RISKS INVOLVED WHEN BUYING A VESSEL.
WHO PARTICIPATES IN THE SALE OF A VESSEL?
1. Seller
2. Sellers Captain
3. Sellers Broker
4. Sellers Brokerage House
5. Buyer
6. Buyers Broker
7. Buyers Captain
8. Buyers Brokerage House
9. Marine Surveyor or Engine Surveyor
WHAT IS EACH STAKEHOLDERS RESPONSIBILITY DURING THE SALE OF A VESSEL?
1. Seller
Current Owner of vessel
2. Sellers Captain
Employed to operate and maintain owners vessel to the best of their capabilities under owners control.
3. Sellers Broker
Contracted or assigned to assist owner in locating a new buyer for the vessel and perform all contractual agreements to operate within the guidelines of contracted Brokerage House.
4. Seller's Brokerage House
To provide all documentation and legal obligations to assist the seller/purchaser in change of ownership of vessels.
5. Buyer
Potential new owner of vessel
6. Buyer's Broker
Contracted to perform all due diligence and guide the new potential owner within the Brokerage House rules and regulations to complete the sale of the vessel under purchase.
7. Buyers Captain
Employed to operate and maintain the vessel to the best of their capabilities under the instructions of the owner.
8. Buyers Brokerage House
Provide the platform to perform all due diligence and legal compliance to complete purchase of newly purchased vessel.
9. Marine Surveyor
Provide a professional and thorough evaluation of the vessel's current condition and defects.
Each stakeholder is obligated by law to fulfill certain requirements prior to the sale of any vessel over 40ft.
8 STEPS TO THE PURCHASE OF A VESSEL:
Buyer contracts a Brokerage House or Broker to find and source a vessel for the buyer.
1. BUYER - BROKER
The Broker will arrange with either the Seller or Sellers Broker to inspect vessel.
2. BROKER INSPECT
3. SEATRIAL
Buyers Broker will arrange a sea trial with the Sellers Broker and Captain. Sea trial may involve the Seller, Sellers Broker, Sellers Captain, Buyer, Buyers Broker, Buyers Captain and/or Buyers Surveyor.
4. HAUL OUT
Once a sea trial is complete, normally a haul out will be performed to inspect the hull and running gear by a Marine Surveyor. This is typically at the expense of and arranged by the seller.
5. SURVEY
A survey is submitted by a Marine Surveyor from the sea trial, vessel logged hours & visual inspection during the haul out. A typical survey is not accurate enough to provide an transparent assessment of a vessels propulsion machinery.
A Marine Mechanic needs to be engaged at this point to produce an Engine Report; which includes in depth testing & an estimate to repair identified defects of the entire 7 systems that propel the vessel.
LEARN MORE ABOUT ENGINE REPORTS HERE
6. DEFECT LIST
In the survey will be a defect list. This is used to negotiate the final price of the vessel.
7. REPAIR COSTS
For an accurate cost to repair these defects, multiple contractors such as electricians and mechanics are engaged to provide estimates. This is very time consuming.
Often the sale will not proceed due to disagreement between all parties involved of the cost and value of repairs and subsequently the final price of the vessel.
8. SALE OR NO SALE
YOU NEED TO KNOW THIS BEFORE YOU BUY A BOAT!
The buyer of a vessel has minimal access to an in-depth accurate analysis of a vessels’ engine system throughout the entire purchase process unless a comprehensive engine report is performed.
A vessels propulsion system is the most expensive machinery on a vessel and is vital to the safety of the vessel and its crew. DONT buy a vessel until you know the accurate condition of its propulsion system.
We believe for the safety of passengers and the integrity of the marine industry; every purchase of a vessel over 40ft should require a qualified Marine Mechanic such as American Diesel Marine during the purchase process.