Selling through a broker

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Brother has sold his Rinker through a broker.

At what point would he normally sign and relinquish the bill of sale and other documents to the broker?

When he has the money in his account?
Or when the broker has the money from the buyer?

Just trying to establish the "normal" ordering of the chain of events.
(Sale is agreed: Buyer is going to pay the broker, broker is then going to forward the funds to brother)

dv.
 
Judging by what happened when Peters went under, I'd say when he has the money in his account - preferably paid via CHAPS. The broker is just an intermediary - the sale is between the buyer and your brother.
 
I agree, when i sold my last boat i waited until i had the funds confirmed in my bank before signing it over to the new owner.

Covers against the 'what if...?'
 
You may find that the broker won't release the funds until the bill of sale is signed.

This was certainly the case with the broker when I sold the P42 a couple of weeks ago. So the acceptable compromise was that I went to their offices, handed over the title docs and signed the bill of sale. I stayed there at the brokers desk while he initiated the funds transfer to me; I then waited until the cleared funds had turned up in my account before I left their offices (took about an hour).

Cheers
Jimmy
 
larger amount of money though Jimmy.
Is the broker registerd with YBDA or whatever it it?
If so, I think its reasonably safe for the broker to hold the signed documents until you have cleared funds in your account. CHAPS payment costs about £35, so its not the end of the world, and arrives the same day.
Point is the bill of sale is to the new owner not to the broker, so unless its some clever wheeze, he cant really benefit (if the funds are direct to you).
Peters was rather moe complex, with boats in build etc.
 
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Peters was rather moe complex, with boats in build etc.

[/ QUOTE ] Agreed but, at the moment anyway, I'm not sure I'd like the idea of any funds destined for me pausing for a breather in a broker's bank account, however briefly /forums/images/graemlins/smile.gif.
 
It may be a bit late but I wouldn't trust any broker to hold client funds in any account. The Peters judgement showed that, just because a broker says that funds are going into a client account, doesn't mean that the client has the right to assume his money is safe. I would agree upfront with the broker that when the buyer pays for the boat, he transfers the seller's money directly to the seller and the broker's commission directly to the broker. Brokers hate this idea because they don't like the buyer to see how much commission they are making and they like to make a few bob interest on money passing thru their accounts for a few days/weeks (OK maybe only a few pennies these days!)
But one thing your brother should understand. Once the buyer pays the broker, title passes to the buyer and the boat is his irrespective of whether the broker pays the seller. This is because the broker is acting as the seller's agent
 
is that right about ownership transfering like that?Interesting.
I agree the prefered way is to get to buyer to pay the seller direct, and not via any broker account. There is no need for that anyway.
I only saying this neednt get over complicated.. its a same day transfer of money. OK, you do what you are comfortable with, but be realistic about the risk.
 
Yup that's right. When you sign a brokerage form, you are appointing the broker to act as your agent in the sale of your boat and, in legal terms, title is transferred when the buyer's money hits the broker's account. So, if the broker goes bust before he transfers the balance owing to you, you've lost your boat and your money
 
well, either/ or !
But another reason for the payment to go between buyer and seller.
Must admit, when I ve dealt through a broker, he held the signed documents, I paid the seller direct, and the seller asked him to release the documents.
In fact I just asked him to post them !Maybe I m more laid back...!
 
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I would agree upfront with the broker that when the buyer pays for the boat, he transfers the seller's money directly to the seller and the broker's commission directly to the broker. Brokers hate this idea because they don't like the buyer to see how much commission they are making and they like to make a few bob interest on money passing thru their accounts for a few days/weeks (OK maybe only a few pennies these days!)

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I should have thought most owners would tend to ask the broker what he charges before listing their boat!!! /forums/images/graemlins/grin.gif

As to the interest made by having funds in a current account for a short while, well I guess it covers the cost of a teabag per year. /forums/images/graemlins/wink.gif
 
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I should have thought most owners would tend to ask the broker what he charges before listing their boat

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If you read what I said, I referred to the buyer not the seller. Obviously the seller knows what the broker's commission is


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As to the interest made by having funds in a current account for a short while, well I guess it covers the cost of a teabag per year

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Really? Say a brokerage office sells 2 boats per month, worth on average, say, £100k each and, say, on average the broker takes 2 weeks to pay out sellers. That means the brokerage office will have an average balance of £100k in their client account. OK at the moment, with interest rates near zero, that won't attract much interest but in the past with interest rates of 5%+, thats a bit more than teabag money? Maybe you've been missing a trick there, ari?
 
Hopefully we have just sold our Prestige 32 through a broker, off tomorrow to see them with the paperwork to draw up the documents.
I have a great deal of trust with them - not everyone is Peters!
Hope we don't crash and burn as we have not decided on the new boat (through them) yet
ho hum, fingers crossed
 
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I should have thought most owners would tend to ask the broker what he charges before listing their boat

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If you read what I said, I referred to the buyer not the seller. Obviously the seller knows what the broker's commission is

<span style="color:red">What difference does it make to the purchaser? He's not paying it. </span>



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As to the interest made by having funds in a current account for a short while, well I guess it covers the cost of a teabag per year

[/ QUOTE ]
Really? Say a brokerage office sells 2 boats per month, worth on average, say, £100k each and, say, on average the broker takes 2 weeks to pay out sellers. That means the brokerage office will have an average balance of £100k in their client account. OK at the moment, with interest rates near zero, that won't attract much interest but in the past with interest rates of 5%+, thats a bit more than teabag money? Maybe you've been missing a trick there, ari?

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<span style="color:red"> I'd be extremely annoyed if a broker sat on my boat sales funds for two weeks. What possible justification could there be for that?

In fact I wouldn't allow it. Would you? </span> /forums/images/graemlins/confused.gif
 
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What difference does it make to the purchaser? He's not paying it.

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Thats a very weird way of looking at a boat purchase. If a purchaser pays £100k for a boat and £6k of that goes to the broker, where's the money come from? Certainly not the seller


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I'd be extremely annoyed if a broker sat on my boat sales funds for two weeks

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It's happened to me. A certain broker on the Thames held on to my money for nearly 3 weeks until I got a solicitor to send him a threatening letter. All sorts of the usual excuses were trotted out. Computer system failure, director on holiday etc etc. Being in business myself, I've heard all that before
 
Answer 1 - From the vendor of course, who else? Do you pay £6K more for a £100K boat because it's being sold via a broker?

Answer 2 - Perhaps you need to be a little more careful about which broker you use?
 
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From the vendor of course, who else? Do you pay £6K more for a £100K boat because it's being sold via a broker?

[/ QUOTE ]I'm with Deleted User on this one, fwiw.
Your view, which is the commonly accepted one btw, is actually weird when you think about it. What is really happening in this example is that you pay 100k for a boat which is worth 94k.
That's what she's worth, because that's the price the seller is willing to accept.

Not to mention that - as in any business transaction - it's always the part which forks out the money which pays everything, at the end.
How, when, through which sub-transactions, these are all just minor details.
 
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Answer 1 - From the vendor of course, who else? Do you pay £6K more for a £100K boat because it's being sold via a broker?


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Jeez this is getting anal. Whatever the broker gets comes out of the purchase price ie the money paid by the purchaser. QED

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Answer 2 - Perhaps you need to be a little more careful about which broker you use?

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I advocate taking the broker out of the equation by getting the purchaser to pay the commission direct to the broker and the balance direct to the seller. In that way, you don't have to think about whether the broker is honest or uncreditworthy
 
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