1968 44TC (double stateroom option) brink of purchase question

[fnuttersny]

Greetings group, about to take the big plunge on a 68TC double cabin for agreed sum. Owner/dealer will address agreed isuess. He would like 10% down in order to reactivate all systems and start work. For that sum: both engines in working order,all systems operating accept agreed known problems, good test run (no over heating,starting,stopping,shifting etc,functioning genset,etc). In addtion I will pay for short haul and ablative and conduct survey. QUESTION: ifam not satisfied after survey what happens to down payment, loose part,split, pay for his labor to activate boat,, what is customary. Boat is origonal in/out, interior not damaged/clean and DD have under 2k,in water 3 years and dry bildges . plan to upgrade to live aboard systems (HVAC,heads,plumbing). Based on comparisons we believe this to be a great opertunity to own a classic high end vessal. Group wisdow needed...thanks

 

[Finalee]

This discussion needs to be incorporated into the contract. Black and white language. If this happens this happens sort of thing. It certainly makes a difference in possible negotiating a better deal.

 

[SeaEric]

Deposit should be fully refundable, net of haulout charge and bottom paint if you choose to do that prior to purchase (which I would not). Buyer pays the surveyor and mechanic if he chooses to survey the machinery (which I WOULD do) It is the seller's responsibility and expense to make the boat ready for survey/sea trial and to provide captain and fuel to and from the lift for the short haul and run the boat for the sea trial.

 

[Freeebird]

Standard sales contracts involve returning the deposit if the survey and/or sea trial isn't to your satisfaction. Just check the language before you sign anything.

PS Was typing at the same time with Eric.

 

[fnuttersny]

Thanks for quick response Fred, contract will be drawn up..what would be fair? Owner will not recommission boat just for a "look see" and wants to use my deposit to cover reactivation cost. Boat will stay winterized otherwise. If I back out after neg survey for instance i would want most of my deposit back? If not I will be handing him a boat ready for market at my expense. There must be some protocol.

 

[fnuttersny]

Thank everyone for very very sound advice. I will renegotiate and see where it goes..

 

[jim rosenthal]

I think if you back out it should at least be partly at your expense, but I am interested to see what others say here.

I also think that someone who is selling the boat and wants it gone is not the ideal person to be working on the boat after it becomes the property of someone else. It seems to me that you would be far better off buying the boat at a negotiated lower price which would allow you to engage competent professionals to do that work which you can't do yourself. That, to me, would be a much cleaner deal.

On that, too, I am interested to see what others say. We have a number of marine professionals on this site who are also Hatteras owners, and I am curious as to their comments.

 

[saltshaker]

Thanks for quick response Fred, contract will be drawn up..what would be fair? Owner will not recommission boat just for a "look see" and wants to use my deposit to cover reactivation cost. Boat will stay winterized otherwise. If I back out after neg survey for instance i would want most of my deposit back? If not I will be handing him a boat ready for market at my expense. There must be some protocol.

SeaEric's post outlines what would be standard. He should know since he's a Yacht Broker. Every offer I made was presented with a 10% deposit which should be held in an escrow account. You should have all contingencies spelled out in the contract. If the boat fails survey or seatrial your deposit should be 100% refundable.

 

[saltshaker]

I think if you back out it should at least be partly at your expense, but I am interested to see what others say here.

I also think that someone who is selling the boat and wants it gone is not the ideal person to be working on the boat after it becomes the property of someone else. It seems to me that you would be far better off buying the boat at a negotiated lower price which would allow you to engage competent professionals to do that work which you can't do yourself. That, to me, would be a much cleaner deal.

On that, too, I am interested to see what others say. We have a number of marine professionals on this site who are also Hatteras owners, and I am curious as to their comments.

If he backs out because he changed his mind the deposit should be forfeited. If he backs out because the boat didn't pass survey or seatrial acceptably, all of his deposit should be returned. The cost to survey and haul the boat are the buyers. The cost to make ready and run the boat are the sellers. Eric spelled it out exactly the way I've always done it and what others expected.

 

[rwappleton]

What all of the above said!

 

[fnuttersny]

Well this is the ticky part. Owner of boat also owns working marina. I negotiated to 75% of asking and we met in middle. for that price he will complete my punch list (to be finilized on paper) have his mechanic reactivate and check
all systems for good working order and let me spend a day with mech for hands on familiarization. I have big ship mechanical background, commercial HVAC service forman currently but little experience with small motor yachts ( own and maintain 30ft sloop). For ou agreed price he puts his guys to work, work which I don't want to do ( rebeding windows, exterior wood repair etc. Plus half day on the water driving lessons. I would end up with dry sound running functioning boat ready for upgrade for under 40k with fresh bottom. I feel being a Hatteras is the big thing in my favor. Plus I don't fell he is pulling a fast one.

 

[SeaEric]

Somewhere in this scenario, hopefully near the beginning, is there a marine surveyor who is hired by and representing you, the buyer?