Trawler Broker Protests Our Essay on Surveyors

'Confusing, Misleading, Absurd, Ridiculous, Ludicrous,' Jeff Merrill Says

Jeff Merrill is principal of JMYS Trawler Specialists of Long Beach, California.

Broker Lawsuit: Not All Yacht Surveys Are Created Equal

JEFF MERRILL, CPYB

Phil’s portrayal of yacht brokers and marine surveyors (in the above story) is confusing and misleading at best. It includes multiple inaccuracies, generalizations and omissions.

(Read Phil Friedman’s response in the comments below)

I have been a yacht broker for over twenty years. In 2012, I became a certified professional yacht broker or CPYB. In my career, I have been involved in hundreds of transactions all over the U.S., Canada and abroad. In my experience the overwhelming majority of yacht brokers and surveyors I have done business with are people who are competent, qualified and are interested in taking care of their clients as if they were spending their own money—not salivating at the thought of a quick paycheck.

Sure, every once in a while you run in to a bad apple, but their reputations ultimately determine their longevity.

I find it astonishing that Phil’s discussion about marine surveyors never mentions SAMS (Society of Marine Surveyors) or NAMS (National Association of Marine Surveyors) the two accredited surveyor associations, which most buyers look to when searching for a qualified surveyor. And further he ignores the qualifications of surveyors who have one or more ABYC certifications (American Boat and Yacht Council). Insurance underwriters and marine lenders insist on SAMS and NAMS surveyors. How credible is an article that fails to mention this vital aspect?

Phil mentions he’s done “a few” surveys. After reading his missive I’m not surprised that there haven’t been many, his glaring inaccuracies and mischaracterizations make clear his lack of understanding of the yacht brokerage and vessel survey professions.

Phil’s story also confuses the issue of insurance surveys (typically for boat owners renewing insurance) and pre-purchase surveys (which are essential for a buyer to evaluate a vessel and are required by insurance underwriters and marine lenders). I realize this is the subtitle to his subject, but brokerage deals are always pre-purchase, not insurance surveys.

In the context of the legal complaint about yacht brokers the CV (condition/valuation) should be a separate article. It is ridiculous to imply that a boat buyer using a broker would opt for an insurance survey instead of a pre-purchase survey. Both forms of surveys (and there are other reports surveyors write—for damage claims, etc.) help establish current value, but they are for distinctly different purposes. The relevance of a pre-purchase survey and yacht broker involvement should be the topic.

Phil says:

Consequently, it should not come as a surprise that some brokers do not even mention the advisability of a buyer retaining a survey. Instead, they rely on the language of the buy/sell agreement make the point—generally in a clause that sets a specific time for survey and vessel acceptance, after which the vessel is deemed to be accepted.

Those yacht brokers who belong to yacht broker associations (under attack via the lawsuit being covered by Loose Cannon) use legally vetted agreements for listings and contracts and follow a code of ethics which guide brokers to insist buyers get a survey and are very careful about suggesting who the buyer should hire to conduct the survey.

Lawsuit Rocks the Yacht-Sales World

I provide a list of questions to ask a pool of potential surveyors before engaging, and one of the priorities is making sure the surveyor is approved by and his/her written report will be accepted by the lender and/or underwriter the buyer is using. Not every person claiming to be a surveyor has a credential that will be accepted. This concern is removed if you hire a surveyor currently active through NAMS and / or SAMS.