This is a complex section on the contract, but in its simple form these sections spell out the details of where a contract protects both the buyer and seller in case of default.
The buyer is responsible (PRIOR TO ACCEPTANCE) to make certain he’s able to buy and insure the vessel. He can’t have his deposit back after accepting the sailboat because his finance company decides he’s not a worthy credit risk or does not have enough experience to get insurance. A buyer needs to have those details in line before accepting.
As a seller, you need to make sure (PRIOR TO CLOSING) you have a sailboat listing without liens for monies owed to third parties, information on security interest, if financed, and - in its simple understanding - a sailboat that can be sold and re-titled legally. This step is where having documents ready ahead of time is a must. Issues that have derailed or slowed a closing can be divorce, estate sales, liens that were paid but not properly recorded etc. The time to pull out your USCG Documentation or State Title and share with your broker’s closing department is immediately at contract not two days before your closing date. As a seller, make sure any issues being able to close are worked on early in the process.