The Yacht Broker and his role
The Yacht Broker - Whom does he represent, what is his role, what are his obligations and what to expect from the yacht broker ?
In this section we take the opportunity to explain some issues regarding the role of the yacht broker or yacht agent or even yacht or boat dealer, terms used often as well.
The Yacht Broker - Whom does he represent ? Whose interests does he support ?
Normally the yacht broker or yacht agent will receive an order from a yacht owner to sell his boat.
This does certainly appoint the Agent to become the representative of the owner in the sale of his yacht..
However does this make the yacht agent stand closer to the seller than to the potential buyer ?
In terms of knowing the seller more than the potential yacht buyer perhaps, however up to there.
The position and attitude of the yacht broker should be in the middle between buyer and seller and impartial.
Who is paying the commission to the broker ?
The argument that could be heard from the seller towards the broker that as he is paying the broker with a commission is not totally correct.
The seller makes a concession in his price in order to accommodate the broker's commission however at the same time the buyer accepts and pays a price which contains the broker's fees.
Therefore it is our own assumption that the commission is being paid from both and therefore in this respect, the yacht agent is equally committed and obliged to both parties.
There is another misconception especially from the side of the seller that he will obtain a better price for his yacht by using a broker.
This is not necessarily true.
The yacht broker usually has the knowledge and perhaps records to suggest a reasonable market price for the yacht however in no way he is to be expectd to sell the yacht at a higher price than the yacht is really worth.
The yacht should be set to a price where there are potential buyers for it.
What are the obligations of the yacht broker ?
The yacht broker is obliged to present the yacht in a fair, proper and descriptive way.
To provide photos representing the actual condition of the yacht.
Not to show photos showing only the brilliant spots or aspects of the yacht and meticulously hide any weak points.
He should even stress to the seller that by hiding deficiencies this does not do any good to the sale as these will be revealed at the course of a survey or even at an onsite viewing of the potential buyer himself.
The yacht broker should provide a fair image to the yacht presented and offered for sale.
In no way he should collaborate with the seller to hide any defects of the yacht especially those directly related to the seaworthiness of the vessel.
What is the yacht owner obliged to do ?
The seller of a yacht who appoints or asks a yacht broker to sell his boat needs to respect the work of the yacht broker as well.
In many cases the yacht broker works at "no sale no pay basis".
He in the meantime uses his office resources, his car, his time, going into many expenses, providing his knowledge and expertise in the scope or selling a yacht.
He is not a servant of the seller and the seller has to appreciate this fact as well.
He should cooperate with the yacht broker, provide him on time any required information or documentation about his boat and also very important keep him advised on time on any price changes.
It is quite frustrating for the broker to find out the yacht to have been sold at a substantially lower price than he was given to sell, or that the yacht is long ago sold however the seller never bothered to inform about this and the yacht broker continues to offer the yacht with whatever this entails for his time, expenses and credibility.
Also when the seller easily decides that he is not selling anymore and spoils a ready sale deal.
The yacht owners selling their yachts should be more considerate in these cases towards the yacht agent.
At the end of the day what is sought and desired, is a deal to leave everyone happy, the yacht seller, the yacht buyer and the yacht agent leaving behind the feeling that it was a fair and honest deal for everyone involved in this.