Having explored the processes of a successful sea trial in issue 21 of The Superyacht Owner and how a buyer can optimise its usage prior to purchasing, Cecil Wright & Partners’ sales broker Matthew Ruane emphasised the extent to which the MYBA sale and purchase Memorandum of Agreement can play into a buyer’s hands - a thought-provoking concept for prospective buyers.
With The Superyacht Intelligence Annual Report 2015 elucidating that 83.5 per cent of builds in the 2014 Global Order Book were for repeat buyers, it is crystal clear that enticing buyers – and more importantly first-time buyers – to the superyacht industry is imperative for safeguarding its future.
“The MYBA sale and purchase terms are favourable to a buyer because he can walk away without much obligation. It provides the buyer with a get-out with respect to his overall satisfaction of the boat. I’m in total agreement with a soft-deck sit. It brings more buyers to the table and enhances that level of comfort”, commented Ruane.
'If for any reason whatsoever and in his/its discretion the BUYER considers that the VESSEL has not performed to his/its satisfaction on the Sea Trial and he/it does not therefore wish to proceed with the purchase, he/it shall give written notice of his/its rejection of the VESSEL to the SELLER or the BROKER within twenty-four hours of completion of the Sea Trial.’ – Rule 26, Memorandum of Agreement, MYBA _________________________________________________________________
In most cases a sea trial will be the buyer’s one opportunity to be on board, on open water, before the purchasing commitment, and as the above clause testifies, it represents their last chance to renege on a poor deal.
“It’s a hugely important juncture in the process because it is their opportunity to walk off a boat and say ‘it’s not for me’. This is the last stage that a buyer can pull out because the vessel hasn’t met his requirements, and given the level of investment that it is, they must optimise use of this four-hour trialling period”, Ruane added. He clarified that four hours is only long enough if you’ve prepared suitably, but a good surveyor will be able to shake out any latent defects in the systems in this time.
“The buyer should be in a position where he can stand on deck, or on the bridge, and think about whether it’s for him, knowing that he has a technical team who have done their homework and are carrying out the appropriate checks. It’s a combination of getting a tick against buyer satisfaction and a tick against good preparation and a thorough sea trial from the buyer’s team,” he concluded.
For supplementary insight to the pre-checks and underway checks involved in a rigorous sea trial, see the Superyacht Buyer section in issue 21 of The Superyacht Owner.
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