FSBO Lawsuit Sinks: Yacht Sales Aren’t Real Estate
The Palm Beach Boat Show, concluding this weekend, brings together top brokers, sellers and buyers from around the world.
Even With Ruling In Broker’s Favor, Seller’s Retain Control
Just a few months ago, a federal judge in Florida dismissed a class-action lawsuit filed by Ya Mon Expeditions LLC against major yachting associations and brokerage companies, claiming the listed defendants conspired to inflate yacht sales commissions. The Plaintiffs intended to mirror the case against the National Association of Realtors (NAR) which reestablished the real estate market just last year, landing a $418M settlement for sellers against their brokers.
With the case dismissed and the industry’s fiscal 2025 calendar coming to a close, its important to clarify the findings for interested yacht buyers and sellers, as we enter the 2026 fiscal year in June.
QUICK CASE SUMMARY
In February 2024, Ya Mon Expeditions LLC, along with other yacht sellers, filed a class-action lawsuit against major yachting organizations, including the International Yacht Brokers Association (IYBA), Boats Group LLC (Yachtworld & Boats.com), Denison, Northrop & Johnson, HMY, United, MarineMax, and many more. The plaintiffs alleged the defendants conspired to enforce a standard 10% commission on yacht sales, and restricted competition by excluding unrepresented sellers from promoting on Multiple Listing Services (MLS). They claimed excluding FSBO (For Sale By Owner) sellers from utilizing major MLS systems violated antitrust laws by inflating brokerage fees and limiting market competition.
The summary argument detailed a lack of coordinated control of industry commissions, a justifiable need for seller representation due to the average complexity of yachting transactions, natural market competition amongst many competitors, and the non-binding nature of trade association guidelines.
RULING
In January 2025, U.S. District Judge K. Michael Moore dismissed the lawsuit, stating that the plaintiffs failed to provide sufficient evidence of a conspiracy to inflate commissions or restrict competition. The court found the cited practices were more likely independent business decisions rather than a coordinated effort to violate antitrust laws. It was also noted both the 10% commission structure was an industry recommendation and not a requirement, and the MLS preference to have listings represented by licensed agents was justifiable.
The ruling emphasized that no single yacht brokerage or association dominated the industry to the extent of controlling its competitive practices, distinguishing the case from the case against the NAR.
BROKER’S NOTE
Since the NAR ruling in real estate, there’s been a lot of chatter about when—not if—the court system would come for yachting. I think most of us figured it was inevitable simply due to our commission rates being higher than real estate, even though the job is significantly more technical with higher risk.
Yes, the 10% gross commission (split between buyer and seller reps) is standard in the industry. But let’s be clear—it’s not a requirement to do business. It’s simply the norm due to complexities of the yachting transaction, the heavy workload and necessary investment required by brokers, and the industry’s longer (and less frequent) sales cycle when compared to real estate. Seller’s should understand this 10% fee is the cost of doing business with the best, but not the cost of doing business with everyone. There are many brokers who will take less depending on the circumstances.
I’m happy for the ruling, although I don’t believe it exonerates our industry from inefficiencies. I remain steadfast that buyer’s broker receiving their commission from the seller is opaque and does not align the incentives of the buyer and the buyer’s representative. I discuss this in an earlier blog. But the good news is that the oepn market will have its opportunity to naturally find a better solution. No courts forcing regulations that may hurt the natural flow of business in the industry. For now, we continue forward.
THAT SAID, I AM CURIOUS
Have you ever sold your boat solo? Or know of any close friends with positive or negative FSBO experiences? I’d love to hear what worked—or what didn’t.
Send an email to Hello@RNMarine.com to share your story.
About the Author
Reed Nicol is a licensed yacht broker with experience in all corners of the marine industry. He’s worked as an executive and sales director in yacht manufacturing and distribution, has structured commercial charter operations, and designed and executed notable refits. Read more about Reed’s marine journey, his love of helping 1st time boaters and his entrepreneurial spirit here.
Reed Nicol [Licensed FL Yacht Broker #11926]
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