The process can appear to be a little daunting but David Kay & Associates brokerage staff will be there to guide you through a sometimes-complex process. We will make it simple and walk you through all the steps. We have handled hundreds of these types of transactions and while many of them have some quirks, the process is generally the same.
The next step after signing your contract is to arrange your Survey & Sea Trial Run Date. This involves you going out on the water with your David Kay & Associates broker and your chosen surveyor to test the vessel. Just like you would do with a house appraisal, your surveyor will run a series of tests to assess the boat and let you know its overall condition and value. The marine surveyor will issue you an in-depth written report of condition, valuation and any problems or concerns with the vessel. Most marine insurance companies require a recent marine survey in order to obtain insurance coverage for your vessel
Once you have completed the sea trial, survey and have reviewed the marine surveyors report you will have to decide if you accept or reject the vessel. The other option is a “conditional acceptance” of vessel which involves negotiating the cost of survey deficiencies with the seller and a reduced price, credit at closing or repairs done. David Kay & Associates brokerage staff will advise you on the best course of action and how to best take care of any concerns.
Once you have accepted the vessel, David Kay & Associates will be coordinating and sending you the closing paperwork. If the vessel is a United States Coast Guard (USCG) Documented Vessel you will to need to hire a documentation agent to handle the vessel documents including USCG Bills of Sale, Warranty of Title, Abstract of Title & New USCG Documentation as well as your New Vessel Name, New USCG Documentation & Hailing Port, Etc.
We will work with any Documentation Agent of your choice but most of our clients hire Kelly Cool & Staff at Marine Documentation, Inc. In Ft. Lauderdale. We have completed hundreds of vessel transactions with them. Kelly and her staff are always professional, very prompt and often deliver supernatural short notice results with 100% accuracy.
Whichever Documentation company you choose, you should expect them to send you a quote for their services in advance, so you know what to expect. David Kay & Associates will generally order the USCG Abstract of Title once a vessel goes under contract. The current cost of a USCG Abstract of Title is $25 and it is usually received electronically from the USCG within 4-5 business days of ordering.
Please confirm to us as soon as you have hired them or someone else as time is important in the transaction. Once you have confirmed this, we will arrange for the sellers to send them all the title and ownership paperwork for the boat and the dinghy. Many people do not realize that the dinghy is classified as a separate vessel with its own title so we need to ensure you get clean title to the dinghy also. We will coordinate with the documentation agent to be able to take this deal to the finish line.
Amongst other checks, the documentation agent carries out a lien search on the vessel to ensure you are getting a clean title and will complete the transfer of the ownership title showing the new vessel name and the ownership in your name or the name of your business, whichever you choose.
Lien and other searches can take time, especially if something is found and needs to be cleared up and it can take from 48hrs to more than 2 weeks. For USCG registered vessels the request has to go through the US Coast Guard. This agency sometimes is pretty backed up and it is a first come, first serve system so, again, the sooner you hire the documentation agent the better the chance you meet the specified closing date in your Purchase and Sale Agreement.
Your documentation agent needs to give us the green light that they have all the paperwork they need to complete their role, such as an original bill of sale signed by the seller, original titles and/or any vessel deletion required.
If all of these have been satisfied, we can proceed with the closing. Unlike the old days, today everything is done by email or Federal Express and there is no need for an actual face to face signing event.
Generally, our client’s Sellers, Buyers and boats are rarely ever in the same place and often they are all in different parts of the world.
Once all of these steps have been completed, our accounting department will prepare your buyer’s statement with the total amount to be sent to the escrow account. Please remember that some banks take longer than others to send money so we try to get funds early so we can make sure we close on time. At this time, you will also be sent the authorization to close which confirms that the vessel is in the same condition as previously inspected and any other paperwork needed for closing.
Final funds must be in escrow at least 24 hours prior to the closing date and the balance needs to be sent via wire transfer as personal checks and cashier’s checks can take up to 10 business days to clear so that will delay you from closing on time.
For the Final Closing to proceed:
Your documentation agent needs to give us the green light that they have all the paperwork they need to complete their role, such as an original bill of sale signed by the seller, original titles and/or any vessel deletion required.
If all of these have been satisfied, we can proceed with the closing. Unlike the old days, today everything is done by email or Federal Express and there is no need for an actual face to face signing event.
Generally, our client’s Sellers, Buyers and boats are rarely ever in the same place and often they are all in different parts of the world.
If all of these have been satisfied, we can proceed with the closing. Unlike the old days, today everything is done by email or Federal Express and there is no need for an actual face to face signing event.
Generally, our client’s Sellers, Buyers and boats are rarely ever in the same place and often they are all in different parts of the world.