HOW TO BUYYou've found a yacht; so what happens next?
Once you have made your decision and we have made a successful offer to the seller on your behalf, we recommend you commission a survey and conduct a sea trial. A professional surveyor's report is the best way for you to establish the yacht's structural integrity and her ability to go to sea in safety.
Some yachts change hands on an "as is, where is" basis, where the seller is accepting a lower price but an element of risk does exist. Ultimately it is up to you, the buyer, to be confident that you have right boat for your needs.
How to select a surveyor
It is up to the buyers to satisfy themselves of the structural integrity and suitability of the yacht for their purposes. The surveyor is therefore crucial in the transaction so that you can be absolutely clear of what you are buying.
We have a list of surveyors active in, Malaysia, Singapore and Thailand and we have our recommended local surveyors who are familiar with the needs of the cruising fraternity and will be happy to provide you an independent in-depth report.
The Purchase Agreement & Deposit
Once you have decided to purchase a yacht, we work to make the process as simple and painless as possible.
- As the chosen broker we will produce a purchase agreement to be signed by all parties.
- 2. A 10% deposit of the sale price is paid to us as stakeholders and held in one of our client accounts. This deposit is returnable under the terms of the agreement if the yacht proves to be unsatisfactory on sea trial, on survey, or if any of the conditions of the contract are not fulfilled by the seller.
- Please be aware that if you agree to purchase a yacht `as is, where is', you will sign an unconditional contract, where the 10% deposit is part-payment for the yacht, and no other stipulations apply except where the conditions of the contract are not fulfilled by the seller.
A survey and sea trial can be carried out once the deposit has been paid.
The cost of survey and slipping and any ancillary costs are the responsibility of the buyer. If survey/sea trial reveal defects not already disclosed to you, you have the option of renegotiating the price, requesting the owner to make good such defects or rejecting the yacht.
Assuming a fair compromise can be reached, the sale can then be completed. If not, your deposit will be returned less any direct costs of survey and reinstatement. It is your responsibility to re-instate the yacht to the condition in which you found her.
If there has been renegotiation after the survey/sea trial and you reach an agreement, or where there are no problems with the survey/sea trial, under the terms of the agreement you are obligated to complete the purchase.
At this stage, your deposit becomes part-payment for the yacht, and is forfeit if you fail to complete. The time period from acceptance to completion is generally 7 days. If you require a deviation from this, it should be agreed at contract stage, when any alteration to standard terms and conditions that are acceptable to both buyer and seller may be agreed and incorporated into the contract.
The Yacht Documentation
YBC will obtain for you the yacht's registration papers and other title documents.
We will carry out reasonable checks to ensure that the seller has clear title to the yacht. We prepare the Bill of Sale for signature and execution by the seller.
Upon completion, the balance of the purchase price becomes payable to YBC as stakeholders for both parties and the yacht is then handed over, together with the signed Bill of Sale and all other relevant documents and the seller is paid.
Is sales tax or GST included in the purchase price?
The good news is Langkawi is a Duty Free island, so there is no tax payable.
It is important that you consider the insurance of the yacht early in the purchase procedure. YBC works with two insurance companies and would be pleased to put you in touch with them.
It is our aim at YBC to make your yacht purchase a pleasant experience. We will guide you around the various potential pitfalls and are always on hand to give you advice.
If you have any other queries, please do not hesitate to ask.
Call YBC on +(6)017-419 6933 to discuss the purchase or sale of your yacht.