BoatWiki - Definitions
In boating terms, a closing can be defined as the process of finalizing a boat purchase and sale arrangement. This typically involves a third party closing agent that gathers all of the necessary funds, documents and other considerations from both parties to be exchanged at the time of a final settlement.
The term "closing" is analogous to an "escrow" and sometimes equated to a "settlement" or an "exchange". These terms may however take on different meanings according to the context in which invoked. The term "escrow" is not in fact, a term commonly used by professionals within the marine industry.
A boat closing is often viewed by the layperson as an escrow in keeping with the same vernacular you would find in a real-estate transaction. In the marine industry however, you will not find licensed and bonded escrow agencies that specialize or are willing to become involved in boat transactions. This is mostly due to the mystique surrounding boat titling, registration, and vessel documentation. There is furthermore no such thing as boat title insurance in the marine industry. Maritime closings are on the other hand, typically effected by a yacht broker, boat titling agent, lender, or perhaps an attorney.
Boat purchasers and sellers should exercise a considerable amount of due diligence in selecting a closing agent. The same procedures, safeguards and standards are not coincidental with those of a bona fide real estate escrow company. Parties that choose to close directly between themselves, should at least seek the consultation of a reputable boat titling professional or a qualified attorney.
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3/1/2022 - Page initiated by Team BoatWiki.