Steps on Buying a Vessel

The paperwork for buying and or selling a vessel can be extensive. This post is to help better understand the process so we all can work together to ensure a smooth sale and or purchase of your vessel.

Steps on Buying a vessel: 
When a buyer makes an offer on a brokered vessel here is what happens.

1. Broker sends a purchase agreement with the offer for the buyer to digitally sign.  We base the offer contingent on a successful survey and sea trial and if the buyer is using a bank, we base it on an approval for financing. 
2. Buyer then wires 10% of the offer to the brokerage firm’s escrow account. 
3. The broker takes this offer to the seller.  Either it is accepted or there is a counteroffer.  If there is a counteroffer, the brokers go back and forth with the intention of coming up with a mutually agreed buying price for the vessel. 
4. Once there is a mutual agreed price, the buyer works with his/her broker to schedule the survey and sea trial of the vessel.   Surveyors usually can get the survey booked about two weeks out after securing their services. 
   • Buyer pays for the survey and sea trial. 
   • Buyer also pays for the haul-out of the vessel so the surveyor may inspect the bottom of the vessel. 
5. Once the survey is complete, the reports take about 48 hours to get in the hands of the buyer.  If there is something that came up in the report, that the buyer would like the seller to fix, and or repair, we can go back and forth and hopefully come up with a mutually agreed solution.
6. The buyer then signs a “Vessel Acceptance” letter.  At this point, the buyer is committed to buying the vessel. 
7. Now the closing documents are created for both buyers and sellers.  They are sent via email, and there are original signatures needed along with notary that needs to take place.  Your bank, or a UPS store offers notary, so this is the common way that buyers and sellers do this.  We ask that you scan all documents before sending them overnight to Dean Yacht Company. 

Movement of Money:

1. Part of the closing documents for the buyer will have the Brokerage firms wiring escrow instructions.  The buyer wires the money to the account.   
2. Part of the closing documents for the seller, includes their bank account, so the Brokerage firm pays the seller.
3. Once all monies are wired, we are officially closed! 

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