Now That You’ve Contractually Accepted The Yacht, Here’s What You Must Do.

Congratulations on accepting your new yacht! We’re so excited to have you enjoying the water soon with your friends, family and clients. At this point in the transaction, we have a few things we want you to take note of so we can not only close the transaction but seamlessly move into a great ownership experience.

Before our list, please note that your deposit is now non-refundable, unless the seller fails to deliver on their obligations to close the transaction.

1. Ask Your Broker To Introduce You to Your Closing Agent - The closing agent will be curating the required information from you and introducing you to the right stakeholders to finish the deal. Ask your broker to introduce you via email and or phone. 

2. Begin Lining Up Vendors To Assist with Closing Remediation - Ensure quality vendors are mobilized to complete the outstanding items necessary to close the transaction as agreed upon in acceptance. 

3. Provide Your Finance Approval Document - Knowing who will be funding your loan, in what amount and the terms will help to prepare closing documents. 

4. Provide Your Insurance Secured  - Make sure insurance is finalized and bound ahead of closing so not to delay the closing. 

5. Enroll in Towboat US or Sea Tow - In the event your vessel fails as it leaves the dock, it’s better to prepay annually opposed to a single tow, so we encourage this is activated immediately to avoid delay.

6. Provide Your License & Passport - This information will be required by documentation agents and relevant authorities to ensure information is accurate and KYC requirements. 

7. Provide Corporate Documents - Share your company’s EIN, operating agreement, articles of incorporation and relevant details to show who is capable of signing on behalf of your company and the company is in good standing. 

8. Provide New Name & Hailing Port of Boat - What will the boat name be and where will it’s hailing port be?

9. Begin Lining Up Captains to Assist w/Post Purchase Transport - Ensure a captain is available to help as issues arise and you get comfortable operating your new vessel. If ocean or trailer transport is required, obtain those quotes now.  

10. Beginning Lining Up Crew & Management Services (Buyer)  - Ensure you have a reliable service team to make your ownership experience exceptional. 

11. Ensure Clients Home Dock is Setup And Ready To Go (Buyer) - Ensure the boat will be comfortable in the primary slip - fenders, lines, chafe gear and electrical hookups. 

12. Begin Vessel Audit For Onboard Provisions (Buyer) - Figuring out what needs to be purchased onboard after the sale should start now as we want you to hit the ground running immediately after closing. 

13. Expect Errors Early - Regardless of how well your vessel surveyed, you have to plan on shaking out some cobwebs and dialing in the boat. Inspections are short and with prolonged use, you will discover additional imperfections so as long as you know that now, that’s how every single transaction goes.

Step 1: Ask Your Broker For An Introduction To Your Assigned Closing Agent. Your yacht broker will have an administrative team member that will quarterback the necessary parties required to get you and the seller's paperworks in order to close the transaction. 

Step 2: Begin Contacting Vendors to Complete Post Sale Works. It’s likely that some work needs to be conducted to get to closing and if not, certainly after closing. Since schedules can be slow at times, begin making appointments now to avoid undue delay. Your broker should have a network of captains and contacts to begin helping you adequately resolve the open items.

Step 3: Provide Your Finance Approval Document To The Closing Agent. This document will detail how much money is to be paid from the lender, how much money is due and will help calculate taxes to be paid. 

Step 4: Provide Your Insurance Binder: Ensure this is done as soon as possible to not delay closing so it can be added to your file in the event of an issue following closing without lapse or delay.

Step 5: Enroll in Towboat US or SeaTow. This towing membership likely is separate from your insurance but it’s a no brainer to have in the event of breakdown on the water. The cost of one single tow often exceeds the cost of a one year premium membership plus it can take some time to become active so enrolling today will protect you in the event of issue starting day one. 

Step 6: Provide Your License, Passport & Corporate Documents To Your Yacht Broker’s Closing Agent - These documents will be required as a KYC and to prepare necessary paperworks. It’s important for the documentation agent to have signatures for the right person 

Step 7: Prepare For Transport And Delivery: If the boat needs to transit on a trailer or by sea, it’s important that you have a qualified captain or transport company and service ready to go. If you’re getting a transport quote, we advise you get 3 and please ensure your measurements are precise. If you’re in need of a captain, please ask your broker for a dependable and reliable captain within their network. It goes without saying how after the sale, this individual may serve as a great sounding board or consultant to resolve some issues that arise.

Step 8: Solidify Your Yacht Management Company or Crew Hiring: Who will be maintaining the boat after purchase? It’s important to know who will be doing what, when, what they’ll be paid, where they’ll live, and how you will ensure everything is done properly on your vessel. If you’re working with a crew agency, be sure to start with the captain first and allow the captain to hire the crew from there. Crew agencies typically charge one month's salary and are obligated to find a replacement in the event it’s not a good fit. If you’re hiring a management company, ensure you know how often they’ll be onboard, what they’ll be doing and what the communication and approval structure looks like.

Step 9: Begin Your Vessel Provisioning Audit. You’re going to need to buy a ton of “stuff” to go with your purchase, almost like a tv commercial that says batteries not included. Taking inventories, purchasing cleaning materials, new bedding all the way through umbrellas and silverware. Our team has acquired a number of boats so we’ve attached some resources for you that follow this video but your yacht broker should be instrumental in making this process seamless.

Step 10: Maintain Proper Expectations. Even though you just surveyed the vessel, you must expect to work out a few kinks and have some errors early on as you dial the boat in. We can tell stories of the boat not starting when a new owner flew 10 friends in to go on the maiden voyage, the air conditioning wasn’t working on the first trip and plenty more. The survey was a short peak and with time, it’s natural to pick up a few more smaller issues so just know that it’s our advice to let you know that both the highs and lows of ownership are just over the horizon.

So again congratulations and we hope this helps as we’ve been through this a few times and want you to be as best prepared as possible to move towards a smooth closing. If you have any questions, please don’t hesitate in reaching out to your yacht broker or our team.