Most brokerage yachts on the East Coast and the Caribbean are purchased and sold under one of two agreements: either the International Yacht Broker`s Association for Brokerage Vessel («IYBA PSA») Agreement to Buy and Sell or the YBAA Vessel Purchase and Sale Agreement («YBAA PSA»). Although very similar in many ways, there are some that are worth mentioning. This article examines the main differences between these two agreements. When discussing the price of your initial offer with your broker, you may want to consider the option of purchasing the boat in an «AS IS» condition. This can result in a lower selling price and/or faster closing. A more common option is for the boat to go through a full phase from the charter base. After the execution of the purchase and sale contract by the buyer, we submit the offer to the seller. In most cases, the seller makes a counter-offer and suggests a price somewhere between the price of the initial offer and the offer. This may take a few days and is done orally. Once the price is pleasant, the buyer and seller have a written agreement stating the terms and the final price. Now you officially have the boat «Under offer».
Boat closures in Florida require the collection of a 6% sales tax (limited to $18,000), unless the seller and buyer have made a valid affidavit of exemption and the boat is removed from Florida waters within 90 days. We recommend that you read the Florida Sales Tax statue if you do not intend to pay the tax. Florida law governs all disputes under the IYBA PSA. The choice of law according to the PSA YBAA is in the state of the main office of the selling broker. The courts of different States interpret treaties differently. The way one State views an agreement is different from the way another State views an agreement. Florida, for example, requires specific disclosures for a contractual provision providing for lump-sum damages to be effective, while other states have no similar requirements. Since the YBAA PSA may be subject to the laws of different states, depending on where the selling broker`s office is located, it may be a good idea for a local attorney to take a quick look at the contract. Now it`s time to complete the transaction. The first step is to hire a good documentation agent (preferably someone we have experience with). .