Interested in charter yacht ownership? We have the services and experience to ensure a seamless and efficient process from purchasing to charter management to selling. Below you can view the first steps, charter yacht examples, F.A.Q.'s, and contact details for our yacht sales expert, Hank Hampton. Let's get started!
Licensed Yacht Sale Broker with CatCo & Co-Founder of Paradise Yacht Management
For seven years, Hank chartered his own boat in the USVI and BVI earning Crew of the Year by the Virgin Islands Property & Yacht Reader’s Choice Award in 2016.
STEPS TO BUYING A CATAMARAN:
Make An Offer
We always suggest the terms of sale to include:
- Personal Inspection (Here you require that you view the vessel prior to accepting the vessel. This grants you the right to call off the contract if you don’t like what you see.)
- Survey (Hire a 3rd party professional marine surveyor to inspect the vessel and ensure seaworthiness. A surveyor will provide you with a complete report of the vessel’s deficiencies within 1-2 days of inspection.)
- Trial Run (Usually done the day of surveyor inspection, a quick run of the vessel with the surveyor onboard will give you and the surveyor an actual indication of how she will run, and IF she can run!)
You can exclude any of the above terms or include additional terms, such as “subject to financing”.
Other important terms to the agreement are your Acceptance of Vessel date (the day you decide whether to accept or reject the vessel) and the Closing date. Remember, there is more to negotiation than just the price. (Example- a quick closing to a seller in need of a quick sale is more valuable than a long closing with a higher offer amount.) An average sale from offer to closing takes place in one month.
Once you are ready to submit your offer, be sure to have your correct name or corporation name if buying as a corporation, the address, and that the bottom of each page is signed, including the Exhibit A. (The Exhibit A shows the vessel’s inventory to be sold. This lets both you and the seller fully understand what is included. Any changes to the inventory must be agreed upon by both parties.)
A 10% deposit is industry standard for brokerage yachts. This lets the seller know you are a serious buyer. (California and Florida are the only states requiring a government regulated escrow account for the safety of your deposit funds. Our office is Florida based and our escrow account is regulated.) If you do not come to an agreement with the seller, we can use your deposit for another yacht or we will return your funds within 24 hours of your request with your expressed location for the return.
Under Negotiation (Optional)
(This stage only takes place if the seller does not accept your offer as-is.) Usually, a seller will send a counter- response. They can change any portion of the agreement, including the offer amount and dates. This process is continued until a mutual agreement has been reached. Once an agreement is reached by both parties then we are now: Under Contract
Congratulations! The seller has accepted your last offer. All parties (Buyer and Seller) have agreed on the terms, signed the Purchase and Sale Agreement and Exhibit A and we have a deposit in escrow, per the contract requirements. Now we have to set up for the completion of your sales terms, i.e. locate a surveyor, schedule travel for inspection, etc., depending on your offer terms. At this stage, you will be contacted by our in-house closing department with an introduction and certain contacts that you may or may not need, depending on your situation.
If you have any final financing arrangements made with a lender, please let us know who we can contact to ensure all necessary paperwork will be completed on time for closing. (We also have numerous finance companies that we work with and can provide you with a list if you so choose. But, again this is entirely up to you.)
Please also note, if you have a financing contingency as a term of sale, this must be removed prior to survey Trial Run of the vessel.
Survey & Trial Run
Per the standard FYBA (Florida Yacht Brokers Association) contract, the seller is responsible for a captain to take the vessel to your survey location. It is the responsibility of the buyer to select/pay for the services of an independent surveyor and the haul-out of the vessel at a boat yard for inspection of the vessel’s bottom. I will accompany you through the whole process, Haul-Out, Survey and Trial Run.
Here’s what to Expect:
- Select a surveyor (we can provide a list of surveyors we have worked with in the past that are familiar with catamarans) but, it is entirely up to you who you choose as a surveyor.
- Trial Run and Survey of the seller’s yacht is scheduled. (We usually help to coordinate all parties involved.)
Meet for survey Trial Run. It is not necessary for the buyer to attend but most buyers do. The day usually begins at 8 a.m. with a cold engine start by the surveyor, motor to the yard for approx. 11 am haul. Lunch at noon while vessel is out of the water and drying. Surveyor checks the bottom about 1 p.m. and then we trial run from about 1-4PM.
After the inspection, the surveyor can give you his basic findings on the spot. You will be given a full Survey Report in 1-2 days. Don’t fret; it is completely normal for a yacht (even new) to have deficiencies!
It is also important to note, any yacht insurance is dependent on a successful survey. (We can provide a number of recommended insurance companies.) Lenders will also require a copy of the survey.
Acceptance Of Vessel:
If the Trial Run and Survey Report were positive and successful, you can decide to sign the Acceptance of Vessel (AOV) any time on or before your Acceptance of Vessel date. Once we receive the survey report, we can also request adjustments in price based on the report. This can be negotiated with the seller in either repairs or compensation for repairs needed. This is known as a Conditional Acceptance of Vessel (CAOV). If you no longer want the vessel, you will need to submit a rejection, you automatically accept the vessel. Therefore, if you cannot send your written acceptance or rejection on time, speak with me as soon as possible and we can either request for an extension or reject the vessel and submit a new offer when possible. Usually an extension is accepted.
At this point, you are almost set to sail!
The Catamaran Company has a whole department dedicated to just the closing of your vessel, Details Details. They will handle all of the closing documentation and help with a smooth process. At this point, I defer to their expertise. They are very good at what they do! This complex area requires the final transfer of the vessel into your name. Take a look at key areas Details Details offers assistance on:
- Prepare transfer of ownership documents.
- Complete federal registration of the vessel.
Details will remove frustrating administrative issues and ensure this complex process is done correctly.
Congratulations! You are now a proud Yacht owner!
If you need any after sales service, we can arrange delivery to your chosen destination and/or help provide you with dockage.
WHY ARE YACHT BROKERS NECESSARY FOR PURCHASING?
Using a yacht broker when buying a yacht will save you time and make the whole process as easy as possible for you. A knowledgeable yacht broker can take care of every detail of the purchase process. Using their extensive network of contacts and market knowledge your broker will find you suitable yachts based on your preferences and criteria, oversee contracts and get you the best deal. We offer expert advice on class and compliance, how to best organize your ownership structure, finding the most efficient finance platform and so much more.
HOW LONG DOES THE PROCESS TO PURCHASE A YACHT TAKE?
How long it takes to find the perfect yacht is largely dependent on personal preferences and requirements. Once a broker understands the experience you want to achieve, they will work to find a suitable selection of yachts available in the market. Once you have found your yacht, the purchase process usually takes from six to eight weeks from contract to completion.
HOW SURE CAN I BE OF THE CONDITION OF THE YACHT?
Sea trials and detailed surveys are all part of the purchase process. To avoid conflict of interest, it is our policy not to act as surveyors on behalf of our clients, however we will help you to retain the services of an appropriate team of experts, surveyors, engineers and (if necessary) electricians, fully reflecting the scope of survey you require.
WHAT ARE THE RUNNING COSTS OF OWNING A YACHT?
Costs vary widely depending on the size, build, age and condition of the yacht, as well as the level of maintenance that the owner wishes to perform annually. Once you have found a potential yacht, we will be able to best advise on potential maintenance and running costs.
WHICH SERVICES ARE AVAILABLE POST-PURCHASE?
As a co-owner of a yacht management company, Paradise Yacht Management, we offer a range of services including yacht registration, operational management, crewing, financial services and more post-purchase. Additionally, if you wish to make the most of your investment and charter your yacht, our charter management team will work to successfully offer her for charter with a schedule that suits your needs.
WHY ARE YACHT BROKERS NECESSARY FOR SELLING?
The number one reason to use a yacht broker when selling your yacht is to save you time and avoid any uncertainty during the sales process. Our knowledgeable yacht brokers have access to a worldwide network of brokerage houses to give your yacht the best visibility. We can take care of every detail of the sales process and offer advice based on years of experience in yacht sales. Cooperation is key, and your broker will manage relationships between all parties involved in the process.
WHAT IS THE PROCESS WHEN SELLING A YACHT?
The first step to selling a yacht is an effective marketing plan to target potential buyers and their associates. Your broker will liaise with the Ocean Independence marketing team to create this plan and will handle all enquiries, as well as scheduling and accommodating viewings. Once a buyer has been found and contracts negotiated, the Ocean Independence team will oversee contracts, sea trials, survey, completion and delivery to ensure a successful sale.
HOW LONG DOES IT APPROXIMATELY TAKE TO SELL MY YACHT?
The amount of time that it takes to sell a yacht varies hugely depending on a number of important factors including price, location, age and condition. Using extensive knowledge of the yacht sales market, your broker can advise on all of these factors in order to best position your yacht for a successful sale. Once a potential buyer has been found, the sales process usually takes from six to eight weeks from contract to completion.