Jump to content

Legal issues with respect to yacht purchase.


Recommended Posts

I'm in the process of buying a 35ft yacht. The owners will have left the country by the time I have transferred the money into their bank account. Until that happens we have agreed they will leave the keys with a third person. It's a lot of money so although I have a good feeling about the sellers I'm still anxious.

Are there any safeguards I should put in place?

 

I have searched the Personal Properties Securities Register under the sellers name but is there a way of establishing who actually owns the boat?

 

Any advice would be helpful.

Thanks

Anthony

Link to post
Share on other sites

You should draft a sale and purchase agreement to at least state they own the vessel and it is sold free of any liens or charges.

Also include the chattels etc if any are significant (dinghys etc)

You can probably cut and paste from another agreement.

How about their solicitors trust account for payment to hold until you get the keys/take possession?

Any fees on them the seller of course.

Link to post
Share on other sites

Definitely agree with the Darkside on both his thoughts. Google yacht sale and purchase agreements and you'll find plenty of examples - just simplify them for yourself.

And solicitors trust acc is a good idea to.

Does the current owner have a receipt from when he/she bought the boat? That would help prove ownership - or at least details of the previous owner so you can call them?

Sounds overly careful - but a lotta money is therefore a lotta money to lose...............

If the seller wants to sell he'll fall in line with your requests. And if he doesn't..........maybe there's a (not to good) reason?

Link to post
Share on other sites

My understanding is that like a car, registration is only proof the car or boat is registered, not proof of ownership. A receipt or series of receipts is the only real proof except where the vessel is registered as a New Zealand ship - this I think does guarantee  title or ownership.  

Link to post
Share on other sites

The thing I was especially worried about was whether the yacht was security for a loan under a name other than the sellers; for instance a company owned by the seller. There is no way to search the properties register for a yacht other than the owners name. 

I have no doubt the seller is the owner in a common sense way.  Both he and the boat come with very good references but I thought it would be irresponsible not to tick all the boxes.

Link to post
Share on other sites

As said above but really it's a handshake and eyeball deal

If your not using a broker then get them to leave the keys with either a marina office or similar ( independent third party that you both trust, also give leave a copy of your agreement with them, then get the keys released on payment)

 

Try buying a boat on the other side of the world in a country that doesn't speak English (Greece) from Israily sellers and the boat was US registered, this is what we did just over a year ago.

Now this is stressful

We required them to provide deregistration paperwork then on possession we changed the name and registered her as a NZ vessel

 

We then left Greece a sap and started building a paper trail of entriy and exit documents in her new name.

No one ever questions a thing, but sailing across the Atlantic was easy in comparison

Link to post
Share on other sites

thanks for info.now begs a question,if on finance through a udc type company they would have a registered secrurity over the vessel?how would you know if money was owing until someone put a notice on vessel?

 

so with the current laws/regulations you could sell anyone a boat pocket the money and the fight would be between original owner and new owner,seller could scraper?

what protection is there really?

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...