The YBAA and IYBA agreements contain a clause dealing with conflict of interest issues that arise when the buyer and seller have the same broker. These two agreements allow for a dual brokerage relationship between the parties. The IYBA agreement also requires that a broker not be allowed to disclose to the seller that the buyer is willing to spend more than the price without the buyer`s consent and that a broker must not inform the buyer that the seller is willing to sell the ship for less than the price without the seller`s consent. This requirement is a solution to the problem that alternating brokers have when trying to comply with laws requiring the broker to defend the best interests of their clients. In agreement with both parties, an alternating broker participating in a PSA IYBA obtains stricter guidelines on how to avoid any conflict of interest. Boats that close outside the state of Florida are not subject to Florida revenue tax. However, a tax return signed and notarized by the merchant (The Moorings Yacht Brokerage) and the buyer, which states that the boat is not located in Florida, is required at the time of closing, as well as copies of an identity card or a valid buyer`s passport. Here are some of the important differences between YBAA PSA and IYBA PSA that need to be taken into account when deciding on the deal to use for your next deal. Both IYBA and YBAA have a clause that sets out three requirements that must apply to an agreement.
Both require that the necessary documents – such as the necessary title, proof of the elimination of charges, etc. – be delivered before closing. Both also require that the purchase price be paid. The difference in the IYBA and YBAA closing clauses is that IYBA requires the vessel to be delivered for completion, while YBAA only requires the buyer to confirm that it is ready to close. Closing boats in Florida requires a 6% revenue tax (limited to $18,000), unless the seller and buyer execute a valid affidavit for the exemption and the boat is removed from Florida waters within 90 days. We recommend reading the Florida statue of sales tax if you do not plan to pay the tax. If you are discussing your initial price with your broker, you may want to consider buying the boat in the “AS IS” state. This can result in lower selling prices and faster closings. A more common option is that the boat passes through a full exit from the charter base.
After the execution of the sale and sale contract by the buyer, we submit the offer to the seller. In most cases, the seller makes a counter-offer that offers a price somewhere between the initial price and the offer. This may take a few days, and is done verbally. As soon as the price is acceptable, the buyer and seller have a written agreement indicating the terms and final price. Now you officially have the “Under Offer” boat. IYBA PSA requires that all claims or proceedings relating to the agreement be brought before a Florida state court, either in the county of the seller`s main office or in Broward County, if the selling broker does not have an office in Florida and no other jurisdiction is entered into the contract. Disputes under the YBAA PSA go to arbitration under the rules of the American Arbitration Association in the city and the state of the sales brokerage office. Thus, if you have a deal in which the seller`s office is located in Maine and which is buyer, seller and boat in North Carolina, then (i) under the YBAA PSA, the parties would end up in arbitration proceedings in Maine, and (ii) under iYBA PSA the parties would end up in the courts of Broward County, FL (provided no other jurisdiction is written in Maine).