Second-hand Beneteau Sense 43 for sale
DUE DILLIGENCE
DEALING WITH THE SECOND-HAND MARKET THE MARKET IN SECOND HAND BOATS IS BOOMING AS MORE AND MORE PEOPLE TAKE UP THE YACHTING LIFESTYLE. IT MAY NOT BE GLAMOUROUS, BUT BEFORE YOU SET SAIL IT IS IMPORTANT TO GET THE PAPERWORK RIGHT. ALEX TEJI OF HILL DICKINSON LLP’S SPECIALIST YACHT TEAM OFFERS HIS ADVICE TO NAVIGATE THE PROCESS 104
W
hen buying a second-hand boat, the first line of enquiry should be the key commercial terms. These will include the price, the deposit – usually 10 per cent of the sale price payable within a few days of signing the sale and purchase agreement – the named stakeholder, who should be one of the party’s lawyers or an independent and reputable escrow agent, details of the sea trial, survey and delivery dates, and the location where the vessel will be handed over. The latter point is important as this can have tax implications and specialist fiscal advice should be sought to avoid attracting unnecessary additional expense.
If anything happens that renders the vessel an actual, constructive or compromised total loss before completion, the agreement usually provides for this and the deposit must be returned to the buyer with interest and less expenses related to the condition survey. The purchaser must consider two main issues: the first is the physical condition of the yacht and the second is the relative ‘health’ of the vessel title. The seller should provide a warranty to prove not only that he/ she has both the title and the right to sell the vessel, but also that it will be free and clear of all debts and encumbrances such as mortgages, outstanding debts for goods and services, or crew wages. All of these must be paid in full before the sale is completed and the buyer will require an indemnity against any loss should this not be done.
