Terms & Conditions to book:
All brokers must attend at least at two recognized charter yacht shows per calendar year.
Provide proof of escrow and business bank accounts, a valid business/trade license, a charter yacht website and a separate business phone.
New brokers must have successfully completed the one-line CYBA new broker training course. http://www.cyba.net/ and have passed the oral exam.
Broker commission is fifteen percent (15%) of the base charter rate, unless otherwise specified by an individual yacht. Always double check current commission rates.
Broker must abide by the CYBA code of ethics: http://www.cyba.net/wp-content/uploads/2009/01/Standing-Rules-2013.pdf.
CANCELLATIONS: Should the charterer cancel before the charter begins, deposits will be refunded under the following conditions; If the yacht is rebooked for the same period or portion thereof, deposits paid will be refunded pro rata. If rebooking is not possible, no refund will be made.
SHORT TERM CHARTERS: In conformance with other Virgin Islands-based clearinghouses IYachtClub uses the “divide-by-six rule” for calculating short term charter premiums. Charter fees shown are for 7 nights aboard. For charters of six (6) nights, use six sevenths (6/7ths) of a weekly rate. For charters of 5 nights or less, the fee is calculated by dividing the weekly rate by six (6), then multiplying that figure by the number of nights of charter.
Other Terms are in accordance with CYBA guidelines shown below:
From the Charter Yacht Brokers Association International (CYBA):
Once you have received a deposit in cleared funds, and a signed agreement, contact the clearinghouse to confirm the charter. Most clearinghouses will issue a confirmation number.
Once the confirmation number is issued, cancellation penalties will apply. For this reason, it is important to have the signed agreement from your client and the deposit in cleared funds before committing to a confirmation.
Ensuring that the owner has signed the charter agreement is the best guarantee that he/she is willing to perform the charter according to the terms outlined in the agreement. Insist that the owner fax a preliminary, signed agreement prior to remitting the client’s funds to escrow.
Deposit money, less your commission, must be received by US Bank or the clearinghouse’s trust account within twenty-one (21) days of confirmation. Late payments are a breach of contract and cancellation penalties can be imposed. It is strongly recommended that you use the CYBA Charter Yacht Escrow Account, whenever possible, in order to safeguard your client’s funds.
Always check with the clearinghouse as to the payment schedules of each yacht booked, and the name of the account the check should be made out to, to ensure that the payment is applied correctly.
All communications to clearinghouses should include the confirmation number, lead charterer’s name, start/end dates, ports, the charter rate, any additional fees, and payments.
Once the booking is confirmed; any material changes to the charter (ports, dates, number of guests etc.) should be confirmed by addendum to the original agreement.
Any time you use the CYBA Charter Yacht Escrow Account (see Chapter 8 – Trust Account), a copy of both the deposit form and your agency check should be sent to the clearinghouse, confirming that the payment terms are being adhered to.
Any broker who habitually violates a clearinghouse’s payment procedures may be placed on a cash only basis. This means future bookings will not be guaranteed until the clearinghouse receives payment in cleared funds.
Deducting Your Commission
Brokers normally deduct their commission from the first deposit and send the balance to US Bank or the clearinghouse.
On charters booked more than six months in advance, brokers take half of their commission from the first twenty-five percent (25%) and the other half from the second twenty-five percent (25%) deposit.
No commission is paid on sleep-aboard fees, relocation fees or taxes.
Brokers earn fifteen percent (15%) of the base charter-rate – unless otherwise specified by the yacht. Always check to ensure that you know the current commission rate.
Travel Agent Booking
Many, but not all vessels operating on CT/CIT terms increase commissions to twenty percent (20%) when brokers book a charter involving a travel agent. In this case it is customary to split the commission evenly: ten percent (10%) to the broker and ten percent (10%) to the travel agent. Upon confirmation of a charter with a travel agent, a copy of the travel agency’s check, payable to the broker’s company, should be faxed to the clearinghouse to confirm that a twenty percent (20%) commission is due.
In most cases charters booked more than six months in advance, the following deposit schedule applies:
Twenty-five percent (25%) of the charter rate is required to confirm the charter.
Twenty-five percent (25%) of the charter rate is due six months prior to the charter.
Fifty percent (50%) of the charter rate (plus any additional fees – APA, taxes, delivery, etc.) is due thirty days (30) prior to the departure date.
For charters booked less than six months in advance, the following deposit schedule usually applies:
Fifty percent (50%) of the charter rate is required to confirm the charter.
Note – Final Payment:
You must receive the final payment in a timely manner to ensure that the funds reach the clearinghouse no later than thirty (30) days prior to departure date. This is extremely important when booking with a non-US based clearinghouse; mail can often take weeks to arrive. Most brokers request that the final balance be in their hands forty-five (45) days prior to the departure date, unless received by wire transfer or direct deposit.