Disclosure
Obligations
There is no obligation on the seller’s part to volunteer information the buyer doesn’t ask for, but this doesn’t give the seller carte blanche to withhold information about a known defect or condition that renders the boat unsafe or expensive to repair.
There is a fine line between passive failure to disclose information and active concealment. If an accident occurs later, previous repair records or complaints to the manufacturer may come back to haunt sellers who don’t tell all. Being up front about work that needs to be done implies that the asking price already reflects the cost of repairs.
It’s wise to have larger, more complex boats surveyed or inspected thoroughly by a repair facility before they are put up for sale. That way, you will be fully aware of any conditions in need of repair and you can even make repairs prior to the sale, making your boat more attractive to buyers.
A handshake agreement just won’t cut it when it comes to selling your boat.
• Write a sales
agreement that outlines the terms of the sale and the obligation of the
buyer and seller. Ask for cashier or certified checks for the deposit
and final payment. Stick to an agreed-upon delivery date.
• Cooperate with the buyer. Be aware that if you do not allow the
buyer to have the boat surveyed or sea trialed, you will probably end
up losing the deal.
• Be prepared to renegotiate the asking price when it comes to items
the buyer’s surveyor found that need repair. Be sure to put the
details in writing if you agree to repair the boat prior to the sale.
Written repair estimates are helpful.
• Unless you like to gamble, don’t offer to finance the boat.
The risk is not worth the often small amount of interest you stand to
gain. And, if you have a boat loan outstanding, the lender won’t
permit this arrangement.
• The BoatU.S. Guide to Buying & Selling A Boat contains detailed
information about selling strategies. You can find it here: www.boatus.com/guide
