Broker Bitching

[Chasemmc]

Don't quite get the deal with a broker I have been working with.
Getting close to an offer, and they send me an offer agreement that is great for the broker, but sucks for the buyer and seller.
Invested money in an attorney to level out the agreement, and they're screaming bloody murder.

When any other type of broker works an offer where they receive funds, such as a real estate transaction, since they are a party to the agreement, they sign off on their responsibilities.
Not so in boat brokerages?

Eric, your a broker, what is normal?

[tellico]

Not a broker, but I feel your pain. Had my own debates before writing out that deposit check to quasi-unknown parties. It's a broken system in IMHO.

[Boatsb]

Don't quite get the deal with a broker I have been working with.
Getting close to an offer, and they send me an offer agreement that is great for the broker, but sucks for the buyer and seller.
Invested money in an attorney to level out the agreement, and they're screaming bloody murder.

When any other type of broker works an offer where they receive funds, such as a real estate transaction, since they are a party to the agreement, they sign off on their responsibilities.
Not so in boat brokerages?

Eric, your a broker, what is normal?

Different brokerages have different contracts. We use a very sane and fair contract but some may not find it so. Specifically what were the problems with the contract?

[capttonyf]

A lot of brokers use a standard Yacht Brokerage Agreement. Pretty simple and cut and dry. You make you cash offer with an Offer Accept by date, an inspection/survey sea trial, which is an acceptance of vessel by date and a close by date. i alway put subject to personal inspection, survey and sea trial. If you don't put personal inspection and you show up to the boat and it's a mess, won't start, blah, blah, blah. You can walk away based on personal inspection and get your deposit back. If not you'll have to continue to pay for a full survey to be able to reject the boat. You would submit the offer with a 10% deposit which is put into the brokers escrow account.

You a fully able to get you deposit back minus any expenses you didn't pay up front for all the way up until you sign the Acceptance of Vessel. Once you sign that with any and all agreed upon adjustment after survey your locked into closing on the vessel. If not you may lose partial or all of your deposit. Sometimes there are conditional Acceptance of Vessel. Such as I'll accept so long as X, and Y are repaired, or you survey adjust $8000 etc. On older boats it's alway a good idea to include owner financing and Vessel insurability as a condition to the acceptance as well. Rule of thumb though. The simpler and quicker you dates are to get the deal to close the more likely the seller is to accept your offer. I've had sellers take an offer that nets them less money, but is a simpler close with less restrictions in the offer. What good is a Million dollar offer with 47 different stipulations that drags on for 2 months to close when I have another guy at 950K with a simple survey sea trial and a closing 2 weeks away. Keep the deal simple and fast initially. If the seller sees urgency and he wants it closed and funded before his next dock, insurance or boat payment are do he will be more likely to accept. Then once he accepts the offer if you have any delays, like the surveyor can't do it until a certain day, then you can always request an extension do to unforeseen circumstances. Point is simple and quick yields best results. I usually set mine up 48 hours to accept or reject offer, 2 weeks max to inspect and 3 weeks max from offer acceptance to close. If you have a good broker, you could really have it all done in 2 weeks max. The 3rd is just a cushion. Ifnyoundo have financing or insurance type stipulations include them in your acceptance of vessel but not in your initial offer. Slip it in once everyone has time commuted. Keep initial offer clean and simple.

Hope that helps.

Tony

[Red Hatt]

Don't quite get the deal with a broker I have been working with.
Getting close to an offer, and they send me an offer agreement that is great for the broker, but sucks for the buyer and seller.
Invested money in an attorney to level out the agreement, and they're screaming bloody murder.

When any other type of broker works an offer where they receive funds, such as a real estate transaction, since they are a party to the agreement, they sign off on their responsibilities.
Not so in boat brokerages?

Eric, your a broker, what is normal?

I don't want to offend brokers but I have yet to find one that can tell the truth. I'm in real estate and if I told a potential buyer the house had a new roof and they do an inspection and find out its really old and needs to be replace guess who there coming after to pay for that new roof ME. Sorry for the rant but I just got through with a deal where the broker Said new this and that and it was new done ten years ago. Boat brokers need to be accountable for there lies.

[Chasemmc]

My largest concern was the broker was not party to the agreement. It called out some things he was responsible for, and of course how he was going to get paid.

But, nowhere does he sign onto his responsibilities. The agreement is between the seller and buyer, with only an acknowledgment that broker is holding a deposit in escrow

Also, the broker has the buyer and seller indemnify the broker in the transaction unless its adjudicated the broker was grossly negligent.

Ever hear of anyone being convicted of gross negligence, except maybe our current leadership.

Otherwise pretty straight forward, offer - 3 days to fund deposit, three days to accept offer, inspection 3 weeks, closing 2 weeks after that.

My counsel says I'm nuts to send off money to someone with nothing in writing regards their responsibilities.

What do you think?

PS: who typically does the title search and how much do they run?

[capttonyf]

My largest concern was the broker was not party to the agreement. It called out some things he was responsible for, and of course how he was going to get paid.

But, nowhere does he sign onto his responsibilities. The agreement is between the seller and buyer, with only an acknowledgment that broker is holding a deposit in escrow

Also, the broker has the buyer and seller indemnify the broker in the transaction unless its adjudicated the broker was grossly negligent.

Ever hear of anyone being convicted of gross negligence, except maybe our current leadership.

Otherwise pretty straight forward, offer - 3 days to fund deposit, three days to accept offer, inspection 3 weeks, closing 2 weeks after that.

My counsel says I'm nuts to send off money to someone with nothing in writing regards their responsibilities.

What do you think?

PS: who typically does the title search and how much do they run?

Send the money if you trust the brokerage. It's typical. Lean and tile searches, get a good Doc agent. Lige one I use is very particular and will pull an abstract through the USCG and I can't remember where else. But again your broker should have a few people to recommend to do the searches.

Tony

[Chasemmc]

So getting the title search is not part of the broker's responsibilities?
Trying real hard to figure out why they are in the transaction.........

How much should that run.

Is a title insurance policy issued, like in real estate?

If I ran my business by sending tens of thousands of dollars around based on trust, I'd be scraping barnacles for a living, not buying a HAT, cause I'd have no money
Strong fences make good neighbors.

[saltshaker]

You can do the documentation work yourself or hire a service. Many brokers have a relationship with someone who does it or they have an in house department. What responsibilities are you expecting the broker to take on? Yes there are a lot of unscrupulous brokers out there but there also are some exceptional ones who will work hard for you with honesty and integrity. Those brokers are usually well known and know many other brokers and brokerages good or bad practices.

[saltshaker]

So getting the title search is not part of the broker's responsibilities?
Trying real hard to figure out why they are in the transaction.........

How much should that run.

Is a title insurance policy issued, like in real estate?

If I ran my business by sending tens of thousands of dollars around based on trust, I'd be scraping barnacles for a living, not buying a HAT, cause I'd have no money
Strong fences make good neighbors.

No as you don't have to document the boat unless you have a mortgage on it. Documentation will be around $350-$500. I've always done it myself. No title policy issued either. Maritime law is very different than real estate law.