NEW YBAA Forms Provide Clarity & Confidence for Buyers & Sellers

As noted in the May issue of the Yacht Broker News, YBAA has updated its standardized contractual forms for 2014, with modifications that make the buy/sell process even more user-friendly.

YBAA past president, Linda Warren, and a team of committee members labored throughout 2013 to update the YBAA Purchase & Sale Agreement (P&S), Central Listing Agreement, Open Listing Agreement, Acceptance of Yacht Form and Conditional Acceptance of Yacht Form, for both U.S. and Canadian versions.

Key changes to the frequently used P&S Agreement include:

Reformatted so that all the critical information is at the top on Page 1.  All parties can see the names, dates, price, and other pertinent details to the Agreement at the top of the page.

Paragraph 1 AGREEMENT (Line 5) - "..parties may sign this AGREEMENT in any number of identical counterparts, each deemed original, including signatures evidenced via facsimile or electronic mail with the same effect as if the signatures were upon the same instrument."

This allows for e-signatures and faxed signatures, not on the same page, but on an identical Agreement which becomes a valid Agreement.

Paragraph 2 DEPOSIT (Lines 9-13) -"If either party fails to sign this AGREEMENT and deliver it to the other party or their BROKER on or before the OFFER EXPIRATION DATE this AGREEMENT will be null and void.  The DEPOSIT shall be paid upon execution of this PURCHASE AND SALE AGREEMENT and delivered to the SELLING BROKER'S escrow account as the DEPOSIT towards the PURCHASE PRICE, held subject to the terms of this AGREEMENT.  BUYER may proceed with survey and other inspections of the VESSEL once collected funds are in the BROKER'S escrow account......"