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Some experienced boaters will choose to purchase direct from a private party. And this can work under certain circumstances where you have lower valued vessels with lower financial risk. But would you really give a stranger $50,000 or more without knowing if the title was clean? Do you know exactly what to look for or inspect prior to purchase? Do you know the actual value of the boat and is your money protected? The stakes are much higher than purchasing a used car or vehicle. Boats can often times carry higher price tags than a vehicle and any maintenance and repairs undisclosed to you as a buyer could run you into the thousands of dollars and require a professional mechanic.
Yacht brokerages have access to MLS sold boat data and other resources to help you determine the most accurate pricing for the vessel you are purchasing and will fight for a better purchase price when the listing price is too high.
Experienced yacht brokers know where and what to look for during pre-purchase inspections and can help you to determine if a vessel is fully functional. And in those cases where a second opinion is warranted for the protection of the buyer or mandated by insurance or financing, they can recommend a qualified marine surveyor.
Yacht brokerages also use an escrow account to protect your funds and will do comprehensive title searches and clearances and make sure that that there are no liens or holds on a title. As a brokerage we have seen multiple titles that had liens or incumbrances that would have prevented the buyer from being able to properly transfer title. Brokerages can also file the title transfers for you, saving you lots of time when navigating the red tape.
After the sale, we can assist and put you in touch with the right people to support you through your boating endeavors. We can put in touch with specialty mechanics and when you have any sort of general questions about your vessel, we are here to advise you. I have had clients call me while experiencing problems out on the water and over the phone we have been able to talk them through a solution to their problem whether the engine is not starting or they are having trouble working their anchor windlass.
This is the most common question we get asked as a yacht brokerage and there are a lot of nuances to the answer or solution. First, we ask folks to choose their desired location. Which island do you reside and what part of the island would you like to be located, based on boating conditions and proximity to your home? From there you will have to decide if you would like to be in a public or private harbor and weigh the pros and cons of both. Private usually being a little more expensive with longer waitlists, but with less bureaucracy and hoops to jump through. The Yacht Clubs as well as a few marinas on Oahu are marked as private. These include WYC, HYC, KYC, Kewalo, Koolina, Makani Kai, Keehi Marine Center, and Koko Marina. The way each harbor manages the slips and transfers are all very different. For example, in Makani Kai you would be renting your slip directly from a condo owner. The public harbors can be less expensive, with a larger abundance of slips, but can have many requirements for insurance and slip application paperwork. The public harbors will allow you to get on a permanent slip waitlist with basic supporting paperwork such as a Hawaii State voter’s certificate or Tax Form N-11. Some of the private harbors may require you to submit a photo and documentation or evidence of vessel ownership in order to get on a waitlist. Slip transfers are usually not allowed in most of the harbors, but there can be ways to structure the vessel sale to comply with the rules. As a brokerage, we educate our clients on the process and often times have slips on hand that can be bought, rented or leased for a prospective boat buyer.
Yes. All boaters operating in the State of Hawaii must have a valid Boater’s Certificate. This is an online course offered by Boat US. The Boat US Online course is the only free Online Boating Safety Course approved by The Department of Boating and Ocean Recreation. This license must be carried on your person and produced to Hawaii Department of Land and Natural Resources (DLNR) officers if requested. Commercial tour boat operators have additional licensing requirements including but not limited to a Captain’s License or Merchant Mariner’s Credential issued by the United States Coast Guard.
https://www.boatus.org/hawaii/
Marine insurance can be difficult to obtain. Typically, insurance premiums and qualifications may be determined by the boating background of the individual as well as the location and type of vessel. The more experience you have the lower your premium may be. Things like large horsepower yachts can have a higher premiums or limitations on a policy. Some of the marine insurance companies that write policies in North America are Novomar, American Modern, Travelers, Concept Special Risk, Progressive, Geico, State Farm. There are many factors that will influence which company you will want to work with but unfortunately it usually comes down to who will actually provide you a policy and at what price. Most insurance policies will cover you up to 75 miles from shore and for a variety of losses such as hull coverage, equipment damage or personal injury. But most will not cover you for comprehensive coverage or monetary reimbursement of your vessel if you are not onboard while at anchor. And some anchoring zones are completely banned all together. Reading the fine print of your policy is important as it will ultimately govern the places and way in which you might use your vessel. We work with a variety of insurance brokers who will guide you through the process and will get you the best coverage at the most competitive price.
This is a loaded question, but comes down to what type of work is needed. For example, if you need to repaint the bottom of your vessel on Oahu you will need to pull it out of the water at Keehi Maine Center or the Phoenician Shipyard. The shipyard pricing and services vary and in some cases, repairs can even be completed on a trailer. The scope of work will also determine who you are going to need to be put in touch with. There are diesel engine mechanics and electrical engineers and fiberglass specialists. All around boat handymen do exist, but sometimes a problem that you and I cannot diagnose can be rectified by an experienced mechanic within 5 minutes. Most of them charge by the hour, but they are near impossible to find as most do not have a website and are not listed on any directories. Hawaii is very much a word-of-mouth referral place that you need to know someone to get the best deal and service. This is where we come in as a brokerage. We know and have experience working with almost all the mechanics and boat repair personnel on island. As a Brokerage, we can assist with warranty or manufacturer repairs and really anything related to your boat.
You have the ability to register your vessel locally on a state level with DOBOR or on a Federal level with the United States Coast Guard. At the end of the day the registration types and costs are quite similar, but some limitations exist. For example, if your vessel is under 5 net tons, you may not register it with the USCG. And it is illegal to be registered federally under USCG and locally under Hawaii State simultaneously. And while you may change or transfer between the two there are very specific processes for this. There are some benefits and challenges to both USCG registration and local DOBOR registration. Most banks that are financing a purchase will require the vessel to be registered federally. I know folks that have been boating their whole live and still have questions and problems that arise when trying to register their boats on their own. Sometimes the paperwork isn’t filled appropriately or something as simple as a check box was forgotten. But this is where we come in- we register all vessels that are sold through our brokerage and will ensure the process is completed to the satisfaction of the buyer and harbor agents.
If you are buying a boat to offset your expenses or get into business full time, there are many cautionary tales we can reference. Sleep on it for a few nights before you determine this is an industry you are qualified to get into and able to financially support. While there is money to be made in the passenger tour business, there can be a lot of red tape and large expenses to cover while you are getting up and going. The size and build of your vessel may end up determining how many passengers you can legally carry. The general rule of thumb is that if you have a vessel built outside of the United States you are limited to a maximum of 6 paying passengers. DOBOR has requirements for commercial use permits to operate in State waters and each harbor has its own permitting and limitations on what is and isn’t allowed. No commercial activity is allowed at any of the private yacht clubs, and most of the private harbors with the exception of Kewalo Harbor. There are many different types of tours such as bareboat, COI, 6-pack - so choose the way in which you would like to use your vessel, but be smart about what you decide to do and legal about the way in which you decide to operate. Massive fines exist from the United States Coast Guard for those illegal passenger tour operators in excess of $10,000 per passenger per occurrence. As a captain, you can even be held legally liable for negligence with stiff jail penalties. As a brokerage we can provide you with expert advice and make sure your vessel is legal to operate with the correct licensing and insurance requirements. Our maritime attorney can also provide legal advice when needed and work with you on business or LLC documentation.