The yacht broker is the intermediary in almost every large yacht sale. Disputes arise in three forms: commission claimed by a broker who did not close the sale, liability of a broker who relayed inaccurate information about the vessel, and a deposit withheld or released at the wrong time.
This page sets out the legal framework of yacht brokerage in France, the terms of MYBA mandates and central agency agreements, and how the firm handles these disputes, for owners, buyers or brokers.
The risk: a mandate misread, a commission owed twice
Yacht brokerage is not regulated in France as real estate agency is: the Hoguet law does not apply to pleasure craft. Relations are governed by the contract, by mandate (Articles 1984 et seq. of the Civil Code) and by commercial brokerage. An exclusive or central agency mandate that was not properly terminated may give rise to commission even if the sale is closed through another intermediary.
The buyer’s deposit is generally held by the broker in an escrow account; its release depends on the conditions of the MYBA contract, and an early release to the seller or an unjustified retention engages the broker’s liability.
Does your situation carry this risk? A first exchange allows us to measure it and to say how the matter would be organised.
The legal answer: the mandate, the fault and the link with the sale
Commission is due only if the broker actually brought the parties together and if the sale closed under the conditions of the mandate; proof of that causal role is argued on exchanges, viewings and offers transmitted. A broker who presents a vessel with inaccurate engine hours, casualty history or VAT status is liable under his duty to advise, and cannot hide behind the seller’s statements where he could have checked them.
For the broker, the reverse issue is to obtain payment of a commission evaded by a sale closed “directly” after an introduction: the mandate, the exchanges and the chronology establish the circumvention.
How the firm works
The firm analyses the mandate, the sale contract and the exchanges to fix the position, then sends the formal notice or the reply to the broker. It negotiates release or allocation of the deposit and, in case of false information, pursues the broker’s liability alongside the action against the seller.
Disputes governed by a foreign law or an arbitration clause, frequent with brokers based in Monaco, Italy or the United Kingdom, are handled with a local correspondent.
Based in Paris, the firm acts in all French ports, from Le Havre to Marseille and from Nantes-Saint-Nazaire to Antibes, as well as before the Chambre arbitrale maritime de Paris, and works in English with shipowners, P&I clubs and foreign counsel.
Typical cases handled
The situations below are illustrative, anonymised scenarios. They show when the firm steps in and what the work consists of.
Commission claimed after a direct sale
An owner sells his yacht to a buyer introduced six months earlier by a broker whose exclusive mandate had expired. The firm defends the owner on the scope of the post-mandate protection clause and on proof of the broker’s role.
Deposit released to the seller before conditions were met
The broker transferred the deposit to the seller before the sea trial; the buyer withdraws for a defect revealed at the trial. The firm recovers the deposit by pursuing the broker’s liability.
Undisclosed grounding history
The broker knew of a previous grounding not mentioned to the buyer. The case is handled on the broker’s duty to advise and the seller’s fraud.
Does your situation carry this risk? A first exchange allows us to measure it and to say how the matter would be organised.
Everything on yacht broker disputes
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- Yacht co-ownership and fractional use: the agreement that prevents disputes
- Late delivery of a new yacht: liquidated damages, termination, guarantees
- Your yacht has been arrested in a French port: what to do
- Disputes with a yacht broker: commission, mandate and deposit
- Yacht charter: what the MYBA agreement covers, and what it does not
- Latent defects on a second-hand yacht: remedies and time limits
- Selling a yacht to a foreign buyer: VAT, flag, sanctions and payment
- Buying a yacht abroad: the ten checks before you sign
- International yacht sales: the legal, tax and customs framework
Frequently Asked Questions
Can a broker claim commission if the sale closes without him?
Sometimes. It depends on whether the mandate was exclusive, on its duration, on any tail period covering buyers he introduced, and on whether his intervention actually brought about the sale. A non exclusive mandate generally entitles the broker to commission only where he caused the transaction. An exclusive mandate containing a clear introduction clause can entitle him even where the seller concluded directly with the buyer. Since the answer is written in the mandate, that document is read before anything is said to the broker or to the buyer.
Is the deposit lost if the buyer withdraws?
Not automatically. Everything turns on what the memorandum of agreement says about the conditions attached to the deposit: a withdrawal following an unsatisfactory survey or a failed sea trial usually triggers a refund, while a withdrawal for no contractual reason once the conditions have been lifted usually does not. Where the sum is described as a penalty, French law allows a court to review an amount that is manifestly excessive. The escrow instructions matter as much as the clause itself, because they decide who is entitled to release the funds.
Is the broker liable for information given by the seller?
He can be. A broker owes duties of information and of advice, and he is expected to verify what can reasonably be verified rather than simply repeat the seller’s statements: registration and ownership, apparent encumbrances, the existence of the documents announced. Liability is engaged where a check he should have made would have revealed the problem. He is not a guarantor of the yacht’s condition, and a buyer who declined a survey will find the argument harder. The claim against the broker is usually pursued alongside the claim against the seller rather than instead of it.
What must a brokerage mandate contain?
The identity of the parties and of the yacht, the asking price, whether the mandate is exclusive, its duration and the terms of any renewal, the commission, who pays it and when it is earned, the broker’s powers, in particular whether he may receive funds, and the arrangements for the deposit. A mandate that renews automatically without a clear termination mechanism is a frequent source of later argument. Where the broker also acts for the buyer, that double role is disclosed in writing, failing which his entitlement to commission is exposed.
Who holds the deposit, and how is it protected?
Ideally a third party escrow agent acting under written instructions, rather than the broker on an ordinary business account. The instructions state on which documents the funds may be released, within what time, and what happens if the conditions are not met. Where the broker holds the money, the client carries the risk of the broker’s insolvency and of any mingling with the firm’s own funds. Checking this point takes a few minutes at the start of a transaction and is the most effective protection against the worst outcome in a yacht sale.
What can be done when a broker refuses to release funds or documents?
Put the demand in writing with a short deadline, relying on the mandate and on the escrow instructions, then apply for summary relief. French summary proceedings can order payment of a sum that is not seriously disputable and order delivery of documents under a penalty for each day of delay, and both are obtained in weeks rather than months. Where the broker is established abroad, the location of the account holding the funds and the place of performance guide the choice of forum. Acting quickly matters, because funds move faster than proceedings.