How to buy when buyers are in different states
- Thread starter Crtunez
- Start date
First, I urge that any buyer inspect the boat and have a sea trial before final payment. Second, unless you have a lot of experience surveying or building boats--hire a professional surveyor. In many cases it will pay to have a mechanic do an inspection of the engine. For example, excessive end play in the crank shaft (flywheel is loose up and down) means that there is not a proper thrust bearing certain year Honda 150's. Checking the thermostat visually will give some idea of the cooling system in general.
Now as to the procedure. First a offer is made with 10% down payment, subject to survey, engine check and sea trail, If all of this goes well, then the final payment is either done in cash, wire transfer or cashier's check. The Cashier's check is the riskiest of the 3. But, one can have the seller's bank confirm that the cashiers check is valid. (When I bought the current 25, the seller wanted a cashier's check. I usually do wire transfers.). In this case I had the private line of the manager of my bank so that his bank could confirm the validity of the cashier's check. After confirmed or wire transfer effected, then the title is signed over.
If the person who is buying is not present, they it may be best practice to have an intermediary (Escrow agent or Attorney) handle the funds transfer. The seller will have sent a scan of his title, and then signs it off, along with a bill of sale--one can even do FaceTime or Zoom, to assure this s done. The title and bill of sale (equally as important) is then sent by a secure mail service. (Such as Fed Ex overnight, with tracking). Your agent at the place where the boat is located, can affirm that the title and bill of sale are in order. (Some states tax the engine and trailer separately from the boat. The three items can be addressed in the bill of sale.
I bought one boat where the seller was just wanted hs loan paid off. I had accounts at that national bank. We arranged for the title to be released to me when I paid off his loan. This took some preliminary planning.
You want your insurance to cover the boat the instant you sign the contract. I make arrangements for that before I leave home. Also if a 3rd party is trailering or flat bedding out the boat--then you need to let your insurance company know who the hauler is, and have your boat covered by the transport. Try and get agreed value on the boat in insurance coverage, plus liability.
There then comes the issue of transport to your home state. Go to You Ship, or one of the agencies. Get the best bid. Be sure that the hauler, has insurance, bonded, and will call you each evening to know what the progress of his hauling is.
Now as to the procedure. First a offer is made with 10% down payment, subject to survey, engine check and sea trail, If all of this goes well, then the final payment is either done in cash, wire transfer or cashier's check. The Cashier's check is the riskiest of the 3. But, one can have the seller's bank confirm that the cashiers check is valid. (When I bought the current 25, the seller wanted a cashier's check. I usually do wire transfers.). In this case I had the private line of the manager of my bank so that his bank could confirm the validity of the cashier's check. After confirmed or wire transfer effected, then the title is signed over.
If the person who is buying is not present, they it may be best practice to have an intermediary (Escrow agent or Attorney) handle the funds transfer. The seller will have sent a scan of his title, and then signs it off, along with a bill of sale--one can even do FaceTime or Zoom, to assure this s done. The title and bill of sale (equally as important) is then sent by a secure mail service. (Such as Fed Ex overnight, with tracking). Your agent at the place where the boat is located, can affirm that the title and bill of sale are in order. (Some states tax the engine and trailer separately from the boat. The three items can be addressed in the bill of sale.
I bought one boat where the seller was just wanted hs loan paid off. I had accounts at that national bank. We arranged for the title to be released to me when I paid off his loan. This took some preliminary planning.
You want your insurance to cover the boat the instant you sign the contract. I make arrangements for that before I leave home. Also if a 3rd party is trailering or flat bedding out the boat--then you need to let your insurance company know who the hauler is, and have your boat covered by the transport. Try and get agreed value on the boat in insurance coverage, plus liability.
There then comes the issue of transport to your home state. Go to You Ship, or one of the agencies. Get the best bid. Be sure that the hauler, has insurance, bonded, and will call you each evening to know what the progress of his hauling is.
Several things can happen to protect the buyer as there are a lot of scams and when we are talking boats a lot of money at stake.
1. Use your surveyor, look them up directly. I typically will use NAMS or SAMS
https://www.marinesurvey.org/
https://www.namsglobal.org/
Some are accredited by both organizations. When hired they work for you, they can confirm paperwork such as the hull identification numbers and title/registration.
2. Use marine closing agent, this ensures title is clear and free of any liens at closing.
3. Hire your own transporter
4. Many times we and other boat enthusiast will check out a boat if anything just to help out other members of our group. I have offered to do this for Portland boats, a once over.
5. You can also arrange, sometimes, to have the boat dropped off at a local yard, have them complete some minor repairs and close while it's in the yard so the seller doesn't have possession when your money is sent out. This needs to be arranged ahead of time.
6. If it's too good and doesn't appears to be legitimate it probably isn't. I have caught many scams before even calling or sending an email. Look at the pictures, read the description, call and talk with the owner, ask questions, call the marine boat or titling agency in that state, often times you can weed out the scams before investing much time.
1. Use your surveyor, look them up directly. I typically will use NAMS or SAMS
https://www.marinesurvey.org/
https://www.namsglobal.org/
Some are accredited by both organizations. When hired they work for you, they can confirm paperwork such as the hull identification numbers and title/registration.
2. Use marine closing agent, this ensures title is clear and free of any liens at closing.
3. Hire your own transporter
4. Many times we and other boat enthusiast will check out a boat if anything just to help out other members of our group. I have offered to do this for Portland boats, a once over.
5. You can also arrange, sometimes, to have the boat dropped off at a local yard, have them complete some minor repairs and close while it's in the yard so the seller doesn't have possession when your money is sent out. This needs to be arranged ahead of time.
6. If it's too good and doesn't appears to be legitimate it probably isn't. I have caught many scams before even calling or sending an email. Look at the pictures, read the description, call and talk with the owner, ask questions, call the marine boat or titling agency in that state, often times you can weed out the scams before investing much time.
YES, I got a PM from a sharp eyed and helpful C-BRAT one day asking if my boat was for sale. It was in some boat trader or CR listing, and had a very recognizable photo of my boat in the ad. After a ton of chasing around, I-net and phone, it turns out some lazy goof wanted to sell his c-dory, told his secretary to list it and sent off to play golph. DingBat. Secretary just looked up C-Dory liked my picture, and copied it to the ad. When I responded to the ad add the nutzoid told me yes that was his boat. Well, long story short, I got that ad pulled. I consider him way out side the C-BRAT family and way more in the BRAT family.
Yes. Do your research. If you don't know, get help, and
Again, (and I don't remember who sent me the initial query) but THANK YOU again. (Oh I found it in the pix comments.) Thnx Brian.
Harvey
SleepyC:moon
Yes it was this pix. And NO It is NOT FOR SALE!!!
The was a scam on CL in Baltimore where some guy had a picture of someone else's boat in a Baltimore marina. The scammer said he was selling the boat and would hold it for anyone who sent him a $2k deposit. The actual owner saw this and was posting counter ads on CL saying that his boat wasn't for sale and any for sale ads were fake.
Seen it happen with other boats on CL too.
Seen it happen with other boats on CL too.
**UPDATE**
It looks like I'm buying a boat! A 23 Venture. Found a surveyor independently who did a sea trial and took videos. Anacortes Marine Documentation is currently doing a title search and will facilitate the title transfer and bill of sale. Insurance is set to kick in the day of closing and transporter will be insured as well. Now I'm in the market for a boat cover. I'll be creating a new thread to discuss that. Thanks again for the tips!
It looks like I'm buying a boat! A 23 Venture. Found a surveyor independently who did a sea trial and took videos. Anacortes Marine Documentation is currently doing a title search and will facilitate the title transfer and bill of sale. Insurance is set to kick in the day of closing and transporter will be insured as well. Now I'm in the market for a boat cover. I'll be creating a new thread to discuss that. Thanks again for the tips!