In many ways, there are similar complexities between boat and aircraft sales and purchases, and the team at Walker Insurance & Finance Services will undertake to help to make the transaction as seamless and stress-free as possible.
In many ways, there are similar complexities between boat and aircraft sales and purchases, and the team at Walker Insurance & Finance Services will undertake to help to make the transaction as seamless and stress-free as possible.
Both new and second hand “boats” come in many shapes and sizes, from yachts and cruisers to motor boats, barges, sail boats and working vessels, and each has a set of rules and conditions to which they must adhere.
Within the marine fraternity, escrow accounts are becoming more commonplace, which is hardly surprising as the value of a boat or yacht is frequently more than that of a home.
With both new and second hand boats the funds, will be temporarily retained by a neutral third-party authorised escrow provider and custodian where the funds will only be released upon agreed conditions being met.
In general terms, with the purchase of a boat an initial deposit will be paid as a statement of intent to purchase, subject to conditions being met. These conditions may include surveys both in and out of the water, sea trials (where appropriate), title being proven and that the vessel is free of liens, licences, that insurance conditions are met, etc. In some instances, the conditions may even include agreed repairs to the boat prior to completion of sale. In many cases the entire amount is required to be held and may be released in stage payments.
Conditions will vary according to the type of vessel and purpose plus laws will vary throughout the world. It is on this basis that Walker Insurance & Finance Services will look at each escrow requirement individually and tailor the terms to match the requirement.