Boat Closing Statement
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Introduction
June 11, 2023 - The boat closing statement form is intended for usage in boat purchase and sale transactions. It is a professional design that utilizes double entry layout for a high degree of accuracy in balancing the contributions and distributions. The statement displays the entire transaction from both a buyer's and seller's prospective. It may have legal and tax implications, therefore, all parties should consult with an attorney or accountant with any such concerns.
Context
This form is fashioned after those typically used in real estate transactions and can be utilized to accommodate broker, third party, or buyer to seller direct transactions. This includes the master vessel and any trade-ins. Ancillary vessels such as title dinghies and tenders can also be listed and/or valued separately. The form also contains a signature section for the buyer, seller and broker when applicable.
Access
The boat closing statement form is provided as an example only which can be viewed or downloaded from WikiTags.
Instructions
Vessel Description Box - This is where the boats involved in the transaction are identified. These may be the master boat, ancillary boats such as dinghies and tenders, and any trade boats. They should include descriptions along with all relevant identification, registration, and documentation numbers.
Buyer / Seller Boxes - List the respective parties names and addresses.
Items Column - Enter a brief description of the various considerations and distributions for both parties.
Buyer Debits / Credits - The debit column represents the value of all distributions from the buyers account at closing. This may include the purchase price and any other items such as taxes and registration fees as required by a lender. The credits column shows how the distributions are to be funded. This includes the value of any trade-ins. A deposit with the broker is considered as an advance to the seller which is settled outside of the closing. The buyer debits and credits column totals must balance although not necessarily with the seller's columns..
Seller Debits / Credits - The debit column represents the value of all distributions from the seller's account at closing. This may include the value of any trade-ins, broker deposits, and lien-holder payoffs. The credits column reflects the sales price and any other items collected on behalf of the seller. The seller debits and credits column totals must balance, although not necessarily with the buyer columns.
Signatures - A final closing statement should be approved by the buyer, seller, and broker if applicable.
Conclusion
The settlement statement may require some practice and evaluation in order to determine the logic. All column totals should be double checked for accuracy. Use of this form may have legal and tax implications, therefore, you should check with an attorney or accountant with any such concerns.
Credits and References
June 11, 2023 - Page revised.
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