Broker not returning deposit!

[longjohnsilver]

A friend of mine paid a deposit on a boat he wanted to buy but the survey/sea trial were disappointing to say the least so broker said he's send him his deposit back. Almost 2 weeks later only about 30% of the deposit has been received, broker says the rest is in a different account and will be returned shortly.
I think this stinks! I'd be banging on his door and sending a solicitors letter pdq but my friend is very laid back about it all. What would you do? For what it's worth the broker is a member of BMF.

 

[volvopaul]

Be nice to hear who it is, sounds like the deposit isnt in the companies client account, which in turn I would be very worried about as in theory the amount should not have been touched by anyone, therefore repayment should be sent straight back.

I would be looking into the companies accounts if they are limited, also if the offices are rented I would be asking around the marina if there are any monies owing to others from this company.

Being a member of the BMIF doesnt really count for much if there on the verge of going bust, look at the BA Peters scandal that is still on going as far as im aware.

 

[MYStargazer]

Name and shame.

Consider police involvement.

 

[burgundyben]

Sounds to me as if the broker anticipated the deal going through and has pocketed his commission already....(on the basis of 10% deposit being 6-7% broker fees and 3% being funds due to the seller).

If that is indeed the case, your friedn best hope the broker has got the means to return it.

 

[Nick_H]

urgent action, solicitors, police, hired goons, whatever. Your friend needs to realise he is under a very real threat of losing his money.

 

[hlb]

John, get him to do something and quickly, as said above.

 

[longjohnsilver]

I'll name the broker once the sorry tale has been concluded. I don't want to jeopordise any potential solution. And yes if it was me I'd be getting the police involved.

 

[deborahann]

I've always found that sitting in their office for days, waiting for payment works, but its only worth it if its a substantial sum.

 

[hlb]

Yep the ex took the kids, even more anoying when I was out in Saudi.

 

[ibbo71]

Under a standard sale and purchase of a second hand vessel contract the broker can "hold" the deposit until such time as evidence of the failed survey is provided.

Once evidence of a material defect is provided the deposit should be returned in full, with no delay.

 

[longjohnsilver]

The broker was helming the boat when the engine effectively blew up!! Is that sufficient evidence to have the deposit returned?