Can a broker rip you off when selling your boat?

[DavidN]

So I am in the UK however i have left my boat with a broker in the Caribbean for sale (a Fontaine Pajot Mahe 36 if anyone is interested) and a friend said something to me that i didn't know the answer to. How do i know the broker isn't selling the boat at a higher price via a dummy buyer that I can speak to if i wanted to confirm what he was paying and then actually selling it higher to the real customer and pocketing the difference plus the commision? The bids i've been given seem very low as to what i was expecting and eventually after 4 months of it being for sale i've agreed so i'm now getting suspicious and wanted to know how I can find out if its possible to be ripped off and how to check?

Please let me know as i've never sold a boat before and i bought the boat off a big charter company so i've never dealt with a broker and don't know the process.

Thanks

D

[goboatingnow]

Ultimately you will be aware of the buyer as you will have to exchange documents. You can always ask the buyer

[Anders]

You need a broker with a good reputation that you can trust.
There's no way you would know if the broker sells it to a friend for a low price who then sells it for a higher price.
You can check if the boat comes up for sale after you sold it but that's bit late...

[5BTM]

Honesty being the best policy, ask the broker for contact info of everyone showing interest in your boat, clearly explaining the reason for your request.

I imagine that clients like you must be every broker's worst nightmare.

[Sailer_Med]

I don't see a difference between this and any other business arrangement. If you feel there is a lack of honesty or necessary transparency you should be walking away.

[S/V Illusion]

I too once sold a boat remotely via a broker. Rather than trust a(ny) broker, I gave him my minimum acceptable price and told him he can keep anything over that amount as an incentive to sell. Works much better than any commission incentive.

[gonesail]

long distance ownership stinks. dealing with a broker long distance is not so great either. your boat is nothing special to them. i had a broker leave a hatch cracked and the teak floor was damaged. when an offer came in it was very low. i like the idea of giving them a minimum acceptable price

[Knotical]

The way I see it is you have no control over what happens to the boat after you have sold it, the broker could pocket more money by involving a dummy buyer or a legitimate buyer could sell it for a higher price.

I agree with others that you should tell the broker your minimum asking price and let him take care of the rest.

[Calif.Ted]

Possible, but more likely that as a former charter boat with an absentee owner, that has not sold in 4 months it's not worth as much as you think.

[bensolomon]

Originally Posted by S/V Illusion

I too once sold a boat remotely via a broker. Rather than trust a(ny) broker, I gave him my minimum acceptable price and told him he can keep anything over that amount as an incentive to sell. Works much better than any commission incentive.

That is a great idea!

[Cwens]

Originally Posted by goboatingnow

Ultimately you will be aware of the buyer as you will have to exchange documents. You can always ask the buyer

That doesn't help with the scenario in which the broker passes along to you the low offers but conceals a high offer; you sell to the best of the low offers, who turns out to be a shill buyer who turns around and sells it to the high offer buyer.

[Cwens]

Originally Posted by S/V Illusion

I too once sold a boat remotely via a broker. Rather than trust a(ny) broker, I gave him my minimum acceptable price and told him he can keep anything over that amount as an incentive to sell. Works much better than any commission incentive.

In real estate brokerage (which is legally and practically different from yacht brokerage, but there is significant overlap), such an arrangement, termed a "net listing" is very much illegal in most US jurisdictions. It is considered a bad idea because it runs counter to the principle that the broker has a fiduciary responsibility to get the seller the best possible deal.

[S/V Illusion]

Originally Posted by ChrisOwens

In real estate brokerage (which is legally and practically different from yacht brokerage, but there is significant overlap), such an arrangement, termed a "net listing" is very much illegal in most US jurisdictions. It is considered a bad idea because it runs counter to the principle that the broker has a fiduciary responsibility to get the seller the best possible deal.

There is nothing inherently counter in my experience selling by setting a minimum price. As a practical matter, that’s what we all do whether it’s selling a house, car, boat,…. It worked well in my judgment.

Can you elaborate how doing so would abrogate any principle or be “illegal”?

I set the “best possible deal” by establishing a minimum. It ensures the “fiduciary” duties of a broker which is a dubious trust given many brokers reputation. It sets the parameters for the broker to achieve. And I still reserve the right to change my minimum acceptable offer.

Can you cite any reference which legally precludes doing this in any state?

[Cwens]

Originally Posted by S/V Illusion

Can you cite any reference which legally precludes doing this in any state?

This article says it's illegal in all but 3 states: https://www.vaned.com/blog/net-listing-real-estate/

Here's a specific reference for Massachusetts: https://www.mass.gov/service-details...nd-regulations

[Knotical]

Originally Posted by ChrisOwens

That doesn't help with the scenario in which the broker passes along to you the low offers but conceals a high offer; you sell to the best of the low offers, who turns out to be a shill buyer who turns around and sells it to the high offer buyer.

This does not sound right - one of my friends and a fellow boater is also a broker and he says that by law he is required to reveal “all” offers to the seller, big and small, concealing high offers and then re-selling it means he’s going out of his way to do wrong, depending on the country the evidence (calls, texts, paper trail) can easily be discovered if the original seller is motivated.