Offer on Boat

R

rtribble

Member
Member
Joined
Sep 8, 2004
RO Number
15208
Messages
532
I've just recieved an offer on our boat and need input on it.
The buyer is wanting the boat to make the "Great Loop" in starting next year.
The offer is that we make a contract of sale with these provisions;
The purchaser will make an initial down payment of $10K with the remaining balance to be paid in four eaqual payments, all of which would be non-refundable.
We would keep possesion of the boat untill finnal payment is made.
I would assume we would transfer title with a lien on it?
I would assume we would be responsible for the boat (winterizing, slipage, etc.) untill the purchaser makes finnal payment and picks boat up.

Could this be some sort of scam or is the offer on the up & up?
What should I be asking of the purchaser in this deal to protect our interest?
How could we loose on this type offer as it appears the purchaser is the one assuming most of the risk?
 
at least you keep possession but it also locks you out of the market should something happen or there are delays. are there any dues dates on future installments? any way to cancel at your discretion should the terms not be met?
 
I agree. This shows very fishy, probably a scam. If he wants the boat, let him get a loan, pay in full, and take possession now. If he refuses, you'll know for sure this is a scam. Then, run. Hy
 
quote:
Originally posted by littlebookworm

I agree. This shows very fishy, probably a scam. If he wants the boat, let him get a loan, pay in full, and take possession now. If he refuses, you'll know for sure this is a scam. Then, run. Hy

Click to expand...


+1
 
Amongst other things that would keep me away from this deal here are a few that I have no way to tell you how to work around....

1. If you give transfer of a clear title what prevents someone from taking possession?
2. If you give a clear title what prevents them from selling that title?
3. How would you insure a boat that you do not own and how would he insure a boat they do not possess?
4. If they do manage to get in insured what stops the from dropping insurance?
5. Why not send them information on setting up a loan which can/should be a tax incentive as well?

Anyway - these are ,many of the same reasons owner financing of boats it problematic.

Hope this helps
 
quote:
Originally posted by onthecreek

at least you keep possession but it also locks you out of the market should something happen or there are delays. are there any dues dates on future installments? any way to cancel at your discretion should the terms not be met?

Click to expand...


Yes it would remove the boat from the market once the down payment is made.
The remainder would be required to be made in four equal monthly payments starting one month after the dowm payment is made culminating in the finnal payment made at the end of the four months.
All of these payments would be non-refundable with failure to make the schedualed payments on time subject to cancilation of the contract through default of payment with us keeping the monies paid (non-refundable) up to that point.
As long as we get the initial down payment of the $10,000, I am willing to take the boat off the market and relist the boat later should the purchaser default on future payments (as long as we get to keep the $10,000 dollars).
The boat was listed with payment method to be by cash in person, cashiers check from a certified US or Canadian bank or money order.Is there any way we could become liable with any of these payment options?
Not so much concerned with a payment default, as long as we don't become liable for anything and retain ownership of the boat should there be a defualt in payment.
 
1. Contract of Sale with a definite time table for the initial deposit and each subsequent installment.

2. Do NOT transfer the title or endorse the title until the final installment is made.

3. Do NOT give the buyer access to or use of the boat until final installment is made.

4. Deposit the initial deposit and each installment into an Escrow Account at your bank that is accessible only by you.

5. Negotiate any storage fees, slip fees and maintenance incurred during the period of the transaction and include those in the total to be paid by the buyer.

Bob
 
Either introduce him to a bank for a loan.

Or... take an initial non-refundable deposit and spend it.
Ask an attorney to keep money in an escrow account then complete the sale when he has the money. With a time limit of course.

Spend the deposit and use the boat until he pays. Market the boat once time limit is close, in case he defaults on agreement.
 
I wouldn't do it. Seems too strange. Why so hard? Can they not afford it? They should go get a loan and make things simpler for everyone.
 
quote:
Originally posted by smitty477

Amongst other things that would keep me away from this deal here are a few that I have no way to tell you how to work around....

1. If you give transfer of a clear title what prevents someone from taking possession?
2. If you give a clear title what prevents them from selling that title?
3. How would you insure a boat that you do not own and how would he insure a boat they do not possess?
4. If they do manage to get in insured what stops the from dropping insurance?
5. Why not send them information on setting up a loan which can/should be a tax incentive as well?

Anyway - these are ,many of the same reasons owner financing of boats it problematic.

Hope this helps

Click to expand...


In no uncertain terms would we ever give clear title until we had full payment and money in bank first.

The way I see it, we would retain possession of boat and title, retain exclusive use of boat, provide insurance and winterize and maintain the boat untill the finnal installment payment is made and monies are in our bank.
All of this would be contingent on reaching an agreeable sales price.
 
quote:
Originally posted by WALSHIE

Either introduce him to a bank for a loan.

Or... take an initial non-refundable deposit and spend it.
Ask an attorney to keep money in an escrow account then complete the sale when he has the money. With a time limit of course.

Spend the deposit and use the boat until he pays. Market the boat once time limit is close, in case he defaults on agreement.

Click to expand...

I agree unless someone has a Trawler in the 40-45 foot range and want's to give me that deal?
Bill
 
run

tell him to save up the money and if your boat is still on the market then he can buy for cash.
 
It's BS Hy. Run. I have seen more than one burned on this. Unless your price is so far out of whack in comparison to what the market will bear he can use the boat as colatteral on the loan. It's what I did on my last two boats. The bank set the whole thing up and was very helpful in the process. You need cash now, not a boat off the market and a promise of cash.
 
Why does he want a land locked boat to do the Loop? Moving it to the Loop route isn't going to be cheap. Something smells here. From what you are posting, it sounds like you are going to do this. Let us know how it works out.
 
What's at risk? You are not letting him take possession of the boat until payed in full. You keep title and insurance. You get $10k up front to take the boat off the market for 30 days, and see if he makes the next payment. There may be many reasons that he can't finance it normally. Just make sure the checks are good.
 
It is a scam but try it.

Anticipate that after you deposit the $10,000 there will be some catastrophic event that causes the buyer to ask for his money back. If you do, it may well turn out that the check was fraudulent, but you are out the money that you sent back. Another scenario is that they send you a check for $15,000 and asks that you return the excess $5,000.

Talk to you banker about how long after you deposit the check that someone has to cancel an out-of-state instrument (even a bank check). You may be surprised at the length of time.

If the check is returned, your only liability is to your bank for processing fees, unless of course if you spend the money.

Gene
 
Have you actually seen the potential buyer or is this an internet buyer. I suspect the buyer has not physically shown his/her face. Hope I am wrong.
 
Unless you're in the financing business, why should you, as the seller, assume any of the financial risk? If the buyer doesn't have good enough credit to get a conventional loan, why would you want to extend credit to him?
 
I don't consider it "financing" as long as you have possession and title of the boat. This is more of a lay-away plan that many retailers offer.
I don't see a downside as long as you have control of the boat and title and don't give up anything until final payment is made and funds are fully cleared by your financial institution.
 
You must log in or register to reply here.
Back
Top