This review list is offered to help you learn more about the document in question and prepare it. This is a common brokerage agreement that can be used for a variety of things other than boats and vessels.
- Make several copies. Each signing party should obtain one original copy.
Boat Or Vessel Brokerage
Boat or Vessel Brokerage Agreement
____________, referred to as OWNER, and __________, referred to as BROKER, agree:
OWNER herewith grants to the BROKER the exclusive right to sell the vessel ________________, for a period of ___________ days. The vessel shall include the following options, marine electronics and accessories: _____________________________ in good, seaworthy, operating condition. A complete description of the vessel is attached hereto as Exhibit 1.
OWNER shall maintain the vessel, marine electronics and accessories in seaworthy condition. BROKER shall have no responsibility for maintenance.
OWNER agrees to permit the BROKER the right to demonstrate the vessel to potential purchasers. BROKER shall be responsible for fuel and crew necessary for demonstration, provided, however, that available on board fuel may be used by the BROKER without obligation to replace or pay for the fuel used. OWNER agrees to maintain insurance on the vessel for customary perils and in the amounts customarily maintained on the vessel. Such coverage shall be primary and BROKER shall be considered as an insured. OWNER agrees, upon request of the BROKER to provide copies of policies or other proof of coverage.
The minimum sales price shall be $________ (__________________________ & _____/100 dollars). BROKER shall receive a commission of _________% of the gross sales price, less any sales tax or transfer fees. BROKER shall be entitled to the commission in the event that the BROKER provides a ready, willing and able purchaser.
In the event that a purchaser of the vessel requests and pays for an independent marine survey by a qualified marine surveyor, and the survey reveals any structural or safety deficiencies, OWNER agrees to make due allowance, whether by performing remediation, or an allowance in the purchase price.
In the event that an offer is accepted from a potential purchaser and the purchaser does not close and any earnest money or deposit is forfeited, the OWNER and BROKER shall equally divide the forfeited funds.
This is the entire agreement between the parties, and this agreement may only be modified by a writing executed by the parties hereto.
Dated: ______________________
________________________________________
____________ By Broker
________________________________________
__________ By OwnerBoat or Vessel Brokerage Agreement
Review ListThis review list is provided to inform you about this document in question and assist you in its preparation. This is a standard brokerage agreement and can be applied to other items, aside from boats or vessels.
1. Make multiple copies. Give one original to each signing party.
Frequently Asked Questions
What is a boat or vessel brokerage agreement?
A boat or vessel brokerage agreement is a contract between an owner and a broker that grants the broker the exclusive right to sell a specified vessel for a set period of days. The agreement defines the vessel, including its options, marine electronics, and accessories, and requires the owner to maintain the vessel in seaworthy condition. It also outlines the broker's rights to demonstrate the vessel and the owner's insurance obligations.
What does an exclusive right to sell mean in a boat brokerage agreement?
In this agreement, the owner grants the broker the exclusive right to sell the vessel for a specified number of days. This means that during that period, the broker is the only party authorized to sell the vessel. The agreement does not state any exceptions or conditions beyond the exclusive grant.
Who is responsible for maintaining the vessel under a boat brokerage agreement?
The owner is responsible for maintaining the vessel, marine electronics, and accessories in seaworthy condition. The broker has no responsibility for maintenance. This division of responsibility is explicitly stated in the agreement.
Can a broker demonstrate the vessel to potential purchasers?
Yes, the owner agrees to permit the broker the right to demonstrate the vessel to potential purchasers. The broker is responsible for fuel and crew necessary for demonstration, though available on-board fuel may be used without obligation to replace or pay for it. This allows the broker to show the vessel while the owner retains certain cost responsibilities.
Who pays for fuel during a boat demonstration?
The broker is responsible for fuel and crew necessary for demonstration, but the agreement allows the broker to use available on-board fuel without obligation to replace or pay for the fuel used. This means the broker may not need to reimburse the owner for fuel already on the vessel. The owner is not required to provide additional fuel beyond what is on board.
What insurance is required under a boat brokerage agreement?
The owner agrees to maintain insurance on the vessel for customary perils and in the amounts customarily maintained on the vessel. Such coverage shall be primary, and the broker shall be considered an insured. The owner must also provide copies of policies or other proof upon request.
What happens if the vessel is not maintained in seaworthy condition?
The agreement requires the owner to maintain the vessel, marine electronics, and accessories in good, seaworthy, operating condition. If the owner fails to do so, it would be a breach of the agreement, though the text does not specify remedies. The broker has no responsibility for maintenance.
What is included in the sale of the vessel under a brokerage agreement?
The vessel includes the options, marine electronics, and accessories listed in the agreement, which must be in good, seaworthy, operating condition. A complete description of the vessel is attached as Exhibit 1. The agreement does not specify any other inclusions or exclusions.
How long does a boat brokerage agreement last?
The agreement lasts for a period of days specified in the contract. The exact number of days is left blank to be filled in by the parties. The agreement does not state any automatic renewal or extension terms.
What are the broker's responsibilities in a boat brokerage agreement?
The broker is granted the exclusive right to sell the vessel and is responsible for fuel and crew necessary for demonstration, though available on-board fuel may be used without replacement. The broker has no responsibility for maintenance. The broker is also considered an insured under the owner's insurance policy.
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