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Old 29-03-2015, 15:28   #31
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Re: Seller broker asking for comission

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Originally Posted by Bulawayo View Post
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.
In my personal experience, since 1990. When making an offer with a broker it was necessary in the US to give a 10% deposit with the initial offer. Usually it was a check which was sufficient.

The deposit check might not be deposited until the offer was accepted but had to clear prior to survey.

In FL that has changed as I outlined.

What is odd here is that the broker also wants commission up front. That is a big red flag to me.
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Old 29-03-2015, 15:39   #32
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Re: Seller broker asking for comission

I repeat 'this is not an industry standard'. We are about to make a purchase - boat number 10 - and have never paid a deposit until the haul out time. We have bought in South Africa, Europe, BVI's and Thailand and have never been asked for a cent until the haul out. To pay anything before the haul out means someone is playing you.
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Old 29-03-2015, 15:42   #33
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Re: Seller broker asking for comission

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Originally Posted by Bulawayo View Post
I repeat 'this is not an industry standard'. We are about to make a purchase - boat number 10 - and have never paid a deposit until the haul out time. We have bought in South Africa, Europe, BVI's and Thailand and have never been asked for a cent until the haul out. To pay anything before the haul out means someone is playing you.
I have no idea what industry standards are outside the US. My comments are accurate for the US.

Perhaps I should have been more specific.
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Old 29-03-2015, 15:43   #34
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Re: Seller broker asking for comission

Quote:
Originally Posted by sailpower View Post
In my personal experience, since 1990. When making an offer with a broker it was necessary in the US to give a 10% deposit with the initial offer. Usually it was a check which was sufficient.

The deposit check might not be deposited until the offer was accepted but had to clear prior to survey.

In FL that has changed as I outlined.

What is odd here is that the broker also wants commission up front. That is a big red flag to me.
In the US you pay 10% when making an offer? Perhaps its the terminology? If you are are making an offer it'll likely have a caveat of subject to survey - meaning the boat shall need to be hauled out. Then it is reasonable to pay some sort of deposit to stop people wasting the boat owners time and money as they are responsible for the haul out cost.
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Old 29-03-2015, 16:11   #35
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Re: Seller broker asking for comission

I would have to agree with BULAWAYO - since I have been in the process of trying to sell my boat - the "quote" normal "unquote" procedure here on the east coast and gulf coast of the USA is:
1. Find a boat you are seriously interested in.
2. Contact the broker or seller to arrange a viewing or personal inspection of the boat.
3. If the boat is what you think you want to buy, then through the broker or directly to the owner make an verbal offer on the boat, OR
3a. Have broker prepare a tentative "sales agreement" stating your desire to purchase the boat and include any "conditions" surrounding your offer like survey, sea trial, etc. This document is sent to the seller for acceptance or rejection.
4. At this point the broker may want a "deposit" to show good faith that you are serious about wanting to buy the boat. Then a "sales agreement" is drawn up normally containing provisions for a further inspection (survey); launching or haul-out if necessary; and a provision for refund of the "deposit" minus any costs of launching/haul-out and sea trial costs should the boat fail to satisfy the buyer.
5. Some brokers verbally contact the seller with the offer if it is outside the price range considered by the seller to be serious. Otherwise, the broker continues with the written sales agreement for final yea or nay from the seller.

So the paying of a "deposit" or whatever the broker wishes to call it - is dependent upon how serious the buyer is about getting the boat. The price of the boat also plays a part in whether the offer is given verbally or by a written sales agreement. It can be done both ways and the broker rarely wants to go to all the work of preparing documents if the potential buyer is not seen as seriously interested.
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Old 29-03-2015, 16:11   #36
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Re: Seller broker asking for comission

Quote:
Originally Posted by Bulawayo View Post
In the US you pay 10% when making an offer? Perhaps its the terminology? If you are are making an offer it'll likely have a caveat of subject to survey - meaning the boat shall need to be hauled out. Then it is reasonable to pay some sort of deposit to stop people wasting the boat owners time and money as they are responsible for the haul out cost.
Yes 10% up front to the selling broker with the initial offer with the right to sea trial/survey and whatever other contingencies are agreed to between the parties.

Today, at least in FL broker transactions, the deposit can be tendered x working days (generally 3 working days) after acceptance but definitely cleared funds prior to survey/sea trial.
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Old 29-03-2015, 16:21   #37
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Re: Seller broker asking for comission

Quote:
Originally Posted by osirissail View Post
I would have to agree with BULAWAYO - since I have been in the process of trying to sell my boat - the "quote" normal "unquote" procedure here on the east coast and gulf coast of the USA is:
1. Find a boat you are seriously interested in.
2. Contact the broker or seller to arrange a viewing or personal inspection of the boat.
3. If the boat is what you think you want to buy, then through the broker or directly to the owner make an verbal offer on the boat, OR
3a. Have broker prepare a tentative "sales agreement" stating your desire to purchase the boat and include any "conditions" surrounding your offer like survey, sea trial, etc. This document is sent to the seller for acceptance or rejection.
4. At this point the broker may want a "deposit" to show good faith that you are serious about wanting to buy the boat. Then a "sales agreement" is drawn up normally containing provisions for a further inspection (survey); launching or haul-out if necessary; and a provision for refund of the "deposit" minus any costs of launching/haul-out and sea trial costs should the boat fail to satisfy the buyer.
5. Some brokers verbally contact the seller with the offer if it is outside the price range considered by the seller to be serious. Otherwise, the broker continues with the written sales agreement for final yea or nay from the seller.

So the paying of a "deposit" or whatever the broker wishes to call it - is dependent upon how serious the buyer is about getting the boat. The price of the boat also plays a part in whether the offer is given verbally or by a written sales agreement. It can be done both ways and the broker rarely wants to go to all the work of preparing documents if the potential buyer is not seen as seriously interested.
Sounds like the new practice of deposit after acceptance is spreading outside of FL.

However, in the past, it was up front. The FYBA purchase agreement has changed and is becoming more buyer friendly. Sounds like other groups are doing the same.
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Old 29-03-2015, 16:42   #38
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Re: Seller broker asking for comission

Sounds like what is really being talked about here is a
"Buyers Premium" very common in the high end equipment
(Construction to Broadcast) auction scene
In this scheme a commission is collected from both buyer
AND seller. This is always disclosed upfront
No way would I send money overseas
To a Broker without a signed contract including all conditions and subject to's
and even then I'd insist on an
Escrow account with an attorney of good reputation
It costs this broker nothing to relay an offer and start a negotiation
If the offer is anywhere near the realm of reality
And not a stupid low ball offer,
Something doesn't pass the smell test
Just sayin
Good Luck. Hope it all works out for you
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Old 29-03-2015, 17:18   #39
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Re: Seller broker asking for comission

And why is it 10%? Because that is the brokers commission. Basically you are depositing their paycheck, makes them feel at ease.
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