Caution For Broker Clients and Vessels That Visit Mexico
Courtesy of YBAA and CYBA Member, Jeff Merrill, CPYB
Mexico Temporary Import Permits (MTIP) are a known “hot button problem” to California brokers, and less commonly affect brokers in Florida, the PNW or Eastern seaboard.
Recently, a colleague broker from FL who sold a CA originated boat in FL six months ago called me in a panic. The new owner has just arrived in Mexico (via Panama Canal) and his boat has been impounded and they are threatening him with incarceration for arriving as a different owner on a boat that has an expired MTIP.
This can and should be avoided with some education and preparation. This week I closed on a 55 trawler in FL that, due to the MTIP language in my agreement, has just cancelled the MTIP prior to closing. It cost the seller $300 to cancel their permit using an attorney in CA and now my buyers will not run into a problem should they decide to cruise in Mexico.
In my P&S I include the following:
If SELLER has traveled to Mexico with VESSEL and has an MTIP (Mexico Temporary Import Permit), SELLER agrees to and is responsible (at SELLER expense) to cancel the MTIP and to provide proof of this cancelation to BUYER and BROKERS before CLOSING
I’m bringing this issue to the attention of my fellow YBAA members so you are aware of this potential problem and can decide if you want to add a clause in the Additional Provisions section of the YBAA Purchase and Sale Agreement to prevent this from happening to your customers.