What questions should you be asking of a
professional yacht broker when buying a pre- owned boat?
As you search for the perfect yacht to put your hard- earned capital into, there are a number of key areas fundamental to the exchange of title which a professional yacht broker will help you with. These areas are well regulated in most European countries by specialist associations and governing bodies. In this issue, we ask the two most widely recognised associations in the UK – the Association of Brokers and Yacht Agents (ABYA) and the Boat Retailers and Brokers Association (BRBA) to identify what you can do to prepare yourself. Both of these associations operate in Europe too, and the same core principles remain true in almost every country where you might buy a boat through a professional yacht broker.
Before you agree any terms:
» Is the broker/dealer a member of an association which operates a Code of Practice/Conduct that its members must adhere to? If so, you should download them from the association’s website and study the rules to which your broker is bound.
»
If you are buying a second-hand boat, does your broker operate a properly administered and designated client account. Will your purchase monies be kept in this account during the brokerage transaction?
»
If you are buying a new boat either through a dealer or from stock, what are the payment arrangements? If stage payments are required, when are they due and when does title of the boat pass to you?
Before you sign any contracts:
» Will your broker/dealer use an approved contract such as the standard ABYA/ BRBA contracts? If so, you are in safe hands. These have been written by qualified marine lawyers and have had the approval of the RYA to ensure that the interests of the buyer, the vendor and the broker are best protected. Your broker will guide you through the sections that are relevant to you.
» Is the contract subject to a sea-trial and survey or is it unconditional? It is strongly advised that you carry out
an independent survey when buying a second- hand boat.
» Will the contract contain a specification/inventory? This is vital to determine exactly what is included and excluded from the sale.
» At what stage does the boat become yours and when do you become responsible for insuring the boat, paying mooring fees, crew wages, etc?
» What are the arrangements for completion? When precisely will you exchange the balance of monies for keys and title documentation?
2 YACHTWORLD.COM SepTeMbeR 2010
» Does the vendor have marine finance on the boat and if so what are the detailed arrangements for payment and discharge of it, prior to completion?
» What title documentation will the seller provide for the boat? For example:
9 Previous Bills of Sale (these transfer legal title)
9 Evidence of VAT status
9 Evidence of RCD compliance at build/entry to EU
9 Part I Registration 9 Builder’s Certificate
Do not be afraid to ask to see copies of these documents well before you place a deposit. They are vital documents that you are going to need later, so make sure the vendor and his broker can produce them.
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