The Agreement

Advice on the preparation of a Yacht or Boat Sale and Purchase Agreement

Once an offer is accepted we will prepare a Yacht or Boat Sale and Purchase Agreement to confirm what has been agreed verbally together with a current specification and inventory which we will provide to both parties with an additional copy for your files.

At this stage, we will provide your personal and boat details to Marine Insurer’s for preparation of a marine insurance quotation.

We will ask you to sign and return one copy of the Sale and Purchase Agreement plus a holding deposit (normally 10%), which holds the boat for you and ensures that it is taken off the market as “sale pending”. If a survey is required, we will also ask you to provide payment for the survey if you have asked us to arrange it, together with slipping charge cost if a yard is lifting the boat out of the water.

The deposit money will be placed in our client (escrow) account where it will remain until the transaction is complete.

At various times during the transaction, the money that you have provided may move from being a deposit to becoming a part payment. As an example, if the boat is being bought unconditionally, i.e. “As is, where is” the deposit will become a part payment immediately upon receipt by us and, as such is no longer refundable.

As soon as the deposit becomes a part payment you should instruct the insurers accordingly. This is very important at this stage, as you will now have an insurable interest in the boat.

Once both copies of the Sale and Purchase agreement have been received by us, we will carry out the following work:

a) Re-confirm that the vendor has full title to the boat.

Although we will have already asked the vendor to confirm that they have full title and are authorised to sell their boat we will of course carry out checks on your behalf to re-confirm that this is the case.

Where the boat is fully registered we will obtain a transcript of registry as proof of title otherwise we will obtain five years proof of ownership for you to consider as sufficient title for your needs. Lloyd’s Registry and the Small Ships Register do not demonstrate full title.

b) Re-confirm VAT status.

The vendor will have advised their understanding of the VAT status with us already, however will carry out additional checks on your behalf at this stage.

c) Re-confirm RCD status.

Any new leisure craft when sold or put into service, or any boat imported to the EU since June 1998 must be certified to comply with the Recreational Craft Directive. We will ensure that the boat complies fully and that a certificate of compliance, an owner’s manual and a CE marking plate is present on the boat.

Under the terms of the directive, any yacht, which was built and in service in the EU of European construction is deemed exempt from the Recreational Craft Directive provided that she is pre 16th June 1998.

Where a craft is exempt we normally recommend that an exemption certificate is obtained at this stage and if necessary we will provide details of an RCD qualified body that can prepare one.

d) Prepare a Bill of Sale.

We will prepare a bill of sale and any other relevant documents so you can demonstrate your ownership going forward. We always recommend full Part 1 Registration on any boat worth in excess of £30,000 and will arrange this for you in the jurisdiction and home-port of your choice if you require.

e) Provide your details and details of the boat for Marine Finance where required.

We will help you obtain a Marine Mortgage if required. Although we can help provide unsecured finance (up to £25,000), this is best arranged through your existing bank.

If you already have approval in principle we will liaise with the lender and provide details of the boat and the sale timescales etc. to them such that they can complete their approval.

If you are financing your boat the lenders will require your insurance to note them as an interested party to the policy.

f) At this stage, we will also provide you with a list of industry approved Surveyors if you have specified that the contract is subject to survey.