T&T: Issue with broker and survey (fairly long)

[Albin43SDtr]

'Lo All,

EVERYTHING is open to negotiation prior signing the contract, and 
costs/adjustments to remedy  problems are open to negotiation 
afterwards - provided they are spelled out in the contract...

I, as the buyer, have to satisfy myself that the contract fulfills MY 
needs and protects my interests (or of the needs and interests of my 
friends - the following is written as if I was the one purchasing all 
of the boats - I wish :) ). If the seller wants to sell, he is 
expecting to negotiate and will. The broker (and, of course, the 
seller) wants the price to be as high as possible, and will use 
whatever means he can to make that happen - its his job. If he can 
bluff a buyer into accepting his version of a "Standard Contract", he 
has at least partially succeeded.

I have my own version of contractual requirements.

Any contract I sign will have the following, all SUBJECT TO THE 
BUYER'S APPROVAL:

Sea Trial,
Hull and engine surveys,
Suitable financing,
Suitable insurance.

At the sea trial, the seller or his representative will be on board 
and will be solely responsible for the boat. I usually ask if my 
surveyor can run the boat during the sea trial. Whoever does it will 
do so under control/consent/direction of the owner or his 
representative. During the sea trial, I observe the boat's 
performance, from topside, throughout the boat, and in the engine 
compartment. The owner is representing the boat as seaworthy and none 
of the sea trial activities are anything more than any seaworthy boat 
is/should be capable of. Whenever the surveyor is about to do 
something that might cause something to fail, he explains what he is 
about to do and gets permission. This is for such things as WOT runs, 
hard over turns and emergency stops. If something should fail or be 
damaged, it is the owner's sole responsibility. Interestingly, I have 
never seen any problems during a sea trial that were caused by these 
activities/maneuvers, but I have had poor sea trials resulting from 
inoperative electronics, other inoperative systems and, especially, 
poor performance.

The bottom line is that the buyer must, in my opinion, only sign a 
contract that meets his requirements as well as being mutually fair. 
I feel that the original offer to buy the boat should be the selling 
price less costs to repair or replace anything deficient that is not 
known when that offer is made. The buyer should be confident that the 
boat is as claimed and observed to be (at the dock), as that is what 
he bases his offer on. The so-called "Standard Contract" is just a 
starting point. When looking for a boat and talking with numerous 
brokers, one quickly finds that there is no truly Standard Contract, 
just the one they have come up with. Most differ significantly. I 
have no problem lining through anything I object to and adding what I 
feel prudent to protect myself. I would not be putting a significant 
sum of money (to me, anyway) out for "Earnest Money" and surveyor(s) 
if I was not serious and did not intend to purchase the boat if 
everything was as advertised, claimed and expected. And, of course, I 
keep a copy of every paper I sign.

I have seen where a buyer was pre-approved for a sufficient loan to 
purchase a boat, but the lender would not loan money on that specific 
brand, model, type of boat, or possibly that specific boat. It could 
be that there was an undisclosed lien on it. That is why I always 
include the caveat that the purchase agreement is subject to 
financing acceptable to the buyer.

I have also been involved where the insurance companies refused to 
cover a specific boat at any premium. Even the broker could not find 
a company to insure the boat. No insurance = no financing, hence that caveat.

If, after the sea trial and surveys, I am still interested in 
purchasing the boat, I will make a new/amended offer covering 
repair/replacement for all of the deficiencies noted that had not 
been previously disclosed and accounted for in the original offer. If 
there are no deficiencies, I would expect to purchase the boat at the 
price I originally offered at the signing of the contract.

It is also stipulated in the contract that all funds paid as a down 
payment or earnest money will be promptly returned if the purchase is 
not completed for any of the reasons stated in the contract.

I have never had a seller balk on any of this despite the brokers' 
vehement objections. If they did, I simply would walk, and have.


Take care and be safe.

Wayne
Celestial
Albin43 Sundeck
Panama City, FL area