Buying a Used Boat Direct From the Owner

In a Nutshell...

When you’re buying a used boat direct from a private owner, you can often find a good deal and save on a broker’s commission. However, this route carries significant risks because you don’t have the professional oversight of a broker. The onus is entirely on you, the buyer, to do your due diligence, verify the owner's title, and ensure the vessel is free from any hidden debts or defects. Without a formal, legally binding contract and a professional survey, you could end up seriously out of pocket.

An Island Packet 40 cutter at anchor with all three sails furled

The odds are, the seller is a perfectly honest and trustworthy individual, but as a buyer you should not take anything for granted...

The Buyer's & Seller's Different Objectives

Caveat Emptor: Let the Buyer Beware

The Role of a Professional Survey

Buying Through a Broker vs. a Private Sale

Summing Up

Frequently Asked Questions

A question that often comes our way is: "Are there any risks in buying a used boat direct from a private owner rather than through a professional yacht broker?"

It’s a very good question that comes up a lot, especially as private sales platforms become more common. I’ve seen my fair share of deals, both good and bad, on the water and in the sales process. While the vast majority of sellers are perfectly honest, as a buyer, you simply cannot take anything for granted. The short answer is, yes, there are risks, and you need to take every possible measure to protect yourself. The biggest mistake you can make is to hand over any money—even a deposit—without a legally binding agreement in place. Without that document, you’ll have little to no legal recourse if something goes wrong, and you might even struggle to prove ownership later on.

The Buyer's & Seller's Different Objectives

Let’s take a moment to look at the different goals of the two parties involved: the seller and the buyer.

The seller, naturally, wants to get their boat in front of as many potential buyers as possible and sell it for a price as close to their asking price as they can. They might opt to use a yacht broker to handle the entire process and simply wait for a cheque, knowing they’ll get a bit less after commission.

The buyer, on the other hand, has a different set of priorities. They need solid proof that the seller is the genuine, legal owner. They also need reassurance that there are no hidden encumbrances on the vessel—like a loan or a lien—and that the boat is exactly as the seller has described it.

This is where a yacht broker comes in. They act as an agent for the seller, motivated to get the deal done quickly, earn their commission, and maintain their professional reputation. While they’re working for the seller, a reputable broker doesn't want to be associated with a “dodgy” boat sale.

A key point to remember is that the brokerage contract is between the seller and the broker. Any subsequent sale contract is between the seller and you, the buyer. There’s no contractual relationship between you and the broker.

But there’s an ancient legal principle that every buyer must be very aware of.

Caveat Emptor: Let the Buyer Beware

Even with a formal contract, the principle of caveat emptor, or 'let the buyer beware', is paramount. It’s your responsibility as the buyer to make sure the boat matches the seller’s description. If it doesn’t, you'll have a very difficult time getting any recourse from the seller.

And this isn't just about the boat's condition. If a third party has a lien or a writ against the boat—meaning it’s collateral for an outstanding debt—you, the new owner, could be liable for that debt. Similarly, if the boat is stolen or the person selling it isn't the true owner, you could lose the boat and all the money you’ve paid for it.

The Role of a Professional Survey

On every boat I’ve bought, I’ve had a professional survey carried out—and I’ve always been glad I did. This is a critical step that is far too often skipped in a private sale. When you’re buying a boat that might have been at sea for a long time, a surveyor is your best line of defence.

A surveyor provides an objective, expert assessment of the vessel's structural integrity, systems, and overall condition. Their report will flag any hidden issues that a layperson might miss, from osmosis in the hull to problems with the rigging or a tired engine. It's not just about finding major flaws; a good survey can also give you leverage to renegotiate the price based on necessary repairs.

A surveyor's fees are an investment in your peace of mind and, ultimately, your safety. They provide you with a detailed, written report that you can use to make an informed decision. I've often seen surveyors find issues that looked minor but would have become costly headaches down the line. They are, in essence, your expert on the ground, working only in your interests.

Buying Through a Broker vs. a Private Sale

There's a definite benefit to buying through a broker. While you don't have a contract with them, their reputation is on the line. They won't want to get involved in any prolonged, post-sale disputes. A typical broker's contract will require the seller to declare that they are the sole owner and that the boat is free from all encumbrances. The broker proceeds on the assumption this is true.

If that declaration turns out to be false and the seller has disappeared, you’re still technically liable under caveat emptor. However, a reputable broker will want to resolve the issue before a dissatisfied buyer takes legal action. In my experience, a mention of “misrepresentation” is usually enough to get a broker's full attention.

When you go for a private sale, the responsibility for checking title and encumbrances rests entirely on your shoulders. If you don't do this and an issue arises, you are on your own. You could end up seriously out of pocket or even lose the boat entirely. While a legally binding contract does give you the option to sue the seller, this can be an expensive and drawn-out process, especially if the seller was intentionally fraudulent and can't be found.

There is, however, an option that provides the protection of a broker in a private sale. You can hire a broker or a marine lawyer to facilitate the transaction on your behalf. This costs money, of course, but for a significant purchase, it might be worth every penny. You’ll have a contract with this professional, and they will be liable for establishing the veracity of the seller and the vessel’s title.

Summing Up

While a private sale might seem attractive because it cuts out the middleman and their commission, it’s a path fraught with risk. The principle of caveat emptor places the entire burden of due diligence on you, the buyer. A legally binding contract is non-negotiable, and a professional survey is a vital investment. As a seasoned sailor, my advice is simple: always prioritise security over savings. Don’t let the dream of a new boat blind you to the potential financial and legal risks of a private sale. For a more complete overview of the entire purchasing process, see our comprehensive guide to finding the perfect vessel.

This article was written by Dick McClary, RYA Yachtmaster and author of 'Offshore Sailing' published by the Royal Yachting Association ( RYA) and member of The Yachting Journalists Association (YJA).

Frequently Asked Questions

1. Is a verbal agreement enough to buy a boat?

No, absolutely not. UK law doesn’t have a standard process for boat sales, but a verbal agreement offers you no protection whatsoever. Always use a written, legally binding contract.

2. What is a "lien" on a boat?

A lien is a legal claim or debt against a boat. If the boat has a lien, the new owner can be liable for that debt, even if they were unaware of it at the time of purchase. This is why a title search is so important.

3. How can I check for outstanding finance on a used boat?

Outstanding finance is a common type of lien. For boats registered on Part 1 of the UK Ship Register, you can check the official transcript. For unregistered boats, you'll need to rely on the seller's honesty and evidence of a clear title.

4. Can I get a contract template for a private boat sale?

Yes, reputable bodies like the Royal Yachting Association (RYA) and the Association of Brokers & Yacht Agents (ABYA) provide standard sale and purchase agreements that members can use.

5. How much does a boat survey cost?

The cost of a survey depends on the boat's size and complexity, but it’s typically calculated per foot of length. It can range from a few hundred to a few thousand pounds, but it's a small price to pay for peace of mind.

6. Do I need to be worried about VAT on a used boat?

Yes. You should always ask for proof that VAT has been paid on the boat, especially if it was purchased after 1985. Without this, you could be liable for a significant VAT bill later on.