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When you purchase a yacht through Blake Davis Yacht Brokerage Inc., my contracts all have written "subject to Sea-trial and Survey", this write up below will give you detailed information of what a survey is. The Sea-trial is when we take the boat out and put her through it's paces to ascertain that it performs as advertised. If a boat fails to satisfy your expectations on either sea-trial and/or Survey, you can reject the vessel and walk away from the deal with all your deposit returned to you immediately as long as any expenses you incurred to the vessel have been paid, such as the surveyors and the yard that hauled the boat. The expenses of the sea-trial are 100% borne by the SELLER.
The surveyor is being paid to find out what's WRONG with the boat, not what's RIGHT, so don't be surprised when you're handed a 20 -30 page list of comments and items that need to be corrected. When you are paying $18.00 - $20.00 a foot for his services, the surveyor is certainly trying to make sure you know your getting your money's worth for his services. Again- he's not paid to write anything good, that's the Brokers job.
Elements of a Good Purchase Survey
A survey conducted for purchase is a condition and valuation survey with the vessel hauled out, allowing for a full inspection of the vessel including the underbody. Special conditions may exist at the time of the survey that may limit the surveyor from performing any one of the following Elements. Special conditions also may exist in which only an in-the-water survey may suffice. Such a survey should be conducted only with the approval or notification of the purchaser, the lender and the underwriter. The Elements Of A Good Purchase Survey, as described below, are intended to satisfy without bias the combined requirements of the Purchaser, the Lender, the Underwriter, the Surveyor and the Broker. To assure survey quality and uniformity it is recommended these elements be voluntarily practiced and subscribed to by the individual surveyor.
SURVEY CONTENTS
The survey report shall contain the following:
1. The surveyor firm, individual name, address, phone number, professional surveyor affiliations, if any, and credentials, including accreditations and designations, if any.
2. The location of the survey, the date performed, and whether the vessel was hauled out or not.
3. The party on whose behalf the survey was performed, the extent of the party's participation and if the surveyor reviewed the findings with the party or not.
4. A description of the vessel including:
A. Vessel hull dimensions including Length Overall (LOA) and/or Length On Deck (LOD), Length at Water Line (LWL), maximum beam, maximum draft, and displacement.
B. Hull Identification Number (HIN) and tracing if traceable, US Coast Guard official number and/or state registration number. (If a tracing is not possible, then the source of the HIN must be noted. SINCE THE PRESENCE OF A HULL IDENTIFICATION NUMBER IS REQUIRED ON ALL RECREATIONAL VESSELS, ACCORDING TO FEDERAL LAW [33 CFR 181.21 - 181.35] AND WASHINGTON STATE LAW [WAC 308-93-620], THE RECORDING OF THE CORRECT HIN IS ESSENTIAL.)
C. Name of builder and model.
D. Description of propulsion and auxiliary machinery, the serial number of such and its components, if practical.
E. A list of included equipment provided by the present owner, or the owner's representative.
F. A description and inventory of the pertinent systems. i.e., plumbing, electrical, fuel, etc.
G. A description of the vessel's condition conforming to the BUC Glossary of terms, also known as the "Condition and Equipment Scale" (See Addendum A) or terminology commonly incorporated in the recognized price and condition guides and publications within the marine industry.
5. Findings and Recommendations: The survey report shall contain a list of deficiencies that adversely affect personal safety or the safe operation of the vessel, that adversely affect the actual or potential structural integrity of the vessel, or items that are not in compliance with guidelines as listed below.
A. Guidelines for findings shall include:
• American Boat and Yacht Council (ABYC) Standards;
• National Fire Protection Association (NFPA) Standards;
• United States Coast Guard (USCG) requirements in accordance with the Code of Federal Regulations;
• State and local laws;
• General experience of the Marine Surveyor when applicable.
B. Deficiencies shall be prioritized: i.e., as those requiring immediate attention, those requiring attention during the next haulout, those requiring continued monitoring, and those items noted that are part of routine ongoing maintenance requirements of the vessel to preserve condition, normal operation and value.
C. Each finding shall be accompanied with an appropriate recommendation.
6. Market Valuation: The survey shall show at least two valuations:
A. Estimated Fair Market Value: The amount in US dollars a willing, well-informed buyer will pay a willing, well-informed seller in an open market, neither being compelled to buy nor sell, given a reasonable amount of time to sell. It is understood the value of the vessel is "As Is, Where Is," in its current condition, without recommendations accomplished. Consideration should be given to the selling price, used boat pricing guides, and market comparables.
B. Replacement Value: The value if the vessel were replaced new.
7. Limits and waivers of the survey.
8. Timely release of the survey report: The report should be released within three business days to the appropriate parties, or the time agreed upon between the surveyor and the party for whom the survey was performed.
SURVEYOR CODE OF ETHICS
1. The surveyor should conduct himself or herself so as not to reflect a conflict of interest or the appearance of a conflict of interest.
2. The surveyor shall not perform repairs to a vessel he or she has surveyed, or survey a vessel he or she has repaired.
3. The surveyor should limit the scope of the survey to the specific vessel he or she is surveying and its quantitative aspects such as condition, equipment inventory and valuation.
4. The surveyor shall not take a position contrary to his or hers own knowledge for any direct or indirect gain.
5. The surveyor shall perform services only in the areas of his or her expertise.
6. The surveyor shall not report anything he or she has not viewed, checked, or examined personally. The surveyor shall not report as fact any information regarding the condition of the vessel or any of its components, fixtures or furnishings received from the owner, broker, captain, crew, etc. When reporting such information in the report the surveyor shall clearly state the source of the information.
There are two national organizations to which many professional marine surveyors belong:
• Society of Accredited Marine Surveyors (SAMS)
• National Association of Marine Surveyors (NAMS)
Both associations are highly respected within the industry, both require surveyors to pass a stringent testing process to join and both require continuing education to maintain membership status. The inclusion of links to the SAMS and NAMS web sites is meant to serve as a helpful guideline when choosing a professional marine surveyor, and is not meant to be considered an endorsement or recommendation of one surveyor or one association over another.
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