Yacht Broker definition
Who are Yacht Brokers
Yacht brokers provide an important service and if you are buying a boat of any size, it is highly advisable to deal through one. They can advise on the suitability of a boat for your particular purpose, and can then track down those most likely to meet your needs. They can help to arrange both the shipping and the survey of the selected boat (very useful if you happen to live elsewhere), a marine mortgage if required and with insurance. They can check details such as the inventory of the boat, and ensure that the documentation is properly completed so that title is fully transferred. Most brokers operate under a Code of Practice for the Sale of Used Boats, copies of which are obtainable from the BM (British Marine) or RYA.
A standard form of agreement is used, setting out the following terms: The agreed purchase price; 10% is paid when the agreement is signed, allowing the purchaser to have the yacht lifted out and surveyed at his own expense; the survey should normally be completed within 14 days, although this can be longer, by agreement. Within a stated period from completion of survey, if any material defects have been found, the purchaser may either reject the yacht (giving notice of the defects discovered), or ask the seller either to make good such shortcomings or reduce the price. The form also details the obligations of the two parties, default by the purchaser, the transfer of risk, and arbitration procedure in a dispute. A broker is legally liable to divulge any known defects to a purchaser when acting in a sale.
The buyer should also be aware that if the seller is a private individual (ie he or she is not selling the boat in the course of trade or business), and If that fact is known to the buyer, there is no question of any warranty on the sale of a second-hand boat because the buyer is quite at liberty to inspect the craft and to satisfy himself as to her condition - either personally or by employing a surveyor. Unquestionably a survey should always be made, except perhaps in the case of a very small and cheap boat where the buyer has enough knowledge and experience to detect any serious faults.
Buying yachts can be a complex business, particularly when the boat, the seller and the buyer are all miles apart. The seller of the boat pays an agreed commission based on the selling price
SELLING THROUGH A YACHT BROKER
Selling a yacht through a yacht broker may be a useful and appropriate course of action for a number of people. It eliminates most of the work and problems involved with a private sale, and because a broker has access to a wide market it may enable a higher price to be obtained or a quicker sale to be achieved.
When instructing a broker to sell a boat, the owner will be asked to complete a form which requires full particulars of the boat and of her material condition. It is important that these are accurately stated. All clients money should be kept in a secure separate "Clients Account".
A broker acts as a go-between for buyers and sellers of yachts.
Very importantly, a broker is able to advise on the correct price at which a boat should be offered - a price that is likely to attract response, but which will be fair to the seller. It is in the broker's interest to obtain the best price, as his commission is based on it.
Any advertising copy or materials produced by the broker must be accurate because he is liable under the Trade Descriptions Act. He will advertise the boat and handle all enquiries and inspections. When a potential buyer appears the broker will prepare a Sale Agreement on a standard form of contract. If the sale proceeds after survey, he can advise the owner regarding any defects that may have been found to negotiate a fair price. Finally the broker prepares the Bill of Sale, and ensures that title is not transferred until the purchase money has been received.