Category Archives: Buying a Boat

This area of Oasis Yachts will show you how to safely and successfully buy a boat in the USA. Take advantage of currently favorable foreign exchange rates. Learn how to find your dream yacht out of thousands of deeply discounted boats available in the USA. The current economic climate in the United States offers you the opportunity to purchase a yacht and ship her home for a lot less than buying the same boat at home.

Boat Sale Closings

Or how not to get sued after taking possession of your new boat.

Too often some of the details get passed over in the excitement of finally taking possession of your new yacht. You have done your due diligence and had the boat surveyed and taken her for a sea trial. You know that any issues that were raised have been addressed to your satisfaction either through repair or a negotiated price reduction. You take delivery and your family enjoys the boat for a year.

Then you get sued for $50,000 by a creditor for work performed on the boat for which they were never paid. But the work was done over two years ago! This was a year before you had even heard of this boat let alone taken ownership of it. Your attorney gives you the bad news that you are indeed liable for the outstanding bill.

The unpaid vendor applied a lien on the boat for the amount of the outstanding debt. No one bothered to let you know about this lien nor did anyone tell you that the lien goes with the boat and not the previous owner. That debt will follow the boat anywhere in the world. That is maritime law. This even applies to you if you are not a citizen of the United States of America and have the boat exported to your home country.

This scenario could have been prevented by following the many steps necessary to close the sale of a boat. Following these well established procedures should prevent this type of unnecessary surprise after you take possession.

Reputable yacht brokers usually have a person on staff that will take you through all the steps. If they do not have anyone onboard who can perform all the necessary documentation they must refer you to a documentation company who will handle these matters for you for a minimal fee. If you are financing the purchase using a bank that specializes in boat loans this service may be provided to you in house again for a fee.

The documentation required should include but is not limited to the following; a signed sale agreement, a signed acceptance of vessel, an original copy of the title or boat registration, identification for the buyer and seller, an Abstract of Title, a signed Bill of Sale, a loan approval, bank and wire information, a Removal Affidavit if you will not be paying sales taxes, insurance, possible removal from a foreign registry and more. This must be replicated if there is a tender, dinghy and other toys involved in the sale. Many of these documents will have to be notarized.

When exporting the boat from the United States to another country you will need a Manufacturer’s Statement of Origin, a Builder’s Certificate and several other documents which I will talk about in another article.

Call me at (954) 614-1663 if you need some guidance or have any questions. You can also reach me by email by addressing it to david@oasisyachts.com. If you found this article to be helpful I encourage you to subscribe to this site. Use the subscribe button in the upper right hand column of this page for more informative articles on buying a yacht.

Selecting a Surveyor

Surveying a yacht before making your final purchase decision will ensure that you take delivery of a boat in good condition with all systems working. Surveys are meant to protect you from unpleasant surprises.

Once you and the seller have settled on price and you are in possession of a Purchase and Sale Agreement signed by you and the seller the yacht is then taken off the market until you make your final decision to purchase. Your deposit money is safely tucked away in your broker’s escrow account. The purchase agreement allows a window of usually two to four weeks for you to have the vessel inspected.

Every boat should be surveyed before you lay out your hard earned cash and take possession. This includes new boats that have just been delivered from the builder. I have not met a new boat yet that arrived in perfect condition with all systems working and all flaws corrected. Float switches are not working, engine mounts are not secure, nicks in the Gelcoat have not been fixed, screws are missing and the list goes on. I have seen five page lists of items that need to be fixed on a brand new boat that need approval by the builder. Getting a survey done will save you a lot of money and oftentimes months of aggravation in warranty claims.

An engine survey and general hull survey are recommended. This requires two surveyors. The engine survey should be done by a qualified mechanic for the type of engines on the yacht. Have the engine survey inspect the generator as well. Find the local dealer for those engines and tell them you need a survey done. They will have someone on staff that specializes in yacht surveys.

The general or hull surveyor inspects all of the other systems on the vessel. This will include the condition of the hull and deck, running gear, appliances, furnishings, bilge pumps, sanitation and every other component that makes up the yacht. If you do not know a surveyor personally have your broker refer you to someone. I always recommend three or four surveyors to choose from to ensure that there is no perceived conflict of interest. When the boat is located in a part of the world that I am not familiar with I will call a broker colleague who works in that location for recommendations.

You can also do your own search for a surveyor by going to the Websites for the National Association of Marine Surveyors (NAMS) or the Society of Accredited Marine Surveyors (SAMS). You can search for surveyors in your area or close to the location of the vessel you wish to purchase. Find someone close to the boat if you can as surveyors will charge by the hour for travel.

Survey day is Judgment Day! Survey day typically has you meeting with your surveyors, the seller or his representative, someone to operate the yacht during the day, and your broker if you are using one. Surveys on small to medium size yachts can usually be accomplished in less than a day. Larger vessels can take up to a week to inspect all systems.

Arrange with a boat yard to have the yacht hauled out on the day of the survey so that everything below the waterline can be inspected. You will need to tell the yard manager when you want the boat hauled and the size and make of the vessel.

The survey day schedule will have everyone meeting at the boat first thing in the morning to start the survey. Surveyors like to do engine room work when the engines are cold. When that work is completed the boat is run to the haul out facility that you have selected. The boat is hauled to facilitate the inspection of everything below the waterline. This includes the hull, struts, shafts and bearings, props, through hull fittings and anything else that lurks down there.

The yacht is placed back in the water for a sea trial and the completion of the survey. Be prepared to pay all surveyors before they leave the yacht at the end of the day. You will also be required to pay for the haul out before the vessel is put back in the water.

Most surveyors will give you a report of their findings during the course of the day with a verbal summary before leaving the yacht. That will be followed by a written report by email and a hard copy by snail mail generally within a couple of days depending on the size of the boat and length of the survey.  Click here to download a marine-survey-example.

When you receive the survey results you will have the information necessary to make a decision to accept the vessel as is, ask to have certain issues corrected before accepting the yacht or reject the boat and get your deposit back.

If you need recommendations on how to find a surveyor or who to choose please contact me by email david@oasisyachts.com or my cellphone at (954) 614-1663.

Enjoy your day!

David Tomen CPYB

Instructions for Buying a Yacht

Buying a yacht begins with an offer to purchase. The offer is presented to the seller of the yacht on a legal document called a Purchase and Sale Agreement. Print out a copy and familiarize yourself with the wording. The Purchase and Sale Agreement used by professional yacht brokers in Florida was developed by the Florida Yacht Brokers Association for their members. This agreement has been re-written several times over the years under the guidance of maritime attorneys as a service to the association members.

Your broker will complete the Agreement following your instructions. When working directly with the selling broker he or she will guide you through the process. The document will include your name or your company name, the name of the seller, the offer price, the required ten percent deposit and relevant dates. The offer may include contingencies such as surveys, sea trials, and financing.

Ensure that the listing or description of the vessel is included as an attachment to the Agreement. This will prevent any misunderstandings regarding the inventory included in the sale when you take delivery. The importance of this step will become evident to you when you collect your new boat after closing only to discover that the dock lines that you thought were part of the deal are not yours to take and you have no way of tying up when you get her home.

Every page of the Purchase and Sale Agreement provides for the signatures or initials of both parties. This includes the attachment with the inventory of the vessel.

The Agreement will clearly state that the seller must respond to your offer by a date determined by you. You will likely receive a counter to your offer price from the seller. If the seller does not respond by that date the offer is considered void.

When you and the seller are able to agree on a price for the yacht the Purchase and Sale Agreement is signed by both you and the seller. Deposit funds are wired into your broker’s escrow account and the Agreement becomes a legally binding document. The seller must take the boat off the market until you either accept or reject the vessel. Most sellers will insist that the requirements of the Agreement be completed within three to four weeks of an accepted offer.

In my next article you will learn what is expected of you after your offer price has been accepted. Feel free to call me at (954) 614-1663 if you have any questions. Or send me an email. I typically respond to my messages and email within one to two days.

See you on the dock!

David

Boat Show Secrets Revealed

Most people who are shopping for a boat go to a boat show with high expectations. The majority of boat show attendees however leave the show at the end of the day with nothing to show for their efforts but sore feet and a sunburn. The disappointment is as obvious as is the frustration. Boat shows are after all one of the least expensive ways to shop for a boat with the largest selection and the best deals. So what goes wrong?

Let us take the Ft. Lauderdale International Boat Show as an example. This is the largest boat show in the world. This year the show will feature more than 3 billion dollars worth of boats, yachts, superyachts, electronics, engines and thousands of accessories from every major marine manufacturer and builder worldwide. The Boat Show encompasses more than 3 million square feet of space, both on land and in water, at six sites. Surely with this kind of selection available you should be able to find exactly what you are looking for.

This is a short video of the Ft. Lauderdale Boat Show last year.

The boat show that you attend is likely to be on a smaller scale than the one in Ft. Lauderdale. But the challenge is the same. No one has ever taught you how to shop for a boat at a boat show. Attending a boat show without a well thought out plan is likely not going to lead to satisfactory results by the end of the day. Here are some tips to guide you through the day and find the boat you want.

Go to the boat show website several days in advance. This is the link for the Ft. Lauderdale Boat Show here. Most well organized boat shows should have a list of exhibitors somewhere on their site. Search that list for the boats that you want to take a look at and write down where that boat will be at the show. If the location is not listed there should be the name of the dealer with a contact number. Call the dealer and ask how to find them at the show. Get a cellphone number to call in case you get to the show and get lost in the maze of boats that are there.

Arrive at the show when the gates open as the crowds will be thinner than at mid-day. Get the show guide when you enter and locate the boat show map. Find a place to sit for a few minutes and mark the locations on the map where your boats are supposed to be displayed. Make a “You Are Here” mark on the map and plan your day. Failing to do this simple step will certainly lead to the day ending in frustration and disappointment.

Now this is likely to be the most valuable advice I can give you and that is to attend the show with your broker. If you do not have a yacht broker in your employ like you do an accountant and an attorney – get one. Unlike your accountant and your attorney who charge by the hour, yacht brokers do not get paid until a boat is sold. Furthermore, the yacht broker’s commission is paid by the seller. Most boat dealers will accommodate you if you insist on having your broker act as your agent in your purchase.

If the salesperson that meets you on the dock or at the booth in the convention center tells you that they don’t work with outside brokers you need to ask for the sales manager in that exhibit. The sales manager will likely be the owner of that dealership. The dealer is extremely unlikely to lose out on a sale just because you wish to use your broker as your agent in the deal. This will be especially true for every boat show in the United States this season.

Your yacht broker is also the best person to have in tow if you are considering the purchase of a brokerage or previously owned boat. It is a fallacy to think that you will get a better price if you deal directly with the listing broker. The seller is paying a commission whether there is one broker involved in the sale or two. The commission is simply split between two people rather than earned by one. With large numbers involved that are directly associated with your hard earned money this is the time you need to have a professional on your team whom you have grown to trust.

After the purchase of your home, buying a boat will likely be the largest buying decision you have to make. Most people are not born nor are they trained in how to search for or negotiate to buy a boat. Having your yacht broker meet you at the boat show will likely mean that not only do you not have to go through the effort of having to locate the boats you wish to see. You will not likely have to pay for the boat show tickets either or for lunch.

If you need a broker to show you around the Ft. Lauderdale Boat Show please call me (954) 614-1663). If you don’t plan to attend but could use some help at a boat show in your home town and need a yacht broker to help I can refer you to someone locally. Call me (954) 614-1663 or send me an email (david@oasisyachts.com). And I would appreciate it if you left a comment on your experience at a recent boat show in the box below.

Have a great show!

David

(954) 614-1663

How to Find THE Boat

There are 100,000’s of boats for sale in the world right now. In that sea of boats for sale is the ideal boat for you. I am going to show you how to find that boat. THE boat. Your boat. The boat you have been dreaming of but cannot seem to find.

I am a Certified Professional Yacht Broker which you can check out here. I have been helping people find the right boat since 1989. With this information you can empower yourself and finally end that frustrating hunt for the ideal boat. In future articles you will learn how to buy the boat and get it home. And then the fun begins!

Clearly the most obvious way to begin your search is using the Internet. Not many people read the classifieds in the papers and magazines anymore. The beauty of an Internet search is that you have access to information about practically every recreational boat that is for sale in the world while sitting in front of your computer screen. And it’s free!

Start your search with the largest Multiple Listing Services (MLS). Most of the time, you can search without registering or giving anyone your contact information. You have access to much of the same listing information as do yacht brokers.

Yacht Council is a multiple listing service that was launched by the International Yacht Council several years ago. You can find them here. This site was started by and is still owned by yacht brokers from all over the world. On Yacht Council you can be reasonably sure that the information on each boat is up to date and is actually for sale. The brokers that subscribe to this service adhere to a strict code of ethics and we keep each other accountable to keep this site the most professional listing service for yachts on the Internet. You can also find information on yacht transport, insurance and financing on this site.

Yacht World has the most boats listed in one place and is a good place to start especially if you are looking for a boat in the USA. On the left side of the front page is the Boat Search box. Click on Advanced Search at the bottom of that box. Be as specific as you can in filling out the fields and click on the region or country where you are interested in searching. Narrowing down the specific geographic area helps to keep the number of boats returned in your search results to a manageable level. Most yacht brokerage houses list their boats on Yacht World. Paid subscribers to the service have access to Sold Boat Reports, statistics and other terrific stuff. But unless you are a yacht broker you simply have access to the photos and descriptions of boats offered for sale.

Yacht World was bought by Trader Publications a few years ago. You may know that company through their Boat Trader, RV Trader, and Auto Trader magazines you find in the corner convenience store. Trader Publications also has their own online boat listing service called Boat Trader Online. You can access them here. Be aware that most of the boats listed on Boat Trader are also listed on Yacht World. Boat Trader used to be a For Sale by Owner site that has since been taken over by yacht brokers. You can still find some For Sale by Owner boats there but not many.

Those are the top three best places to start your boat search. Those sites are also used by yacht brokers when they are perusing boats for sale for their clients. A Google search will turn up several other listing services. Take it from a Certified Professional Yacht Broker (me!) that those are the only sites that I use and in the order listed at the beginning of this article.

In my next article you will learn how to get more information about the yacht in which you are interested. I have empowered you now to find the perfect boat for you and your family or business.

See you on the dock!

David