Name: Yacht Brokers of Annapolis
Address: 8 Anne Court, Severna Park, MD, 21146, United States
Telephone: (410) 206-2755

So you’ve found the perfect boat… Now what?

Now is the time to write up an offer! A written offer holds much more weight than a verbal offer… in fact, most Seller’s agents won’t even present an offer to their clients unless it’s in written form. All you need to begin the offer process is your driver’s license(s) and email address. No deposit is required until your offer has been accepted by the Seller and all parties have signed the Purchase Agreement.

Understanding the Purchase Agreement… aka “The Offer”

A Purchase and Sale Agreement is a legally binding document, so there’s going to be a whole bunch of important stuff in there to read through. However, there are a few key pieces of information you need to pay attention to:

Price

Perhaps the most important piece of any offer is the price. Many items factor into the initial offer price including recently sold comps, boats currently on the market, and the actual condition of the boat. A reasonable offer carefully considers the actual selling prices of comparable boats and appropriately adjusts for any equipment upgrades or deficiencies unique to the specific boat you are interested in buying.

Contingencies

There is a section in the offer for contingencies or additional terms contingent to the purchase of the vessel. These usually include provisions for a vessel survey and trial run, but may also include buyer financing approval, inclusion of a specific piece of inventory (tender, linens / galleyware, tools, etc), or the negotiation of storage post sale.

Dates

There are two key dates in the offer that must be adhered to: The Acceptance of Vessel date, which is when the Buyer needs to let the Seller know if they intend to move forward with the purchase of the boat (Accept), or if they plan to terminate the agreement (Reject). The Closing date is when the boat becomes yours! Closing can occur when all funds have been collected, original signed paperwork has been received and ownership can be transferred.

The offer is typed up and sent out via email for you to review and electronically sign. Once your signature is received, it is sent to the Seller / Seller’s Broker to be presented. Often times there is some negotiation before a final version is accepted by both Buyer and Seller.

Once everyone comes to an agreement, a new offer is typed up and sent out to all parties to sign.

At this point a 10% deposit is required from the Buyer which will be held in escrow. The deal is not official until money changes hands, so it is important to get your deposit in ASAP once an offer is accepted. When the deposit is received, your Broker will sign the Purchase Agreement acknowledging receipt of funds and a fully executed agreement will be sent out to all parties for their records.

Survey

After all parties have signed the Purchase Agreement and the deposit is in escrow, it’s time to schedule the survey which will provide a snapshot of the condition of the boat. If you are financing, this will be a requirement of your lender, but even if you are not financing, it’s still a very good idea to have the boat surveyed. Be sure the surveyor you select is accredited (either NAMS or SAMS) to ensure they are a qualified inspector. Please note, the surveyor is your choice, since they are working for you! Your Broker will help coordinate all of the logistics of survey day once you have selected your preferred surveyor.

In preparation for the survey, it’s the Seller’s responsibility to ready the boat, commission systems, and provide an operator for the trial run. As the Buyer, you are responsible for the surveyor(s) fees, haul out / launch, and fluid sample analysis. Buyers are always encouraged to attend the survey as you learn a lot about the boat, how it runs, and can ask questions to help you get to know your new boat!

After the survey, you need to decide the following:

ACCEPTANCE OF VESSEL

Where you accept the boat after survey with no further negotiations. The Buyer wishes to proceed to Closing.

AMENDMENT TO THE PURCHASE AGREEMENT

Where you negotiate with the Seller to alter the terms of the Purchase and Sale Agreement to address deficiencies found at survey. This could be a reduction in the agreed upon price, an addition of a contingency for the Seller to complete a repair, or for the Acceptance of Vessel and Closing date to be revised to accommodate an altered timeline. Once all parties sign the Amendment, the Buyer then signs the Acceptance of Vessel and proceeds to closing..

REJECTION OF VESSEL

You have surveyed the boat and have decided not to move forward with the purchase. Time to keep looking for that perfect boat. A Rejection of Vessel form is signed and your deposit is returned.

Closing the Deal

After Acceptance is signed, the closing paperwork can begin! Expect our Closing Coordinator to reach out to you to introduce themselves and ask a few questions so they know which documents to include in your closing package. Typically, closing documents are prepared and emailed for you to print, sign, notarize, and UPS/FedEx back to us. If you are financing your purchase, our Closing Coordinator with work with your lender to get your loan amount, lienholder information and any additional form that are required for you to sign. Your closing package will include wire instructions for the balance due, as cashier’s checks and personal checks are not acceptable forms of payment since they require additional time to clear.

The Sellers will also receive their own closing package to execute. Once all paperwork is returned, an insurance binder is in place, money collected and funds have been distributed to the Seller, the deal is considered to be closed and Congratulations are in order! You may now go and enjoy your new boat.

Other Costs to Think About (besides purchase price)

Surveyor’s Fee (Approx. $35-$40/linear foot length of the boat)
Launch and/or Haul for survey (Approx. $15- $20/ linear foot length of the boat)
Yacht Brokers of Annapolis processing fee ($795; includes preparation of closing paperwork, filing appropriate forms with the Maryland DNR, title search and recording of ownership with the USCG, temporary registration, overnight postage fees, wire transfer fees, handling payoff to transfer ownership)
Sales Tax depends on which state the boat will be registered (MD 5%, max $16,000; sales tax will only be collected if keeping the boat in Maryland, as we are Maryland dealers)
USCG documentation (Approx. $700-$1,000). If you are financing your purchase, your lender will be doing this for you, as it is a requirement for the loan.
Temporary / Permanent Storage after closing
Insurance (we can help with recommendations; please note, you must have an insurance binder in place in order to close)
Transportation (If being moved by truck or captain to another location, we can help with recommendations)

Ready to buy?

Give us a call today to get your boat on the market!

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