How to sell your boat with The Yacht Sales Co
Selling your boat can be a daunting process and there is a lot to remember, however, The Yacht Sales Co is here to ensure the experience is smooth sailing and the best experience possible for both yourself and the Buyer of your new boat.
Following is a step-by-step guide to the process of selling your pre-owned boat through Asia Pacific’s Yachting Specialists…
PART 1: List Your Yacht With Us
Step 2. Contact with Sales Consultant
We will have a qualified Sales Consultant contact you as soon as possible to discuss your needs in more detail. They will confirm if our brokerage package meets your requirements and where practical will arrange a time to inspect your boat in person. During their visit, the Sales Consultant will complete a Condition Report and detailed Inventory which will be used during the valuation process and may also be provided to potential buyers during the sales process. You will be required to sign the Inventory to confirm its contents. The Yacht Sales Co prides itself on conducting business ethically and we expect the same from our buyers and sellers, it is important at this point that you advise your Sales Consultant of any details or history of your boat that may affect its value or seaworthiness.
Step 3. Valuation Estimate
Your Sales Consultant will provide you with a valuation estimate based on past sales, current market knowledge, your boats condition, location and other determining factors. The Yacht Sales Co have access to past sales history for the industry. We have Sales Centres in various locations around the world, and operate in several currencies and can list your boat in the currency most convenient for your situation and boat location.
Step 4. Authority to Sell Form, Collection of Documents, Photos & Videos
Documents… Once you decide The Yacht Sales Co is the perfect fit to sell your boat and you are happy with the valuation provided by your Sales Consultant, we will ask you to complete the Authority to Sell form. You will also need to provide several documents and further information which we require to list your boat. (Please note: we are not able to list your boat or offer it for sale in any way until ALL documents have been received).
Required Documents and Information:
- Authority to Sell: Completed, initialled and signed by the relevant parties .
- Tax Status & Supporting Documentation: If taxes have been paid on your boat in any countries, please provide proof. If in doubt, please discuss this with your Sales Consultant.
- Registration Documentation: Showing your name or your entity name, as the Owner of the vessel.
- Importation Papers, if relevant: We need all information about the international movements of the boat (i.e. clearance papers), so we can respond to any Customs enquiries if they arise.
- Signed Inventory: To be completed by your Sales Consultant and signed by you. This will form part of the sale contract and therefore must be accurate.
- Insurance Certificate of Currency: All boats under our care are required to hold their own insurance policy with public liability cover. This will be required by most marinas or yards storing your boat. The Yacht Sales Co or our Insurers cannot be held liable for any damage caused to your boat while in our care.
- Identification: A copy of your Drivers Licence (Australian Resident) or Passport (Overseas Resident) and a Company Registration Certificate if the selling entity is a company is required. The Company Registration Certificate must show you as the authorised representative of the entity.
- Proof of Ownership: Previous Bill of Sale (pre-owned boats) or purchase invoice (new boats). This is your proof that you or your entity are the rightful owner of the boat being sold.
- Photos & Videos (optional): If you have photos (especially exterior shots) and/or video of your boat, please send these to your Sales Consultant as soon as possible as they may also be used in the listing. Please note, photos should be high-resolution (approximately 1 -2MB and in landscape orientation).
Step 5. Online Listing of Your Boat
- Once you have completed the Authority to Sell form and provided us with ALL required documents, our administration team will begin the process of listing your boat on The Yacht Sales Co website, various other online sales sites and through our social media channels, physically within our relevant sales offices and also via e-Newsletter to clients in our database whose criteria of interest fits your boat criteria. The listing process will take approximately 3 business days after receiving all required documents.
- You will be sent a link to your online listing to confirm the listing details, please check all information carefully and advise us as soon as possible if anything needs to be updated. It is ultimately your responsibility to ensure the details about your boat are being promoted correctly and truthfully.
We’ve found a Buyer for your boat, what’s next?…
PART 2: Sell Your Yacht
Step 1. Offers & Viewings
- Offers: For clients who are located away from the boat in question, and before booking any viewings, we encourage the Buyer to take an option via formal document (form created, waiting on approval to make public) to ensure you are both in agreeance on price and conditions, prior to the Buyer making any extensive travel plans to come and visit your boat. This allows the Buyer to make travel arrangements to inspect the vessel and secure enough time to make a decision to proceed or not. The Buyer is also required to pay a small Option Deposit at this time, confirming their authenticity. Upon signed acceptance of this option by both parties and payment of the Option Deposit by the Buyer (held by The Yacht Sales Co), the boat is considered held for that Buyer until their inspection has taken place. The Seller is not able to accept any other offers during this period. The period will be defined in the Option Document.
- Viewings: Usually only after an offer has been made, however on some occasions without a formal offer there may be various in-person inspections. Your Sales Consultant will be there to handle all these enquiries and any associated logistics. They will keep you updated on a monthly basis (minimum), ultimately getting you the best price and conditions possible for the successful sale of your boat.
Step 2. Offer Acceptance, Purchase Agreement & Refundable “Purchase Deposit” Payment
- Should the Buyer wish to continue with the purchase after their viewing, a Standard Purchase Agreement will be drawn up and must be signed by the Buyer and the Seller. Both the Buyer and the Seller can choose to include their own conditions in the Standard Purchase Agreement, however, as a minimum, a sale is usually conditional on the outcome of the survey and sea trial process. Other conditions may include finance, sale of another boat or property, an item being replaced or fixed. At this point a 10% refundable deposit will be payable within 3 days of signing the Purchase Agreement, to secure the vessel at the agreed price.
Step 3. Sea Trial, Survey & Repairs
- Survey: The Buyer will be required to engage a surveyor of their choice to survey the vessel. This ensures they receive independent advice on the condition of the vessel and any potential but unlikely issues that may present themselves. For ethical reasons The Yacht Sales Co cannot choose a Surveyor for the Buyer but we may provide a list of Surveyors nearby to your boat’s location.
- Sea trial: The Buyer may also choose to arrange a sea trial at a time convenient for yourself, the Sales Consultant and the Buyer. Your Sales Consultant will take care of all necessary arrangements regarding the survey process and the organising of a sea trial. After receiving the results of the survey and the completion of the sea trial the buyer may choose to move forward with the purchase or bring up any concerns they have with the Sales Consultant, who will discuss them with you.
- Survey and Sea Trial Costs: All costs regarding the survey, haul in/out are generally at the expense of the Buyer. In some cases the Buyer may request some of these other costs to be shared with the Seller. If a skipper is required for sea trial and/or delivery, this would usually be covered by the seller. All arrangements must be made via the Sales Consultant and agreed by the Seller. At all times the boat will be covered by the Seller’s insurance policy.
- Repairs: Should it be decided that repairs are required for the boat to meet the standard to which it was advertised, or to meet the conditions of the Purchase Agreement, quotes can be obtained and if the cost of these repairs are agreed by the Buyer and the Seller, rather than hold up the sale it is usually agreed for the sale to continue with the settlement price discounted by the value of the agreed repairs. The Buyer is not authorised to conduct any repairs until they have taken possession of the boat after settlement. All repairs prior to settlement must be authorised in writing by the seller. All negotiations will be handled by the Sales Consultant.
Step 4. Preparation for Settlement
- Unconditional acceptance form: Once all conditions are met as per the terms of the Purchase Agreement, it is time for the sale to go unconditional. The Buyer will be asked to sign the Unconditional Acceptance form. It is important to note that at this point the Buyer’s deposit is no longer refundable and the purchase of the vessel has gone unconditional. This commitment allows the Sales Consultant to arrange the following;
- Encumbrance check: Prior to settlement our finance team will conduct a Personal Property Securities Register search to ensure clear title can be transferred from the Seller to the Buyer.
- The signing of Original Bill of Sale documents: Two Bill of Sale Documents will be sent to you, these must be signed by you and returned to The Yacht Sales Co as soon as possible (a minimum 1 week prior to settlement) to be available for signing by the Seller at settlement. Failure to receive these documents by settlement puts you at risk of default. These original documents will only be handled by courier and can take some time for transport depending on the Seller and Buyer’s location. After final signing by the Seller, one original will be provided to the Buyer and one to the Seller.
- Final payment: Transfer of the final settlement amount to The Yacht Sales Co Trust Account will be required a minimum 48 hours prior to the settlement date/time, however, the earlier these funds are transferred the more likely the settlement date can be met.
Step 5. Settlement
The Yacht Sales Co will handle the settlement process at the agreed settlement date and time. The Yacht Sales Co acts as the security for both the Buyer and the Seller during this process. We will ensure documents and funds are held in trust until all parties are satisfied and happy to proceed with settlement. The Yacht Sales Co is a member of the International Yacht Brokers Association, Boating Industry Association of Australia, the New Zealand Marine Industry Association and the Thailand Marine Business Association and is bound by the applicable industry’s Code of Practice.
Bill of Sale Documents: Once the funds have been confirmed as cleared into The Yacht Sales Co Trust Account and all documents are signed as required, The Yacht Sales Co will facilitate the handover of signed original Bill of Sale documents to the Seller and the Buyer.
- Transfer of Funds: Arrangements will be made for the funds to be transferred from The Yacht Sales Co Trust Account to the Seller, this transfer may take several days depending on the banks involved and if the transfers are domestic or overseas.
- Registration Transfer: The Sales Consultant will assist the Buyer with choosing the registration they require, and our administration team can assist in the registration process. The Buyer can start the registration process at any time however registration cannot be finalised until the Buyer has an original copy of the final signed Bill of Sale, this will be provided by The Yacht Sales Co at settlement. At this point, the Buyer will be able to take the original signed Bill of Sale document to their state registration office to complete the registration process.
- De-flag certificates: In some cases, a De-flag certificate (de-registration certificate) may be required from the Seller, however the Seller would not usually begin this process until the settlement process has been finalised. The Yacht Sales Co will arrange for the Seller to get these documents to the Buyer as soon as physically possible and if required by the Buyer, a small portion of the settlement funds may be held by The Yacht Sales Co in trust until the Buyer is satisfied they have received all required documentation.
- Insurance: In the interest of both parties, we recommend the Seller continues their insurance policy until after the settlement date and the Buyer should start their insurance policy prior to the settlement date. The Yacht Sales Co can assist with quotes from the world’s top marine insurance companies. Click here to complete the online Quote Request Form to start the insurance quote process.
If you have any further queries in regards to the selling process, please don’t hesitate to contact our team today.