You can enter into your own boat purchase agreement or use a form provided by your state (for example, search online for “Michigan Boat Purchase Agreement”). When you find a form, it will likely include details about your condition. Some states require that the contract for the purchase of a boat be notarized by both the buyer and the seller. The contract for the purchase of the boat may be concluded before the sale is final, usually with a down payment, with contingencies that may include obtaining financing, or the boat passes a mechanical inspection, an inspection at sea or a test at sea. If problems arise, e.B a repair that should be done, these conditions can be negotiated and set out in a new agreement, or the buyer can get away with a refundable deposit. If your state does not require or offer the use of a particular form, you may be able to use a generic boat purchase agreement as proposed by: Whether you are buying a new or used boat, the best way to protect your interests is to describe the terms of the sale in writing. In addition, you will learn about the boat and its behavior during an investigation and test at sea. This is beneficial, whether you are new to boating or increasing in size, complexity or cost. Another advantage of an investigation and sea trial is that the contract price can be renegotiated or you can withdraw from the company if problems arise with the right purchase contract. Once you have decided that this is the boat you want to buy, agreed on the terms with the seller and checked if the title and registration are in the seller`s name, fill out a purchase contract form.
Visit our online boat buying guide to download one. The right documents can make it easier to sell a used boat and avoid surprises, says boatUS. A boat purchase contract (also known as a boat purchase contract) is a document used to describe the terms of a transaction between a private seller and a buyer. This is a contract specific to a boat sale and can be used for a motorized or non-motorized boat, as long as it is not also a U.S. Coast Guard vessel registered by the U.S. government, rather than being titled and numbered by a state (there are separate forms for the sale of a documented vessel). Disclosure by the seller of the condition of the boat can be a tricky issue. Most private sellers sell their boat in the “as is” state. The actual sale offers virtually no recourse against the seller in the event of a problem, so an investigation and test at sea become even more important. In general, there is no obligation for the seller to voluntarily provide information that the buyer does not request.
Consider adding a line in your purchase agreement asking the seller to indicate if they are aware of any serious defects, previous accidents, or burglaries in which the boat may have been involved. If the seller resists, you may want to leave. When you buy from a broker, the purchase contract is usually standardized. But that doesn`t mean you shouldn`t go through it carefully and make sure that things like the tank and engine hours are filled accurately. The broker`s information is only as good as what the seller provides. An old legal proverb says, “If it`s not in writing, it hasn`t happened.” A “purchase and sale agreement” is the best way to protect yourself. Too often, buying a private boat involves a currency exchange and a handshake to close the sale. A purchase agreement sets out the details of the sale, including unforeseen events (such as an unacceptable investigation or sea trial, or the inability to obtain financing and/or insurance) that allow you to renegotiate the transaction or even leave the business altogether. Be sure to specify exactly how and when you want your deposit to be refunded. The title of the boat lists all the privileges on the ship.
B for example a bank loan that must be repaid to transfer the title. If there is a loan, you want a statement in the purchase agreement that requires the seller to repay the loan within a certain period of time after the sale. Better yet, you may be able to meet at a local bank that has the privilege and have it released locally. If you are not completely satisfied with the seller`s ability to sell the boat, walk away. It is not necessary for a lawyer to draft the contract, although this should be taken into account, especially if you buy a boat at a high price or if you have one made especially for you. Most merchants use printed contracts with their name and address, but the “fillable” contract forms found in stationery stores or online are sufficient for private sales. (Or click here to download the BoatUS Purchase Agreement.) A handwritten agreement also serves the purpose. Regardless of the form, both parties must sign the contract. If the purchase agreement requires the signature of the seller and the manager of a merchant, make sure that both fields are signed. A written agreement eliminates or minimizes issues and problems that could later turn an agreement in the dock into a sour agreement in court.
By defining the obligations of the buyer and seller, as well as the period within which the sale must take place, you have a legally binding written document of the intentions of the parties. If a trailer is sold by boat, it will also be listed separately with its Vehicle Identification Number (VIN). The agreement should indicate a separate selling price for the vessel, outboard engine and trailer. The agreement should also list all accessories or equipment sold by boat, such as electronics, trolling engine, spare accessories, with serial numbers if available. If you sell the boat, items that are not included in the sale may be listed as “excluded” in the purchase agreement. Don`t forget to write the boat`s 12-digit Hull Identification Number (HIN) and engine serial numbers on all forms. .