So you have a contract on your dream boat, now what? To help guide, once buyer(s) and seller(s) obtain agreement on the PSA, the process with our key recommendations are as follows:
1. Inspection Period: Survey/Sea Trial/Haul Out: The first step is for the buyer(s) to hire a surveyor. The buyer’s agent will assist with logistics and provide feedback on known surveyors, but the buyer(s)chooses and hires the surveyor directly. Buyer(s) or buyer’s agent can schedule the haul out. Seller(s) is responsible for running the boat during sea trials. The buyer’s agent will typically attend the survey with buyer(s) and the surveyor. Our travel costs are covered if deal consummates, if not buyer(s) is responsible for buyer agents travel expenses.
Note: If there is a recent survey available, buyer(s) can potentially purchase and utilize it depending on finance and insurance requirements.
2. Insurance: During the inspection period, buyer(s) should start working with their insurance agent. Generally, the buyer(s) will provide the completed survey report to his agent for forwarding to the insurance company. It is recommended that insurance reviews prior to acceptance. If not possible, an insurance contingency can potentially be added in the acceptance.
3. Financing (Optional): If the boat is being financed, pre-approval should be in place prior to signing the PSA. The signed PSA and a copy of the survey will be provided to the finance agent. A finance contingency will be added to acceptance.
4. Acceptance/Rejection Process: After buyer(s) and buyer’s agent review the survey report and discuss findings, buyer’s agent will write terms of acceptance. This can consist of a price adjustment, repair, or combination of both. It also can consist of a straight acceptance. If agreeable to both parties, we move on to closing. If accepted by both parties, deposit is no longer refundable. Vessel can be formally rejected before the acceptance date or if agreed acceptance is not reached, the vessel is deemed to be rejected.
5. Closing Preparation: It is highly recommended that the buyer(s) hires a documentation agent. This agent performs a title/lien search (known as abstract of Title in the U.S) and prepares the bills of sale and all documents required to document/register the Vessel in buyer(s) name. The documentation agent will also provide running papers so the buyer(s) can operate the vessel while new registration is being processed. If financing is used, the finance company will often manage the documentation process via designated agents.
6. Closing: Closing requirements are detailed in the PSA (Purchase and Sales Agreement) ,but in summary consist of:
A. Seller(s) signs and provides all required paperwork to the documentation agent.
B. Buyer(s) or Finance company or both send balance of funds to Jordan Yachts Escrow. This must be performed the day before closing..
C. Jordan Yachts completes closing statements , provides to both parties, and receives approval from buyer to wire monies.
D. Jordan Yachts wires monies to seller.
Note that this is based on the IYBA contract and in yacht deals there are commonly custom conditions added to the PSA or acceptance. It is also common to have schedule delays due to weather, uncertain findings , and extended negotiations. Extensions for acceptance and/or closing are commonplace to keep within contract if desired. We will help you navigate to get you across the finish line.