Buying a new boat

[tripleace]

What a load of rubbish:

"The Association of Brokers and Yacht Agents (ABYA) is keen to point out that qualified yacht brokers carry out a professional service for people wishing to buy yachts.

They counter the claims made by the RYA (see Yachting Monthly April Page 9) that yacht buyers should use a solicitor to make their purchase to avoid losing money when they discover their new boat has outstanding debts.

They say that both buyers and sellers are protected as trust accounts are set up which hold clients' monies and which are separate from the day-to-day operating funds. "

Personally in my experience very few brokers EVERY get all the original documentation to prove ownership and one particular dealer on the thames who had a fire a few years ago will attempt to sell a boat knowing that it is owned by two people.

Trust accounts. thats a laugh. they just help themselves.

Do we think brokers are professional enough to act as boat solicitors.... I don't think so.


<hr width=100% size=1><A target="_blank" HREF=http://www.boating-ads.co.uk> Boating Website</A>

 

[Deleted User YDKXO]

Personally, I agree with you. Firstly, I dont believe they make any real attempt to check clear title to the boats they are selling. One broker told me that they relied entirely on the Vendor's brokerage form for all information regarding the boat. So, if the Vendor does'nt declare that there is an outstanding debt on the boat, the broker assumes thats correct.
The second point regarding trust or client accounts really bothers me. Most brokers are one-man bands selling just a few boats during the year but they handle very large sums of money on our behalf. I simply dont believe that these sums always sit in protected accounts and I wonder whats to stop brokers absconding with a few hundred thousand quid of their clients money and doing a runner to Spain or wherever extradition is difficult
I once sold a boat through a broker not a million miles from Windsor and it took nearly 4 weeks to get the sale proceeds out of them. They gave me all sorts of excuses about book keepers being off sick and the MD being on holiday and it took a solicitor's letter to get them to pay out
I dont believe that most people realise how risky this whole business of selling and buying through brokers can be

<hr width=100% size=1>

 

[tripleace]

I have proof of a thames dealer who held onto the funds from a boat I bought for over 18 months before he was forced to pay the person who sold the boat.

At one point I was selling my boat and the previous owner was also trying to still sell the same boat through the same dealer. The dealer knew I had bought the boat and he knew he had not past on the funds that I had paid him18 months earlier.

I also know the money was not in a client account!!!!!!!!!!!!!!!



<hr width=100% size=1><A target="_blank" HREF=http://www.boating-ads.co.uk> Boating Website</A>

 

[jfm]

bank accounts

Legally, client accounts and trust accounts are very different things. A client account is a nothing, the money in it still belongs to the broker so if you are owed that money you have credit exposure. A trust account if done correctly results in the money not belonging to the broker and therefore if he takes it appropriately it it is criminal theft, and if he goes bust his creditors do not get the money. Of course, you can't just accept the label "trust account", you need to see the trust document

<hr width=100% size=1>

 

[Deleted User YDKXO]

Re: bank accounts

Good point so what exactly is a client account other than just another of the many bank accounts that a business may have?
If you think about it, the broker is transferring money into and out of this client account solely on his own instructions so where's the protection in that?
Is a solicitor's client account any different?

<hr width=100% size=1>

 

[tripleace]

Re: bank accounts

lets face it when you buy a boat would you ever see.

1. Proof that clients account is in the proper trust --- NO

2. Proper documents before parting with deposit --- NO

3. Proof that seller had been paid out and therefore liability had been discharged -- NO

4. Accurate summary of condition and known faults -- NO

5. Proper test drive before you have parted with deposit --- NO



You are lucky with most if you get a smile while they throw the keys across the office and tell you to get on with it


<hr width=100% size=1><A target="_blank" HREF=http://www.boating-ads.co.uk> Boating Website</A>

 

[woodie1000]

Re: bank accounts

Yes - a solicitor's client account is very different from a broker's client account. If a solicitor messes around with contents of the account he gets struck off. If he actually runs off with the dosh the account is insured by the Law Society so you'll get your money back. All solicitors have to pay indemnity insurance to cover the cost of this happening.

<hr width=100% size=1>

 

[jfm]

Re: bank accounts

Yes, as you say a client account is just the same as an other a/c that a trader or company might have, so no intriisic protection. A solicitors client account is different for the reasons woodie says, which is that the Law society in effect guarantee it.

A trust account (rarely used) would give some protection if done correctly.... but would they be done correctly?


<hr width=100% size=1>