what are a YBDSA registered broker's legal responsibilities ?

[gjgm]

what are a YBDSA registered broker\'s legal responsibilities ?

seem to remember some change in the law a year or so ago, which mean the buyer now has more protections.Cant quite recall what,though. Specifically, does the buyer have to check outstanding finance, or the broker?

 

[[23929]]

Re: what are a YBDSA registered broker\'s legal responsibilities ?

Hello gjgm. You've asked a good question. I'm a broker, so I'll raise my head above the parapet and write a few words.

In a nutshell, the YBDSA Brokers do not offer the service of checking outstanding finance. Instead, the onus falls on the vendor of the vessel to declare encumbrances, which may be mortagages, hire purchase agreements, duties, debts and liens.

As I see it, only the owner will know of any financial agreements registered against the vessel and it maybe near on impossible for a broker or buyer to discover these.

So, what is the protection for the buyer ? First, if the vessel is being sold through a broker, the broker's listing agreement will legally bind the vendor into declaring outstanding encumbrances. Incidently, the vendor is also bound to declare any known defects !

The listing agreeemnt also binds the vendor to sign an Agreement for Sale & Purchase of a Second Hand Vessel. This document, also signed by the purchaser, legally binds the vendor to declare any encumbrances.

Finally, after the sale is completed, the vendor signs the Bill of Sale, again declaring any encumbrances.

So what happens if undeclared, outstanding finance is called in after the sale? Ultimately, the vendor will liable but the the sequence of events may be that the new owner is pursued, who in turn will need to pursue the vendor.

All a nightmare and thankfully from what I read, fairly uncommon.

Here I will give a plug for brokers. The sale documentation will be in place, so that if the law is needed, the buyer will be in a strong postion. Further, the broker should know the boat, where its been berthed and the owner. The owner will have produced all the boat's documents so that the broker can piece together the vessel's history, including VAT and RCD issues.

Its very easy to buy a boat with little or no paperwork. The problems come when selling that boat - or if one day a finance house "asks" for their boat back !

 

[gonfishing]

Re: what are a YBDSA registered broker\'s legal responsibilities ?

Hi
If the boat is is part 1 registered then you can check for any encumbrances that apply to that vessel in as much that any Mortgage or Second charge will show on the paper work. If not Part one registered, then the onus is on the Honesty and Integrity of the Vendor. Not ideal but that is the only way at the moment.
As for the YBDSA, Brokers have a code of conduct which they must adhere to and a set of standardised forms that form a legal document which can help protect all parties if a dispute arises, and of course they all have to have Personnal Indemnity Insurance should it all go Tits Up, due to an unscrupulous Vendor or lack of due diligence.
All IMHO of course.