Broker Agreement Practical Law

Offshore brokers act as intermediaries between the buyer and the seller. Once a suitable vessel has been found, the buyer receives technical information about the vessel through the broker. If the information provided by the vessel meets the buyer`s criteria, an inspector appointed by the buyer usually conducts an inspection to understand the overall condition of the ship. If the buyer is satisfied with the results, negotiations between brokers begin. At this point, offers and counter-offers are exchanged, where brokers usually focus on main topics such as price, necessary deposits, ship details, inspections, etc. Once an agreement has been reached on the basic terms of the transaction, a summary prepared by the brokers is exchanged by email between the parties for confirmation. The summary shall contain the basic conditions of the agreement; However, the details of the agreement should be worked out. Therefore, the next step is the signing of the Memorandum of Understanding (MoA). In contrast, the TCC sets out the principles for acquiring ownership of vessels registered in the Turkish Ship Register. In accordance with Article 1001 of the TCC, there are two requirements for the transfer of ownership of a registered vessel. First, the parties should agree on the transfer of ownership and, second, effective possession of the ship should be transferred from the seller to the buyer. The contract must be concluded in writing and signed by the parties. Registration in the Turkish Ship Register is not necessary for the transfer of ownership, but it is in the buyer`s interest to register the vessel.

On the day of closing, the buyer, seller, their legal representatives, brokers (if any) and bank representatives (if the purchase is financed by a bank loan) participate in the meeting. At the meeting, the parties will exchange the relevant documents mentioned in the FN 2012. The number of documents to be provided by the seller is much higher than that to be provided by the buyer. Potential buyers usually turn to a ship broker (S&P Broker) to find a ship to meet their needs. In the same way, a seller can appoint a broker for the transaction or advertise the ship in the market and choose not to depend on an exclusive broker. Alternatively, the parties may decide to complete the entire transaction themselves. “News feeds are extremely relevant. They deal with both legislative and judicial updates and offer an experienced and thoughtful analysis of trends or trends. The articles are all very well done and offer a practical point of view, not just academic.

Most subjects have at least 3-5 articles from different law firms, which makes it possible to read different perspectives and analyses. Both brokers have a duty of care towards their contracting entities and are liable in the event of miscommunication. Therefore, they should remain within the limits of their authority. In some cases, there can only be one broker for the seller and the buyer. In such circumstances, the broker should avoid any conflict of interest. Brokers are entitled to a commission based on the sale price of the vessel. If the buyer does not prefer to continue with the existing crew, the new crew will board while the existing crew leaves the ship. It is the duty of the seller to repatriate seafarers who have left the ship. Underwater inspections can be done by dive professionals….

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