Yacht and Ship Broker Bond is also another type of surety bond available for specific vessels. This Yacht and Ship Brokers Act provides jurisdiction over the brokers and the sales representative. In certain states only, this provision is allotted to the brokers and the sales representative. The brokers and sales representative are given license and they are regulated by the Yacht and Ship Brokers Section. This section is a sub part of the Florida Land Sales division. In Tallahassee only, this section is situated and it performs licensing function. The important aim of this bond is to protect the consumer from the fraud and misrepresentation. The purpose of this bond is to give license to proper consumer and to solve the complaints given by the public and investigate the activities relating to bond.
The commission is paid by the seller to the yacht broker and not by the buyer. He works for the seller as well as for the buyer. A broker has a common duty on both the sides of the deal. He has to work as a trustee on behalf of the seller and the buyer. This broker has to perform his obligation as per the terms and condition of the agency. But in this Yacht and Ship Broker Bond, the broker cannot able to give guarantee to the buyer about the life of the boat. In this type of surety bond, the principal is not responsible for the funds collected from the buyer in the sale of yacht. These bonds guarantee the obligee against fraud, misrepresentation of the principal.
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