The purchase process protects both buyer and seller, is required by the California Yacht Broker Association, and has been followed in California for decades. California is one of only two states in the country (Florida is the other) that require yacht brokers to be licensed and bonded.
Prior to Being in Contract: The prospective buyer can view the vessel inside and out, but cannot turn the systems on or ask to run the engine.
In Contract: The contract will provide a buyer with certain contingencies of sale. If any of the contingencies are not satisfactory the buyer can terminate the contract and receive a return of their full deposit. Standard contingencies of sale are as follows: a satisfactory sea trial, a satisfactory marine survey, engine survey (and perhaps a rigging inspection if the boat is a sailboat). A financing contingency may be included as well.
Sea Trial: During the sea trial the buyer has the opportunity to test all the boat systems and observe how the boat handles underway. If the boat handles as expected, the buyer will then move forward with a marine survey and a mechanical survey. A marine survey will always be required by a lender or insurer.
Marine Survey: A marine survey is an appraisal of the vessel and normally includes a complete report on the vessel with detailed information about the structure, mechanical, electronics and other features of the boat. Part of the marine survey is the haul out, where the surveyor has an opportunity to inspect the bottom of the vessel. Upon receiving the marine survey report, the surveyor will provide a list of recommendations which may provide the basis for a repair allowance from the seller and at the very least provide you with an idea of what will require attention once you own the vessel.
Mechanical (Engine) Survey: The engine survey is a separate report that reviews the boat’s engine, filters (fuel and oil), fuel and oil lines, exhaust systems, cooling systems, fresh and raw-water systems, emergency stop and alarm systems, and transmission data. This report will also include compression testing.
Closing the Deal: If all the contingencies are satisfactory, and your insurance and financing is complete, we will coordinate the transfer of title either through a documentation service (if the vessel is United States Coast Guard documented) or through the California Department of Motor Vehicles. This will also be a good opportunity to change the name of the boat when submitting the paperwork. You will deposit additional funds to complete the purchase and become a new boat owner.
Buyers Agent: As your Buyers Agent we will search listings throughout the world to find the right vessel for you. By maintaining relationships with other brokers, we gain insights into a particular listing that you may not be able to achieve on your own. We can also preview the vessel first on the buyer’s behalf to ensure the vessel is as advertised. Once the right vessel is located, we do the research in order to prepare and present an official offer to the seller’s agent. We represent the buyer through all negotiations and once an agreement has been reached, we coordinate the sea trials, various surveys, and provide resources for funding, insurance and acquiring a slip if needed.
Sellers Agent: As your “Sellers Agent” we will work together to identify the market niche and appropriate asking price for your vessel. We will ensure exposure of your vessel from a variety of marketing efforts, whether discreetly or through a high-level marketing effort. We have many existing relationships with prospective buyers who may be looking for your type of vessel and/or slip.
Upon signing a Listing Agreement with us, professional photos will be staged and taken of your vessel and a personalized web page prepared for YachtWorld.com along with 805 Yacht Sales own web site. We will prepare e-fliers that will be distributed to our known potential buyers along with flyers on marina gate information boards and “Sellers Agent” For Sale signs on your vessel itself. By appointment, we will show your vessel to potential buyers and keep an eye on your vessel in the process to take care that your vessel is always in top showing condition.
We will share your vessel information and co-op with any other Broker to ensure your vessel and/or slip is sold as quickly as possible.
Slip Transfers: Obtaining a slip in Santa Barbara is complicated and must be done by an official “slip permit transfer”. This may be accomplished by either acquiring the vessel already in the slip or first transferring an interest of an incoming vessel to a slip permittee name and later taking over the permit. The slip will have an additional cost paid to the slip permittee and a transfer fee will be paid to the city to add/remove names to the slip permit. There is also an annual possessory interest tax paid on the market value of the slip. This process is tedious and involves contractual agreements, escrow funds, powers of attorney, specific vessel measurements and adherence to exact city procedures. 805 Yacht Sales can handle all of this for you.
Vessel Management & Services: With the various local marine services businesses available it can be difficult to make an informed decision about who to use on what project let alone the time it takes to obtain bids, schedule and oversee the work being performed. We can manage this process for so you don’t need to spend your valuable time ensuring work is completed properly and on schedule. We will only recommend known licensed and insured professionals that offer a fair price. We will work with these contractors to see that jobs are completed in a timely manner, and we will verify work when completed before you pay your bills. If you’re an out of town owner we can make certain that your vessel is properly maintained and ready for your use when in town and properly stored and maintained after you leave.
Captain and Crew Services: We provide a specialized captain and crew services. Whether you need driving and navigation instructions, yacht delivery, or a captain and crew to lead you on an exotic vacation, we are always available so you can relax and enjoy the ride.
Stephen….thanks for all your efforts to sell Malolo…I appreciated your dedication to your job and your professional attitude thru out the long process. I also appreciated your daily telephone contact to keep me aware of every detail of the selling process. You were able to deal with every situation that came up and all items on the schedule were accomplished in a professional and timely manner. I would recommend you to anyone that was either buying or selling a boat! Thanks again for a job well done. Have fun on your cruise. See you soon
Stephen, I can’t thank you enough for all your help in transitioning me into the Santa Barbara lifestyle. Your assistance and guidance in finding me the perfect J120) “Screamer’ for racing, the perfect Meridian 41 (‘Smooth”) for weekend live aboard and cruising, not to mention two prime 50’ slips on the same Marina One finger was invaluable. Your referral to a real-estate broker (Wes Sinclair) who found my new house on the bluffs of Santa Barbara was also spot on. You are a true professional who goes the extra mile for your clients and you will have my recommendation to any of my associates thinking of moving here as well.
Stephen, I wanted to thank you again for your excellent guidance in the bidding and purchasing of my Ericson 25 “Peregrine” and slip. Everyone I’ve shown her to, including a few of my older, experienced sailor friends, have all fallen in love with her. I really couldn’t be happier with her and thanks again for going above and beyond with the time you took to explain and show me all the little details.