Purchased yacht, but can't document. Broker unresponsive. Any advice?

[Rudderless]

I'd like to thank you, Aaron, for posting your pain here. I'm sure you'll save at least one person from getting screwed. I hope you get a resolution that you're happy with.

[zboss]

Did you not have as part of your purchase agreement that the boat was free of encumbrances? If so, your seller and broker may both be in violation of terms of agreement and you should sue and recover damages.

Originally Posted by exMaggieDrum

Is it common for brokers to own boats they sell? I have limited experience in this area but all boats I have ever checked out were not owned by the broker. I can see how it could be possible but it seems a little bit shaky. I'm not sure why a broker would ever buy a boat just to sell it, unless they bought it at auction or from an owner who sold it far below market and they wanted to make a cheap buck.

At some of the bigger brokers, yes. For example, we were shopping around for a boat this past month and stopped by the offices of "Just Catamarans" in Fort Lauderdale. They had no less than two large boats (a Lagoon 440 and a Sunreef 70ish) that were purchased by the brokerage for the purpose of being refitted for sale by the brokerage.

[aaronroesner]

Originally Posted by zboss

Did you not have as part of your purchase agreement that the boat was free of encumbrances? If so, your seller and broker may both be in violation of terms of agreement and you should sue and recover damages.



At some of the bigger brokers, yes. For example, we were shopping around for a boat this past month and stopped by the offices of "Just Catamarans" in Fort Lauderdale. They had no less than two large boats (a Lagoon 440 and a Sunreef 70ish) that were purchased by the brokerage for the purpose of being refitted for sale by the brokerage.

I am no attorney (despite feeling like I should be a few steps closer after going through this) but my opinion is that if a seller guarantees a clear and marketable title that it should be free from encumbrances. If there were any encumbrances that would make the title not "clear and marketable"?!