Search
Subscribe

Enter your email address to receive new posts in your inbox:

Delivered by FeedBurner

Share

Like what you see? Share!

Twitter

Entries in deposit (1)

Wednesday
Jun012011

10% Deposit on Purchase And Sale Agreements Not Set In Stone

Another great post from David Weil: http://www.thelog.com/AskAMaritimeAttorney/Article/Is-a-10-Percent-Deposit-Always-Required-in-a-Brokerage-Yacht-Purchase-

He's right.  Even though most brokers require a 10% deposit in order to present an offer to a boat owner, there is nothing magic about that number.  In order to be enforcible, the law requires something of value to be exchanged by both parties.  In a typical P&S an owner is taking the boat off the market in exchange for a potential buyer potentially buying the boat.  In order to be enforcible, that potential buyer has to put up more than just "potential."  That is where the deposit comes in.