Sunday, December 28, 2014

Buying Junovia

On October 21st, we finalized the purchase of our Pearson 422 sailboat, Junovia, and tied her up in our home slip at Salpare Bay the next day.  Even though we paid everything with cash (well, wire transfers and personal checks) the process was still surprisingly complicated.

Here's how it went:
  • Sept 17 - After watching the internet lists for a couple years we got serious about finding a boat by writing a list of 4 in or near Portland that we thought would be good to build experience looking at.  Honestly, we expected to be buying a boat in Puget Sound, Canada or California given the limited selection of blue water yachts in Portland.
  • Sept 19 - Tara got us scheduled to view three of them the next day.  These were a Lecomte Fastnet 45 and a Valiant 40 at Passion Yachts, and the Pearson 422 which was listed with a broker from Seattle but moored on the Columbia near Vancouver, WA.  We also wanted to look at a Cascade 44 but the listing broker with McCuddy's was a horrible salesman and didn't seem interested in working with us, so we didn't bother pushing any further on that.
  • Sept 20 - We spent a couple hours total going over the Fastnet and Valiant.  The Fastnet fit all our criteria but did have a lot of evidence of water getting into the cabin from the decks so we wrote it off.  The Valiant was COVERED in blisters, is super dark inside and we didn't like the cabin layout so we didn't spend much time on it before taking it off our list.  We then met the broker, who drove down from Seattle that morning, in Vancouver to look at the Pearson.  She was above what we expected to spend but after putting well over an hour going over her we decided to seriously consider it despite the higher price and perhaps work a bit longer to rebuild our cruising fund.
  • Sept 26 - After spending hours researching Pearson 422's and 424's and all the equipment we wrote an email to the broker offering $85,000 (asking was $94,500) and let him know that we would be cash buyers.
  • Sept 29 - We didn't hear anything back over the weekend and on Monday got an email from the broker stating the seller would be willing to sell for $88,000.  He drafted a Purchase and Sale agreement for us to sign and provided account information to wire a 10% deposit, $8,800, to their escrow account.
  • Sept 30 - After going over the agreement with Tara I emailed a signed, scanned copy back and wired the deposit to the brokers account.  We then began working to arrange for a sea trial and survey.
  • Oct 6 - Got things lined up to do a sea trial with the listing broker, Gary Buck, as well as a haulout and survey with Larry Goodson on the following Friday, Oct 10.
  • Oct 10 - Gary came down from Seattle and met us at the boat at 9AM.  We spent a couple hours testing her out under power before meeting Larry at Schooner Creek Boat Works at 11AM.  We hauled out shortly after arriving at Schooner Creek and Larry began his process of inspecting every inch and doing a fantastic job of explaining his findings to Tara and I.  He went over the entire bottom knocking on the hull to check for soft or hollow spots.  He thoroughly inspected each thruhull, the prop, rudder, etc.  We then had her put back in the water and did the same thing inside and on deck covering every system and bit of hardware.  Larry was impressed with the condition and had very few concerns the primary items being a corroded propane system, a stuck thruhull valve, and a thruhull that wasn't connected to anything.  Otherwise the hull and decks were solid and the system issues were minor and nothing we can't take care of ourselves.  After saying goodbye to Larry we went back out on the river with Gary to finish the sea trial.  There wasn't much wind but we deployed each of the sails to find everything with the rigging to work fine.  The main was a bit tired and the staysail will likely be replaced sooner than later but both are usable for now.  There was a full birds nest in the main, you could tell she hadn't been sailed for quite some time.
  • Oct 14 - After doing some more research on the Pearson 422 (and 424's) and the issues Larry found we decided $88,000 was fair and let Gary know we were ready to move forward at that price.  We contacted Pacific Maritime Title in Seattle to start the closing process.  Tanya quickly answered all our questions and had a few questions herself such as if we wanted to keep it documented, if there was a dinghy included, etc.
  • Oct 16 - Tanya at Pacific Maritime Title emailed all the paperwork to be completed and overnighted back to her.  This included:
    • Application for Initial, Exchange, or Replacement of Certificate of Documentation; Redocumentation for the US Coast Guard (Form CG-1258)
    • Buyer Closing Statement detailing our closing costs
    • Limited Power of Attorney authorizing Pacific Maritime as our attorney in the transaction
    • Oregon State Marine Board Application for Boat Title (actually only used to apply for registration since Junovia is titled through the USCG)
    • Buyer's Retail Sales Tax Exemption Certificate for the Washington State Department of Revenue (since she was listed in Washington but we live in Oregon)
    • Vessel Marking Instructions describing how the name and port must legally be placed on the hull
    • Funds Transfer Instructions describing the account to wire the remaining funds to
    • A printout of Washington's website that describes their tax law related to purchasing boats
  • Oct 17 - We completed the paperwork, including getting both of our signatures notarized on the power of attorney at our credit union, and sent back to Tanya overnight via FedEx.  We also wired $80,189 to Pacific Maritimes escrow account from our credit union.  This was on a Friday so we expected there to be a delay despite the overnighting.  We also got started on finalizing insurance with Red Shield for $955/year and the lease for a slip at Salpare Bay for $339/mo.  We got on a waiting list to become live aboard's (hopefully in January) which will add an additional $125/mo fee.
  • Oct 21 - Tanya sent an email to let us know everything had settled and her office was sending the various forms to United States Coast Guard and Oregon State Marine Board, woohoo!  She let us know that it would take 3-4 months for the USCG documentation to transfer and that we should receive temporary documentation from them in a couple weeks.  We arranged to pick her up the next day with Will of Legendary Yachts handing her off to us.
  • Oct 22 - Warren Dalby, the current Commodore of the Small Yacht Sailing Club of Oregon, gave us a ride on his Catalina 30 to pickup Junovia.  It was cold and pouring rain but that didn't really matter to us given how exciting it is to take possession of our first big boat.  Huge thanks goes to Warren for coming out in the crappy weather to help us, we really wanted to arrive to pickup our boat via the water instead of in a car.
  • Nov 8 - We got our Temporary Certificate of Documentation via mail from the USCG.
  • Nov 10 - We got a request from the Oregon State Marine Board for proof of USCG documentation in order to complete our state registration.  I'm finishing this post on December 28th and just sent the response to that two days ago.  With our 2014 registration over in a few days it looks like we're going to have expired registration for a bit, oh well.
The costs:
Haulout $483.00
Survey $714.00
Title Search/Closing $400.00
Oregon State Transfer & Registration $214.00
USCG Documentation/Title Transfer $375.00
Wire Transfer Fees $40.00
Purchase Price $88,000
TOTAL $90,226

Warren and Tara aboard Second Half on our way to pickup Junovia

Junovia (right) as we approached to pick her up

Tara and Nat aboard Junovia on her first voyage to our home slip, Lemon Island in the background

Birds nest in the main we found during our sea trial

Champagne after we're tied up in Salpare Bay, Tara at the helm performed our first docking perfectly