Anyone sold a boat through a broker?

[foursailing]

Came across a 1999 C34  the end of last summer that I just had to have – so I purchased her but unfortunately before selling my old Pearson 303.

I am now in the process of selling the Pearson and looking forward to becoming a one boat owner again.  I am selling the boat through a broker and have a buyer and contract in place.  I was a little surprised when my  broker told me that I would be signing over the title to them on Saturday, but would not be getting the money until Monday.  They told me they needed time for the buyer's check to clear – even though they would be receiving a certified check from the buyer.  The broker has been around for a while and as far as I can tell, has a good reputation

This is the first time I have sold a boat through a broker – is it common practice to receive a check after the closing?  Every time I've sold and closed on a house I always walked away from the closing with a check.

Any advice would be greatly appreciated.

[Ted Pounds]

When I sold "Molly Rose" the buyer had three checks - one for the broker, one for engine escrow (held by broker) and one for me.  So I walked away with a check (actually the buyer walked away as we closed at my house).  When I bought "Molly Rose" the PO wouldn't sign over title till my bank check cleared.   So, who knows?  I wouldn't worry about it.  This time of year I don't think the boat will be going anywhere before you get your money.

[ohana34]

Normally checks all change hands the same day.
Unforunately these days one has to be carefull.  Wire transfers are preferred.
Saturday deals are hard as most banks don't post that day.
Hopefully your broker hangs onto the title until the money is good, also equally important is possession of the boat.
Good luck
Jim

[Footloose]

Unfortunately this is a sign of the times.  Computers are powerful tools.  They have also made counterfitting much easier.  My business hasn't had a check, that I received, bounce in 15 years, but recently the bank changed the rules so that anything that gets deposited has to have cleared before I can draw on it.  Don't take it personally.

[David Sanner]

Not as scary as buying something on ebay but I can see your concern.

If the dealer has an solid ongoing business I wouldn't be too concerned...
I assume the contract associated with the transaction would cover
you in case of a bounced check...  the check alone probably would.
ie.  you would win a title claim but what's the acronym for "I'm not a lawyer"  ?  ;)

I think Ted makes a very good point....  the boats not likely going anywhere fast.

I'm thinking if the buyer really wanted to obtain a boat illegally they would just go
down to the marina and pick one and sail off. Fortunately joy rides and 'parting out'
boats doesn't seem to be as prevalent as with automobiles.

But you might ask the dealer what happens if the check bounces.
Seems like a fair question to me.




Footloose, I think you are talking about with the changing rules is called
Check21.  The banking interests pushed it through in 2003 so that they hang
on to our money longer... and we don't get our canceled checks back.
As far as I know... a win win for them and not much for us.

A nice example is if someone writes me a check for $10k and I deposit
it, the funds will be removed from their account that night but depending
on my bank they may not release the funds to me for weeks.

Obviously I need to go sailing and forget about this stuff!

[Sundance]

I bought Sundance last fall through a broker (not to mention any names) in the Vermilion, OH area.  Worst experience ever!  Same kind of situation, I signed my loan papers through mail from the broker (broker set closing date when he would be out of town and let me know a day before), but never received the title until weeks later.  The P.O. had his money weeks before I had the title.  In fact, I made my first loan payment before I had a title.

My advice would be that if a Saturday closing means you don't get your money till Monday, you simply ask to sign the papers Monday, but in all actuality it probably doesn't make a big difference.  You have a signed contract and will get your money. 

I will use this space to express my utter disappointment with the transaction and this broker in particular.  Bought the boat in October, but was told no money could be put in escrow to insure a clean launch in the spring.  Even while I negotiated a price, terrible, basically told me to look at a diffrent boat.  I was looking for $5k below asking, but I couldn't even get a counter offer.  As the buyer I had to keep placing diffrent offers till one was accepted, never got a counter offer.  Since my loan was through a bank that the broker worked with he handled this also.  I received loan papers for a diffrent loan amount than originally agreed on.  This is after I had to get a quote from someone else because the rates were outrageous, then after that he managed to match my quote.

I will never use (or recommend using) this Vermilion, OH based broker if I choose to sell or buy again.

[Ken Heyman]

Jeff,

That broker put you in the position of negotiating with yourself. If the broker didn't communicate your offer to the seller he has acted unethically. I had a broker where I thought this might be the case so i raised the issue and asked that I be present when the offer was forwarded. While this made the broker uncomfortable it did assure that the seller was in the loop.

re: ebay--certainly risky but they do have workable protections built into their transaction mechanics. i.e. pay pal, insurance, and buyer/ seller scoring systems. That said I have had some "unusual" experiences using ebay.

re: title passing--I weigh in on a closing that emulates real-estate transactions. Funds should not be released from escrow until all documents are in order. Title should pass simultaneously. I agree with others however that at times you just have to make a gut call in the interests of expediting the transaction. If the worst happens, one has a winnable law suit based on the purchase agreement & bill of sale(obviously not a good scenario) but no other choice.

[mjkuder]

Sundance.  Wondered who the broker is in Vermillion you referenced.  I am in the Pittsburgh area and starting to look for a C34 this spring.  Based on your experience wanted to avoid this broker.  Feel free to contact me offline, mjkuder@gmail.com.

Thanks.