Using brokers

[ptg]

I have never used a brokerage to buy a boat before but I recently put an offer for a sima 362 at a south coast brokerage - only to be met by a demand for a 20% deposit - a not unsubstantial amount. - for the offer to be accepted. Credit cards were not accepted unless a 2% surcharge was agreed and the money was wanted the following day(a Monday). We really liked the boat but were put off by this. Is this normal practice for brokerages?

 

[tony_brighton]

I think it is normal practice - but you dont have to comply. Tell them it will be a cheque and they'll have to lump it. If they really refuse - go elsewhere - they would be in sh*t with the seller for being a prat.

 

[warrior40]

This is WRONG ! You should only have to send a 10 % deposit once an offer is agreed subject to survey, and then you should be given up to a week to pay, usually by cheque. Contact the RYA for a list of reputable and qualified brokers! You can then arrange a survey and the broker will draw a contract up between you and the vendor, setting a completion date for 2 weeks after the survey. The survey can be used as a basis for further negotiation if defects are found, at this point you can choose to accept or reject the vessel and have your deposit returned in full by return, if you reject the vessel and decide to withdraw.
Hope this helps.

 

[byron]

I would be inclined to offer a 10% deposit subject to survey. If they don't like it then tell them to lump it. They are hardy going to lose a sale by refusing.

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[SimonD]

I would strongly advise payment by cheque payable to the client account - not the broker themselves. I believe that reputable brokers have a separate account for deposits that is protected if the broker goes bust. Check with the RYA and/or buy their excellent book on boat buying. There's too much money at stake!

Simon

 

[ptg]

Thanks to everyone for the advice - this was a reputable broker but I got the impression that there could be a cash flow problem and that the reciever may well have been getting my money not the Sigma 362's owner!!!!! - that is why I would prefer to use a credit card - more chance of getting your money back if the worst did happen.

 

[david_e]

Don't rush or be panicked, ity is very unlikley that you are in a competitive situation with another buyer. If you are a member of the RYA then contact their legal dept for advice. If it is the same one I looked at a few months ago, at Hamble point, priced £43k, then I found the broker non too helpful.

Have you enquired as to the status of the boat ie, what is the history of it, why is the owner selling, what offers have they had so far (no it is not a daft question) and has the boat been surveyed at all recently. Ask if you can speak to the owner about the boat, assuming you want to.
Search on the net for the boat and it's name and you might well be surprised at what you can find.
Finally deal on your own terms at your own pace and don't be frightened to walk away.

 

[byron]

Good sound advice

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[quaelgeist2]

My opinion would be fully in line with previous posts
(i.e. no common practice: neither amount, nor timing, nor kind of deposit are usually handled like that + it's is your deal not the broker's).

Now I would be curious to hear what happened when you got back there and proposed
YOUR deal ?

Thanks for sharing your experience...

chris