Would you trust a broker

[DAKA]

You are obviously a trusting person who looks after your clients well.

Prior to my Industry being regulated I was as oblivious as you, as I was doing everything right I expected everyone else to as well.

The truth is many people can not be trusted with large sums of money that isnt theirs and they will dip into them.
When times are hard as they are now they will be even more tempted (Look how Gordon is dipping now !)

If a broker runs off with £10 000 or ££25 000 deposit then the boat can be sold to anyone, the owner is not under any obligation to continue with the agreement.
The buyer has just wasted £2000 on a survey and £10 000 to the broker and someone else can come along , knows the boat has just been surveyed and offer £91 000 to secure the boat.

Private sale £91 000 vers Broker sale £102 000

The broker has not added value to the buyer in any shape or form, he has added risk, uncertainty and expense.

Its not difficult to set up a clients account written under trust, it is not unknown or too difficult to set up a separate trust account for each client, for your larger deals this would look good on you and help clients feel secure.
.5 % turnover would cover a compensation scheme
1% turnover covers regulatory fees

And then a Broker would be worth 10%.
Certainly sales through brokers will increase.

 

[Renegade_Master]

If a broker runs off with £10 000 or ££25 000 deposit
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I hear what you mean, however I cant imagine a broker being short sighted enough in "running off" with such a small amount (which is largely his anyway) leaving his premises staff etc for 10 grand? which he was due to receive anyway, risking being nicked for theft and for what?

Can anyone on here give an example of a broker running of with the deposit only on a sale????

As I have stated the £90k balance maybe, hence my earlier comments re paying this direct from seller to buyer.

 

[capsco]

If you use your imagination a little, maybe if he had a good couple of months, he might have several deposits, say 10 deals x any figure you like, might tempt some then, obviously not you Clive, but get the picture?

 

[Renegade_Master]

Mmm 10 deals in a month.............. I wish.... fraid those days seem to be gone, Get your point though.

 

[Alrob]

think my original post was on the lines of broker gets paid full value of sale, which he pays into his bank account, moneys are swallowed by overdraft, bank forecloses - hey presto Ive lost my money

 

[Renegade_Master]

Hi Alrob indeed that was the point you made in your original post and a point I have been addressing. Below is an extract from one of my posts, I subscribe to the view that it is after all the sellers money and as such he should be able to receive the post deposit payment direct from the buyer. I've done this many times.


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"As I suggested above it is perfectly possible for the post deposit balance on completion to be paid direct to the seller. Frankly I would prefer this anyway".