Associated Yacht Brokers Code of Practice
Revised February 2018
AYB brokers are required to act in a fair and decent manner.
Some brokers are members of co-operative or umbrella organisations that provide centralised provision of Liability Insurance, deposit holding accounts and credit arrangement services. This is acceptable within AYB and the wording of the code of practice allows for such, it is incumbent on each broker to confirm that such facilities are adequate and regularly renewed.
Each AYB broker must hold a copy of a letter from the bank in question which confirms that the account where clients funds are held is a designated Client Account with the legal protection conferred thereby.
Each AYB broker must hold a copy of the current certificate of Professional Liability Insurance in respect of brokerage activities.
Each AYB broker shall provide a pre-printed brokerage agreement, detailing the terms and payment structure (including whether or not VAT applies). Clients should be given adequate opportunity to read the agreement and negotiate any alteration they may request prior to signing the final copies.
Each AYB broker recognises need to comply with the Consumer Protection from Unfair Trading Regulations 2008 (known as the CPRs). These Regulations extend to all situations where brokers engage with consumers, this includes not only when dealing with a paying client but also when advertising for business and targeting potential viewers or prospective clients. The CPRs also control descriptions used by brokers and create criminal offences for those that breach the Regulation. Notably brokers are required to disclose all known defects and adverse information. (Anything, which if it had been pointed out prior to sale, might have affected the average person’s decision to proceed).
Each AYB broker knows that Floating Structures are not vessels and do not enjoy the same legal status.
Specifically each AYB broker will point out that any static houseboat that is not on a freehold or long leasehold mooring may become not just valueless if the mooring is terminated, but may be a considerable financial burden to tow away and store, or break up.(Due to a limited availability of residential moorings with planning permission, adequate fire hydrants and /or boat-to-shore piped sewage systems).
While many static houseboats are designed by qualified marine architects and are made of fire resistant materials, many, especially amateur conversions, use softwoods and flammable plastics and lack adequate fire escapes. In such cases, AYB brokers will point out these potential problems and recommend sight of the design drawings in addition to a structural engineer’s report and/or survey.
Each AYB broker will recommend to buyers a survey, but not a specific surveyor. Instead they will direct would-be buyers to the YDSA surveyors list (currently on https://ydsa.co.uk/find/surveyors/ ).
Each AYB broker will request a full inventory of items to be included in the sale, the list, once agreed, shall be advertised , or shown to buyers and shall be included by reference in and appending to, the final contract of sale and purchase.