Want To Buy: Safe to send a 'refundable' deposit to a broker, so they'll hold it...

[smj]

Originally Posted by Covey

I am a boat broker. An "Offer to Purchase" contract should be made when the buyer/seller agrees on a selling price. A normal 10 percent deposit is normal and these funds should go into the broker's escrow account. If the buyers contingencies are not met, then the funds should be sent back to the buyer within 3 business days. Good luck with your purchase.

With the amount of money that could be lost, the word "should" worries me.

[zeehag]

ok so you want to trust a huge amount of money to someone you donot know for something you have yet to see.
ohkaaayyyyyyy...
what could possibly go wrong.......

[uncle stinkybob]

Originally Posted by zeehag

ok so you want to trust a huge amount of money to someone you donot know for something you have yet to see.
ohkaaayyyyyyy...
what could possibly go wrong.......

I know I have crap here no one has ever seen.
I'm selling it, need down payment and it's all your's, send money.

[zeehag]

never bet more than you can afford to lose.
and while you are at it--i know this guy who knows this guy who owns a bridge that he has for sale......

[Covey]

Originally Posted by buzzstar

Are you in the same state or nation as the subject broker? "Should be" is not the same everywhere.

Well, I'll just say I have sold boats over seas and in most states. Maybe I "should be" telling the inquiry to find out himself. I am so sorry for my original reply!!!!!

[Pelagic]

Covey, there are a lot of negative neighsayers on here who's idea of doing their business, starts in the toilet.

Reputable brokerage company and a proper contract to them is like toilet paper.
I just tend to ignore.

[smj]

Originally Posted by Pelagic

Covey, there are a lot of negative neighsayers on here who's idea of doing their business, starts in the toilet.

Reputable brokerage company and a proper contract to them is like toilet paper.
I just tend to ignore.

I had a reputable brokerage company cash my deposit. It took me 3 months of receiving my deposit back in small payments as he didn't have the cash to refund my deposit in full. It's buyer beware as doing business with a reputable brokerage company doesn't make you immune from possible wrong doing.

[Pelagic]

That means they did not put your deposit into a named Escrow Account as was my experience....

I knew when I made the transfer that it was going into a protected account.

We do this all the time in business deals

[smj]

The contract stated the funds were to go into an escrow account. Wound up in there pockets instead. This was about 15 years ago.

[Pelagic]

Originally Posted by smj

The contract stated the funds were to go into an escrow account. Wound up in there pockets instead. This was about 15 years ago.

Sounds like they were NOT reputable.....

[PappysSailing]

This can be a tricky business. I can tell you from experience in Canada that if things dont work out, something shows up that causes you to change your mind, and the broker or owner decides to contest your claim for return of deposit...the legal system up there is not your friend. Most of the expenses I would have incurred to press my suit.. would not have been reimbursed/ included in a settlement, nor, I was told, could I add on punitive damages for deceit/ bad behavior. And even if I did prevail, no assistance from court in collecting could be expected other than a judgment. Up to me to go put liens on property etc , which yield nothing until property is sold or attempt is made to transfer. Never again. Ill pay for haul out snd survey, but keep the deposit money in my pocket until Im ready to purchase. No law requires buyer to put down anything.

[Terra Nova]

Originally Posted by PappysSailing

...Ill pay for haul out snd survey, but keep the deposit money in my pocket until Im ready to purchase. No law requires buyer to put down anything.

Good luck getting a seller to accept your terms. AFAIK there is no contract without an exchange of funds. And all brokers require a deposit.

[ramblinrod]

Originally Posted by Terra Nova

Good luck getting a seller to accept your terms. AFAIK there is no contract without an exchange of funds. And all brokers require a deposit.

Absolutely, else someone could run around putting offers on a dozen boats or more. Any process has to reasonably meet the needs of both parties. I received
an offer with no deposit, unless I didn't care at all, I'd reject it
and tell the buyer to put some money up when they are serious. My broker would already know not to bring an offer without a deposit.

[ramblinrod]

Originally Posted by ramblinrod

Absolutely, else someone could run around putting offers on a dozen boats or more. Any process has to reasonably meet the needs of both parties. I received
an offer with no deposit, unless I didn't care at all, I'd reject it
and tell the buyer to put some money up when they are serious. My broker would already know not to bring an offer without a deposit.

A deposit doesn't necessarily have to be 10%, though that does seem to be the norm. It should be an amount that demonstrates good faith. As it is difficult to finance more than 90%, 10% down indicates reasonable financial ability to follow through with the purchase.

[Connemara]

The step by step details escape me, but we had precisely this situation before we bought our antipodean boat. We had seen a boat we thought we liked, had our local proxies (kid and partner) look at it, made an offer and submitted a 10% deposit, with the whole thing conditional on a survey.

Turned out the boat bombed the survey, we backed out, and the deposit was returned the next day.

You need a reputable broker, of course.In Auckland, I can recommend Busfield Marine; they were very helpful and we eventually bought Above the Fold through them.


Connemara