Utilize this Boat Purchase Agreement Template when selling or buying a boat. It comprises the description of the boat and other crucial clauses for a valid purchase. This editable sample also has room to set your expectations of the boat clearly.
This Boat Purchase Agreement ("Agreement") is entered into on (Date), by and between [Seller.FirstName] [Seller.LastName] / [Seller.Company] , hereinafter referred to as the "Seller," and [Buyer.FirstName] [Buyer.LastName] , hereinafter referred to as the "Buyer."
Year of Manufacture:
Hull Identification Number (HIN):
Engine Information (if applicable):
c. Serial Number:
The Seller states that the boat is (current condition (e.g., new, used, or "as-is")) (Boat Condition)
You should spell out your purchasing terms in this section. This includes the cost of the boat, the down payment if necessary, and the time frame to complete payments. A boat sale agreement must also include the seller’s payment account details.
The total purchase price for the Boat ("Boat") shall be the amount of (Insert Numerical Amount) (Insert Written Amount).
The Parties agree that the purchase price stated in this Agreement does not include any taxes, registration fees, or additional costs. Any taxes, registration fees, or additional costs shall be the sole responsibility of the Buyer unless otherwise expressly agreed to in writing by the Parties.
The Buyer shall make payment of the purchase price as follows:
Down payment: The Buyer shall make a down payment of (Insert Down Payment Amount) (Insert Written Down Payment Amount) within (Insert Number of Days) days from the execution of this Agreement.
Full payment schedule: The remaining balance of the purchase price shall be paid as follows:
In equal monthly installments of (Insert Installment Amount) (Insert Written Installment Amount) each, commencing on (Insert Commencement Date), with the final installment due on (Insert Final Payment Date).
If the Parties agree to use an escrow or trust account for the handling of the purchase funds, the following details shall apply:
The escrow or trust account shall be opened at (Specify Bank Name and Address).The escrow or trust account shall be maintained by (Specify the Name of the Escrow Agent or Trustee).
The Parties agree to execute any additional documents or agreements necessary to facilitate the escrow or trust arrangement.
The Seller hereby represents and warrants that they are the lawful owner of the boat, free from any adverse claims, liens, encumbrances, or other legal impediments to its sale or transfer. The Seller further represents that they have full authority to sell the boat.
The Seller shall undertake all necessary steps and actions to facilitate the transfer of title and provide all pertinent documentation to the Buyer within (Insert Number) business days from the execution of this Agreement. Such documentation shall include, but not be limited to, the boat's title certificate, any relevant bills of sale, and any other documents required for a valid transfer of title.
The Seller further represents and warrants that, to the best of their knowledge, the boat is free and clear of any liens, security interests, mortgages, or other encumbrances. The Seller shall provide a statement indicating any known liens or encumbrances affecting the boat, if applicable.
In the event that there are existing liens, security interests, or other encumbrances on the boat at the time of this Agreement, the Seller shall undertake the responsibility to discharge such liens or encumbrances prior to the closing of the sale. In the event that the Seller is unable to discharge such liens or encumbrances, the Buyer shall have the option to either accept the boat subject to such liens and encumbrances or terminate this Agreement, in which case any earnest money or deposits shall be promptly refunded to the Buyer.
An essential part of a boat sale agreement is outlining acceptable standards. The buyer and seller must also be on the same page about the course of action when the agreed standards aren’t met. It’s also wise to include a delivery schedule.
The Buyer shall have a period of (insert number of days) days from the Effective Date of this Agreement (the "Inspection Period") to inspect the Boat. The Inspection Period shall commence upon the Effective Date, and the Buyer shall have the right to inspect the Boat during this timeframe.
In the event that the Buyer discovers any issues, defects, or discrepancies in the Boat during the Inspection Period, the Buyer shall promptly notify the Seller in writing of such issues. The notification shall include a detailed description of the issues and the specific reasons for the Buyer's objections.
The Buyer shall accept the Boat subject to the following conditions:
The Boat must comply with all applicable laws, regulations, and safety standards.The Boat must be in substantially the same condition as represented by the Seller in this Agreement or as existed at the time of the Buyer's initial inspection, subject to reasonable wear and tear.
The Buyer shall have received all necessary documentation, including but not limited to the valid and marketable title to the Boat, free and clear of any liens or encumbrances.
The Boat shall be free from undisclosed material defects affecting its seaworthiness, performance, or safety.
In the event the Boat does not meet the conditions for acceptance as set forth in this Agreement, the Buyer may, at their option, choose one of the following remedies:
Terminate this Agreement, in which case the Buyer shall be entitled to a full refund of any payments made under this Agreement.
Request the Seller to remedy the specific issues or defects at the Seller's expense, in which case the Seller shall undertake the necessary repairs or corrections within a reasonable timeframe as mutually agreed upon by the Parties.
If mutually agreed upon by the Parties, Renegotiate the purchase price to account for any necessary repairs or adjustments to bring the Boat into compliance with the conditions for acceptance.