Existing financing on boat?

[Travelman]

Happy New Year everyone! Regarding purchasing a boat from, is there any way to check to see if there are any outstanding loans etc that have not been paid off? I could see this as possibly causing a problem down the line so would there be any way to protect yourself against repossesions?

 

 

[Momac]

Its unlikley a marine mortgage or other loan will have been secured on a boat unless the boat is  nearly new or very expensive.

 

[Travelman]

28 minutes ago, MartynG said:

Its unlikley a marine mortgage or other loan will have been secured on a boat unless the boat is  nearly new or very expensive.

 

Thanks Martyn!

[Tracy D'arth]

Get a credit check on the seller, will show up any dodgy situations.

 

Ensure that your bill of sale invalidates you completely from any hold or outstanding debt on the boat.

 

Be sure you know who is the seller, ask if he is the owner, then make sure you know how you can get hold of him after the sale.

[Alan de Enfield]

54 minutes ago, Travelman said:

Happy New Year everyone! Regarding purchasing a boat from, is there any way to check to see if there are any outstanding loans etc that have not been paid off? I could see this as possibly causing a problem down the line so would there be any way to protect yourself against repossesions?

 

 

The answer is NO.

 

All you can do is to use a detailed contract (as per the RYA or BMF) where the seller declares that the boat is free of all encumbrances, which at least gives you a little protection (that you bought i good faith)

 

Example :

 

1.1. The Seller agrees to sell and the Purchaser agrees to purchase the Vessel free from all debts, claims and charges of every kind subject to the terms of this Agreement for the sum of £xxxxx (pounds sterling xxx xxx xxx  (“the Purchase Price”)  together with all the gear and equipment bought for and belonging to the Vessel as detailed in the attached inventory but excluding provisions and the Seller’s personal effects. 

[Travelman]

Cheers Alan!

[Tracy D'arth]

1 minute ago, Travelman said:

Cheers Alan!

Thought I gave good advice.

 

OK, I don't come here to collect likes or thanks, just to try to help.   If the Font of All Knowledge from Enfield  is the guy you want to thank, fine.

[Travelman]

1 hour ago, Tracy D'arth said:

Get a credit check on the seller, will show up any dodgy situations.

 

Ensure that your bill of sale invalidates you completely from any hold or outstanding debt on the boat.

 

Be sure you know who is the seller, ask if he is the owner, then make sure you know how you can get hold of him after the sale.

Thanks Tracy. I doubt I'll be doing a credit check on anyone as I personally feel it's a little intrusive, at least it would be to me. I will, however get a bill of sale written up with the clause that Alan posted.

1 minute ago, Tracy D'arth said:

Thought I gave good advice.

 

OK, I don't come here to collect likes or thanks, just to try to help.   If the Font of All Knowledge from Enfield  is the guy you want to thank, fine.

Hey, when I logged in the only notification that popped up was Alan's at the bottom of the screen which I clicked on. I did not see your post until I scrolled up. I always reply to everyone.

[ditchcrawler]

10 minutes ago, Tracy D'arth said:

Thought I gave good advice.

 

OK, I don't come here to collect likes or thanks, just to try to help.   If the Font of All Knowledge from Enfield  is the guy you want to thank, fine.

The story of my life.

[Oddjob]

Bottom line if a debt/ loan taken out against the boat you will loose it to the person who gave the loan if not paid off.  Only way to protect yourself is take out insurance against this happening. 

[Travelman]

23 minutes ago, Oddjob said:

Bottom line if a debt/ loan taken out against the boat you will loose it to the person who gave the loan if not paid off.  Only way to protect yourself is take out insurance against this happening. 

Didn't know they had insurance for that sort of thing.

[Alan de Enfield]

36 minutes ago, Travelman said:

Didn't know they had insurance for that sort of thing.

Insurance for anything - when you sell your house you can take out insurance against your neighbour claiming your drive, or the buyer defaulting.

 

Premiums vary against risk.

[RichM]

3 hours ago, Tracy D'arth said:

Get a credit check on the seller, will show up any dodgy situations.

 

Ensure that your bill of sale invalidates you completely from any hold or outstanding debt on the boat.

 

Be sure you know who is the seller, ask if he is the owner, then make sure you know how you can get hold of him after the sale.

I'm not so sure about your first and second points, at least where boats are being sold by a broker.

Although nothing to hide, I wouldn't have entertained a credit check being run on myself nor would I want the buyer to have my contact details. I just wanted the broker to handle it all so I could be done with it/move on with life. After all, that's what I paid them for. I imagine many people in that situation may have felt the same. 
 

[Alan de Enfield]

12 minutes ago, RichM said:

I'm not so sure about your first and second points, at least where boats are being sold by a broker.

Although nothing to hide, I wouldn't have entertained a credit check being run on myself nor would I want the buyer to have my contact details. I just wanted the broker to handle it all so I could be done with it/move on with life. After all, that's what I paid them for. I imagine many people in that situation may have felt the same. 
 

 

 

I think ;

 

3 hours ago, Tracy D'arth said:

Ensure that your bill of sale invalidates you completely from any hold or outstanding debt on the boat.

 

She means 'absolve' you from any responsibility.

You wouldn't have any responsibility for the debt, the bank would just take the boat off you as it doesn't belong to you.

 

You lose your money, but fact the seller has agreed (see the contract) that there is no outstanding debt, you can try and recover the lost monies from him.

[Tracy D'arth]

2 hours ago, RichM said:

I'm not so sure about your first and second points, at least where boats are being sold by a broker.

Although nothing to hide, I wouldn't have entertained a credit check being run on myself nor would I want the buyer to have my contact details. I just wanted the broker to handle it all so I could be done with it/move on with life. After all, that's what I paid them for. I imagine many people in that situation may have felt the same. 
 

A credit check can be done without the vendor being aware. I did think that this could well be a private sale from the OP's post, I may be wrong.

[Oddjob]

Private person can not do a credit check against another person as report only goes to their home address not yours. I needed to check my credit history as the previous owner had a bad record and I was living overseas but they would only send report to address being checked which was no good to me as you only have 30 days to say there is a mistake and I couldn’t get the report to me within that time frame so I gave up until I returned to uk 7 years later. Previous owners forwarding address was HMP Brixton lol. 
also a broker has in their contract with you the buyer if there is an outstanding debt you can’t hold the broker responsible so it all comes down to you the buyer taking all the risk. However a broker has a lot to loose as in reputation by selling boats with outstanding debts so they will not take on a sale if they doubt the seller is telling the truth about no outstanding debt if there is a debt broker will pay it off direct and give balance monies to the owner on sale completion. 

Edited January 3, 2021 by Oddjob
Istake

[Tracy D'arth]

https://www.mudhut.com/patron/reference/landlord

[Sitesurfer]

6 hours ago, RichM said:

I'm not so sure about your first and second points, at least where boats are being sold by a broker.

Although nothing to hide, I wouldn't have entertained a credit check being run on myself nor would I want the buyer to have my contact details. I just wanted the broker to handle it all so I could be done with it/move on with life. After all, that's what I paid them for. I imagine many people in that situation may have felt the same. 
 

If there is a broker involved, and they don’t own the boat then the bill of sale should be between the two parties, I don’t see how you can avoid the other party having your contact details in that case.

 

At least when we sold ours via a broker, that’s exactly what was the case and they used the industry’s standard marine contracts. The only time this would be not the case is if the broker is selling it, at which point the details would be of the person/company selling it.

 

The broker under normal circumstances isn’t selling the boat, just acting as an agreed intermediary between two parties.

[Guest]

9 hours ago, Tracy D'arth said:

Get a credit check on the seller, will show up any dodgy situations.

 

Ensure that your bill of sale invalidates you completely from any hold or outstanding debt on the boat.

 

Be sure you know who is the seller, ask if he is the owner, then make sure you know how you can get hold of him after the sale.

How do you do a credit check on somebody else who is a private individual?

4 hours ago, Tracy D'arth said:

A credit check can be done without the vendor being aware. I did think that this could well be a private sale from the OP's post, I may be wrong.

how?

[Tracy D'arth]

9 hours ago, The Happy Nomad said:

How do you do a credit check on somebody else who is a private individual?

how?

see #17

[Alan de Enfield]

17 minutes ago, Tracy D'arth said:

see #17

How would you get the sellers date of birth without him / her knowing ?

[Guest]

1 hour ago, Tracy D'arth said:

see #17

Somebody buying your boat is not your 'tenant'.

[Phoenix_V]

1 hour ago, Alan de Enfield said:

How would you get the sellers date of birth without him / her knowing ?

Perhaps it could be a reciprocal thing after all the seller wants to know you are good for the final payment

[Alan de Enfield]

8 minutes ago, Phoenix_V said:

Perhaps it could be a reciprocal thing after all the seller wants to know you are good for the final payment

I have always (bar once) sold privately, the buyer gets a lower price (equivalent to the commission I'd have paid a broker) I get a sale and cash-in-hand and buyer gets the keys and can "sale" off into the sunset.

 

I'd hazard that there are very very few inland boats 'on finance' these days, although it is still common for expensive Lumpy water boats, and the lenders tend to insit on the boat being Part 1 registered which allows for mortages to be registered on the boat detals.

 

I'm sure some people cannot be bothered to 'sell' their boats (ALA 'we buy any car .com') but no one knows it better that you do and can answer all the questions and show how things work. A broker is not going to try as hard as you are, yes they have a website and potentially can promote it to a wide audience, BUT, if a buyer is seriously looking they will look at the likes of Apollo Duck and Boats & Outboards, etc.

[Norm55]

Pre purchase survey on my new boat this week, and this topic is interesting.  Assuming we go ahead what if anything can i expect off broker before i transfer money ?