You like the boat and you want to agree a price. From here every step is in writing: the offer, the sale agreement, the deposit, the balance and the completion documents. The order is settled, and it protects both sides.
The offer
We put the offer to the seller in writing. It states the price you propose, the currency, the deposit, the condition that the purchase is subject to survey and sea trial, the equipment included in the sale and how long the offer stays open. That period is usually kept short. Within it the seller accepts, declines or comes back with a counter-offer. Negotiation usually takes a few rounds. No money is paid at the offer stage.
What the offer is based on
We work out the offer price together. We look at the prices of similar boats on the market, at the boat's age, engine hours and equipment, and at any shortcomings you noticed at the viewing. How long the boat has been for sale is also a pointer. The aim of the negotiation is a price both sides can sign. The technical condition has to wait for the survey, which is why we make the offer subject to survey. If findings come up, the price can be discussed again afterwards.
The sale agreement
Once the price is agreed, we prepare the sale agreement, which you will also hear called an MOA. International sales rely on standard forms of agreement that are widely used in the industry, and sales in Turkey look for the same basic clauses. At a minimum, the agreement covers:
- The full names of the buyer and the seller, or the company's registered name if the boat is being bought by a company
- The sale price, the deposit and the balance
- The last day for the survey and sea trial, and the period you have for giving your decision
- The date and place of completion
- The equipment included in the sale, with items such as the tender on a separate line
- What happens if either party fails to meet its obligations
You can have your lawyer read the agreement before you sign. The legal assessment of the text is their job. For Turkish-flagged boats, the transfer is also carried out through the official register.
The deposit
After signing, you pay the deposit. In international sales it usually goes not to the seller directly but into a client account named in the agreement, and it stays there until completion. The amount is stated in the agreement and counts towards the sale price. The agreement also says in which circumstances it comes back to you. If you withdraw after the survey in line with the agreement, the deposit is generally refunded.
The balance
When you accept the boat after the survey, the balance is paid by the last date given in the agreement. For payments abroad the bank may ask for extra documents, and public holidays can get in the way, so we plan the payment day in advance. Until handover the boat is registered in the seller's name, and the risk of damage and costs such as berthing stay with the seller too. Your own policy is prepared beforehand so that it takes effect at the moment of handover.
The completion documents
As the balance is paid, the seller signs the bill of sale. Depending on the flag state, this document may need to be notarised and carry an apostille. Payment, documents and handover are completed on the same day, or within days of each other. Other papers are prepared alongside: the document showing that the boat has been deleted from its old register, the company documents if the buyer is a company, and the power of attorney for taking delivery. We follow these through so that they arrive complete and on time. After completion the boat is registered in your name.
In a purchase that runs in this order, both sides know the next step before they reach it.
