Buyers administration fee

[smj]

We are starting our search for a new boat. We put in an offer today on a boat in Florida and noticed now the broker wants to charge a $300 buyers administration fee. Some brokers want the $300 from both the buyers and sellers. WTF, isn't 10% enough to keep the brokers satisfied? Now they want to start tacking on fees like you were buying a new car? They say it's to cover paperwork costs but I would figure the 10% should cover everything.

[Greenhand]

He wants this up front? Or is it part of registering the boat?


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[smj]

Originally Posted by Greenhand

He wants this up front? Or is it part of registering the boat?


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Not up front, at closing. It's supposed to be a fee to offset their paperwork. We dealt with the sellers broker so they are getting the full 10%. Seems they would wave the fee. I guess it's a new thing the Florida brokers are doing now.

[Greenhand]

It seems to me the fee for USCG documentation through an agency was about that amount. Are you sure that isn't what they are referring to? Our broker did refer to it as documentation fee and I have a receipt, but I am wondering if it was a miscommunication .


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[hogHunter]

We've been through the selling process recently and all the fees were built into the 10%. There was only one broker involved and he took less than 10% with no additional fees (in Florida)

[smj]

Originally Posted by Greenhand

It seems to me the fee for USCG documentation through an agency was about that amount. Are you sure that isn't what they are referring to? Our broker did refer to it as documentation fee and I have a receipt, but I am wondering if it was a miscommunication .


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I'm sure if that was the case there would be a war between the documentation companies and brokers as that would put the documentation companies out of business.
It includes, title search work, abstract of title,lien release and mortgage payoff, foreign duty and customs clearance, notary fees, overnight courier, wire fees and bank transaction charges. Sounds like a lot but we don't need half of that and it used to be included in the 10%.
The last boat we bought by owner we had a documentation company distribute funds and paperwork. Cost us $75.


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[smj]

Originally Posted by hogHunter

We've been through the selling process recently and all the fees were built into the 10%. There was only one broker involved and he took less than 10% with no additional fees (in Florida)

I guess we just have bad luck. We talked to two brokerages in Florida and they both have the fees. Maybe I should use a broker in a Texas where they don't insist on the administration fee and the listing broker would only get a 5% commission instead of 10%.


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[Capt Phil]

I would walk... let the seller pick up the cost if he is anxious to sell. Brokers are just middle men/women trying to line their pockets. Do not sign any agreement that requires this as part of the deal... just my humble opinion... Phil

[Greenhand]

Originally Posted by smj

I'm sure if that was the case there would be a war between the documentation companies and brokers as that would put the documentation companies out of business.
It includes, title search work, abstract of title,lien release and mortgage payoff, foreign duty and customs clearance, notary fees, overnight courier, wire fees and bank transaction charges. Sounds like a lot but we don't need half of that and it used to be included in the 10%.
The last boat we bought by owner we had a documentation company distribute funds and paperwork. Cost us $75.


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Why? My broker sent the paperwork to the documentation company, as well as the money. The USCG itself got part of the money, the documentary kept the rest for their actual services.


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[smj]

Originally Posted by Greenhand

Why? My broker sent the paperwork to the documentation company, as well as the money. The USCG itself got part of the money, the documentary kept the rest for their actual services.


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My mistake, sorry. I thought your broker was doing the documentation process for you and not going through a documentation company. At $300 that was a good deal.


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[smj]

Originally Posted by Capt Phil

I would walk... let the seller pick up the cost if he is anxious to sell. Brokers are just middle men/women trying to line their pockets. Do not sign any agreement that requires this as part of the deal... just my humble opinion... Phil

Thanks and I have to agree. Seems as if it's a new trend in Florida?

[bobofthenorth]

I didn't realize the boat market had turned up that much. I'd tell him to go pound sand. If this practice is endemic in Florida then using an out of state broker sounds like the way to go. My guess - if he knows you're serious and you tell him you won't sign with the fees in the deal then the fees will go away REAL FAST.

[dohenyboy]

If you pay the $300, does that mean the broker owes you a greater duty of care?


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[S/V Illusion]

Originally Posted by hogHunter

We've been through the selling process recently and all the fees were built into the 10%. There was only one broker involved and he took less than 10% with no additional fees (in Florida)

If there is only one broker involved (no sharing of the 10% commission) and he wanted to charge some bogus additional fee, I'd suggest you do this:

Tell him you will obtain a buyer's broker with whom he must split his 10% commission. Bet the broker will have an instantaneous epiphany!

[smj]

Originally Posted by S/V Illusion

If there is only one broker involved (no sharing of the 10% commission) and he wanted to charge some bogus additional fee, I'd suggest you do this:

Tell him you will obtain a buyer's broker with whom he must split his 10% commission. Bet the broker will have an instantaneous epiphany!

My thoughts exactly!


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