A Broker Experience To Share

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ipasgas1

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I wanted to share my recent experience with selling my boat. I was contacted by a broker saying he had several buyers who would be interested in my boat. I told him I had a couple folks interested and had it advertised on ebay and was going to continue trying to sell it on my own as well. He said if I sold it myself, it was no problem and sent me a contract. I signed the contract assuming that he would be good to our verbal agreement as well. That was in February. I heard from him only a couple of times in five months with one being a low ball offer of a little over 50% of the asking price. I continued to advertise it myself on ebay. I found a buyer through that forum and notified the broker that the boat was sold. He now says he is due a $5000 commission as our contract was exclusive. I am already in the hole over $7500 on the boat sale and now he wants $5000 when I'm the one who sold it? I have emailed him numerous times regarding our verbal agreement that I could sell the boat on my own and he has not once acknowledged or denied making the agreement, only that he wants paid commission. He "graciously" (his word) discounted it to $2500 if I paid it by the end of this week. Otherwise he was going to file legal action against me and he let me know that he had recently done the same to another client and had won the commission and more. I was advised that even if I fought the suit, it would cost more in time, money, and effort than the $2500 so I had to pay him. When I paid him, I let him know I would be sharing my experience and he responded with the threat of a lawsuit if I falsely defamed him. I share this so others do not make the same mistake as I. While it is human nature to see good in all and want to trust them, be careful...you make regret it later.
 
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mr 88

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I would sign up on other forums and repost it there. Seems to be more Ocean and Fla. people there that have dealt with scum like that.I have seen them rip some brokers/dealers to shreds and the more people you can warn the better. Sorry you got screwed over,always get it in writing or don't do it at all.
 
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achris

More fish than mountain goat
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Signed a contract you didn't read properly. :facepalm: And I've always been told, "a verbal agreement isn't worth the paper it's written on"...

Sorry you got screwed, but I would apportion at least 50% of the blame on you (see above).

I know that sounds harsh, but we live in the 21st century, honour amongst people died with the birth of the nuclear age. How much credence do you put in the phone calls that start with "Hello, I'm William from Microsoft technical department and we have detected a problem with your computer....."

Chris.......
 
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Yegboats

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Sounds like this guy is making a pretty good living off taking advantage of people. Thanks for sharing your experience for others to learn from.
 

tpenfield

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Sounds like you set yourself up for failure by trying to simultaneously deal with a broker and sell yourself. The written word is what the legal process goes by. I am assuming that you did not read the contract, or did not give the provisions within it ample consideration.

From the broker's perspective, there is no telling if a buyer was attracted to your boat through the broker's efforts, but ultimately purchased the boat through your eBay listing. Too much of a gray area, so the broker may be within his rights to ask you to honor the contract.
 

roffey

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I know hindsight is 50/50 but..... if I were selling a boat and a broker approached me I would say sure. You bring me an solid offer and we can discuss a commission. I would never sign a contract if I were actively trying to sell. Keep in mind, as I said hindsight is 50/50 and I am far to trusting and tend to take people at their word like you. Your experience would leave me incredibly frustrated.
 

gm280

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Sad to see we all are inundated these days with so many scams. Sorry you had to lay out an additional $2500 dollars to a person that probably didn't have anything to do with the actual sale.

But there are scams everywhere. In fact yesterday we received a phone call (we let the answering machine take it) and the guy, with a heavy accent, stated that we owed a ton of money to the government and IF we didn't call him back ASAP at the phone number he stated, he was going to proceed with a Federal lawsuit against us. Yes, they still think everybody is that stupid. But that phone scam is going around again in our area. And the really say fact is there are still folks, especially elderly folks, that will get caught up in such things. The local news posts such stories all the time. But folks are so worried about a Federal Law Suit, that they hand over their saving too many times. Sure wish I could caught such folks. I don't think they would be able to talk and con anybody with their phony phone scam for a long time. JMHO!
 

WIMUSKY

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Bottom line, he didn't read his contract, or, didn't understand it....

Here it is:

YACHT SELLING AGREEMENT 1. It is agreed that Owner hereby grants ----- the right to sell Owner?s Vessel, for a minimum of 30 days, for the agreed upon price below. After 30 days, if not fully satisfied, Owner may cancel this agreement with -------- which is hereby grante
d an exclusive right to sell the vessel:
Vessel Name:__________________________ Feet:_____ Make:_____________________________
Model:______________________________ Year:________ Flag:_______________________, on a multiple listing basis.
This Vessel will be offered for sale at a gross asking price of $_________________, and no other price shall be quoted without specific authorization from Owner. -------- agrees to submit any and all offers of any type to the Owner for consideration. The Owner agrees to sell the yacht to a customer of ---------, or to a customer of a sublisted broker who is ready, willing and able to purchase at this price, or at any other price and terms the Owner may accept.
2. The Owner agrees that -------- is providing a valuable service of a kind which is for the use and benefit of both the Owner and the Vessel by distributing listing information to the brokerage industry, advertising the Vessel for sale and exposing it to the buying public, and providing consultation with regard to the marketability of the Vessel. Therefore, --------- is authorized to and shall distribute information describing the Vessel to its clients and to other brokers it judges qualified to negotiate a sale. It will be the responsibility of the Owner to supply pictures and plans and all detailed information, and also keep ------- informed about any changes in location, price or specifications of the Vessel.
3. Upon the sale, donation, trade, charter or exchange of the Vessel, or if it is otherwise transferred or conveyed during the term of this Agreement by the Owner, or anyone acting on behalf of the Owner, the Owner agrees to pay ------- a fee of ten percent (10%) of the gross sale price or $5,000 whichever is greater if no other sublisting broker is involved in the sale of said Vessel. In the event Vessel is sold by another sublisting broker from another brokerage company Owner agrees to pay a fee of five percent (5%) of the gross sale price for the sublisting broker AND a fee of five percent (5%) of the gross sale price or $5,000 whichever is greater to -------. Any sublisting broker involved in the sale shall receive his fee from --------. The sale, donation, trade or exchange of a majority of the stock, or equitable interest of a corporate or limited partnership holding title to Vessel by Owner shall be construed as a sale for the purposes hereof.
4. It is specifically understood and agreed that ------- does not assume and is not delegated care, custody, or control of the Vessel. It is further agreed that the procuring of such docking and/or mooring space for the Vessel by -------- for the purpose of making the Vessel available for inspection by potential purchasers is not to be deemed as an assumption of the custody or control of the said Vessel by ------. The possession, custody and control of the said Vessel shall at all times remain as the Owner designates for the safety, security and protection of the Vessel at whatever location the Vessel is moored or stored for the purposes of being available for inspection by potential purchasers and ------ shall not be deemed to be responsible for the security, safety or protection of the said Vessel during this period of time, and shall not be responsible for any damage or loss to the Vessel. Permission is hereby given to ------ for its salesmen and sublisted brokers to board and show the Vessel, by appointment, or as otherwise agreed. The Owner shall keep the Vessel fully insured for inspection, sea trial, and marine survey purposes.

5. This agreement shall remain in effect for a minimum of 30 days or until the Vessel is sold unless cancelled by either party within 10 days after the end of the initial 30 day period by giving the other party written notice of cancellation, or if more than 10 days after the initial 30 day period, by giving the other party 30 days prior written notice of cancellation. Upon cancellation or expiration, this Agreement will convert to an open, non-exclusive listing.

6. The Owner further agrees to pay the same fee of ten percent (10%) or $5,000 whichever is greater should he, at any time within one (1) year after termination of his Agreement, sell, trade, exchange, charter, or otherwise transfer or convey the Vessel in any manner to any party to whom------- or one of its sublisted brokers has submitted the Vessel during the term of this Agreement.
7. --------- shall endeavor and use its best efforts according to the standard of the industry, to procure a purchaser for the vessel, and the Owner agrees to refer immediately to ------- all inquiries or offers received from other brokers or parties interested in purchasing the Vessel, during the term of this Agreement. Accordingly, ----------- will be entitled to the commission described herein if the Vessel is sold solely by the Owner or by any other broker to a purchaser referred by the Owner.
8. If any dispute arises between the Owner and ------- regarding this Agreement, such dispute will be submitted and settled in accordance with the rules of the American Arbitration Association, in Fort Lauderdale, Broward County, Florida, and the decision of the arbitrator(s) shall be final and binding.
9. This Agreement is binding on --------- and the vessel?s Owner, its heirs, executors, successors, administrators and assigns.
 

GA_Boater

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Will the OP return to answer any any questions" It would be the rare case if he did. Asking anyway.
  • Did you do any research regarding the broker?
  • Did you read the contract?
  • Did you ask that the "verbal" agreement be included in the written contract?
  • Did you provide written notice within the contractual terms to cancel the contract?
  • Did you realize the contract is not a 30 day contract, but an automatically renewing contract after the initial 30 days if not cancelled by a written cancellation notice from you?
  • Did you know the the length of the contract is determined as meeting the written cancellation terms plus one year ?
  • In another forum, you stated you are not the owner, but the owner is the company you work for. Did corporate legal review the contract ?
  • Since you were selling the boat for your employer (I hope), why not put the $2500 on an expense report?
  • Why on earth did you enter into a personal agreement to sell a corporate asset in the first place?
 

WIMUSKY

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Well we will never know without follow up to the questions listed. Seems strange



Seems like all he wanted to do was rant on a bunch of forums and leave... Who knows what really went on. This is the internet after all...Lol
 

achris

More fish than mountain goat
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He's not a broker,he's a scam artist.

No he isn't. He's a businessman trying to make a living. The OP asked if he could continue to sell his boat privately, and was told yes. The broker didn't lie. The OP failed to ask, or read the contract, about the commission. The broker is merely enforcing a condition the seller agreed to. The broker is not the bad guy here, the OP was a fool for signing a contract he hadn't read. Remember the old adage, a fool and his money are soon parted.
 
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JoLin

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Look at the original post. The OP asked the broker if he could sell the boat on his own, and the broker said, 'no problem.' IMO, the OP took that to mean he wouldn't have to pay a commission, but the broker never said that. You can't say that the broker was being dishonest, either- they had a written contract that the OP was supposed to understand. In fact, the broker apparently recognized that there was a misunderstanding and took partial responsibility for it by cutting his commission in half.

I sold my last boat through a broker. It wasn't moving and I didn't care for the ad he put up at his website. I wrote my own ad on Craigslist, listing the broker as the contact. I had a buyer in 2 weeks. So, who sold the boat? Me or the broker? Doesn't matter- the boat got sold, I had a contract with the broker and he got his commission.

My .02
 
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oldjeep

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Let me guess - Pop Yachts. Google around a bit like you should have before you signed with them
 
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WIMUSKY

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Look at the original post. The OP asked the broker if he could sell the boat on his own, and the broker said, 'no problem.' IMO, the OP took that to mean he wouldn't have to pay a commission, but the broker never said that.

My .02

That's exactly what I told my wife..... Like she cared .....
 

Sea Rider

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A professional scam artist with lawyers willing to assist his illegal activities, shame on them!!
 

mjf55

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OP, sorry you got stung by this guy. I understand you now have it resolved. Your experience with this broker has been noted and saved.
 
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GA_Boater

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The broker was not Pop Yachts.

The broker supplied a standard contract which protected his interests.

The OP didn't read or understand the contract.

None of us have any idea why the broker took a 50% cut on his fee.

The OP had 4 months to cancel in writing and didn't bother after being unsatisfied.

The OP ignored the contract terms and paid the price.

End of story, case closed, thread closed and it will sit in the library for the next person looking at using any type of selling service. Read and heed the contract!
 
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