Buying a Boat

Want to Buy A Boat or Yacht?

In the state of California, the process of purchasing a boat is
regulated by the Department of Boating and Waterways.
This state department mandates that we follow a set of
guidelines and handle each transaction in a way that protects
both the sellers and buyers interests. Each staff member is
licensed by the state with either a Salespersons license or a
Brokers License. Licenses are renewed each year, and you
can visit the DBW website to make sure you are always
dealing with a licenced and bonded firm. A pamphlet is
available from the state describing the process, and your
rights and responsibilities while buying a boat.

Contacting a brokerage is your first step in finding a boat.
The Internet and our access to various databases allow a
brokerage to search Hundreds of thousands of boats for sale
around the world. We can help you find exactly what you are
looking for, and if the boat you desire in not one of our
listings, we can contact the broker for you and arrange for
you to see the vessel. Just like the Real estate business,
most brokerages will cooperate with each other to make sure
you see all the vessels of a type that you are looking for.

Once you have visited the vessel, and decided that you'd like
to make an offer the real work begins. The offer will be
written, a deposit for 10% of the offer amount is taken, and
we will present your offer to the buyer. Many times the buyer
will present a counter offer, and some negotiation takes place
before a final amount is agreed upon. We then have 48
hours to put the deposit into our "escrow" or "trust" account.
This is a seperate account from our operating accounts that
is only for funds that belong to a buyer. The 48 hour time
frame is mandated by the State.

Once the offer is accepted, we will arrange a Sea trial for you
to go on a short test drive. Sea Trials are for you to see if the
vessel works, and that you like the ride. During the Sea Trial
you have the opportunity to ask questions, see the start up
process, make sure the electronics work, and make sure the
boat operates correctly.

After the Sea Trial, you need to have the boat surveyed. A
survey is like a house inspection, but to a much higher
degree. A surveyer will check the wiring, the outlets, the
electronics, the heads, the decks, the hull, the running gear,
and most every system aboard the boat....except the engine.
Surveyors charge by the foot- so expect to pay between $14
and $20 per foot of length. We also recommend hiring a
mechanic to check the engine systems and make sure
everything works there, too. During the survey process, the
boat should be removed from the water so that the running
gear and hull can be inspected- this is an additional expense
that needs to be taken into account. A "Haul and Hold" uses
a lift to pull the vessel from the water, and allows you and the
surveyor to check the bottom completely.

Once the Sea Trial and Survey are complete, and you have
accepted both, funds are collected for the balance. If you are
financing the boat, your brokerage will work with your lender
to receive the funds into the escrow account. If you are
paying in full, you can write a check, send a wire, or deliver a
cashiers check to the brokerage. We will then pay off any
outstanding loans against the vessel, and will deliver the boat
to you-with a clear title.

Larry Dudley Yacht Sales
A division of Smugglers Cove Yachts, Inc