How safe is my deposit money being held by a broker?

Brokers who are members of the Association of Brokers and Yacht Agents (ABYA) are governed by the ABYA Code of Practice. The Code requires brokers to have a Client Account, separate to their day to day trading accounts, where deposits are held. The broker will have a letter from his bank stating the status of the account. This should ensure the funds cannot be taken into account by insolvency practitioners in the case of the company folding, and also that your deposit is not being used to pay the broker's 'phone bill! The broker has to operate the account and he holds the money on behalf of the buyer.

BUYER'S TIP – never hand over more money than you need to until the contract is at completion. This is true of new-build and secondhand. New-build boats are normally paid for in identified instalments.