor recommendations. Unless you are buying a fairly large yacht, you will want to find surveyors that are local to the area where the boat currently resides.

Thanks. I found a local surveyor that has been recommended by a few people but if the boat isn't local then I will need to do some searching.

Also, wife emailed about a boat for sale and got a response this morning from a broker saying it was sold. This broker wants us to contact him with what we are looking for (Great Lakes Yacht Brokers). Is this something I should look into? If we do contact a broker are we locked into them? Meaning we can't go out on our own and find a boat?

 

[NorCal Boater]

You will need to read the individual broker agreement but usually when you sign with one you are obligated to purchase through them. And that is not always a bad idea. A broker can be very useful in getting a buyer through the process and they often can get inside knowledge about boats you may be interested in. And the best thing is the broker doesn't cost you anything. They make their money from the seller.

BUT....not all brokers are good brokers and you really want to ask for references and around a marina and see what others think of them.

Usually when you talk to a broker or have them show you a boat, ethically you should continue to work with them, that's how they make a living. This is all from my experience in California where yacht brokers must be licensed. Things could be different in your area.

 

[NorCal Boater]

You will need to read the individual broker agreement but usually when you sign with one you are obligated to purchase through them. And that is not always a bad idea. A broker can be very useful in getting a buyer through the process and they often can get inside knowledge about boats you may be interested in. And the best thing is the broker doesn't cost you anything. They make their money from the seller.

BUT....not all brokers are good brokers and you really want to ask for references and around a marina and see what others think of them.

Usually when you talk to a broker or have them show you a boat, ethically you should continue to work with them, that's how they make a living. This is all from my experience in California where yacht brokers must be licensed. Things could be different in your area.

 

[NorCal Boater]

You will need to read the individual broker agreement but usually when you sign with one you are obligated to purchase through them. And that is not always a bad idea. A broker can be very useful in getting a buyer through the process and they often can get inside knowledge about boats you may be interested in. And the best thing is the broker doesn't cost you anything. They make their money from the seller.

BUT....not all brokers are good brokers and you really want to ask for references and around a marina and see what others think of them.

Usually when you talk to a broker or have them show you a boat, ethically you should continue to work with them, that's how they make a living. This is all from my experience in California where yacht brokers must be licensed. Things could be different in your area.

 

[NorCal Boater]

You will need to read the individual broker agreement but usually when you sign with one you are obligated to purchase through them. And that is not always a bad idea. A broker can be very useful in getting a buyer through the process and they often can get inside knowledge about boats you may be interested in. And the best thing is the broker doesn't cost you anything. They make their money from the seller.

BUT....not all brokers are good brokers and you really want to ask for references and around a marina and see what others think of them.

Usually when you talk to a broker or have them show you a boat, ethically you should continue to work with them, that's how they make a living. This is all from my experience in California where yacht brokers must be licensed. Things could be different in your area.

 

[yobub]

You will need to read the individual broker agreement but usually when you sign with one you are obligated to purchase through them. And that is not always a bad idea. A broker can be very useful in getting a buyer through the process and they often can get inside knowledge about boats you may be interested in. And the best thing is the broker doesn't cost you anything. They make their money from the seller.

BUT....not all brokers are good brokers and you really want to ask for references and around a marina and see what others think of them.

Usually when you talk to a broker or have them show you a boat, ethically you should continue to work with them, that's how they make a living. This is all from my experience in California where yacht brokers must be licensed. Things could be different in your area.

This is interesting. While I've worked with brokers who were representing the seller, I've never had one find and bring boats to me that they didn't represent, or that weren't being listed by their company. I've never had a broker approach me to enter into an exclusive agreement to be a buyer's broker - they have always just shown their own boats, much like a car dealer would (no disrespect). I would have loved to have a broker find a boat that matched my needs, and helped me through the buying process, without the inevitable bias of trying to sell me the boat. If the brokers in my area do this, they don't do a great job of communicating that they do this.

 

[CaptRonn]

This is interesting. While I've worked with brokers who were representing the seller, I've never had one find and bring boats to me that they didn't represent, or that weren't being listed by their company. I've never had a broker approach me to enter into an exclusive agreement to be a buyer's broker - they have always just shown their own boats, much like a car dealer would (no disrespect). I would have loved to have a broker find a boat that matched my needs, and helped me through the buying process, without the inevitable bias of trying to sell me the boat. If the brokers in my area do this, they don't do a great job of communicating that they do this.

They don't like doing it because they have to split the commission, and they have to do much more work with the chance of being a dead end and no money.

 

[Bentwings]

I’ve been looking for the right boat (450 SR Sundancer) for the right price for over a year. I found one and the broker dropped the price 10k and it sold the next day before I even saw the price break.

Continuing, I have a second choice that I’ve looked at once. The broker told me there is lots of bargaining room. So ok.

Now I shopped for lenders. The boat is 20 years old and appears in perfect condition. I think I’ve contacted at least 20 lenders. The 20 years kills about 3/4 of them right away. There is no bargaining with them...just policy. The rest exclude live aboards. Even with excellent credit and no debt, the new debt to earning ration including my apt takes me out of the picture. In other words if I purchase the the boat the payment plus my living in the apt exceeds their debt to earning ration. It turns out the the loan payment, slip rent,insurance and utilities is still,less than this apt if I live aboard. I still would have money in the bank for expenses for a long time. I do have outside income but I don’t count it as it is irregular.

I did contact Essex as above. They essentially told me to go make the deal then come back for the loan. I asked about live aboard and he told me I was making it too complicated. He would see the live aboard section filled out and take that into consideration. They don’t do pre approved loans but leave it up to you to justify it.....logically. You have to do the math, if it doesn’t look good stop right there, save everybody some time.

I asked about length of the loan and they normally like 15 years on this amount but would go 20 if I want. It only made about $100 difference in loan payment. I feel that if that’s a make or break point I can’t afford it, so 15 yr would work. They want 10% down rather than 20% that most wanted.

I also went to my bank. After a week they finally got back to me last Fri. They only go 12 years and no live aboards. I went back and talked to the loan rep again and showed pictures and a plan for live aboard. I also showed information from three marinas that cater to,live aboards. All are pretty close in prices but have a few differences in amenities. The loan rep was very impressed as said she would talk to the underwriter to see if they would give me a break since I’ve been with them for a long time. So I’m waiting to here Back this week.

I hate to go with Essex then find that they decided not to write the loan after I go and do the additional bargaining and purchase arrangements. I may have to step down to 37-38 foot boat instead with a larger down payment but I’d rather not do that.

Comments?

Byron

 

[boatman37]

Let me know what your bank says. My bank said they don't do boat loans at all. I also called 2 credit unions and both were over 10% for new and over 12% for used.

 

[Bentwings]

I found the credit unions higher interest and short terms. Also they were more into less than 50k loans.

Byron

 

[electricaldoctor]

I have a friend who wants to sell his boat privately. Does anyone know of a good sales agreement for a private sale that covers all of the legal bases?

 

[fwebster]

Ken,

Suggest you contact the consumer affairs people at Boat/US. They have a good general sales agreement. Keep in mind that boat sales can get complicated with haul outs, surveys, sea trials, insurability, closing dates, etc. and the more thorough the agreement is, the more complex it becomes.