Navigating Boat Slips in the Standard Forms
QUESTION: It seems like boat slips are all over the forms now with the most recent changes. If I’m dealing with a boat slip, which contract form should I use and when? How do I list a boat slip by itself without other real property involved?
ANSWER: Title to a boat slip can be held in a myriad of ways, and depending on the circumstances, it may not be real property at all. In many transactions, there will not be one right way to structure a contract involving a boat slip. That said, below are several common scenarios you are likely to encounter and the forms you should use.
The Boat Slip is Off-Site/Separate and Being Sold with Real Property – If an off-site or separate boat slip is being sold with a home or vacant land, the Offer to Purchase and Contract (Form 2-T) and the Offer to Purchase and Contract – Vacant Lot/Land (Form 12-T) are the best fit, respectively. With either contract, you should attach the Additional Provisions Addendum (Form 2A11-T) and be sure to fill out paragraph 7 with as much detail as possible. Note that boat slips that are on-site and not separate – in other words, part of the land being sold – will automatically be part of the sale and the addendum will likely be unnecessary, just like under the old contract.
The Boat Slip is Being Sold Separately (Real Property) – If the boat slip is real property (meaning that it has its own recorded property description), and it is not being sold in connection with other real property, the Offer to Purchase and Contract – Vacant Lot/Land (Form 12-T) is the best fit and Form 2A11-T will not be necessary. A detailed property description of the boat slip should be inserted in paragraph 1 of Form 12-T.
The Boat Slip is Being Sold Separately (Personal Property) – If the boat slip is personal property, and it is not being sold in connection with other real property, the new Agreement and Bill of Sale of Personal Property (Form 320-T) is the best fit, and no other contract forms are needed. Make sure a detailed description of the boat slip is inserted into the available blanks.
If you are listing a boat slip by itself, you will need to determine whether the boat slip is real property or not. If it is not, the standard forms do not include an agency agreement that will work. This is because the listing of personal property is not real estate brokerage as defined in Chapter 93A of North Carolina’s General Statutes. You should consider having an attorney draft a compensation agreement for you in that scenario. If the boat slip is real property, then use the forms you would ordinarily use to list vacant land, including giving the seller a WWREA disclosure form.
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