Contract for sale of boat — Subject to report of marine surveyor
SALES AGREEMENT This agreement, effective ________[Date], is between ________, with a place of business at ________[address], [city], ________ County, ________[state], referred to as seller, and ________, of ________[address], [city], ________ County, ________[state], referred to as buyer.
RECITALS A. Seller is the owner of the vessel described below and, subject to the provisions of this agreement, desires to sell such vessel to buyer; B. Buyer, in accordance with the provisions of this agreement, desires to purchase such vessel from seller. In consideration of the matters described above, and of the mutual benefits and obligations set forth in this agreement, the parties agree as follows:
DESCRIPTION OF VESSEL Seller sells, and buyer purchases, the ________[type of boat], ________ [name], an undocumented vessel, together with such vessel’s ________[indicate included equipment, such as: mast, bowsprit, sails, rigging anchors, tackle, furniture], and all other necessary equipment as such vessel is presently berthed at ________[name of port or marina]. The last certificate of such vessel is in the following words and figures: ________[set out federal or state registration information in full].
TERMS OF SALE The total purchase price of the vessel is ________ Dollars ($________). Seller acknowledges receipt of a deposit of ________ Dollars ($________), and buyer promises to pay the balance, together with ________ percent (________%) interest per annum, before ________[Date]. Seller promises to execute a bill of sale for transfer of title in the vessel and deposit it in escrow with ________[escrow agent] of ________[address], [city], ________ County, ________[state], to be delivered to the buyer on payment in full.
CONDITION OF VESSEL–SURVEY This contract is made subject to an acceptable survey to be made by ________, a marine surveyor chosen by buyer, to be completed within ________ days of the effective date of this agreement. If the findings of the survey indicate that the vessel is not seaworthy and otherwise in good condition, then this contract will be terminated, and seller will return the above-stated deposit made under this agreement. Failure of buyer to give notice to seller of an unsatisfactory survey prior to the date of transfer of possession as set forth in Section Four shall create the presumption that a satisfactory survey was completed.
TRANSFER OF POSSESSION Subject to the condition of Section Three relating to an acceptable survey of the vessel, buyer will take possession of the vessel, and assume all risk of damage to and loss of the vessel, on ________[Date].
PROTECTION OF SELLER’S INTEREST Buyer shall purchase and maintain marine insurance on the vessel from ________[insurance company] in the following amounts: a. Hull insurance on a declared value of ________ Dollars ($________); and b. Protection and indemnity in the amount of ________ Dollars ($________). All policies shall contain a loss-payable clause acceptable to seller, naming seller as loss-payee, and the policies shall be held by seller as security for this contract, and in event of repossession of the vessel, as seller’s sole property. Buyer shall not use the vessel and shall not permit it to be used in any way prohibited by or not covered by such insurance. Buyer shall not remove the vessel beyond ________[describe geographical limitation] without the prior written permission of seller.
RESTRICTION ON MARITIME LIENS Buyer shall not permit any lien or charge having priority to or preference over the title of seller in the vessel to continue beyond ________ days after the charge becomes due and payable, and shall pay or cause to be discharged or make adequate provision for the satisfaction or discharge of all lawful claims or demands that might have precedence over the title of seller as a lien or charge on the vessel. Buyer shall carry a properly certified copy of this agreement with the vessel’s papers and shall take such other appropriate steps as seller may from time to time direct as will give notice to the public that buyer has no right, power, or authority to suffer or permit to be imposed on or against the vessel any liens or claims that might be deemed superior to or a charge against the interest of seller in the vessel.
WARRANTY Seller expressly warrants that the vessel is not encumbered by any mortgage, bond, or maritime lien. ________[If appropriate, add: Except as so provided, the vessel is sold as is and where is, seller making no guarantee, warranty, or representation, express or implied, as to the kind, size, quality, description, or condition of the vessel, or its fitness for any use or purpose].
NO WAIVER The failure of either party to this agreement to insist on the performance of any of the terms and conditions of this agreement, or the waiver of any breach of any of the terms and conditions of this agreement, shall not be construed as waiving any such terms and conditions, but the terms shall continue and remain in full force and effect as if no such forebearance or waiver had occurred.
ATTORNEY FEES In the event any action is filed in relation to this agreement, the unsuccessful party in the action shall pay to the successful party, in addition to all the sums that either party may be called on to pay, a reasonable sum for the successful party’s attorney fees.
ENTIRE AGREEMENT This agreement constitutes, the entire agreement between the parties, and any prior understanding or representation of any kind preceding the date of this agreement shall not be binding on either party except to the extent incorporated in this agreement.
MODIFICATION OF AGREEMENT Any modification of this agreement or additional obligation assumed by either party in connection with this agreement shall be binding only if in writing signed by each party or an authorized representative of each party.
ASSIGNMENT OF RIGHTS The rights of each party under this agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.
PARAGRAPH HEADINGS The titles to the paragraphs of this agreement are solely for the convenience of the parties and shall not be used to explain, modify, simplify, or aid in the interpretation of the provisions of this agreement.
In witness whereof, each party has caused this agreement to be executed on the date indicated below.
[Signatures, titles, and date(s) of signing]