Broker problem

[NorthernWave]

I have had my fletcher for sale with a broker since October, he only had one interested party who turned out to be wasting my time. I then put an add on boatandoutboards and have now managed to sell the boat. The problem is the broker wants 6%......... WHY? I was going to give him something as he is a nice bloke and has dropped the boat in for me on occasions to have a play. He has spoken to the purchaser and I think he assumes he made the sale.

Where do I stand?

Chris

<hr width=100% size=1>Logged Sea Miles wanted for masters. Send PM if your on south coast and want skipper or crew.

 

[DepSol]

Did you do the deal direct through him to the client or did the client contact you directly.

If the client contacted you then tell him to get stuffed and go work for his money. Why should you pay him if he didnt lift a finger, introduction or not. He may be anice bloke but he is taking the P if he is asking for money he did not earn!


<hr width=100% size=1>Dom

2003 is going to be a good year for me

 

[byron]

<font color=blue>The broker can go take a hike, You sold the boat fair and square through your own efforts. (I am assuming that you didn't sign some sort of excusivety deal with him)

<hr width=100% size=1>http://www.alexander-advertising.co.uk

 

[markc]

Depends on the contract you signed with the broker and if he can show that he was the 'introducer'.

If no contract and the purchaser is happy to demonstrate that he first saw the private ad then you owe the broker nothing. If he has helped out and the above is correct, I would suggest telling hom that you owe him nothing, but as a goodwill gesture you will give him XXX. It may not be what he wants, but would be silly to fight you legally over it.

M

<hr width=100% size=1>http://www.geocities.com/jinto100/Jintopics.html

 

[Deleted User YDKXO]

Take a look at the brokerage contract. Some contracts state that commission is payable however the boat is sold. The broker may have you by the short and curlies. Maybe you'll have to come to some arrangement with him - threaten to expose him on the forum etc etc - you know the sort of thing

<hr width=100% size=1>

 

[Guest]

If the broker did not make the intoduction and the buyer dealt directly with you then he has no claim on you for commission whatsoever.(I`m a broker by the way but I do not deal on this forum as you may have noticed).If he has advertised your boat then a small contribution after you sell privately is always welcome but obviously not obligatory.Sounds like a nice boat to me so why it had taken 6 months to sell a boat of this kind is beyond me.

<hr width=100% size=1>

 

[ari]

Tricky one without knowing the circs.

Not that unusual for unscrupulous people to use a broker to find a boat, even get details from them, then they get hold of the owner via a "backdoor" route and cut the broker out hoping to get the commission out of the deal (ie pay less as owner only interested in what they receive after expenses). Obviously brokers somewhat miffed at this, after all if everyone did it they'd be doing their job (finding the buyer) without ever getting paid!!

Also, some brokers will reduce their commissions in return for "sole agency", ie being the only person marketing the boat (that includes you) so in other words they are charging less for the knowledge that they will earn when the boat is sold. Typically the commissions are reduced by a quarter in return for this, usually from 8% to 6%. Understandably having reduced their fees considerably in return for effectively your promise that they'll get paid when the boat is sold regardless of who or how then its not surprising that Mr. Broker expects you to uphold your end of the contract.

What was the commission rate you agreed again....???

<hr width=100% size=1>

 

[Guest]

By the way how has the broker spoken to your buyer does he know him?

<hr width=100% size=1>

 

[NorthernWave]

The reason they'd spoken was the weekend the guy wanted to see the boat I was in scotland and so I said it's in ##### yard. He then rang him to ask if it were there and the broker hit him with the sales jargon.

Bit concerned as I don't want him to lock it in his yard??

Anyone got a 4x4 that can help launch for delivery? I need to tow it from the yard and drop her in the water, only about 500 yards but my MG TF isn't upto the job.

Chris

<hr width=100% size=1>Logged Sea Miles wanted for masters. Send PM if your on south coast and want skipper or crew.

 

[jfm]

It depends on the contract. Two things might get you. First it might be a "sole agency" so broker gets commission whoever sells the boat. Second, it might say broker gets commission if boat is sold to anyone with whom the broker "had dealings" or "assisted" in connection with the sale, or similar language. The fact that the broker has spoken to this buyer and sung your boat's praises might mean he has "had dealings" with the buyer. You need to get the exact language from the contract.

He is unlikely to lock the boat in. The commission is likely not due until sale (though check wording on that too - precisely which event triggers the commission?) and buyer will take ownership of the boat by physical delivery of it (I mean, legally speaking, that's the moment when buyer becomes the owner, not when he signs contract). So if boat is locked in, there's no sale, so no commission, catch 22.

Also if you are receiving money direct from buyer, instead of passing it thru broker's accounts, you have possession and broker will have to come begging to you, which gives you a certain tactical advantage, not to be abused of course.

BTW, boatsandoutboards.co.uk is really excellent - I have sold quite a lot on there

<hr width=100% size=1>

 

[byron]

<font color=blue>Sounds to me the Broker may well have a ligit claim. He can argue he showed the dude around and did a sales job. Regardless of that I believe that if a boat is on a marina's property you owe them 1% of the sale anyway.

<hr width=100% size=1>http://www.alexander-advertising.co.uk

 

[Guest]

Well who does the buyer feel he has been dealing with? You or the broker. If you genuinely have found this buyer yourself and the buyer substantiates this claim,then I feel that a straight forward approach to the broker pherhaps an offer of a small commission for kindly showing your interested party around after all he has clinched you a sale regardless of anything else instead of all this cloak and dagger stuff i.e. moving boats out when nobody`s looking etc etc. A reasonable broker or person should find this acceptable and in good faith accept your offer of a small commission after ,it`s better than a poke in the eye with a dirty stick,or if it`s Byrons stick a clean one with a R.T,Y.C. ensign on it.

<hr width=100% size=1>

 

[NorthernWave]

The only dealings the broker had was one conversation on the phone and he also dropped the boat in for the sea trial.

Because of the latter is why I'm willing to give him something but he wants 6%???

Chris

<hr width=100% size=1>Logged Sea Miles wanted for masters. Send PM if your on south coast and want skipper or crew.

 

[jfm]

The contract

Yes, but what does the blimmin contract actually say?

<hr width=100% size=1>

 

[NorthernWave]

Re: The contract

I'll have a look friday


<hr width=100% size=1>Logged Sea Miles wanted for masters. Send PM if your on south coast and want skipper or crew.

 

[Guest]

Re: The contract

It should be a standard ABYA contract. And will most certainly NOT say that I get commission regardless who sells it . I still say have a chat with himm with your quite reasonable proposal and if he does not accept tell him you will be contacting tht ABYA and BMFI to arbitrate the matter. But again unless he is totally unreasonable he should accept this I certainly would if I was convinced it was genuine.

<hr width=100% size=1>

 

[jfm]

Re: The contract

Tigerman: Can you tell us what the ABYA contract does say (not what it doesn't say!) /forums/images/icons/smile.gif. Also, dont go to arbitration, let the other guy start things imho.

<hr width=100% size=1>

 

[NorthernWave]

Re: The contract

I'm going down friday to have a chat with him, I think he's a reasonable bloke and I know he wants my future business so think it could be ok.

Chris

<hr width=100% size=1>Logged Sea Miles wanted for masters. Send PM if your on south coast and want skipper or crew.

 

[byron]

<font color=blue>You leave my Dick out of it. You did say Dick didn't you?

<hr width=100% size=1>http://www.alexander-advertising.co.uk

 

[Guest]

Re: The contract

can`t do that it`s a trade secret. BYE Bye I`m off to Brugge now.

<hr width=100% size=1>