I am doing this purchase have an agreed price and deposit.I faxed my offer in writing to the broker, but he is writing the bill of sale and I have not sea trialed nor surveyed the boat.I do not feel comfortable giving 10% before the seatrial, he wanted wire transfer.I need the survey to bind the correct insurance and need the test ride to satisfy myself that all is well. I did put in writing sale is subject to sea trial, survey, binding insurance, and financing .I am not financing but the surveyor said to put that down anyway.Since the sale of my boat was me and the buyer and my prior experience was when that boat was new, I am perplexed at the way this broker is proceeding.Please be specific in what to do, so I am protected and not angering anyone.Thankyou in advance.Iwas planning to close the entire deal over this weekend if all can be together at the same time to do this.I am not kicking tires.Again thankyou for your advice. :cry:
MAKING THE DEAL
- Thread starter NO REGRETS
- Start date
10% subject to seatrial and survey is standard when dealing with a broker. Many deals go bad at the seatrial and the deposit is returned. As long as the boat is real and you have seen it and you know the broker represents the seller you should be fine.
I don't see any problem. Your 10% reprsents good faith on your part that you are genuine. If your not satisfied with the sea trial, or for any reason you will get your money returned.
What is binding insurance? Your not liable for boat until bill of sale occurs.
I guess you may be getting a note?
Make sure the statement you sign or what broker returns as proof with your 10% receipt reads deposit is refundable, if it doesn't read refundable, don't do it.
If the survey finds anything wrong and dealer doesn't volunteer the correction, then agreed upon price goes out the window. Start from scatch on price.
If you don't like the ride for any reason, get out.
If the survey finds major work is needed, you may opt to get out even of dealer says he will correct it.
And make sure you have pre purchase evaluation done by yamaha tech on motors, with written report, and ask for last three years of motor maintenance records. Have mechanic review records if you don't know how. Make sure you see the usual water pumps, gear box fluid, plugs, t stats, etc. done timely.
I guess you may be getting a note?
Make sure the statement you sign or what broker returns as proof with your 10% receipt reads deposit is refundable, if it doesn't read refundable, don't do it.
If the survey finds anything wrong and dealer doesn't volunteer the correction, then agreed upon price goes out the window. Start from scatch on price.
If you don't like the ride for any reason, get out.
If the survey finds major work is needed, you may opt to get out even of dealer says he will correct it.
And make sure you have pre purchase evaluation done by yamaha tech on motors, with written report, and ask for last three years of motor maintenance records. Have mechanic review records if you don't know how. Make sure you see the usual water pumps, gear box fluid, plugs, t stats, etc. done timely.
Thanks,
No note involved, but the insurance quote is based on the survey .So no survey no insurance, no sale.The motors are 2 years old and I have seen the whole package this past weekend.4 years on the warranty left.If I am paying by certified check, why can't I just give him the check after the survey?If it does'nt go through, bring the check back to my bank and have it voided.
No note involved, but the insurance quote is based on the survey .So no survey no insurance, no sale.The motors are 2 years old and I have seen the whole package this past weekend.4 years on the warranty left.If I am paying by certified check, why can't I just give him the check after the survey?If it does'nt go through, bring the check back to my bank and have it voided.
Boats at the marina in the water.The brokers trailer office sits 100 feet staring at the bow of the boat.He literally has to do nothing until the owner takes both me and the surveyor on the sea trial! :roll: It certainly sounds simple, doesn't it?
If the boat is in the water I don't see the expense incurred to take you out, there is none. Undo dock lines, turn the key and go.
If it was blocked however, the travel lift cost is no nickle and dime.
I can't believe this 10% is standard practice as others stated here, in these circumstances.
I didn't drop any 10% deposit when the Grady dealer sea trialed my brokered boat.
I put a 100 buck cash deposit down as I recall, had to come back the following week for the sea trial with the dealer owner, so it made sense. during the duration, survey was done, and motor checks.
The 100 bucks held the boat from being sold to someone else. The boat was on a trailer, driven to the launch ramp with me, launched, then retrieved later, driven back to dealer.
In these times, broker should be sucking your knee caps, not playing games.
If you take down the state registration number you can find out who the owner is with the state authority, contact him, complain about the broker's action considering you are prepared to buy and boat is sitting in the water.
I'm sure owner will kick some butt, I would dump the broker on the spot if I owned the boat. He can sue me for his commission.
As I've said too many times, more boats and cars would be sold if not for salesmen getting in the way of the informed buyer.
A salesman is supposed to enable a sale, not impede it.
So my advise to you, if you like the boat enough, go around the salesman and deal him out, in the way I suggested.
If it was blocked however, the travel lift cost is no nickle and dime.
I can't believe this 10% is standard practice as others stated here, in these circumstances.
I didn't drop any 10% deposit when the Grady dealer sea trialed my brokered boat.
I put a 100 buck cash deposit down as I recall, had to come back the following week for the sea trial with the dealer owner, so it made sense. during the duration, survey was done, and motor checks.
The 100 bucks held the boat from being sold to someone else. The boat was on a trailer, driven to the launch ramp with me, launched, then retrieved later, driven back to dealer.
In these times, broker should be sucking your knee caps, not playing games.
If you take down the state registration number you can find out who the owner is with the state authority, contact him, complain about the broker's action considering you are prepared to buy and boat is sitting in the water.
I'm sure owner will kick some butt, I would dump the broker on the spot if I owned the boat. He can sue me for his commission.
As I've said too many times, more boats and cars would be sold if not for salesmen getting in the way of the informed buyer.
A salesman is supposed to enable a sale, not impede it.
So my advise to you, if you like the boat enough, go around the salesman and deal him out, in the way I suggested.
I put $1000 down on a brokered boat last spring prior to sea trial. This is a good faith thing but I don't see why 10% is reqd.
This shouldn't be such a big deal. Make sure the deposit is fully refundable and give the 10%. I hear your side but the broker is not out of line asking for a deposit prior to the seatrial. He is bound by the seller to do right by him and not give free, willy nilly rides to every person who comes along. Put it this way, why would he think you were serious if you're not willing to give a 10% fully refundable deposit? Maybe you don't have the money, maybe you're looking to buy another one and just want to seatrial one before you fly to Fla. to buy the other one.
This is not a big deal and the broker is not being a jerk based on this process. Make it a win win instead of Bob P's "I win, you lose" scenario.
This is not a big deal and the broker is not being a jerk based on this process. Make it a win win instead of Bob P's "I win, you lose" scenario.
Capt Bill
GreatGrady Captain
I'll weigh in here too. I have to agree with BobP on this one. Saleman's actions raise a red flag to me. I wouldn't trust him, in the even that something isn't to your liking, and you don't complete the sale (or for the initially agreed on price). He will probably hold your 10%, claiming expenses, etc. And if you bring a bank check for the full amount, what will you do if the surveyor uncovers something that is expensive to repair? Normally, that would be reason to either walk away, or re-negotiate the price. Salesguy seems to be forgetting that you have a stake in this too; if you walk, you have paid to survey somebody's boat and you're out the money.
I like Bob's idea; get in touch with the owner somehow, to get this resolved.
I like Bob's idea; get in touch with the owner somehow, to get this resolved.
What would be the dealer's instrument that reads his deposit is 100% refundable for any reason, his word ?
Get the document and give it to your lawyer, make sure for any reason whatsover it is refundable, 100% and immediately.
Hearing someone say it is "standard practice", means squat in court and of no value to me. After all, is the OP supposed to be an expert in such business or just an everyday Joe looking to purchase a boat for sale?
I would have received my 100 bucks back if I decided out of the deal at the Grady dealer, for any reason. I can tell you that.
You trust who you want. Not me.
Get the document and give it to your lawyer, make sure for any reason whatsover it is refundable, 100% and immediately.
Hearing someone say it is "standard practice", means squat in court and of no value to me. After all, is the OP supposed to be an expert in such business or just an everyday Joe looking to purchase a boat for sale?
I would have received my 100 bucks back if I decided out of the deal at the Grady dealer, for any reason. I can tell you that.
You trust who you want. Not me.
And by the way, the owner who contracts the broker, hands the keys over and it's up to the dealer to get it sold, it's not the owners business to give such direction as "don't be giving free boat rides willy nilly" nonsense.
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Well 10% down subject to seatrial and survey are SOP on how boats are sold through brokers. If you are uncomfortable with that, tell the broker. I am sure you can come to an agreement. $100, $500, $1000, whatever the broker will accept as proof you are bonafide and to hold the boat for you, in the event another offer should come in. There was a time when boats would fetch multiple offers, the first offer with a 10% deposit was the only way to be fair to the owner and the potential buyers. In my opinion there are no red flags here from the broker.
Well 10% down subject to seatrial and survey are SOP on how boats are sold through brokers. If you are uncomfortable with that, tell the broker. I am sure you can come to an agreement. $100, $500, $1000, whatever the broker will accept as proof you are bonafide and to hold the boat for you, in the event another offer should come in. There was a time when boats would fetch multiple offers, the first offer with a 10% deposit was the only way to be fair to the owner and the potential buyers. In my opinion there are no red flags here from the broker.
Something just doesn't sound right. I can see a $100 non-refundable deposit to cover the cost of gas and time of a sea-trial. At least the $100 covers the time of a Captain or the owner to go out and gas so it's not a joy ride. Since you already had the boat surveyed (and motors too?) you're already out a few hundred and are serious. Since the guy is working out of a trailer not a dealership I'd be even more worried. Also is the boat on consignment? Who really owns the boat?
I'd offer the $100 (or whatever you're comfortable with) non-refundable deposit for a sea-trial. Show the guy the surveys and tell him you're serious and are already out money even if the sale falls through and let's stop jerking chains. With the used boat market the way it is he should be drooling over a sale and not busting your chops.
He may be legit but something just doesn't feel right, be ready to walk away.
I'd offer the $100 (or whatever you're comfortable with) non-refundable deposit for a sea-trial. Show the guy the surveys and tell him you're serious and are already out money even if the sale falls through and let's stop jerking chains. With the used boat market the way it is he should be drooling over a sale and not busting your chops.
He may be legit but something just doesn't feel right, be ready to walk away.
Thanks guys,
I have spoken to the owner of the boat and faxed him and the broker my offer and how it will happen.Survey in water to be done aug. 25. Seatrial and bottom survey scheduled with owner and surveyer with me on board aug31st.When all goes well pay for the boat in full, put it on the transporters trailer, call the insurance guy , get binding,.The only question left is certified check or wire transfer.I believe the check is easier, since I would have it in my pocket.Who it's made out to, I will find out.It will be drawn from the same named bank as the owners', we both use wachovia.To do the transfer would take longer and we would have to leave the marina to do it.If the check is in my pocket and all goes south, then it goes back to my bank"not used for intended purpose" and redeposit.So how am I doing now??I believe the broker backed down from his original perch :wink: THANKYOU ALL FOR YOUR HONESTY.iF NOTHING ELSE,I HAVE FOUND THE RIGHT CROWD TO GET ANSWERS FROM :lol:
I have spoken to the owner of the boat and faxed him and the broker my offer and how it will happen.Survey in water to be done aug. 25. Seatrial and bottom survey scheduled with owner and surveyer with me on board aug31st.When all goes well pay for the boat in full, put it on the transporters trailer, call the insurance guy , get binding,.The only question left is certified check or wire transfer.I believe the check is easier, since I would have it in my pocket.Who it's made out to, I will find out.It will be drawn from the same named bank as the owners', we both use wachovia.To do the transfer would take longer and we would have to leave the marina to do it.If the check is in my pocket and all goes south, then it goes back to my bank"not used for intended purpose" and redeposit.So how am I doing now??I believe the broker backed down from his original perch :wink: THANKYOU ALL FOR YOUR HONESTY.iF NOTHING ELSE,I HAVE FOUND THE RIGHT CROWD TO GET ANSWERS FROM :lol:
Sounds like you have it worked out. I like the cashiers check idea. You have your money in your hand and you decide when to proceed. Let's see some pics. :lol:
Cashiers check is a standard money instrument for this type of transaction. I have not heard of a 10% deposit, usually it's a thousand or so, and Usually they staple the check to the deal jacket. But yeah, a purchase agreement should spell out all of the conditions for any monies, refundable deposit, costs, subject-to's, etc.
For a wire, I would use an escrow agent since it can take a day to get a wire done. The money can be sent ahead of time and held by the escrow agent, released to the seller/broker on your approval. This just makes it more complicated though.
Make sure you get your titles and transfer certificates and all that. We've seen a couple of horror stories reported here. Highly unusual, but does happen on occasion.
What model boat is it?
For a wire, I would use an escrow agent since it can take a day to get a wire done. The money can be sent ahead of time and held by the escrow agent, released to the seller/broker on your approval. This just makes it more complicated though.
Make sure you get your titles and transfer certificates and all that. We've seen a couple of horror stories reported here. Highly unusual, but does happen on occasion.
What model boat is it?
Have you seen the title or registration yet?
Is the boat HIN same as registration reads, date of manuf. etc.?
Any liens on it?
Have you ever been on the water on this model boat before?
You ask the broker who to make out check to, usually it's the brokerage or dealer, not owner.
What is your plan if there is a lien on the boat?
What is your plan if you don't like the ride?
Do you intend to have motors checked out by Yamaha mechanic? Remember, surveyors don't do motors.
If there are any electronics involved, be sure they are listed and descibed in bill of sale, same goes for S/Ns of motors in bill of sale. S/Ns must be listed.
Good luck.
Is the boat HIN same as registration reads, date of manuf. etc.?
Any liens on it?
Have you ever been on the water on this model boat before?
You ask the broker who to make out check to, usually it's the brokerage or dealer, not owner.
What is your plan if there is a lien on the boat?
What is your plan if you don't like the ride?
Do you intend to have motors checked out by Yamaha mechanic? Remember, surveyors don't do motors.
If there are any electronics involved, be sure they are listed and descibed in bill of sale, same goes for S/Ns of motors in bill of sale. S/Ns must be listed.
Good luck.