Whether a Jet Ski or a Mega Yacht the elements of buying and selling truly are the same.

Over the course of the last fifteen years in the Marine Industry, I have provided new and brokerage services for a wide array of boats/yachts. I have watched the industry change with the largest impact being the Internet. The Internet has allowed buyer's and seller's to access more information than ever before. In the past for a seller to effectively find a buyer and visa versa a buyer find a seller, Brokers were the best source for "Boats for Sale". With the advent of the Internet and various listing services available to sellers, the services of Brokers has changed. I will say that for certain sellers and certain buyers that traditional service still very much applies. The concept still exists. If you do wish to transact though without those services be informed and understand the process.

For those who do choose to both buy and sell without a Broker, it is paramount that both parties interests are protected. For that matter even if you are to use a Broker it is good common sense to understand how that Broker is protecting your interests. The tools of the trade are built around agreements that establish the terms of any transaction. The execution of those terms is a bonified service of the Broker but can be accomplished individually as long as both the buyer and the seller use the correct process and agreements to execute.

I have packaged a number of suggested documents which are examples of agreements and industry understood formats to provide the basis of executing a transaction. The terms and conditions in these agreements are for the protection of both parties. If followed, they will reduce the potential for mis-understanding and provide the basis of initiating, executing and concluding the sale of marine related property successfully and with confidence.  

The following documents (forms) are provided with a brief description of usage:

Purchase and Sale Agreement Private Sale
This agreement represents the basis of a purchase, where price, terms and conditions are established by a buyer and accepted by a seller. The more complete the better off everyone is as the process proceeds. Identifying the specific individuals or other legal entities who will execute the transaction, make sure that this is fully understood. Vessel details define what is being purchased, pricing and terms are negotiable until agreed and signed by both parties. Dating is important so there is no misunderstanding as to when each phase of the transaction is to be accomplished. Terms often include financing, surveys and sea trials, verification of ownership and detailed equipment lists which can be made an attachment to the agreement. They have priorities, as an example, it is a bit out of sequence to be surveying a vessel with the related expenses if a finance contingency has not been completed. It is therefore a prudent idea to establish a date where each contingency must be completed by within the time frame of the final closing date. Dating must be reasonable so as to not allow for a date to lapse therefore voiding the agreement and potentially losing the transaction. Once agreed by both parties, signed and a deposit has been made, a binding agreement has been established.

Buyer Acceptance of Vessel
Once all the terms and conditions have been completed, entirely, it is best to complete this agreement as an attachment to the original Purchase and Sale Agreement. This document establishes for both parties that the buyer is proceeding to close. Why this document? This allows for the time necessary for the buyer to make final arrangements for insurance and funds as well as for the seller to make those documents necessary for transfer of ownership available for closing. This also allows for the potential of an adjustment to either price and or the necessity to complete repairs or replacements not understood at the time the original agreement had been executed. This is the point of final commitment in that deposits are understood as irrevocable and will not be returned to the buyer due to lack of performance. It also establishes that the seller must complete the transaction.

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