Sale and purchase broker

A sale and purchase broker (S&P broker) is the intermediary who arranges the sale of secondhand and newbuilding ships and demolition sales between owners. The broker sources candidates, circulates particulars, negotiates the price and the recap, and steers the deal through the memorandum of agreement, inspection, and closing. Commission is usually 1 percent of the sale price, paid by the principal who appointed the broker, and a deal can carry brokers on both sides. S&P brokers also handle newbuilding contracts and demolition fixtures, and the larger houses publish the market reports that price secondhand tonnage.