What Belongs in a Listing Agreement

Why the Agreement Matters More Than It Seems

A listing agreement — a central agency agreement, a brokerage agreement, a Vermittlungsauftrag, depending on where you work — is the only document that says what you are allowed to do with someone else's boat and what you get paid for doing it. Most of them are never read closely until something goes wrong, and by then the missing clause is the one being argued about.

This guide covers what belongs in one. It is not legal advice, and the enforceability of every clause below depends on the jurisdiction the boat, the owner, and your brokerage sit in. Have your own form reviewed by a lawyer in that jurisdiction once, properly, and then use it consistently.

The Parties and the Vessel

Identify the boat so that it cannot be confused with any other: builder, model, year, hull identification number, official number or registration, flag, and current location. Identify the seller as the legal owner — which is not always the person standing in front of you.

Ownership is where listing agreements most often fail. Before you sign, establish:

Whether the boat is held by a company, a trust, or joint owners, and who is authorised to sign for them.
Whether all co-owners agree to the sale. One of two joint owners cannot bind the other.
Whether there is finance, a mortgage, or a registered charge outstanding, and roughly what is owed.
Whether the boat is subject to a charter management agreement that survives a sale.

An owner who is evasive about any of these is telling you something useful.

Type of Agency

State plainly which arrangement applies, because the commission consequences differ:

Central or exclusive agency — you are the sole broker for a defined period. Other brokers may sell the boat but do so through you, sharing the commission. Commission is due on a sale during the term regardless of who introduced the buyer.
Open or non-exclusive listing — several brokers market the boat and only the one who produces the buyer is paid. Cheaper for the owner, and correspondingly less marketing investment from each broker.
Exclusive right to sell — commission is due even if the owner finds the buyer themselves. This is the clause owners object to most, so explain the reasoning before they read it: it is what pays for the advertising you commit to up front.

Term, Renewal and Termination

Give the agreement a fixed end date — six months is a common starting point for a boat in normal condition at a realistic price. Then say what happens at the end of it. Automatic rolling renewal is convenient for the brokerage and a frequent source of disputes; a renewal the owner has to confirm produces fewer arguments and a better conversation about price.

Cover termination explicitly:

Notice period required from either side.
Whether the owner may withdraw the boat (for personal use, for a change of mind) and on what terms.
What happens to expenses already incurred — professional photography, a haul-out, a listing that is already running.

The Protection Period

This is the clause that prevents the obvious loss: the agreement expires, and a week later the owner sells privately to somebody you introduced. A protection or tail clause says that for a defined period after termination — commonly three to six months — commission remains due on a sale to a buyer you introduced during the term.

It only works if "introduced" is defined and evidenced. Keep a written record of every enquiry and viewing, with dates. A list of named buyers supplied to the owner at termination is the cleanest version, and in some jurisdictions is what makes the clause enforceable at all.

Commission: Amount, Trigger and Deduction

Three separate questions, all of which need answering:

How much — a percentage of the gross sale price, or a fixed fee, plus a minimum commission for low-value boats where a percentage does not cover the work. State whether VAT or sales tax is on top.
When it is earned — on completion of the sale is the normal and defensible answer. "On introduction of a ready, willing and able buyer" is enforced in some jurisdictions and not others, and it invites litigation.
How it is paid — deducted from the deposit or the completion funds you hold, with the balance remitted to the owner and a written statement of the deduction.

Also cover the co-brokerage split, so that a selling broker's share is not negotiated in the middle of a live deal.

Asking Price and Price Changes

Record the agreed asking price and, just as importantly, the mechanism for changing it. A clause saying price reductions require the owner's written agreement protects you both — and a scheduled review at 60 and 120 days turns the awkward "we need to drop the price" conversation into something the owner already agreed to have. Our guide on pricing a listing to sell covers how to run that review.

Say whether the owner authorises you to present offers below a stated figure, or whether every offer is passed on. Passing on every offer is the safer default in most jurisdictions.

What the Brokerage Will Do

List your obligations concretely, because this is what the owner is buying:

Photography and, where relevant, video and measured drawings.
Which portals and channels the boat will be advertised on.
Whether the boat will be shown at a specific boat show.
How often the owner receives a report of enquiries and viewings.
Who holds keys, who may board, and whether you may move the boat.

A stated reporting rhythm — even a short monthly note — prevents most of the friction in a listing that takes a year to sell.

Owner Warranties and Disclosure

Ask the owner to warrant, in writing, that they have the right to sell, that the boat is free of undisclosed encumbrances, and that they have disclosed known material defects, previous grounding or fire damage, and any outstanding insurance claims. Include the VAT or import status of the boat and the documents that evidence it.

You will rely on these statements in every listing you write. Getting them signed once, at the start, is what separates an honest mistake from a misrepresentation. See compliance basics for what to do with the documents afterwards.

Deposits, Client Money and Insurance

State where deposits are held: a segregated client account, named, with the interest position specified. Say who bears the risk while the boat is in your care and confirm that the owner maintains insurance throughout the listing period — including cover for viewings and sea trials, which some policies exclude.

Data Protection and Confidentiality

You will hold the owner's identity documents, financial details, and the boat's papers. Say what you do with them, how long you keep them, and who you may pass them to — the buyer's broker, a surveyor, a bank, a registry. If you operate under GDPR or a comparable regime, this clause is not optional.

Governing Law and Disputes

Name the governing law and the forum. For a boat lying in one country, owned by a company in another, sold to a buyer in a third, silence here is expensive.

Summary

Identify the boat precisely and verify who is actually entitled to sell it.
State the agency type, the term, and how the agreement ends.
Include a protection period, and keep the introduction records that make it work.
Separate the commission amount, its trigger, and how it is deducted.
Write down what the brokerage will do — that is what the owner is paying for.
Take signed owner warranties on title, encumbrances, defects, and tax status.

On this platform, agreements of this kind are prepared from templates, filled from the data already held against the boat and the client, and signed electronically by every party — with the signed PDF stored against the deal. See what the platform does for brokerages.