Seller broker asking for comission

[wm00]

@ Monte, the 5% is his commission not the deposit. Actually it's about 6% (5% plus VAT).

[Sid at SailAway]

Are you working with the listing broker? If so, this is way out of line. Get yourself a buyers broker and let him sort this out to determine what the other broker is trying to do. Commissions are the last monies paid out and they come from the seller. Shameless plug, but if you need help PM me..Sid

[wm00]

Yes, he is the listing broker and he put this in the ad disclaimer "5% plus VAT commission will be charged to the buyer."

Originally Posted by Sid at SailAway

Are you working with the listing broker? If so, this is way out of line. Get yourself a buyers broker and let him sort this out to determine what the other broker is trying to do. Commissions are the last monies paid out and they come from the seller. Shameless plug, but if you need help PM me..Sid

[osirissail]

I think the others are correct and it is not a "commission" but instead a "deposit" - However, you should absolutely get a "sale agreement" prior to putting down any money to anybody. And as stated - in that "Sales Agreement" should be a return of the "deposit" if the offer is not accepted or there is a major problem found with the boat.
Other than that, I would go with the "Nigerian Princess/Prince" theory of who this "broker" really is . . . .

[sailpower]

Originally Posted by wm00

Yes, he is the listing broker and he put this in the ad disclaimer "5% plus VAT commission will be charged to the buyer."

Commission is earned by the sale of the boat. If the boat doesn't survey, etc then no deal nor commission.

Something is not right here. Can you track down the seller? This broker might be advertising the boat but that doesn't mean that he has a valid listing. Could be why he wants his money now.

If you can't find the seller, how about another broker in the area where the boat is? Might be surprised by what you find out.

I don't think I would be giving this guy any money until this is sorted.

Good luck.

[hellosailor]

"he is the listing broker and he put this in the ad disclaimer "5% plus VAT commission will be charged to the buyer.""


If that's what the man wants, that's what he wants. Period. Everything is negotiable, but if he doesn't want to negotiate from that, you have to decide if you want "his" boat at his terms, or not. Period.


The owner probably has contracted with this broker, it is unlikely you'd bypass the broker even if you did chase down the owner.


Then you'd still first have to go overseas and see what is wrong with the boat, and just try to get your deposit back from an overseas holder if you need to. If you feel so strongly that this is THE boat?


Go now, and start knocking on doors to find the owner.

[sailpower]

Another thing to try is to google the boat name and see if there are other ads from other brokers or eve the owner.

Have you searched for the boat on YachtWorld?

[wm00]

The boat is only listed with this broker and the owner is a charting company.

Originally Posted by sailpower

Another thing to try is to google the boat name and see if there are other ads from other brokers or eve the owner.

Have you searched for the boat on YachtWorld?

[sailpower]

Originally Posted by wm00

The boat is only listed with this broker and the owner is a charting company.

Charter company?

Are you able to speak to someone there? At least to let them know that you are interested in buying the boat and this broker is getting in the way of the sale by asking for his (as yet unearned) commission up front before the offer is even presented?

[stevebein]

I have bought several boats. When an offer is made, a refundable good faith deposit, usually 10% almost alwaya is required. It is essentially the standard of the industry. Off the cuff offers are rarely accepted unless you know the broker andhe knows that you are serious and reliable. Otherwise they would be presenting a lot of offers without anything to back it up. Just make sure that your offer states that the "deposit" is fully refundable.

[fozrunner]

Originally Posted by wm00

Yes, he is the listing broker and he put this in the ad disclaimer "5% plus VAT commission will be charged to the buyer."

I've been perusing Yachtworld and have seen this exact same thing on a number of boats. It grates, but I assume they probably won't negotiate that part, however simply lower your offer to compensate.

[fozrunner]

Originally Posted by wm00

I found a catamaran in the Caribbean but when I wanted to make an offer the seller broker (based in Europe) is asking me to pay him 5%. He refuse to take my offer without paying the commission. Should I pay him?

Is he asking for the commission as a non-refundable deposit before he takes the offer to the owners? Or an agreement that you will eventually pay the commission on an accepted offer?

[svfraidknot]

i have a solaris 42 for sale here in classified ,, i had a broker in Europe contact me and said he has a buyer send him exclusive listing agreement? but i have had an individual in greece and italy contact me for more information ??? i still do not have my stbd motor rebuilt dealing with Panamanian mechanics is frustrating ,, wont relist her or get serious about it until i can get underway again .. i agree maybe there is just a misunderstanding then again he my know if you offer is accepted he will not receive his commission there may be a clause that under a certain price he does not get paid ???

[duefocena]

In my experience, the brokerage would charge a 10% commission but it would never be collected from the buyer and certainly not before the offer was accepted and moneys transferred. A 10% DEPOSIT before the selling broker presenting the offer is appropriate. "I found a catamaran in the carribean,". How did you find it? Was it from an advertisement? A for sale sign? How did you find this broker to make the offer in the first place? If it was the brokers advert that you responded to then he certainly deserves the position as the selling broker. Demanding a 5% deposit prior to presenting your offer is absolutely appropriate. Paying him a sales commission makes no sense. No legitamate broker would ask for a commission from the buyer prior to the sale. Check your facts before jumping to some other broker. If you got to this broker from an advert he is probably the listing broker. Jumping to someone else might result in both him getting a sales commission and your new agent getting a split of that commission. Not the best wway to go about the sale.

[Bulawayo]

Originally Posted by sailpower

Certainly sounds like he is asking for a deposit in order to present the offer. This has been industry standard for a long time and it is usually 10% not 5%.

However, at least here in the USA, that is changing. In FL the purchase agreement used by the Florida Yacht Brokers Association requires a deposit after the offer is accepted.

If you are making a serious offer why would you object to a deposit if it is required? Of course it has to be stated in the contract that it is fully refunded if there is no acceptance. Placed in an escrow account, etc.

Since when has this been an industry standard? We are never paid anything until it comes to haul out/survey time. There is nothing to stop you seeing the boat and making an offer subject to a successful survey - which is returned less the haul out fee if you are unhappy.