Yacht Broker Commission — Who Pays, and When

In a conventional brokerage sale, the seller agrees a commission with their broker under the sale mandate, and it is commonly paid from the sale proceeds at closing. The amount depends on the brokerage agreement, the yacht's value, market practice, the representation structure, any co-broker arrangement, private-search or new-build terms, and jurisdiction and tax treatment.

10% is a reference sometimes discussed in yacht brokerage. It is not a legal requirement or a universal rule.

The seller's commission is agreed separately under the mandate. It is commonly paid from the seller's sale proceeds rather than quoted to the buyer as an additional percentage above the asking price. Buyers should not add a commission percentage to a listed price.

Under a central agency, one broker is appointed to manage the sale and cooperates with other brokers who introduce buyers. Under an open listing, several brokers may market the yacht, and commission is typically payable only to the broker who introduces the eventual buyer, as each agreement specifies.

Co-brokerage is cooperation between the seller's central agent and a buyer's broker. When a co-broker introduces the buyer, the seller-side commission is commonly shared under the brokerage arrangement.

Splits are agreed between brokers and can vary with the arrangement, market practice and the work each side performs. An equal split is common in some cases but should never be assumed.

The seller's commission and any fee a buyer pays their own representative are separate things. A buyer can separately agree a retainer, sourcing fee, advisory fee or success fee with their broker.

In a conventional co-brokered yacht sale, the buyer's broker is often remunerated through a share of the seller-side brokerage commission rather than a separate fee charged to the buyer. That should not be assumed in every transaction. A buyer mandate, private search, advisory engagement or direct-owner acquisition can involve a separately agreed buyer fee.

Using a buyer's broker does not usually raise the price of the yacht in a co-brokered sale, but buyers should confirm in writing whether any separate fee applies.

A retainer pays for work regardless of outcome, such as a defined search. A success fee is payable only if a defined event occurs, usually closing. Both should state the amount or basis, the trigger and whether any retainer is credited against later fees.

Off-market sourcing can be paid by the seller, the buyer or both, depending on what is agreed. If the buyer buys directly from an owner with no seller broker, there is no seller-side commission to share, so the buyer's representative's fee must be agreed with the buyer in advance.

Dual representation is when one broker or firm acts for both buyer and seller. It creates a conflict of interest. Where permitted, it must be disclosed to and agreed by both parties, and the broker's role should be stated clearly.

Clients should know who a broker represents and any commercial interest the broker has, including referral fees, shared commission and payments from shipyards or service providers. Disclosure should happen before the client relies on the broker's advice, not after.

New-build brokers and advisers may be paid by the client, by the shipyard, or both. A shipyard-paid commission is a commercial interest and should be disclosed, because it can affect the independence of advice on yard selection. See the new-build guide for Lund's independent positioning.

Commission is commonly payable on completion of the sale, typically from funds released at closing, as set out in the brokerage agreement and coordinated with the sale contract.

If a sale does not complete, whether commission or any fee is payable depends on the agreement. Typically no sale-side commission is due without completion, but retainers and certain costs may already be earned. Read the failure terms before signing.

Many mandates include a protection period after they end, during which commission may still be payable if the yacht sells to a buyer introduced during the mandate. Check the length and which buyers it covers.

Before signing, check: who the broker represents, exclusivity and term, the commission basis and when it is paid, co-broker sharing, separate fees, expenses, protection period, failure terms, conflicts and disclosure, confidentiality, and termination.

The seller's net proceeds are the sale price less commission and other sale costs, such as legal fees, mortgage release, deletion, repositioning, repairs agreed after survey, crew and berth costs. Ask for a projected closing statement early.

Brokerage services may be subject to VAT or other taxes depending on where the parties are and how the service is supplied. Treatment varies by jurisdiction; take professional tax advice. Lund does not provide tax advice.

Commission terms, sale prices and the parties' identities are usually confidential. Agreements should say what may be disclosed and to whom.

Charter brokerage commission is generally paid from the charter fee under the owner's or manager's arrangements, not as a separate charge added to the client. The charter central agent markets the yacht for the owner; a retail charter broker represents the client. Commission is shared between them as agreed.

The Advance Provisioning Allowance is a sum paid in advance for running costs during a charter, such as fuel, food and port fees. It is accounted for against actual expenses and any balance is typically refunded. It is not broker remuneration.

Retail charter brokers do not usually charge clients a retainer, but some specialist services may. Cancellation terms are set in the charter agreement and can affect any commission due.

A buyer intending to charter a newly bought yacht should agree charter management and central agency terms separately from the purchase brokerage.

Lund Group states in writing who it acts for in each transaction, how it will be remunerated, and any commission share, referral fee or other commercial interest it may receive, before the client relies on its advice. Lund does not publish standard commission rates.