Deregulating Florida Yacht Brokers?

Hi,

Are brokers regulated and bonded everywhere in the US presently?

I can speak for Maryland and Florida. Maryland boat dealers are licensed and have to post or purchase a bond, but only the company itself. Individual salesmen are not licensed.

In Florida, salesmen are individually licensed and bonded along with an employing broker for each company.

California and Florida are the only two states that I know of that require a license for yacht sales.

Florida licenses are issued from the Florida Dept. of Business and Professional Regulations which also cover cpa's, architects, real estate agents...

Bottom line is a Florida broker has passed a thumbprint test, not committed a felony, passed a credit check, carries a bond, and has a separate registered escrow account for client funds. A salesperson has to work under a broker for 2 years before being eligible for a broker's license. Licenses must be renewed every 2 years including credit report. California brokers are required to pass a written exam also.

Judy Waldman

I'm curious about who is behind this and what their motive is. If the industry itself is against deregulation why would anyone want to move that direction?

That is the 64 billion dollar question. The number and range of industries on the chopping block is amazing. Some of them defy logic ... land surveyors, architects, auto repair businesses, and home inspectors to name a very few.

It should be great for the lawyers and process servers though, scam artists will flock to the State even as professionals vanish under the assault of the hordes of fly by nighters who will fill the regulatory vacuum.

This is among the most bizarre legislative efforts I have ever seen and Americaqn legislators are among the world's best at providing examples of bizarre.

As a reminder, this is not just about brokers and the marine industry, but it is in my opinion for the protection of buyers who wire funds in megabucks and assume they are transacting business with a professional who meets some standards. Without licensure, all minimal requirements are removed. Do you want your 10% deposit or full funds going to a broker whose credit doesn't allow him to qualify for a Sear's card?

Additionally, shouldn't buyers have a regulatory agency where they can check for or register complaints?

Fl. State Representative Franklin Sands has promised his best efforts to see this bill not pass. To express concerns or to send a note of thanks, Franklin.Sands "at" myfloridahouse.gov

Judy

It never ceases to amaze me with how unregulated this business is. People hand over huge sums of money to people who could be gone (with their money) tomorrow. Florida has a long standing reputation for fast talking scammers and people who are here today and gone tomorrow going back to before the swamp land salesmen of the 50's. The rest of the industry should be emulating Florida's lead in licensing brokers, etc. not the other way around. Keep the professionals. This deregulation could be devastating to the industry there. I'd be real curious about who is pushing this and their agenda.

This will probably spur some controversy but its 100% true in my PERSONAL experience.

Every single Florida Yacht Broker I have ever dealt with or talked to has pretty much been a character to put it very nicely. If I am traveling from Illinois to go see a boat in Florida that is described as MINT and told many many times by completely different brokers that a boat is in perfect condition, I expect it to be perfect upon my arrival. Not to mention a few happenings with deposits in "escrow" accounts.

We aren't talking about fly by night operations either and aren't talking about small purchases. 400K plus.

That is all I am going to say about this, however the "Regulations" are nothing more than a joke in my personal opinion.

Hi,

Is there any way you can find this out?

I suppose one could begin by finding out what this wonderful example of a public servant might gain by sponsoring the bill.

http://apps.lobbytools.com/pub/index.cfm?type=legislators&id=330

I sincerely doubt she just woke up one morning with the thought that yacht brokers, home inspectors or land surveyors and architects don't really need to be regulated. She might even honestly believe none of the practitioners of those groups would ever deceive a client or demonstrate one shred of incompetence ... after all, it's not like those folks were elected to public office.

Maybe it's time we started to regulate legislators.

And this just in:

"TALLAHASSEE — The Florida House voted Thursday to strip government oversight of more than a dozen different professions – including auctioneers, yacht brokers and talent agents.

Some of the regulated professions generate thousands of consumer complaints annually.

The bill, HB 5005, would dump licensing, surety bonds and other consumer safeguards required of telemarketers, travel agents/vacation-package sellers and auto-repair shops.

Those industries ranked first, fourth and fifth, respectively, on the 2010 Top 10 Consumer Complaint List compiled by the Florida Department of Agriculture and Consumer Services. There were 8,599 filings on telemarketers alone.

But Republicans called the oversight "outdated" and "bureaucratic red tape."

I guess they just got tired of listening to complaints and decided if the consumer gets screwed it's his own problem.

This is part of a move to make Florida more "Business Friendly," that anyone can open a business in Florida. It part part of a push remove consumer protections in the name of making more jobs.
Almost all of the 20 business that would be affected by this are against it, but it has already passed three committees, voted on along party lines. The weirdest part is that the state, which has a big budget deficit, will lose $6,000,000 million in revenue from the fees collected above and beyond the cost of running the departments that enforce the regulations. (Source- the state website on cost of bills) Plus 100 state employees will lose their jobs.

Just found this in the Miami Herald:

"The House also voted 80-38 for another bill (HB 5007) reducing penalties for violating business regulations and repealing or modifying various regulations including a reduction in licensing, examination and training for mold assessors and remediators.

Rep. Franklin Sands, D-Weston, argued "people will die" because of the mold changes."

"People are going to come to Florida if we deregulate mold and mildew? Are you kidding me?" Sands said. "The charlatans and the scammers are going to move to Florida to be in the mold and mildew business."


Both of these bills still have to go to the Senate before becoming law so it is not a done deal yet. But, the size of the majority that passed it in the House makes it look like whoever delivered this latest bit of legislative delirium wrapped it in a pretty sweet package.

It really does prove the point that you can never underestimate the integrity of an American politician.

Maryland has little regulation. I have knowledge of one person loosing a massive amount to two "brokers" while trying to close on his boat there.
I have bought a few boats in the US. Always via a Florida dealer, due to the protection offered by the current regulations.
It always amazes me how wealthy, successful business people easily hand over big amounts of $'s to a slick saleperson!

Brokers

I have said many times...there is nothing better than a well educated public, even the laws in place did not protect from Bernie and buddies, too many people depend on others for protection in daily dealings.

Schools and Universities better start doing what they are supposed to do ,not to mention parents who would rather have 2 family income and farm out their children for someone else to raise while they haggle with the BMW dealer.

Very wise. Unfortunately I've met many people in all walks and incomes who couldn't chew gum and walk at the same time. And considering that you're up against lawyers and legalese every time you sign your name, good luck to us all. Human intelligence hasn't advanced nearly as far as human cunning.

Schools have been watered down into higher education has become an extension of high school. Maybe a little American bashing, but I "live" part time at my Washington State home. I find the average kid generalized to be very immature and ill prepared for the real world. That no child left behind and everyone should make it into college/university--well they become very sheltered. In WA kids under 18 require parental and school permission to work. So work doesn't cut into schooling they are limited in hours and times. So most don't bother with kid jobs. Some of the typical young person employment is just not done by American kids or they've been filled by adults. Small towns have mostly people that should be retired working at McDonald's even during after school hours. The "Obama" Care folks have noticed this trend and thats why kids will be covered under their parents plans until 26.

My Father is a retired "stock" broker, when he become licensed first in NY and latter in Canada, late 1960's. Reading charts and technical analysis was emphasized--things like Elliot Wave theory, etcetera. An investment adviser was almost at the same level of a securities analyst in the research department. Investment advisers like him still had draft tables to make charts by hand. They had real knowledge. In away deregulation in the 1970's and technology growth like computers, etcetera. Watered down the technical aspect. Brokers have always needed some sales skills but most sold stocks on technical grounds. Further technology and watering down thanks Clinton. By the Bush Administration, people trade their own accounts. Those E trade commercials with the baffoon stock broker on a yacht, well thats what the industry has become. Its 100% become a sales game. Much like the Vancouver penny stock racket (infamous stories of fraud and fortunes made) except its know Wall Street. Anyone with a blog can be the securities analyst. Deregulation has returned banks into the stock market--the internet has brought back the bucket shops. Its become a sales game run by people with no real technical knowledge has no one understands the products they sell----went from a Gold star industry to a joke just like education. People are teenagers that cant care for themselves in the real world until they are 26. The age 30 is the new 20!

The Florida yacht brokerage is a gold star industry, with the best brokers albeit have some sales skills, but its based on technical knowledge! Deregulation will turn it into a racket---even like the securities industry people will handle transactions themselves. The yacht broker will also be harmed by this. Just like stock brokers on that E trade commercial. Why would the public with millions to spend risk it on someone with no real knowledge? Sure I agree with John Stossel I'm all for free markets and very little government control. But somethings are necessary and makes things safe, secure and high standard quality. Like Wall Street once was with investment advisors with technical knowledge! Today even their research analyst cant read a freakin chart!

I just learned my FL state senator is against the bill even though he's a Republican. I sent him an email supporting his stance against the bill and pledging my support if he remains against it. Can't hurt to tell him there are constituents out there who appreciate what he's doing.

You might add that you'll support his opponent if he doesn't. The carrot is good, but politicians care more about the stick.

Politicians these days care more about whose contributing campaign dollars. None of them (both Democrats and Republicans), or very very few are really in it because they want to make a difference and the US a better place to live. That's why nobody really wants to tackle the illegal immigration issue, yet NONE of them want to live next door to illegal immigrants.

I think deregulating the yacht brokerage industry is a very very bad thing. Like Kafue said (and many others) he dealt with a Florida broker because he felt very safe to send his money here from Australia to a broker he really didn't know, because of the safety the laws and oversight have provided.