Broker obligations

[Soong]

I have a quick question for the legally opined: What are the obligations of a broker when he sells your boat, that is to say what does he do that earns the fee?

As you may guess, I have just sold mine and it was mostly a good experience; until now since I cant get the money (less thier fee) out of them.

<hr width=100% size=1>

 

[Dave_Snelson]

They should have a separate "clients account" that keeps the business liabilities apart from the clients money, and they should pay promptly once the purchaser's funds have cleared, and they have taken their cut. No longer than a week from cleared funds.

<hr width=100% size=1>Madoc Yacht Club
<A target="_blank" HREF=http://www.madocyachtclub.co.uk>http://www.madocyachtclub.co.uk</A>

 

[PhilF]

Do you still have the boat. Do not release the keys or the paperwork til you are in cleared funds. Make it the buyers problem not yours. Don't even let the buyer go for a ride

<hr width=100% size=1>

 

[Soong]

Oops.



<hr width=100% size=1>

 

[ari]

Broker should pay out as soon as the deal is done.

How long have you waited and who is it?

Ari.

<hr width=100% size=1>

 

[steverow]

Your broker should be a member of the YBDSA/ABYA if he is reputable.
You can ring them if it gets to be a serious problem.
If he is a member he will have a customer account, entirely separate from his business account where your money wil be residing.
If he is not, I assume you have all the paperwork relating to the sale/broker etc...
er... if not you could be staring down a black hole.

It could be that he is still waiting for the purchasers funds to clear, or there may be a finance hitch with the sale.

I would be round there on his doorstep making a large nuisance of myself if I were you.


Steve

<hr width=100% size=1>

 

[PhilF]

The whole arrangement is flawed anyway. A third party, probably a solicitor should hold all funds and deposits, thus protecting the buyer and the seller. Its rubbish that the broker controls the funds and very nervewracking. I have done it 3 times now and hated the final days prior to completion, especially when you are selling through one broker and buying through another.

<hr width=100% size=1>

 

[[2574]]

Phil,

Yes agree completely. I've just been through another boat sale/purchase transaction (the value of which was five times the value of my first house in 1986) and the whole thing is scary. I've never felt that the brokers have enough PI awareness and client accounting knowledge to stand behind the sums involved. I'm also never sure whether the professional body standing behind these brokers has the ability to handle a biggy claim were there to be a dodgy broker who did a runner with £500k. It'll happen one day to some poor devil.

<hr width=100% size=1>

 

[Observer]

The broker is your agent so he is liable to you. He has a fiduciary duty with respect to the sale price if its paid to him and has a moral if not legal duy to keep it separate from his own money (i.e. in a client account). Personally, I would NEVER agree to allow a broker to collect money in these circumstances unless the amount involved is realtively small (I could afford to lose it without major pain). If selling a house, would you let your estate agent handle the sale price? I wouldn't.

The broker's fee is for finding a buyer, negotiating the sale, arranging and attending viewings etc. Strictly, he is not entitled to deduct his fee from the sale price without your consent (that could be incorporated in the brokerage agreement) so I would get very firm very quickly on the grounds that he is in possession of YOUR money and you REQUIRE him to account to you IMMEDIATELY for it.

Hope it works out quickly.

<hr width=100% size=1><A target="_blank" HREF=http://aflcharters.co.uk>Dream Dancer</A>

 

[longjohnsilver]

There was a case last October of a broker in Wales who was selling boats and not passing on the money to the owners. I know someone who made a last minute trip to repossess and move his boat after it was supposedly sold but with no payment to himself.

So the moral of the story is both seller and buyer beware! I would if using a broker insist on a seperate escrow account being set up so he doesn't have any control over my money.

Why take the risk when there have already been problems?

<hr width=100% size=1>