In most real estate transactions, agents represent either the buyer or the seller. But in California yacht brokerage, the rules are different—and more dangerous if misunderstood.
Under California law, yacht brokers are required to act as dual agents in nearly all transactions. This isn’t optional. And unlike typical real estate dual agency (which requires disclosure and consent), yacht brokers operate under a model where all parties are owed fiduciary duties by default.
If you're a broker, buyer, or seller involved in a yacht sale, understanding this framework isn’t just helpful—it’s essential.
🧭 What Is Mandatory Dual Agency in Yacht Sales?
In California, the Department of Boating and Waterways (DBW), not the Department of Real Estate (DRE), governs yacht brokerage. The default structure requires brokers to serve both buyer and seller as fiduciaries—not simply facilitators or limited agents.
This means both parties have the right to:
- Loyalty and full disclosure
- Transparency about pricing, defects, and negotiations
- Protection from conflicts of interest
Unlike real estate, where dual agency is carefully limited, yacht brokers must navigate this tightrope on every deal.
⚠️ Risk Areas: Disclosure, Consent, and Conflicts
Mandatory dual agency comes with serious risks:
- Disclosure Failures: Failing to disclose a defect or a competing offer can expose the broker to liability—even if the client never asked.
- Conflicts of Interest: Brokers may favor one party subconsciously, or use confidential information to “move the deal forward.”
- Lack of Informed Consent: Even though dual agency is presumed, brokers should still obtain written acknowledgments and explain the implications.
If a deal turns sour—whether over condition, valuation, or paperwork—dual agency status may become the weapon plaintiffs use to pierce your defenses.
🛡️ Protecting Your License (and Yourself)
If you're a yacht broker in California, take these proactive steps:
- Use CYBA-approved forms and disclosures tailored for dual agency.
- Document your communications—especially anything involving defects, surveys, or offer terms.
- Explain dual agency to clients early and clearly, even if it’s “mandatory.”
- Avoid giving unequal treatment, such as coaching one party or pushing a sale before due diligence is complete.
- Carry E&O insurance that covers dual agency risk.
Brokers can absolutely navigate this model safely—but only if they treat both sides as clients, not leads.
🎯 Schedule a Consultation
We represent buyers, sellers, and yacht brokers across California in high-value yacht transactions, disputes, and breach-of-duty matters.
Whether you're drafting a yacht purchase agreement, facing a dissatisfied client, or want compliance protection—we can help.
📍 Contact us to schedule a consultation:
www.LawBrainard.com
📞 (310) 266-4115 | ✉️ christopherbrainard@gmail.com
This article is provided for informational and educational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship between you and Christopher Brainard, Esq. An attorney-client relationship can only be formed through a written and signed agreement with Christopher Brainard. If you need legal advice about your specific situation contact us for a consultation. [Christopher Brainard, 651 N. Sepulveda Blvd., #2010, Bel Air, CA 90049. Tel: (310) 266 - 4115. Email: christopherbrainard@gmail.com]