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    nascar61's Avatar
    nascar61 Posts: 1, Reputation: 1
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    #1

    Jul 8, 2012, 10:28 AM
    Contract For Deed on boats in Florida
    A guy wants to buy our boat, but he can't get a loan in his name and wants us to keep it our name. Would a contract for deed work for us? And what are the legal standards on this. We want to be sure we are covered on all legal points.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Jul 8, 2012, 10:41 AM
    No, since boats don't have deeds. Property has deeds

    You may sell them the boat and keep the title of the boat in your name, and also keep it insured and what very max liability coverage, since if they run into a yacht for example or hurt or even cause someone to drown, you as owner of the boat could be sued, so a million in coverage may be needed. So that has to be added to their payment

    You can draw up a contract for sale where they are paying you for it and you will sign the title over to you, It works the same way but you can't have a contract for deed for something that does not have a deed.

    Also with a deed, land is not going anywhere, in this case, they can hide the boat, sell the boat to someone else without a title, wreck the boat and so on.
    The less down payment the higher risk, I would not consider it without at least 1/4 down

    Next if their credit is so bad they can not get a loan, that means they have a history of buying things and not paying for them, so why do you think they will pay you
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #3

    Jul 8, 2012, 11:06 AM
    As noted deeds go with real property, boats have titles.

    You can enter a contract with anyone to buy anything as long as you both agree to the terms.
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #4

    Jul 8, 2012, 12:49 PM
    Quote Originally Posted by Fr_Chuck View Post
    ... Also with a deed, land is not going anywhere, in this case, they can hide the boat, sell the boat to someone else without a title, wreck the boat and so on.
    ...
    So, in addition to liability insurance, your contract should require them to pay for insurance covering all of those risks. You should be a named insured on all the policies. Make sure you are notifed by the insurance company(s), well in advance, should the policy(s) lapse.
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #5

    Jul 9, 2012, 06:51 AM
    Quote Originally Posted by nascar61 View Post
    we want to be sure we are covered on all legal points.
    Hello n:

    If he keeps it in YOUR name, and he KILLS somebody, YOU will be sued. Sell it to him like a car. Make HIM get his OWN insurance, IF he can.

    excon
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