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Old 01-28-2006, 05:56 PM
  #1    
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Default pre-purchase agreement

I finally decided to purchase a 24 northcoast. Seller and I have reached mutual agreement on price. I have talk to surveyor and am having it surveyed soon. The owner wants a 10% deposit to hold the boat. I have agreed to the 10 % deposit. What I am looking for is a pre-purchase agreement. If the boat should fail the survey, I want to have my deposit refunded. Does anyone have access to a sales agreement,like the boat broker used or any suggestions what terms I should put in the sales agreement

Thanks for all your help.
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Old 01-28-2006, 06:05 PM
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Default RE: pre-purchase agreement

Just sit down, think about what could happen, write down what you think should happen and make it a pre-purchase agreement. No need to get complicated. Make sure everything you agree to is written down.

What happens if surveyor finds too many problems with boat?
What happens if boat fails sea trial?
what happens if motor wont start or conks out during trial?.
what mechanic service motors for owner?
What happens if your mechanic does not like motor?
How do you close the deal?
What happens if mechanics have not been paid?
Is boat free and clear of mechanix liens?
Is boat loan paid off?
Escrow?
etc.
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Old 01-28-2006, 07:28 PM
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Default Re: pre-purchase agreement

Solarfry is right, write a contract stating what, where, when and how. The final bill of sale and pre-purchase agreement can be had from Jim at BOE on this forum. He sells electronics but he also sells all the forms and paperwork necessary to complete a transaction. He can also handle the paperwork for you, if you wish. He has helped me several times, and is a stand-up guy!

The link to his section of THT is http://www.thehulltruth.com/forums/f...iew.asp?fid=62
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Old 01-29-2006, 12:10 AM
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Default Re: pre-purchase agreement

Boat U S has the forums. However I use a forum I have built thru the years. This basically says what the agreed price is, subject to survey and sea trials. Survey and its costs are the burden of the buyer. There may be a financing congingency clause (I do not put one in a boat I sell--the person must already have the funds and prove it to me). It states that if the boat fails survey or sea trials you get your 10% back. It stipulates who holds the check for 10% (I usually put it in my safe deposit box as the seller, others use escrow accounts). It stipulates that the boat is sold as is where is, and there are no warantees. It gives dates for completion of survey, and xx working days from survey until closing. It states how funds will be transfered (I do wire, title handed over when I confirm funds are in my account)--we meet with the buyer, have lunch after transfer of funds, usually by the time lunch is over, we can exchange titles and have a notery for the bill of sale.
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Old 01-29-2006, 03:42 AM
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dek
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Default RE: pre-purchase agreement

I would have the agreement state that your deposit will be refunded if you are not satisfied with the sea trial, the hull survey, or the mechanical inspection. I reviewed a broker's form recently that provided the deposit would be refunded if purchaser "reasonably determines the vessel is not seaworthy". That's BS as far as I'm concerned. You could have a clean survey, but you might learn something about the boat on the sea trial, or from the survey, that you just don't like. The point is, you shouldn't have to justify your decision. If you're not happy after doing the inspections, you walk and the seller gives you the money back.

David

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Old 01-29-2006, 07:56 AM
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Default Re: pre-purchase agreement

What dek said, agreement should state if you are not satisfied for any reason. Also down payment deposited in an escrow account. Do not purchase without a properly written P S. This will keep both parties happy.
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Old 01-29-2006, 01:49 PM
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Default Re: pre-purchase agreement

When I was looking for a boat, I would routinely ask the brokers for a blank copy of their purchase and sale agreement form. When I finally purchased a boat from a private seller, I used the blank forms I'd collected to come up with the form shown below. The seller suggested a few changes and then we filled it out and signed it. It all went very well.

I found that most of the wording on the brokers' forms was there to protect the interests of the broker and to make sure that he got his 10% regardless. The interests of the seller and buyer were very secondary. When I removed all the broker CYA crap, the form was a lot smaller.

VESSEL PURCHASE AND SALE AGREEMENT

Buyers Sellers
Address Address
Phone Phone

Name of Vessel
Make and Type Year
CA Registration Number
Hull ID

Deposit and Payment
Buyers offer to purchase all right, title and interest in the above vessel together with all of its gear, machinery, equipment, furnishings, boats, appurtenances and other articles aboard or ashore, including, without limitation, all items set forth in the list of inventory attached hereto, (collectively, the “Vessel”), subject to the terms and conditions of this agreement. The purchase price of the vessel shall be ($). Buyers have delivered to the sellers a deposit of ($). The balance is to be paid within seven (7) days of completion of the sea trial, engine survey and marine survey. Final payment is to be made in the form of a cashier’s check.

Performance and Condition
Offer is made subject to Buyers’ satisfaction with the performance of the vessel and to their acceptance of the condition of the vessel as put forth in an engine survey and marine survey made in their behalf. Buyers agree to hire and pay for services of the surveyors of their choice and to pay for haul out charges in connections with the surveys.

Deposit Refund
Should the vessel prove unsatisfactory to the Buyers due to performance or condition as determined, by the Buyers, during sea trial and surveys, the deposit will be refunded less any expenses incurred for the Buyers’ benefit.

Title
Sellers are to furnish clear title to the vessel in accordance with regulations of the Tax Departments of the City, County, and State. Title to the vessel shall remain with the Sellers until payment in full has been made.

Liens, Bills, etc
The Sellers are to discharge all liens, mortgages and bills of any kind now held against the vessel, or any which may be incurred in their behalf before passage of title and possession to the Buyers.

Condition not Warranted
Vessel is offered to the Buyers “as is, where is and with all faults”. No representation as to the condition of said vessel is binding upon the Sellers. No warranty is either expressed or implied other than specifically set forth in this agreement.


Buyers Offer
By signing below, Buyers offer, as of the date indicated, to purchase the Vessel from Sellers under the terms and conditions of this Agreement.

Buyer:
Buyer:
Date:

Sellers Acceptance
By signing below, Sellers agree, as of the date indicated, to sell the Vessel to Buyer under the terms and conditions of this Agreement.

Seller:
Seller:
Date:

Sea Trial Approved Engine Survey Approved
Buyer: Buyer:
Buyer: Buyer:
Date: Date:

Marine Survey Approved
Buyer:
Buyer:
Date:

Buyers Final Acceptance
By signing below, Buyers acknowledge that pursuant to the provisions of this Agreement, Buyers have approved of the Vessel in all respects, and that all contingencies have been satisfied.

Buyer:
Buyer:
Date:




Inventory list
The following items shall be considered to be part of the Vessel and shall be included in the purchase price set forth in this agreement.

Inventory not included
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Old 01-29-2006, 06:41 PM
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Default Re: pre-purchase agreement

Thanks for all the reply's, very helpful.

Thanks again
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