The proof of the surety is made available to a buyer who has made a down payment on a ship to complete the purchase at a later date. Once a buyer has expressed interest in the seller in a boat for sale, the seller will agree not to sell the boat to another person if the buyer makes a down payment. This cash deposit goes towards the total selling price of the ship, but the buyer must return in an agreed number () of days, otherwise the seller will keep the deposit. It is important that the buyer claims a security deposit for the boat, containing buyers, sellers and information on the amount of the down payment and the total sale price. Most brokers also have fiduciary accounts, but other than the FDIC protection afforded to a credit institution`s trust account, there are no other safeguards for loyal funds. A licensed yacht broker in Florida must be hired, but only up to $25,000, which, given the high deposit in most yacht transactions, does not offer much protection for trust funds. Before filing a down payment with a broker, the buyer should clearly understand who the broker is working for, as the broker could represent both the buyer and the seller in the same transaction. If a broker holds the buyer`s deposit, the broker, regardless of the broker`s representative, has a legal obligation to act as a neutral third party with respect to the deposit. If the broker acts on behalf of both parties, the buyer may consider choosing another agent.
Regardless of how the down payment is made, the buyer`s written offer or sales contract must have clear conditions on how the sale is made and how the down payment should be processed in the event of a late payment of a party. The agent requires explicit instructions to be signed by both parties and follows these instructions regarding the payment of trust funds. Most failed transactions are subject to litigation over who broke the agreement and what will happen to the buyer`s deposit. If there is a conflict over who is late, then an attorney should do one of two things: keep the bail until it is signed by both parties, or file the bail in the district court. Once the bail is filed in court, the parties can argue on bail with the lawyers.