Boat buying can be a frustrating and confusing process. What's a good boat and what isn't? What's the right boat for you? What's the right price? Do you buy new or used? How do I make sure I don't get into a legal hassel? Here is a brief step by step guideline on what to expect.

1. How Much?

First decide how much you want to spend, remembering that Florida Sales Tax is 6% if you are a Florida resident, or, if an out of state buyer, the yacht is to remain in Florida waters longer than 90 days. In addition to the price agreed upon for the yacht and required sales tax, if any, other buyer expenses usually include $12 - $14 per foot for the surveyor's fee,$150 - $250 for marine yard haul-out for surveyor to check the bottom. If the boat is to be documented with the U.S. Coast Guard, fees usually run from $600 to $800.

2. Type of Vessel

Next, determine what type of vessel you plan to purchase - size, draft, type, etc. In making this decision, other items to consider are whether the boat is to be used for coastal or blue water cruising. You may want to include in the type of vessel to purchase other yachts that you have seen that you liked and also if you plan to run the vessel yourself or if crew members will be needed.

3. Equipment

Determine how you want your yacht equipped - electronics, dinghy, davits, generator, air conditioning, etc. You need to set at least your minimum requirements remembering that additional equipment will add to the price of the vessel.

4. Broker

Of major importance is locating a licensed, certified and bonded yacht broker you like and feel comfortable with and work exclusively with this broker to find your yacht. Since most reputable brokerages use www.Yachtworld.com (a multiple listing service), all have access to yachts centrally listed for sale worldwide. If you deal with multiple brokers, chances are you will end up with essentially the same yachts for your consideration. Not all brokers are created equally. Of the over 3700 licensed yacht brokers in Florida, only about 100 have achieved the status of being a Certified Professional Yacht Brokers (CPYB). Using a CPYB broker assures you will receive ethical and professional advice and your interest will always be protected. To find a CPYB broker go to www.CPYB.net

5. The Bid

After finding a yacht that you like, place an initial bid on the vessel. In making this bid consider the asking price of the yacht vs. published values, comparable recent sales condition of the yacht and items that you wish to add should you purchase it, how long the yacht has been on the market and the owner's situation, if known. Remember that the first bid must be accompanied by a check or wire transfer of funds representing ten (10%) percent of the bid amount made out to the brokerage's escrow account. Generally, the buyer will not be asked to place additional funds in escrow if the final sale price exceeds the initial bid price, which it usually does. If your purchase depends on financing, make sure your initial bid reflects this. It is helpful to obtain pre-approval of financing because the seller will want to minimize the time his vessel is off the market and will want to limit the time allowed for financing to be accomplished. There are a number of sources specializing in marine financing. Your broker will be able to furnish you with a list of these to contact. Massey Yacht Sales has it's own financing.

6. Survey and Seal Trial

After buyer and seller reach agreement on price (and sign a Purchase Agreement to this ), the buyer will usually want to select a surveyor to conduct a thorough survey of the vessel to determine its final acceptance. This survey is the single most important activity in the purchase process, for the result of the survey affects all subsequent events - insurance rates, repair and/or inventory additions, smooth, trouble-free cruising, possible future sale price of the yacht. While your broker can recommend competent surveyors, the buyer should insure that the surveyor selected is a member of an accredited association like NAMS or SAMS. Additionally, he may want to have the surveyor furnish several references for contact. It is helpful, also, to have the surveyor send or FAX a resume of background experience to determine his qualifications to survey the yacht under consideration. Normally, the survey and sea trial (trial run) takes a day. The surveyor arrives early and initiates the survey by a cold check of the engine followed by a thorough check of all systems - electrical, electronic, plumbing, stoves, etc. and a close inspection of the yacht both below decks and topside. He inventories everything (which should be matched with the specifications on the yacht you should receive from your broker). This process takes about two to three hours. Following this, the engine is started and the yacht motored to a marine yard where she is hauled for bottom inspection. The yacht will then be "splashed" and then taken for a run to determine condition of rudder control, steering and the "feel" of the yacht under power or sail. During the run back to the original starting point following the sail, or during the motoring to the marine yard, the surveyor will run up the engine to her maximum RPM's careful checking for impeller run out, engine smoke or overheating and engine and shaft alignment and engine mount positioning and wear. After docking following the trial the surveyor will review his findings with the buyer (and seller if possible) and then follow-up this oral discussion with a full written survey which usually arrives either by FAX or mail two to three days later. The buyer usually has forty eight hours following receipt of the written survey to accept or reject the yacht. If the buyer signs a rejection, then the down payment is returned. If the buyer signs an acceptance and then subsequently rejects the yacht, then the down payment is forfeited.

7. Acceptance of Vessel

Following the Acceptance of Vessel - Once the yacht is accepted the broker, at the buyer's direction, the closing agent will begin the final preparations to purchase the yacht at the date called for in the initial Purchase Agreement. This person will check liens, prepare Bills of Sale, etc. At the close all these papers will be presented to the buyer and seller for proper notarized signatures. These papers, often called `running papers' should be aboard the vessel at all times. Following the survey, the buyer will need to arrange for insurance with the coverage effective the day of close - the original date given on the Purchase Agreement. If no Florida State Sales Tax is to be collected and forwarded, then the out-of-state buyer will be asked to sign a tax waiver attesting that the yacht will be removed from Florida waters within 90 days (unless undergoing repair at a registered marine facility). Since the seller receives full funds due for the yacht at time of close, it is important that the buyer deposit funds either through Wire Transfer or Certified check to the broker's escrow account well in advance of the closing date. If these funds are deposited by check, the check must be deposited at least five working days in advance of close to insure funds are cleared at time of close. Usually, two working days are needed to insure cleared funds through Wire Transfer.

8. Closing

Since the buyer will officially take possession of the vessel following closing, arrangements should be made regarding the vessel's dockage. Unless prior arrangements have been made, the seller is not responsible for dockage following closing. Under a new Florida law effective October 1, 1995, out-of-state buyers of yachts more than five (5) net tons may keep their yacht in Florida waters up to 180 days, or longer if in a registered marine facility documented by yard bills, without being taxed for either the State Sales or Use Tax. A Use tax is simply a tax imposed for leaving a vessel in Florida waters for longer than 180 days. Talk to me about specific rules and exemptions. All Florida residents (as determined by auto registration, property tax records, and mailing address) MUST pay the 6% sales tax at time of closing.

(body3)