In addition, an exclusivity agreement invariably requires that a commission be paid to the broker if the boat is sold to someone during the term of the contract, regardless of who introduced the owner to the buyer or whether the broker was involved in the transaction. Here our reader can be in hot water. There is a lot of responsibility if a person who does not own a yacht takes it out for a tour, so that road tests usually do not take place until the boat is measured with a professional expert on board as well as the owner or his representative for the operation of the ship. It is common for buyers to draft a contract that depends on this survey and the test at sea. In other words, if you inspect the boat and don`t like the ride during the sea test (a boat`s version of a test drive), you can simply leave without financial risk. Yacht brokers charge a commission when a vessel is sold, and the amount of the commission is indicated in writing when the boat owner signs a registration agreement with the seller`s broker. When another broker brings a buyer to the table with a co-brokerage agreement, the total commission is shared between the two brokers. A commission on a yacht usually does not exceed 10%. Often it`s a 50/50 split, or sometimes it`s 60/40. The owner/seller of the boat always pays the broker`s commission.

Open and exclusive listing agreements set out the broker`s obligations in general terms and both provide for the payment of a commission to the broker when the vessel is sold. Both agreements also usually provide that a commission must be paid to the broker when the boat is sold to someone who has been brought into the boat by the broker, even if the boat has ultimately been sold through another broker. Brokers have access via YachtWorld to a database that the general public does not have. When a boat is sold on the YachtWorld website, the data sold (how much the boat was sold, what condition it was in, and feedback from a broker) is all transferred to a database of sold boats, which helps yacht brokers assess what a particular make and model of a boat is for after negotiating the price of the initial offer. In other words, a broker will have the best knowledge of how your boat should be valued. Too often, FSBO (For-Sale-by-Owner) yachts are either too expensive or undervalued because they simply don`t have the right idea of the market. In real estate, brokers often work in collaboration with other brokers on a co-brokerage basis. The brokerage will be represented to help with the sale of a property. The other will usually bring the buyer.

The listing broker works with the other broker to complete the transaction, and the two share the commission. This allows real estate companies to sell other people`s listings and makes it easier and faster to find buyers for real estate. It also allows buyers to work with an agent in a company. Your boat must also be in a busy area. Is your boat on the hard, in a shed with a winter blanket? As a buyer, you lose perspective on the boat if you have an unpleasant experience when shopping. You want your yacht to be easily accessible for demonstration, which means it has to be easy to board and not too far off the beaten track. Three factors you can control influence the speed at which we sell your yacht: location, condition and price. In other words, no, you should never assume that the boat will automatically sell for 10% less than the list price. So how can you determine what the expected selling cost will be? A broker has access to a part of YachtWorld that the general public does not have access to and that provides us with data of a boat sold. The precursor to the value of a yacht is always what other yachts of the same make/model are ACTUALLY sold for. It`s like real estate when your agent evaluates a neighborhood before making an offer for a home. What did everyone pay? A yacht can be too expensive or it can be listed at a fantastic price because owners try to get rid of it quickly.

Each case is different. Too often, yacht brokers have the personality of “dirty car sellers” (and yes, we admit that some stick to the bill), but it is in OUR interest to give you a good deal and not distort you for a slightly higher selling price. Let us be frank. We work for you and we work for your recommendations. Our business relies entirely on the recommendations and word of mouth of previous customers. We can`t afford to do dirty business and have unhappy customers!! Our goal is to get you a good deal and then get you to tell all your friends how great we are to get that deal. It is our ethical obligation to represent your needs, and in doing so, we want you to help us meet our needs by sending our friends in our own way if they want to buy or sell a boat. Supporting that trust to earn a few extra dollars would only hurt both of us. We note (as there may be some confusion) that even if you register your yacht with the Coast Guard, you still have to pay sales taxes to the state where you want to use the boat. For example, if you buy a yacht in Connecticut and plan to use the ship in Maryland, you must pay Maryland sales tax on the ship. We must begin this discussion by stating that it is impossible to inform our reader of his legal options without looking at the registration agreement he has signed with his current broker.

However, we can look at the structure of a typical yacht brokerage registration contract and offer some observations based on the features of this agreement. A: Test drives are not normal. Many people think that buying a yacht is like buying a car, which unfortunately isn`t the case (our job would be a lot more fun if we could take all the boats we ride on for a test drive, that`s for sure!). Yacht shopping is more like real estate shopping. You can go with a broker to look at the goods, you can`t go down with the yacht and get dirty until it is under contract. In real estate, you can`t evaluate a home and operate all of its systems until you`ve ratified a contract. A yacht contract works in the same way. My boat has been offered for sale at a yacht broker for over a year. I understand that boat sales in general are quite slow at the moment, but I am not convinced that my broker has done everything possible to market the boat. A few days ago, I was approached by another broker who told me that he had a buyer for my boat – and that he could immediately have a legitimate offer in my hands if I sign a registration contract with him.

I`m worried this could cause problems with my existing broker, but the new broker said I didn`t have to worry because the boat wasn`t marketed properly. What legal options do I have in such a case? To learn more about yacht brokers and how brokerage works, read: Yacht Brokers vs. Boat Dealers: What`s the Difference? How to become a yacht broker Choosing the best brokers for mega yachts, superyachts and luxury yachts that yachts want to sell: finding the buyer`s market The CPYB designation: what does it mean? Buying finances from a yacht broker: commissions, escrow accounts, taxes and more What happens if you work with a buyer broker and the best boat is listed by a discount broker? There is always room for negotiation. Some good discount brokers negotiate commission splits. Otherwise, a buyer can always make a deal directly with their purchasing representative so as not to get bogged down. Test 4: Do you like the guy/girl?! You need to get along with your broker because they are your representative, advisor, front line and friend during the buying and selling process. Selling or buying a yacht has to be stress-free, and it`s much easier with someone you get along with! A buyer`s goal should be to find a happy medium. You don`t want a boat that has suffered from a lack of use, and you don`t want an engine that has spent its entire life as a hobbyhorse. It can cost between $15,000 and $25,000 to replace an engine, so you want to be sure that the engine/yacht you buy is working well. How do you know? You can hire an engine evaluator to test the engine and oil to make sure the engine is working properly. You can also hire a mechanic to stop and do some basic tests, e.B. check the passage of an engine.

An engine exam can help diagnose an engine before investing in a possible project. Most diesel engines can run healthily for 7,000 to 10,000 hours. Most gasoline engines can run healthily for 1,500 to 2,000 hours with proper maintenance. An ad should tell the story of the yacht and present it visually in a way that gives potential buyers the impression of already knowing and knowing the boat without even seeing it. This means that there are no photos of “twin ships” or “manufacturer specifications” cut out and inserted. A list should include a breakdown of absolutely everything the boat offers: systems, electronics, canvas, layout, etc. Who wants to buy a boat without knowing how many hours the engine has? Too many brokers don`t even include this important information in their list….