Longshanks
Well-Known Member
Having bought / sold privately in the past (and would prefer this route) I recognise that pragmatically I may have to use a broker in the future. So what do they REALLY offer in terms of service / security of purchase?? I've copied this from the YBDSA website...
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"If you want to sell your boat you may consider selling it privately. You will then have to undertake all the advertising, show people over the boat and take them out (at weekends when you wanted to be doing something else, or during the week when you should be at work). You will need to ensure all the paperwork (VAT paid invoices, registration documents, proof of title, etc) is in order and that the person buying the boat has adequate finance.
So what do you pay a broker for? To do all these things for you. They will have a standard sales contract so you and the buyer know how to proceed over such matters as the survey, particularly if any problems are found. The broker is paid commission on the finally agreed selling price and will deal with the financial transactions as well as everything else, and can settle any outstanding bills, such as yard fees, out of the funds. The broker also has easier access to checking on outstanding finance with British Registry and the finance houses. If it is an international transaction, he will deal with the different currencies and paperwork.
Buying a boat privately also presents potential pitfalls for the unwary. Does the vendor actually own the boat? Does it comply with current legislation? Our brokers and yacht agents have knowledge of the requirements of the Recreational Craft Directive - the European law that requires boats in the UK to comply with certain safety standards. Selling a non-compliant boat is a criminal offence. A boat coming into the EU will need to prove compliance with the RCD, and VAT or other EU state equivalent will be payable at the first port of entry into the EU."
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Clearly for many buyers / sellers it is more convenient and less hassle to work through a broker...that's self evident. BUT, when it comes to checking title, outstanding mortgage, VAT / RCD paperwork, identifying and paying unpaid yard bills, etc, as well as the financial ability of the purchaser to pay, do they ACTUALLY do any of this? And why are they in a better position to do these checks than a diligent private individual? The standard sales agreement seems to put the onus on the vendor to warrant that all these issues are in order. If he/she is untruthful about any matter, I doubt the buyer has any comeback on the broker. So are the brokers and their associations creating a false impression of "security" that we accept at our peril, or are the good ones really earning their commission?
I have to say I am sceptical, but willing to be convinced otherwise...or at least how to sort out the good from the bad (in terms of brokers)...just because there's a code of practice doesn't mean it's followed.
My next purchase is likely to be (for me) a lot of money (many tens of thousands of pounds). Right now I feel more comfortable doing all the checks myself and dealing directly with the seller, rather than assuming an intermediary has acted in my best interests (they are after all representing the vendor..not the purchaser, are they not?)
_____________________________________________________
"If you want to sell your boat you may consider selling it privately. You will then have to undertake all the advertising, show people over the boat and take them out (at weekends when you wanted to be doing something else, or during the week when you should be at work). You will need to ensure all the paperwork (VAT paid invoices, registration documents, proof of title, etc) is in order and that the person buying the boat has adequate finance.
So what do you pay a broker for? To do all these things for you. They will have a standard sales contract so you and the buyer know how to proceed over such matters as the survey, particularly if any problems are found. The broker is paid commission on the finally agreed selling price and will deal with the financial transactions as well as everything else, and can settle any outstanding bills, such as yard fees, out of the funds. The broker also has easier access to checking on outstanding finance with British Registry and the finance houses. If it is an international transaction, he will deal with the different currencies and paperwork.
Buying a boat privately also presents potential pitfalls for the unwary. Does the vendor actually own the boat? Does it comply with current legislation? Our brokers and yacht agents have knowledge of the requirements of the Recreational Craft Directive - the European law that requires boats in the UK to comply with certain safety standards. Selling a non-compliant boat is a criminal offence. A boat coming into the EU will need to prove compliance with the RCD, and VAT or other EU state equivalent will be payable at the first port of entry into the EU."
_____________________________________________________
Clearly for many buyers / sellers it is more convenient and less hassle to work through a broker...that's self evident. BUT, when it comes to checking title, outstanding mortgage, VAT / RCD paperwork, identifying and paying unpaid yard bills, etc, as well as the financial ability of the purchaser to pay, do they ACTUALLY do any of this? And why are they in a better position to do these checks than a diligent private individual? The standard sales agreement seems to put the onus on the vendor to warrant that all these issues are in order. If he/she is untruthful about any matter, I doubt the buyer has any comeback on the broker. So are the brokers and their associations creating a false impression of "security" that we accept at our peril, or are the good ones really earning their commission?
I have to say I am sceptical, but willing to be convinced otherwise...or at least how to sort out the good from the bad (in terms of brokers)...just because there's a code of practice doesn't mean it's followed.
My next purchase is likely to be (for me) a lot of money (many tens of thousands of pounds). Right now I feel more comfortable doing all the checks myself and dealing directly with the seller, rather than assuming an intermediary has acted in my best interests (they are after all representing the vendor..not the purchaser, are they not?)
