Escrow

[KimFisher]

Hello,

I’m new to this forum. Hopefully I’m posting within the right area. Our boat broker received $320,000 wired into his account after the buyer agreed to purchase the boat. Buyer hired a mechanic, surveyor and had the vessel hauled out. Everything went well.

My broker has not wired the money to me (seller). It has been 5 days now. I’m now finding out that the monies were wired into a checking account.
I was told by our broker that he would be placing the monies into an escrow account. Is it possible that a checking account could be an escrow account too?

I contacted the brokers bank and they confirmed that the money is in a checking account. But they could not confirm that the checking account was an escrow account or not. The broker is now telling me that he did not complete the “Buyers and Sellers Closing Documents”. So now I will have to wait until he completes the document. Which means additional days.

If anyone might have any advice, it would be greatly appreciated.

Thank you,
Kim

 

[DavidM]

A checking account can be used for many purposes including as an escrow account. Some states have laws saying that the escrow account can only be used for holding escrow funds, but others may not and the escrow funds can be commingled with other funds.

Sounds like your broker is playing a game holding on to your money perhaps because he used part of it for other things. All moneys should be disbursed on closing day.

See a lawyer if you have any concerns about being stiffed.

David

 

[READY]

Normally there are several days to a week required to complete the process. I am not a broker but have been buyer or seller many times. Items like the coast guard abstract of title (essentially a lien search). So not shocking it could be a few extra days to disburse funds. If the broker has a solid reputation then you are likely ok.

 

[DavidM]

You imply that the closing process dribbles out over several days maybe a week or more.

That was not my experience and I was a yacht broker.

Once all surveys and documents were in hand or we knew for sure when they would be in hand, we would schedule a closing date. On that date all of the money was disbursed. Same with buying or selling a house.

David

 

[KimFisher]

A checking account can be used for many purposes including as an escrow account. Some states have laws saying that the escrow account can only be used for holding escrow funds, but others may not and the escrow funds can be commingled with other funds.

Sounds like your broker is playing a game holding on to your money perhaps because he used part of it for other things. All moneys should be disbursed on closing day.

See a lawyer if you have any concerns about being stiffed.

David

Thank you for your support

 

[KimFisher]

You imply that the closing process dribbles out over several days maybe a week or more.

That was not my experience and I was a yacht broker.

Once all surveys and documents were in hand or we knew for sure when they would be in hand, we would schedule a closing date. On that date all of the money was disbursed. Same with buying or selling a house.

David

I’m concerned that the broker has my money in his checking account and I have to wait for him to finalize all of the paperwork before he wires me the money. Everything should have been in order the day that the seller wired the money into my brokers account.

Thank you

 

[READY]

David thanks for the feedback. I agree with your point but the OP did not clarify that a closing date was set only the buyer transmitted funds. I was simply indicating that there are several steps that need to be completed before funds are dispersed. No indication about the title process or any loan payoff.

If everything is in place funds should be dispersed quickly. But the fact that buyer sent the wire does not implicitly mean it was ready to close. With your experience I know you could explain the critical steps better than I to the OP.

I don't know the Florida process but here in CA sometimes the documentation agent does not order the abstract until the boat has been accepted. This avoids incurring the cost if it is rejected based upon survey.

 

[denverd0n]

In Florida, vessel brokers are required to be licensed, and there are specific laws about how funds are to be held. The Florida Department of Business and Professional Regulation issues those licenses and would be the agency to contact if you think your broker is doing something shady.

Complaints/Investigations:

myfloridalicense.custhelp.com

 

[slowgoesit]

Any update on the funds?