Yacht Purchase And Sale Agreement
Both agreements have a clause that makes the seller liable for all damage caused to the boat after acceptance, but before closing. The IYBA PSA has different results, depending on the severity of the damage. According to IYBA PSA, damage that costs 5% of the purchase price of the ship or less and takes less than 30 days to repair must be repaired by the seller, but the contract will be adjusted and the delays are extended by as many days as it takes to repair the damage. If the damage is greater, one of the parties may terminate the contract. According to YBAA PSA, the seller must repair the damage to the vessel, regardless of the size of the repair, subject to the buyer`s agreement, who has the right to demand an appropriate price adjustment or cancel the sale if significant damage cannot be repaired to his satisfaction. IYBA PSA requires that all claims or proceedings relating to the agreement be brought before a Florida state court, either in the county of the seller`s main office or in Broward County, if the selling broker does not have an office in Florida and no other jurisdiction is entered into the contract. Disputes under the YBAA PSA go to arbitration under the rules of the American Arbitration Association in the city and the state of the sales brokerage office. Thus, if you have a deal in which the seller`s office is located in Maine and which is buyer, seller and boat in North Carolina, then (i) under the YBAA PSA, the parties would end up in arbitration proceedings in Maine, and (ii) under iYBA PSA the parties would end up in the courts of Broward County, FL (provided no other jurisdiction is written in Maine). Closing boats in Florida requires a 6% revenue tax (limited to $18,000), unless the seller and buyer execute a valid affidavit for the exemption and the boat is removed from Florida waters within 90 days. We recommend reading the Florida statue of sales tax if you do not plan to pay the tax.
IYBA states that the purchase price must be delivered by bank transfer. On the other hand, YBAA requires that the purchase price be recovered by the seller at the closing. Here are some of the important differences between YBAA PSA and IYBA PSA that need to be taken into account when deciding on the deal to use for your next deal. Most brokers on the East Coast and the Caribbean are purchased and sold by one of two agreements – either with the International Yacht Broker`s Association Purchase and Sale Agreement for Vessel Brokerage („IYBA PSA“), or the YBAA Vessel Purchase and Sale Agreement (YBAA PSA). Although it is very similar in many ways, there are a few distinctions to mention.