Boat under contract on Lake Erie

RBB

RBB

Well-Known Member
Dec 18, 2019
2,080
Kentucky
Boat Info
2004 480MY
2006 44DB
2019 Sea Doo GTX 155
Pelican Kayak
2004 390 MY Sold
Engines
Cummins QSM11 680Hp
Cummins QSC 500
I paid a deposite on a boat in Sandusky. Now the broker wanting the balance now. Even though my contract says Subject to: trial run. My surveyor has did his job but we have not sea trialed the boat. The broker said everyone pays for the boat like this. Where I am from no one does, even Sea Ray Cincinnati and Fox Chaple PA dose not request that until sea trial.
Broker says he never done it any other way in Sandusky.
Thoughts
 
We really like this boat, it’s in excellent condition. But with this hitch my OCD is killing me. Having hard time sending that money to anyone without sea trial.
 
I think up north if you want to buy boats over the winter this is how it's done. I'd hold back enough in escrow to cover replacing both powertrains though assuming the survey so far is clean. I don't think you can expect a seller to take it off the market until you do a sea trial next spring.

I was along this path and would of closed on a boat a couple years ago, a 52SD, but it had a few issues not disclosed that were found in the survey that made me decide to wait until boat as fixed and in the water to restart the process. And then I found the clean 48DA so felt great about waiting.

Looking closer, if there are issues with the QSMs, you can blow through $25k pretty quick. I'd say hold back $100k, or whatever makes sense. The other option is to pull out of the agreement and make the offer a couple weeks before it gets splashed. Of course you may loose it... or someone else may get it.

<edit> when I was looking at the 52SD I did see a bit of exhaust manifold leak which botherd me with the purchase without engine survey. There are some known issues with the dry exhaust manifod and turbo:

www.sbmar.com

Propping the Cummins Marine QSM 11 to Prevent Exhaust Issues

www.sbmar.com www.sbmar.com
 
Ericinmich said:
I think up north if you want to buy boats over the winter this is how it's done. I'd hold back enough in escrow to cover replacing both powertrains though assuming the survey so far is clean. I don't think you can expect a seller to take it off the market until you do a sea trial next spring.

I was along this path and would of closed on a boat a couple years ago, a 52SD, but it had a few issues not disclosed that were found in the survey that made me decide to wait until boat as fixed and in the water to restart the process. And then I found the clean 48DA so felt great about waiting.

Looking closer, if there are issues with the QSMs, you can blow through $25k pretty quick. I'd say hold back $100k, or whatever makes sense. The other option is to pull out of the agreement and make the offer a couple weeks before it gets splashed. Of course you may loose it... or someone else may get it.
Click to expand...
Any idea what it would cost to replace the 2 QSM 11’s and the Jenny. Along with 5 Marine HVAC units? My guess would be $200k or more. We want the boat if it cks out.
 
Wait a minute......you agreed to exactly that in the Purchase Agreement. You agreed to close on the boat and the Seller agreed to escrow $30k of the proceeds in the unlikely event the Sea Trial in the Spring raised an issue.

Pay them the money or I can assure you .....you will lose your $25k deposit. If you wanted the Seller to escrow more money.....that should have been done when you wrote the Purchase agreement.

The Agreement Terms are going to hold you to compliance not the Optional Survey language in Section 3.
 
PlayDate said:
Wait a minute......you agreed to exactly that in the Purchase Agreement. You agreed to close on the boat and the Seller agreed to escrow $30k of the proceeds in the unlikely event the Sea Trial in the Spring raised an issue.

Pay them the money or I can assure you .....you will lose your $25k deposit. If you wanted the Seller to escrow more money.....that should have been done when you wrote the Purchase agreement.
Click to expand...

I'm thinking the same thing. If it were me, I'd splash it and get the sea trial and survey done. It's way cheaper than walking away from $25k deposit.

Did you have a buyers agent? When signing the PA on the 52SB in Canada I did, and he ran through the steps to get through the purchase... and timing, and excrow.
 
RBB said:
I paid a deposite on a boat in Sandusky. Now the broker wanting the balance now. Even though my contract says Subject to: trial run. My surveyor has did his job but we have not sea trialed the boat. The broker said everyone pays for the boat like this. Where I am from no one does, even Sea Ray Cincinnati and Fox Chaple PA dose not request that until sea trial.
Broker says he never done it any other way in Sandusky.
Thoughts please.View attachment 155208
Click to expand...
There is some conflicting wording in there. In the "Additional Terms" section the sentence before the one you highlighted says basically that you will close on the boat after the survey and oil analysis are done. Then it specifies that the seller will keep $30,000, presumably from the proceeds of the sale, in escrow in case something doesn't work during the sea trial. I am sure that is what the broker is relying on.

Then there is section 3, which I assume you are relying on, that basically makes your point.

I hate conflicting wording in contracts, it is a pain for everyone involved.
 
PlayDate said:
Wait a minute......you agreed to exactly that in the Purchase Agreement. You agreed to close on the boat and the Seller agreed to escrow $30k of the proceeds in the unlikely event the Sea Trial in the Spring raised an issue.

Pay them the money or I can assure you .....you will lose your $25k deposit. If you wanted the Seller to escrow more money.....that should have been done when you wrote the Purchase agreement.

The Agreement Terms are going to hold you to compliance not the Optional Survey language in Section 3.
Click to expand...
The agreement says Subject to:
 
You have a contract with an acceptance date of Nov 15 and a close date of Dec 15. It also includes a sea trial escrow for the spring. You’re stuck. Broker is only following the contract. Should have made the closing in the spring after the sea trial.
 
We have dealt with sea ray Cincinnati and fox chapel Pittsburgh and that was not the deal. Very confusing for me, no problem wiring the cash just worried since we r unable to test the engines , genny, and hvac system.
 
Ericinmich said:
I'm thinking the same thing. If it were me, I'd splash it and get the sea trial and survey done. It's way cheaper than walking away from $25k deposit.

Did you have a buyers agent? When signing the PA on the 52SB in Canada I did, and he ran through the steps to get through the purchase... and timing, and excrow.
Click to expand...
no chance on splashing the boat, it’s in the back of a huge building in Sandusky.
 
Survey on the hard been done.
 
RBB said:
We thought the sea trial superceded the close date.
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Generally the "boiler plate" language is secondary to the agreed terms like dates and "additional information". Like I said, I hate conflicting language in contracts. That said, I believe you are stuck with a 12/15/23 closing. I am not a lawyer and I did not sleep at a Holiday Inn Express last night.
 
RBB said:
We thought the sea trial superceded the close date.
Click to expand...
It does not. You have X days, in this case 30 days, to survey and sea trial. In your case, because it's winter, they are willing to escrow $30k to cover any sea trial issues in the spring. You need to either negotiate an extension, or close next week, or walk away and lose your deposit.
 
Golfman25 said:
You have a contract with an acceptance date of Nov 15 and a close date of Dec 15. It also includes a sea trial escrow for the spring. You’re stuck. Broker is only following the contract. Should have made the closing in the spring after the sea trial.
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How can the contract be followed since they cannot launch the boat until spring? I just don’t understand. Very confusing sir since that is in additional terms: subject to; trail run
 
highslice said:
Generally the "boiler plate" language is secondary to the agreed terms like dates and "additional information". Like I said, I hate conflicting language in contracts. That said, I believe you are stuck with a 12/15/23 closing. I am not a lawyer and I did not sleep at a Holiday Inn Express last night.
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There is nothing "conflicting" about it. It clearly says "Buyer to complete survey, oil analysis . . . then close on the boat." Then a $30k escrow for sea trial.
 
RBB said:
How can the contract be followed since they cannot launch the boat until spring? I just don’t understand. Very confusing sir since that is in additional terms: subject to; trail run
Click to expand...
Why did you agree to a Dec 15 closing date? The contract is clear. You agreed to survey, oil analysis, and then close on the boat, with a $30k escrow for sea trial issues in the spring.
 
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