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The

Brokers' Role

2 September 2020

Last revised

minutes

5

Reading time

Yacht brokers play an essential role in the sale and purchase market. Reputable brokers know the current market, how to market the vessel, how much for and to whom. While they can also be engaged to represent buyers, this article looks at their role as the seller’s representative.

minutes

5

Reading time

2 September 2020

Last revised

Yacht brokers play an essential role in the sale and purchase market. Reputable brokers know the current market, how to market the vessel, how much for and to whom. While they can also be engaged to represent buyers, this article looks at their role as the seller’s representative.

  • Yacht brokers are generally unregulated in most parts of the world, allowing anyone to become a broker without barriers to entry.

  • Due diligence is essential for prospective yacht buyers to assess the credibility and ethics of brokerages and individual brokers.

  • Brokers often prefer to work under a Central Agency Agreement, granting them exclusive rights to market the yacht and ensuring a return on their investment.

  • It is important for buyers to verify if the broker they are dealing with is the Central Agent to avoid complex communication chains.

  • The exclusivity term in the Central Agency Agreement can be negotiated, but sufficient time should be given to the broker for marketing and selling the vessel.

  • Even if a sale is not directly related to the broker's efforts, they may still be entitled to a commission during the agreement period.

  • Joint Central Agency Agreements may involve multiple agents deciding on marketing and commission splits, requiring careful consideration.

  • Disputes between sellers and brokers often arise due to vague or ambiguous broker instructions.

  • Standard terms and conditions provided by brokers should be examined carefully to understand the scope of services and any limitations or exclusions.

  • Yacht brokers have fiduciary duties to act in the best interest of their principals, exercise reasonable care and skill, and avoid conflicts of interest.

  • Even if a sale is not directly related to the broker's efforts, they may still be entitled to a commission during the agreement period.

  • Joint Central Agency Agreements may involve multiple agents deciding on marketing and commission splits, requiring careful consideration.

  • Disputes between sellers and brokers often arise due to vague or ambiguous broker instructions.

  • Standard terms and conditions provided by brokers should be examined carefully to understand the scope of services and any limitations or exclusions.

  • Yacht brokers have fiduciary duties to act in the best interest of their principals, exercise reasonable care and skill, and avoid conflicts of interest.