Purchase Process Terms:
Acceptance Deadline: The date by which the buyer and seller must reach an agreement on the purchase contract's terms, including any conditions or contingencies.
Agreed Purchase Price: The final negotiated price at which the yacht will be sold, inclusive of any agreed-upon adjustments or credits.
As-Is: Indicates that the yacht is sold in its current condition, with no guarantees or warranties provided by the seller regarding its condition or performance.
Bill of Sale: A legal document that transfers ownership of the yacht from the seller to the buyer.
Brokerage Agreement: A contract between the buyer and the yacht broker outlining the terms and conditions of their working relationship and any exclusivity arrangements.
Certificate of Documentation (CoD): A federal document that certifies a yacht's nationality and eligibility for operation under the U.S. flag, typically required for vessels over a certain size.
Closing Costs: Additional expenses associated with the yacht sale, such as legal fees, taxes, and registration fees, typically borne by the buyer.
Commission: The fee paid to the yacht broker for their services, typically calculated as a percentage of the final sale price.
Contract Date: The specific date when the purchase contract for the yacht is signed by both the buyer and the seller. It marks the beginning of the contractual process.
Deposit: A sum of money submitted by the buyer to demonstrate their serious intent to purchase the yacht. It is held in escrow until the sale is finalized.
Escrow Account: A neutral account where the deposit and, in some cases, additional funds are held during the yacht sale process until the transaction is completed.
Listing Agreement: A contract between the yacht owner (seller) and the yacht broker outlining the terms and conditions under which the yacht will be marketed and sold.
Personal Inspection: A process where the buyer physically inspects the yacht to assess its condition, equipment, and overall suitability for purchase.
Seller Acceptance: The moment when the seller formally agrees to the terms of the buyer's offer, often by signing the purchase contract.
Offer Amount: The initial price proposed by the buyer to purchase a yacht.
Buyer Acceptance: When the buyer agrees to the seller's counter-offer or conditions and formally accepts the terms of the purchase contract.
Yacht Evaluation and Condition Terms:
17. Clean Acceptance: Occurs when the buyer accepts the yacht and its condition without any conditions or contingencies. It signifies that the yacht meets the buyer's expectations.
Survey: A thorough examination of the yacht's condition, including its hull, engines, systems, and overall seaworthiness, often conducted by a marine surveyor.
Sea Trial: A test voyage taken by the buyer and, sometimes, the surveyor to evaluate the yacht's performance, handling, and functionality.
Title Search: A thorough examination of the yacht's ownership history to confirm that the seller has clear and marketable title to the vessel.
Vessel History Report: A comprehensive report that provides information on a yacht's ownership history, accident history, and any outstanding liens or encumbrances.
Conditional Acceptance Terms:
22. Conditional Acceptance: The buyer accepts the yacht with specific conditions that must be met before the sale can proceed. These conditions are typically outlined in the purchase contract.
Conditional Acceptance with Escrow Holdback: A conditional acceptance where a portion of the purchase price is held in escrow until specific conditions or repairs are completed to the buyer's satisfaction.
Conditional Acceptance with Survey Allowance: A conditional acceptance where the buyer requests specific repairs or improvements based on the survey findings, with an allowance or negotiation for the cost of these repairs.
These terms are essential for understanding the yacht brokerage process and the various stages involved in buying or selling a yacht.