Boat Purchase Agreement
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Introduction
Aug 10, 2023 - A properly crafted boat purchase and sale agreement will encompass all of the terms and conditions applicable to a particular transaction. Although standard formats are available online, they may need to be tailored for the circumstances at hand. Boat brokers, dealers and escrow agents will for instance require language that may not apply in seller to buyer direct arrangements. In any event it may be well worthwhile to have any type of agreement reviewed by an attorney, accountant or financial consultant.
Context
Usage of this form is directed toward buyer to seller direct transactions without the involvement of a broker or third party closing agent.
Source
A form example is available in PDF format from WikiLinks. In order to utilize the text, just highlight with your cursor, copy and paste into your word processing application. Or, you can save the file to your computer and utilize an online PDF converter as shown in WikiLinks.
Citations
Full legal names for the buyer and seller should be stated along with their physical address where service can be implemented. It is also advisable to include contact information such as telephone numbers and email addresses.
A full description of the master vessel and any ancillary vessels such dinghies or tenders should be listed. The same applies to any trade-in vessels if applicable. These must include at minimum, the make, model and year. All vessels should be further identified by any applicable hull identification numbers, state registration numbers or official USCG documentation numbers. These should be physically verified for accuracy prior to execution of an agreement.
Any furniture, accessories, equipment or personal items currently on board to be included or excluded from the transaction should be listed within the agreement or as an attachment.
Most vessel purchase agreements include a waiver of product warranty that the vessel and any inclusions are to be sold "As-Is / Where-is", unless otherwise stated.
The total purchase price for all items involved should be shown in U.S. Dollars unless other denominations apply. Any value breakdowns for ancillary vessels or other items may be shown as inclusions or can be specified in respective bills of sale. This is sometimes necessary for tax or insurance purposes.
Required methods of settlement should be clearly defined, including any deposits, trade values or buyer direct to lender payoff amounts if applicable. The amounts of any seller financing arrangements may also be addressed.
Terms related to a time and place for the closing settlement should be stated along with the identity of a third party closing agent if applicable. Any conditions of final acceptance such as sea trials or financing should be listed, including the implementation methods thereof.
Seller responsibilities and requirements for providing a marketable title and the retirement of any existing liens or encumbrances should be clearly defined. This includes a statement of warranty or guarantee and conditions for releasing all applicable certificates and related documents.
Responsibility for any damages or liabilities that may occur prior to closing should be clearly identified along with the need for any respective insurance coverage.
Carefully worded language that addresses any termination conditions or terms of default should be included an any purchase agreement.
All parties involved must sign the agreement and include an execution date. Although notarization is not typical, this can be accomplished with a notary's attachment.
Conclusion
Boiler plate purchase and sale agreements are readily available online to the public at no cost. However, these should be approached with caution given the legal ramifications of such transactions. They may need be tailored or revised commensurate with a broad range of circumstances. Any such concerns should be addressed with a qualified attorney, accountant, or financial consultant.
Credits and References
Aug 10, 2023.
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