The Survey

It’s kind of a big deal

After successfully getting on contract, the buyer will then employ the services of a marine surveyor to inspect the boat. There may be more than one surveyor involved depending on size/scale of the vessel, and there also may be dedicated engine surveyors to concentrate on the health and welfare of the boat’s powerplant(s). Surveyors are employed to conduct these inspections at the buyers’ sole discretion. It’s important to keep in mind the surveyor is working for the buyer and the buyer alone. The broker may refer the buyer to the various accredited sources for marine surveyors but should in no case recommend that a particular surveyor be used.

The buyer should attend the survey and trial run if at all possible. It will be an opportunity to learn more about the boat and of course witness its performance underway. The buyers’ and sellers’ brokers should also, in every possible case, attend the survey. This will give first hand knowledge of what transpires, putting them in good position to represent the buyers’ interests moving towards closing. In almost every case, subsequent to the survey, and after the surveyors’ report(s) have been reviewed by the buyer, there will be additional items that must be negotiated in order for the buyer to accept the vessel and move to closing. If the brokers were not present to see these issues first hand, and instead rely on the surveyor’s report to try to figure out what happened, they will be at a significant disadvantage when negotiating these issues on behalf of their clients.

Cat herding, anyone?

While the buyer selects the surveyor at his sole discretion, the brokers will arrange the specific details of the survey which include a number of moving parts. First off, where is the boat? Is it in the water or on the hard? Is it easily accessible or is it behind the gate of an ‘exclusive’ neighborhood with a gate guard who won’t let you in unless you’ve got a notarized affidavit from the owner? If it’s in the water, where is the closest haulout facility that can handle the boat? Are the local waters amenable to a thorough trial run? Do we need to negotiate bridges and/or locks to get to a place we can run the boat? Who is running the boat? Does a dinghy convey? If so will it be available to launch and run? Where can we get lunch? These and more details need to be choreographed ahead of time so that when all parties converge on the boat all is ready to go.

Can’t we all just get along?

Between the buyer, seller, hired Capt, surveyor(s) and brokers, we’re going to have quite a crowd. There will be different personalities. There will be expectations, about which all parties may not be aligned. There will be stress, because let’s face it, there’s quite a bit riding on how this day goes. Human nature being what it is, people handle stress differently: some are good at it while others are not. At various surveys, in addition to being a broker, I’ve acted as marriage counselor, spiritual advisor, and referee.

Rules of Engagement

A couple of do’s and don’ts. This is not a day to invite your extended family for a boat ride. The day’s focus should be on the survey. Keep in mind the haulout location may not be a garden spot. It’s probably located at a working yard, meaning amenities will be limited. If you’re in Florida in the summer, expect lots of white concrete, aka dusty, hot, and squinty. Or maybe you’re in New England trying to get a deal wrapped up before the snow flies. Prepare accordingly.

A not so minor detail

Don’t let yourself get hangry. Standing around while the surveyor whacks the hull isn’t the time to wish you had something cold to drink. Being hungry and thirsty doesn’t help keep a clear head. If the brokers are thoughtful as well as thorough, they’ll have arranged beforehand to have some food and drink on hand.

Let the surveyor do his job

It’s ok to follow the surveyor around, but give him the space and time to do his job. Surveyors have varying degrees of affable bedside manner, but now is not the time to debate the relative merits of tinned wire. 

The aftermath

When the boat’s back at the dock and the survey is done, it’s usual practice for the surveyor to do a quick debrief on what he has found. It’s up to the buyer who is present for this because it’s on his dime and he owns the surveyors report, but my preference is for buyers and sellers reps both be present. Bad news doesn’t get better with age, and there’s never a good reason to not disclose. If the day has gone relatively well it’s a good way to keep filling the ‘well of goodwill’ between buyer and seller. If the day has not gone well, then at least everyone gets the straight dope. 

The report

The buyer should have the surveyor’s reports within a few days, and I recommend sharing the findings with the seller. Again, the fewer surprises the better. Renegotiation after the survey is likely depending on what was found. Now is not the time to lose the forest through the trees: don’t let minor sticking points torpedo a deal. This is one of those times when having a savvy, professional broker between you and the other party is really helpful. Sometimes the only reasonable conclusion is rejection of vessel, but if there is a way to negotiate a reasonable solution for buyer and seller, then let’s make that happen.

‘At the end of the day’

The survey is a critical piece of the transaction puzzle. Keep a clear head. And don’t forget the sunscreen!