Terms and Conditions?

Barry777

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The new owners of the marina where I berth my boat have just issued a new mooring contract which include revised terms and conditions. They say that by areeing the contract binds the berth holder to the revised T&C's. One clause states, and I quote;

"In the event of a sale by the Owner of any Vessel moored or stored with the Company, the Owner shall pay to the Company a commission of 1% of the net sale price or value realised and VAT thereon unless sold through the Company's nominated broker"

Is such a requirement legal? Particularly if it's a private sale. .

Has anyone else experienced similar
 
And how will they know? You complete a private sale, new owner comes and takes the boat away, you will presumably go somewhere else with your next boat! If it's not illegal, it's way past crafty. I'm off to check my T&C....
 
I've seen this clause on contracts before, there is sometimes a clause about using outside contractors too. Where's the marina Birdham pool ?
 
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Or just tell them to Eff off.

I think this clause is just to prevent the marina becoming an unofficial 'used boat show' run by an unscupulous broker (as if !!)

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I think this is more to the point, I've just had mine through, and I have to inform them if I wish to sell, and they are able to appoint a broker on my behalf! Also lot's of T&C's of not selling more than one boat a year etc...

So i think it's just a legal way of them keeping control, and personally I wouldn't worry to much about it as a general private user.

Maybe worth giving them a call to clarify the situation, as it may just be a clause set by the legal dept. that the Marina have little interest in...

Be good to know if this practice is "legal" though...?
 
"I think this clause is just to prevent the marina becoming an unofficial 'used boat show' run by an unscupulous broker (as if !!) "

That's OK, but would you trust them not to start enforcing it agressively further down the line? - even a year after you sold the boat when a keen new manager comes in /forums/images/graemlins/tongue.gif
 
The RYA Book on buying and selling boats mentions this so it has obviously been a long standing practice. The book advice is simply complete the transaction elsewhere and avoid the problem. You bill of Sale will state the location that the transaction takes place at. I did check the T&Cs of the marina I am currently in the process of buying from their clause said in legal terms - you can sell 1 boat a year but after that we want a cut. Which seems a far more reasonable way of avoiding a berth holder becoming a semi-pro broker.
 
Options:
Cross out the offending clause, initial it and send the signed copy back in that form. Keep a copy for yourself. If they don't do anything about it (which they may not bother to do) you at least have an argument if they try to come and collect.

In the event of a sale, move the boat elsewhere one or two days before the sale. Pay mooring fees (even overnight fees) and keep the receipt, so you can prove the boat was not "moored or stored" with the Company at the time of sale. Again, not watertight (excuse the pun) but it might help. It would help even more to cancel your moorage contract before the sale takes place - but you might find that a bit risky.

As for showing a false bill of sale, that would probably be fraud.
 
When I bought my boat the Yard where I bought her had a similar clause, and the staff there approached me and asked how much I paid for the boat,
When I told them they were disbelieving as it was a lower figure than the boat had been advertised for and they were after getting their 'cut' from the previous owner of the boat. The yard also made it clear I wouldnt be removing the boat untill that owner had paid them,
Unfortunately the law is on their side, if it is written into a signed terms and conditions contract. /forums/images/graemlins/frown.gif
 
That's what I did. I actually had the offer for the boat before I moved it into their marina. I was damned if I was going to pay them 1% for the temporary storage between my accepting the offer and completion.
 
At the last marina I used (I won't name it), they had a similar condition, but never enforced it even though they run a brokerage as part of the business. My current marina has a policy that if you sell more than three boats per year (i.e. if you're a dealer), then they expect a percentage.
 
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as i said - if you sell the boat and the bill of sale shows "one pound and other considerations" then offer them the penny!

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and that would stand up in court wouldnt it? /forums/images/graemlins/laugh.gif

you can only take the conditions as meaning exactly what they say. so its best to relocate the boat elsewhere and then make the sale.
 
This is a common clause but I would love to see it tested in court. It smacks of someone getting something for nothing.
 
I have seen some of these contracts where it specifically says that the 1% (plus VAT) is due if the boat is sold up to two months after leaving the marina/boatyard. Almost impossible to enforce, but that's what the contract says in some cases.
 
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