Deposit?

[TheyAllFloatDownHere]

Hi there everyone,

 

First of all, thanks for all the great advice on various subjects. It's been a steep learning curve and I'm still a naif on this subject. I've gone from thinking CCing was a simple choice, to deciding that a mooring will be an essential part of my boating experience, one for which I am willing to wait / pay.

 

And I think I may have found the perfect boat in the perfect marina (at a price. Boy, has my budget gone up!). However, the owner has decided that they cannot move out for a few months, so they need a buyer who is willing to wait. I am in no rush, so that's fine by me, though I would put a deposit down to secure the boat.

 

In the intervening time I could take a boating day course, work on downsizing my stuff and hire a boat for a few weeks, to get an idea of life on board.

 

Does anyone have any experience of deposits?

 

For instance, we could agree that the seller would lose the deposit if she dropped out or sold to another person, and I would lose the deposit if I changed my mind or found another boat. That way I'm limiting the amount I'd lose if I decided that the life was not for me, whilst also securing an amazing boat and location.

 

Or would it be legally safer to just buy the boat? But then she'd still be living on it..? Confused.

 

Thanks for your brain thoughts!

 

[Alan de Enfield]

I'd suggest a 10% deposit (seems 'normal' on most things).

 

You'd need a contract, and ensure that there is some reference to the condition/contents of the boat at the time of paying the deposit (photos etc) as it is possible the seller could 'gut' the boat he day before hand over.

 

You'd still be getting the boat named "ABC", on mooring "XYZ" but it would not be the same as the "boat" you had bought.

 

What would happen in the event of it sinking, exploding, catching fire etc ? make sure in such circumstances you get your money refunded.

 

Think of all the worst possible scenarios and make sure you have them covered.

[OldGoat]

It might be prudent (nay- essential) if the deposit was held by a third party "in escrow"; just in case the seller disappeared with the boat and your deposit.....

[Higgs]

I wouldn't put any money down on a boat I hadn't first had surveyed. And, as a seller, I think I'd want to know who was actually seriously thinking of buying the boat.

 

You can, as I did, negotiate the cost of the survey to be taken off the sale price in the event of you buying after survey.

Edited September 28, 2014 by Higgs

[matty40s]

The boat is NOT for sale at present, it may come on the market in a few months is how you should be looking at this.

 

Do not part with any money, and definitely do not buy whilst they are still living aboard.

Get a survey, your own one, not someone else's.

Edited September 28, 2014 by matty40s

[cotswoldsman]

I personally would not part with any money while they are still living on the boat. When they give you a date for moving off agree a price subject to survey have a survey done and if you are happy confirm you will pay in full the day they move off it requires some trust on both sides but having a survey done shows you ate serious

[Traveller]

I share in the view that money should not be paid out. The boat is either for sale or it is not. Currently, it seems, it is not.

[TheyAllFloatDownHere]

Can you tell me why giving a deposit whilst they are still on board would be a bad idea? For instance, what if we have an agreement drawn up and the money held in escrow?

 

It does put me off a bit, tbh. Owner is talking six months!

 

However, there is another buyer interested and the boat is in a very desirable location.

And of course I am getting a survey done.

[Higgs]

Can you tell me why giving a deposit whilst they are still on board would be a bad idea? For instance, what if we have an agreement drawn up and the money held in escrow?

 

It does put me off a bit, tbh. Owner is talking six months!

 

However, there is another buyer interested and the boat is in a very desirable location.

And of course I am getting a survey done.

 

 

The seller has several interested buyers. The other buyers may gazump you. Unless you have agreed a sale price with the vendor, and the survey is just going to be a meaningless formality, what are you trying to achieve. If you have already decided to commit, and the survey isn't good, the seller is in a very good position to stay put at the price agreed. Your deposit won't really count for much if the seller can get a higher bid, unless you have already made the sale agreement at the point you pay the deposit. You may find the seller is very reasonable and will accept a little negotiation after the survey, but don't bank on it. You're so keen to buy the boat, what's the seller's incentive to re-negotiate. Maybe, a bird in the hand is worth two in the bush.

 

It makes your position weak in my opinion. You should go into this purchase and be ready to pull out.

Edited September 29, 2014 by Higgs

[Neil Smith]

Get a solicitor to draw up a contract with an agreed price and deposit that is held by him subject to satisfactory survey, then arrange a survey and if all ok get a hand over date put in the contract.

 

Neil

[ditchcrawler]

So what happens if in 5 months time the buyer gets a better offer so sells and sends you a cheque for your deposit back. Are you prepared to risk taking them to court for breach of contract and even if you win someone else will still own the boat.

[Sabcat]

Hi there everyone,

 

First of all, thanks for all the great advice on various subjects. It's been a steep learning curve and I'm still a naif on this subject. I've gone from thinking CCing was a simple choice, to deciding that a mooring will be an essential part of my boating experience, one for which I am willing to wait / pay.

 

And I think I may have found the perfect boat in the perfect marina (at a price. Boy, has my budget gone up!). However, the owner has decided that they cannot move out for a few months, so they need a buyer who is willing to wait. I am in no rush, so that's fine by me, though I would put a deposit down to secure the boat.

 

In the intervening time I could take a boating day course, work on downsizing my stuff and hire a boat for a few weeks, to get an idea of life on board.

 

Does anyone have any experience of deposits?

 

For instance, we could agree that the seller would lose the deposit if she dropped out or sold to another person, and I would lose the deposit if I changed my mind or found another boat. That way I'm limiting the amount I'd lose if I decided that the life was not for me, whilst also securing an amazing boat and location.

 

Or would it be legally safer to just buy the boat? But then she'd still be living on it..? Confused.

 

Thanks for your brain thoughts!

 

Give them nothing but your phone number and tell them to ring you when they're ready to sell.