As a yacht broker, there is nothing better than closing a major transaction. In a perfect world, everything will proceed smoothly. Both parties will be happy, all your documents will be in order, and the yacht will be exactly what your clients dreamed of. Unfortunately, we do not live in a perfect world. There is a great deal that can go wrong in the yacht brokering business, and these issues can quickly escalate into severe legal trouble.
Below we have provided some informative tips to help you protect yourself from the potential legal challenges inherent in the sale of large yachts. If you have questions or concerns, please do not hesitate to contact Howard S. Reeder, Inc marine documentation and customs brokerage today!
Don’t mislead your clients
You should always do your best to be honest and forthright with your clients. Avoid misleading them in any way. This includes not trying to provide answers to questions you don’t know the answer to. If you do not know the answer to a client’s questions, then be honest about the fact that you don’t know rather than trying to guess or give an ambiguous answer. Otherwise, if the client makes a poor decision based on your misinformation, they could attempt to pursue legal action against you.
Be certain they understand
Few people want to alert others to the fact that they are ignorant about something. Even when the subject matter is simple, a client may pretend to understand what you are talking about or the advice you are giving them just because they don’t want to look dumb. Take extra time and be certain they understand all aspects of the yacht buying process, including everything included in any relevant contracts or documentation. What your client doesn’t know or understand could come back to bite you.
Adhere to deadlines
Though it is not always possible, do your best to adhere to any deadlines or timeframes stated in any relevant contracts. Failure to do so may cause the parties involved to come after you for some sort of negligence or breach of duty. Additionally, happy clients are far less likely to pursue legal action against you. When the process plays out as expected and on time, clients tend to be much happier.
Do your due diligence
When it comes to brokering the sale of a yacht, never assume anything. Conduct in-depth due diligence and if you suspect anything to be awry, be sure to follow up on it or advise your clients on the fact that something seems off. There are many issues that could arise after a yacht is purchased, such as uncovering a previously unbeknownst lien or other title encumbrances. As the broker, it is always in the best interests of both you and your clients to uncover such issues before the sale occurs. If something looks too good to be true, it probably is!
Keep clients’ best interests at heart
It can be tempting to do whatever it takes to make sure a sale goes through, even at the expense of your clients’ best interests. Do not give in to that temptation! If you knowingly allow your client to fall victim to a clearly unfair or unreasonable deal just to make a quick profit, it could quickly come back to haunt you in the form of an expensive lawsuit.
Flawless paperwork
Any experienced broker understands the mountain of paperwork involved in brokering the sale of a yacht. The documentation requirements seem endless, and it can be tempting to cut corners. However, a simple mistake in a contract or some other form of marine documentation can cause the entire deal to come crashing down or expose you to unnecessary risks and liabilities. Make sure your contracts are concrete and enforceable, and make sure all other relevant documentation with government or private agencies is properly filled out and executed. In order to ensure your documentation is truly flawless, please contact Howard S. Reeder, Inc today and let us provide you with nothing less than smooth sailing when it comes to brokering yacht transactions.
- Understanding the Cruising License Renewal Process - May 20, 2020
- What You Need in Order to File Entry on a Vessel - December 20, 2019
- 3 Steps to Document Your Vessel with the Coast Guard - October 20, 2019
