BOAT SALES - Boat Sales Process

Here is a detailed description of the boat sales process

1. LISTING

No Listings, no sales!  The standard commission is 8% (plus VAT if applicable) in the UK and 10% in EU/USA.  It is always advisable to set a minimum commission charge and we would recommend £1500.00 (plus VAT if applicable)

ALL current seller must sign the listing agreement (boat can't be listed without agreement).  You can either send this via online signing as per the video below, or meet with the seller on board to complete the agreement together.  By completing the agreement together you will gain a better understanding of the boat and the vendor.

We offer two types of listing agreement:

NON EXCLUSIVE - the owner is free to list their boat with any other broker or sell it privately
SOLE - the owner can only sell their boat through Boatshed, not even a private sale

The non exclusive agreement is the most popular as it gives the owner some flexibility in the selling of their boat

NO LISTING AGREEMENT = NO LISTING WITH BOATSHED

Confirm with the seller the price the boat will be advertised at and then arrange a suitable time to meet them onboard or to gain access to the boat.  Explain it will take approx 1.5hrs to gather all of the information.

Once on board you should:

  • Record the full boat spec
  • Take unlimited high res photographs (these should all be the standard Boatshed images - details to follow)
  • Record short Interior, Deck Walkaround & Engine videos
  • Take high res 360 virtual reality images
  • Photograph boats documentation VAT, RCD, Registration. Bill of Sale, Part 1 Registry, SSR, Builders certificate, proof of ownership.  When you photograph the boat documents ensure you check the ownership history as all vendors must sign the listing agreement.
  • Check if there is any outstanding finance on the boat
  • Always ask about the boats history - this will be useful for your brokers comments

2. BOAT SPEC CONFIRMED

Once you have gathered all of the information/photos/videos/VR  for the boat you will then be able to start uploading the details to the dashboard.  It is important to ensure you take the time to enter the details correctly as Boatshed prides itself on providing honest, accurate and transparent information.

The following videos show how to upload a boat to the dashboard.

The final stage of adding the boat to the system is to add the brokers comments, the aim is to give potential buyers an overview of our thoughts of the boat which includes the following tips.

  • You have been on board and viewed the boat and taken all the photos.
  • Boats history
  • Styling & use of boat
  • Alterations  (vendors improvements or not)
  • Use a negative about the boat, but don’t upset the vendor.
  • Do remember that all information for the brokers comments is obtained from your vendor 
  • NB: remember this is the only area that you contribute to, so you may be liable for your comments.  Avoid traditional sales language or confirmation of facts.
  • Avoid VAT paid or VAT status on boat details, Note CE if not compliant.
  • What would you change if you were the new owner

Once you have uploaded all of the information,  you should send an email to the seller with a link to the advert so they can check all of the details are correct.

3. BOAT LIVE ON THE WEBSITE

BOAT LIVE

The boat is now live over all of the Boatshed offices plus is featured on all major MLS (Multi Listing Services) websites such as Yachtworld, The Yachtmarket, Apollo Duck.   Never make a boat live without confirmation from the seller that the details are correct.  

QUALITY CHECK

Once the boat is live, the advert will be reviewed by the Quality Check team who will advise if there are any changes that need to be made. You will receive an email from the QC team stating one of the following:

  • PASS - no further action needed
  • ADVISORY - action needs to be taken 
  • FAIL DEACTIVATE - action needs to be taken as soon as possible as the boat is no longer live on the system

When you have made the necessary changes please tick the QC re-check button under the QC tab on the listing and the the advert will be reviewed again.

MARKETING

Marketing of the boat can now start and a Mailsender Campaign should be sent to profiled users.  You can view details on how to send a campaign HERE. (If you are working for a brand managed by Boatshed HQ the marketing campaigns will be sent for you.  Just send a request through to support@boatshedsupport.com with the details and the team will advise when the campaign is going to be sent and the number of customers it's being sent to.)

ENQUIRIES

As the broker you will be handling all of the enquiries regarding the boat sale this could include; information requests, viewing requests, offers, view alerts.  Many of these can be handled through the dashboard notifications centre and further details are in the following video:

Every month an 'Owner Update Email' should be sent to all of your sellers with boats for sale.  This email should provide them with the viewing stats for their boat plus a few paragraphs on what you have been up to over the last month.  See more details HERE.  (If you are working for a brand managed by Boatshed HQ the Owner Update Email will be sent for you automatically)

4. VIEWINGS

ARRANGING VIEWINGS

If a customer would like to physically view a boat then we should ensure they are a serious about buying, before arranging the viewing.  The following questions should provide a good indication:

  • Check the customer has seen the boat on Boatshed, logged in and viewed the photos and videos
  • What type of boat are you looking for? Size, budget, type, hull type, berths, budget.
  • What time frame are you considering buying a boat?
  • Have you got a boat at present?
  • Do you need to sell this boat first?
  • What other types of boats have you recently visited?
The viewing can then be arranged and you should confirm the time with the seller so they can prepare the boat for the viewing.  Also confirm the viewing with the buyer, it is worth sending a couple of reminders to ensure they turn up.

PHYSICAL VIEWINGS

When carrying out a viewing remember to follow all safety guidelines on the marinas, yards and the water.  Other customers around the marinas/yards will be watching your behaviour from other boats so be professional at all times.

Whilst attending the viewing explain to the buyer if they are interested in making an offer, how they can buy the boat….PROCESS PROCESS

Always update your seller after the viewing even if the potential purchaser was not interested in the boat

NB: No engine starting or sea trials are done at this stage, boat has to be under offer to perform checks which are generally not done by Boatshed

You can view further hints and tips on attending viewings HERE

5. OFFERS

If a buyer decides to make an offer they need to contact you directly with the details, they should not be talking to the seller.  

There are two types of offer that can be made:

  • Conditional - subject to a survey, sea trial, engine test or other conditions
  • Unconditional - no survey, trials or inspections

(As a broker you should always recommend the buyer has a survey when purchasing the boat.)  

You should then contact the seller with the details of the offer price plus what the offer is subject to ie, survey, sea trial, hull survey, engine test.  We are duty bound to relay all offers to the vendor no matter how low the offer may be, even if we think the seller will not accept it.

There are three options for the seller once an offer has been made:

  1. AGREED - Offer accepted and the purchase can proceed
  2. NEGOTIATE - Offer is rejected by the seller but they are willing to negotiate a deal
  3. REJECT - Offer is rejected by the seller and they are not willing to negotiate.

Once the offer has been agreed by the seller and buyer the sale can proceed

6. OFFER AGREED

Once the offer has been agreed, you will need the full name and address of  ALL buyers and ALL sellers.  It is important you gather all of this information now as it will save any delays further along the process.  When the boat was listed all of the sellers details should have been added, when you add the offer to the dashboard you will need to add all of the buyers details.

Find the boat on the system and go to the sales/offers tab:

Enter the sales details and select from one of the three options below to save:

The deposit details area can now be completed:

  • Enter the deposit amount detail
  • Choose the applicable client account (if working under a brand managed by HQ there will be multiple accounts available)
  • Enter the planned commission as a percentage rate.
  • Click save

Please note:  When the buyer makes the deposit payment to Boatshed, the name on the bank account MUST match the name of the person buying the boat.  Please confirm this with the buyer before proceeding, this is part of the money laundering regulations we adhere to.

7. DEPOSIT CLEARED

The ‘deposit cleared’ box can be ticked once the funds (the deposit is normally 10% of the offer price) have arrived in your client account and the boat will now show Under Offer on your website (however it is not considered as fully under offer until the sale and purchase agreement is fully signed).  If you are using a Boatshed Client Account, the accounts team will have received notification to expect the funds. Once the funds have been received the accounts team will tick the deposit cleared box, auto sending an email notification to you, the seller and buyer confirming the deposit for the boat has cleared.

The sale and purchase agreement can be sent at the same time as the deposit request stage, no inspections can take place until the deposit has cleared and the agreement is full signed by all parties.

8. SALE AND PURCHASE AGREEMENT

The sale and purchase agreement is a binding contract between  ALL vendors and ALL purchasers, it states the details of the boat and the conditions of the sale ie. price, survey/sea trial.  In order for the sale to proceed the agreement must be fully signed by all parties BEFORE any surveys/inspections take place. 

The sale and purchase agreement can be sent in two ways; 

By Post:
You can print a copy from the dashboard and this one copy then needs to be signed by all parties

Online: The agreement can be sent from the dashboard and is sent to all parties at the same time to sign online.  It's much quicker to complete the document in this way.

This video explains how to send the agreement via online signing.

Once the agreement has been fully signed and the deposit has cleared the survey/sea trial/inspections can take place.

9. UNDER OFFER

The boat is only considered as under offer once the deposit has cleared and the sale and purchase agreement is  FULLY signed by ALL parties.

The sale must not proceed if either of these have not been completed.  If any of the parties want to pull out of the sale, the conditions in the sale and purchase agreement must be adhered to.

The buyer can now arrange for the survey/sea trial/ inspections to take place.

10. SURVEY/SEA TRIAL

Now the boat is under offer the survey/sea trial or any other inspections as part of the conditions of the sale can take place.

Definition -A marine surveyor a person who conducts inspections, surveys or examinations of marine vessels to assess, monitor and report on their condition and their products. 

  • This tends to be a negative reporting commenting on "material defects" on the boat. 
  • Material defects is one or more defects that amount to 5% or more of the purchase price to repair. Such defects may be of a minor nature or of some complexity. 
  • All marine surveyors must have proper insurance in place.

We always recommend that a buyer has a survey because as brokers we advertise the boat using information given to us by the Seller. We as brokers are not qualified, nor would we want to comment on the condition of the boat as this would make us liable. On each boat we use the below disclaimer...

Disclaimer The particulars detailed herein are intended to give a fair description of the vessel but their accuracy cannot be guaranteed. These particulars are not and shall not form part of any offer or contract for the sale of the vessel and are supplied on the understanding that all negotiations shall be through Boatshed, who act as agents for the vendor. The vendor is not selling in the course of a business unless otherwise stated. The prospective purchaser is strongly recommended to check the particulars and, where considered appropriate, at his own expense, to employ qualified agents to carry out structural and/or mechanical and/or electrical surveys and inspections in order to assess the actual condition of the vessel before purchase.

Types of Survey:

  • Full survey - Full inspection of the vessel.  This usually includes exterior, interior inspections (in and out of the water)
  • Hull survey - External inspection of the underneath of the vessel (out of the water)
  • Engine Test - The engine will need to be started to carry out the engine test.  This test may also include pressure checks and oil sampling.
  • Sea Trial - There must be a qualified skipper or the vendor to drive the boat, this must be approved by the vendor.
  • Trailer -  Please note trailers come in a variety of different types. It is the customers responsibility to check it is legal before towing.

If the customer declines a survey then the offer is  unconditional, i.e. NO SURVEY/SEA TRIAL or any other conditions.

We can assist with the arrangements for the inspections and can provide the buyer with a list of surveyors, however we should never recommend anyone in particular.  All costs of the survey/sea trial or inspections should be covered by the buyer and we must ensure the boat is returned to the same place as before the inspections.  On the day of the survey meet with the surveyor before the survey to hand over the keys and any information that may be useful about the boat.  Building up a relationship with the surveyor will make it easier to find out how the survey went before the surveyor sends the report to the purchaser.

You'll then be able to discuss the initial findings with the purchaser and be able to prepare them for the report they are about to receive.  Once they have received the report (you can go through this with them) the purchaser has three options:

  1. ACCEPT - accept the vessel as per the survey results and the purchase can continue
  2. NEGOTIATE - if there are any defects from the survey, some negotiation may be needed before the purchase continues (there may be a re-negotiation on price or defects rectified)
  3. REJECT - the buyer can reject the vessel if the vessel does not meet their needs. The deposit can be returned to the buyer and the boat is placed back on the market.

Please familiarise yourself with the terms and conditions of the sale and purchase agreement with regards to the survey results and the rejection of vessels.

Sea Trial:

A sea trial can take place after the survey.  The seller of the boat must ensure that the boat is insured for sea trials as there are some policies that don't cover a boat when it is on a sea trial.  The broker should explain to the seller and buyer how the sea trial will work, how long it will take and what they should expect the from the sea trial.  Either the seller of the boat or a qualified skipper should be insured to drive the boat and be the only people to navigate the boat in close quarters and the buyer can test the boat in open waters.  Life jackets should be worn by all parties.

11. ACCEPTANCE OF VESSEL

Once the vessel has been accepted by the buyer we can move onto the next stage of the process.  It is important to confirm our commission charges at this point so the seller is aware of the funds they will be receiving once the sale is completed.

We require the balance of funds from the buyer so the final sale details should be entered into the dashboard as follows:

If your brokerage is using the Boatshed Pay system, once you have confirmed the final selling price and commission, an email will be sent to the buyer asking them to pay the balance of funds and the client account details will be provided.  The seller will receive an email asking them to enter their bank details into the system ready for completion.  

If you are not using Boatshed Pay then you will need to ask the buyer for the balance and ask the seller for their bank details (the bank details should not be sent via email as this is not secure and you should always verify the bank details via a different method of communication)

Once the full balance of funds has been received you can tick the balance cleared box.  If you are using the Boatshed HQ client accounts then the accounts team will tick this box for you once the funds have been received.  If you are using Boatshed Pay then all parties will receive an email to confirm the balance has cleared.  If you are not using Boatshed Pay you need to confirm with all parties the balance has cleared.

The bill of sale should now be sent for signing.  A completion date needs to be confirmed with the seller and buyer, this will be a specific point in time when the ownership of the boat is officially transferred over and this date will be entered onto the bill of sale.  The bill of sale needs to detail all of the sellers and all of the buyers (this should be the same details as the sale and purchaser agreement)  The bill of sale only needs to be signed by the current sellers.  Watch this video on how to complete the bill of sale.

All of the boat paperwork should be collated (this should have been completed when the boat was listed) ready for completion.  Even though this will have been uploaded to the dashboard the paper copies need to be given to the new owner.

12. BOAT SOLD

We are now at the stage where we are ready to complete on the sale of the boat. Before completion takes place we must ensure the following:

  1. We are holding the full balance of funds
  2. The bill of sale has been FULLY signed by ALL current vendors and the details of ALL purchasers are shown
  3. Copies of all paperwork (previous ownership, VAT etc..) are ready to hand over to the new owner
  4. The vendors bank account details have been verified by you over the phone.  The name on the bank account must match the name of the vendor on the system.
  5. There is no outstanding finance on the boat
  6. Checks have been made to ensure there are no other outstanding debts relating to the boat ie mooring/yard fees
  7. The purchaser has confirmed they have taken out insurance for the boat
  8. All costs relating to the survey/sea trial or inspections have been paid

If any of the checks above have not been completed then we MUST NOT complete on the sale until they are done.

The completion date will already have been agreed and this will be the date entered onto the bill of sale.  It is important to set a specific date and time (1100hrs on Monday 30th November 2020) as there needs to be a point when the official responsibility and ownership is handed over from one person to the next.

The sale can now be completed on the dashboard. If you are using Boatshed Pay the accounts team will receive a notification to pay the vendor less the commission payable to Boatshed.  They will make a payment to the account details that have been entered onto the dashboard, this is why it is important to verify the details before the completion takes place.  If you are not using Boatshed Pay you can finalise the sale of the dashboard and then make a payment to the vendor.

Ensure you double check all of the figures are correct before pressing the finalise button.

You should confirm with the seller their boat is now sold and they should expect to receive the proceeds from the boat sale less out commission (you should make sure you confirm the commission with them once the final selling price has been agreed).  Then confirm with the buyer they are the proud owners of a new boat and hand over all the paperwork regarding the boat.

The boat sale is now complete!

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