Brokers - how long before they pay out?

  • Thread starter Deleted User YDKXO
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Deleted User YDKXO

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I recently sold a boat thru' a broker not a million miles from Windsor. The new owner paid for the boat and took posession of it nearly 4 weeks ago but, despite repeated phone calls and endless excuses, I still have'nt received any money from the broker.
I've only waited a few days in the past for brokers to pass the money on. How long is normal? I know brokers are supposed to use client accounts for sale proceeds but should I be worried?
 
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Four weeks! I had an electronic funds transfer the same day when I sold my boat.
Personally I'd be getting very hot and heavy now. There is absolutely no excuse for them to delay payment like this. You probably should start mentioning solicitors to them. If that doesn't get a bankers draft then do go see a solicitor. You've got everything to lose otherwise.

Doug
 
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Guest

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Kip marina who sold my boat advised me yesterday that the transaction is to settle by telegraphic transfer on Monday coming and could I give them details of my bank to arrange settlement the same day or Tuesday, depending on the timing of the transfer.

I would get heavy. Maybe your broker is OK and just inefficient but I would smell a rat!

One of my other hats is that I am an insolvency practitioner (hence knowing how few companies have a business plan!). Dealing with client money is an interesting one. Strictly this should have been paid into a client account which, even if the broker went bust should contain your money, and be payable to you, even by a liquidator or receiver. Sadly, however, when companies are tight for money, it is not unknown for such funds to be diverted into a general bank account usually to mitigate an overdraft. Often this sort of activity ends up in a robbing Peter to pay Paul situation so that if you are Paul, you will have to wait until Peter turns up before you get paid.
In these circumstances, you would just be an ordinary creditor but you would be able to have a go at the directors personally, if they were worth pursuing.

Anyway, take it from me, you do not want to get to that stage. Failure to pay a client or diverting his money to some other purpose is a criminal offence (misfeasance in insolvency speak - fraud in English) so I would simply tell them that if they do not cough up by return you will take the matter up with the police and carry out your threat if necessary. Incidentally, do not be put off by PC Plod telling you its a civil matter and they cannot act. It most certainly is not.

My advice is get your body into the brokers office (telephone is too easy) and start shouting asap. If they are in trouble then in the run up to company failures, it is generally those who shout loudest who come off best.

Good luck

Nick
 
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Deleted User YDKXO

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Nick, thanks for your words of wisdom. Basically, what with summer cruising (on the other boat!) and accepting their word I've let the situation slide far too long. I rang them this evening and threatened them with all manner of evil including legal action and adverse publicity on this forum (!) and lo and behold if sir would like to visit the office tomorrow, there'll be a cheque waiting.
It has always worried me that unsuspecting buyers give large amounts of money to brokers who, in most cases, are two bit companies just as likely to be gone tomorrow as still in business. Does anybody vet these companies eg YBDSA( or whatever it's called) or the RYA ?
 
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I am not sure if I have misinterpreted your post where you refer to "unsuspecting buyers". In fact the problem lies with unsuspecting sellers as, the broker is acting as your agent and as such, can give good title to the buyer. In other words, once the buyer pays the broker, provided you have previously signed a brokerage agreement, the boat is the buyer's, bought and paid for.

In the event of you not then being paid by the broker, that's your problem and you have no recourse to the purchaser.

Tough old world, is'nt it?

Nick
 
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Deleted User YDKXO

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Nick, I'm aware of the contractual relationship between seller and broker. On a more general note, I do wonder if many buyers and sellers really appreciate the potential problems like outstanding debts on the boat, lack of proof of VAT status, missing documentation proving changes of ownership etc. Many of us are handing over sums of monies to brokers that in some parts of the country would buy sizeable properties and yet we have blind faith in a broker and the system that everything will be allright. For a house purchase, we use a (hopefully) trained and competent solicitor to check that the purchase is kosher but for a boat purchase, we rely on a probably unqualified and barely competent (judging by some I've met) broker
 

milltech

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Trusting your broker is the first and most important rule. i had a close shave a few years ago and now only sell through David Smithells or David East because I've known them a long time.

Around 1980 I sold a Fairy Spearfish through J G Meakes in Poole. There was a small problem with title, (that is to say a small piece of paper was missing when I purchased the boat), and on this basis the brokers avoided payment. In the end the purchaser and I both informed the broker we were happy, but still no money.

I went to Poole and was sitting outside the brokers office and heard this from inside, "My fathers an old man and you've kept him waiting for the money for over two months", "ello" I thought, "trouble 'ere".

I went in the office and annouced my intention to stay there until I was paid. Threatend TV etc if they didn't cough. After about 20 minutes of inconvenience to them they offered a cheque, "no thanks" says I, "draft only".

Much huffing and puffing ensued and around lunchtime a draft appeared, I whipped up the road and paid it in. I was on my way to a meeting, and late as usual on the following Monday when I caught Roger Cook doing an expose. Guess who, the very same J G Meakes. Was I pleased to have got under the wire first - you bet!
 
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