The guide to Superyacht law - Fourth edition

The reality is that youmust never underestimate the importance of having a thorough understanding of the legal processes, statutory certificates, transaction documents, tax position and various different forms required for the sale or purchase of a superyacht. TOP TIPS • Surround yourself with people who know what they are doing and have a good track record including: surveyor, lawyer, superyacht manager, broker and VAT adviser/accountant • Make sure your form of agreement, special terms and document list are all in writing can present the Transcript of Registry showing that your superyacht is unencumbered. The process can get more complicated if there are mortgages registered against the superyacht • What is the process? Agreement signed,

conditional upon sea trial and survey. Deposit paid (the standard deposit is 10% of the purchase price but a different sum could be negotiated). Always have the sea trial first and, if you’re happy, move on to the condition survey conducted by a marine surveyor. It is never advisable to do the condition survey before the sea trial, but if you cannot avoid it you must ensure that the MYBA MOA is amended to adequately deal with this. Typically, the MYBA MOA will have an addendum which will deal with all documents that will be delivered by the seller to the buyer and vice versa • Who should the deposit be paid to? It is customary for the seller’s broker or lawyer to hold onto it. However, you can commercially agree for it to be held by the buyer’s broker or lawyer. Any party holding a deposit should be an established company and they are likely to need up-to-date customer information. If you cannot agree on who holds the deposit, you could get a bank to act as the stakeholder

• The most common form of agreement for sale and purchase of second-hand superyachts is the MediterraneanYacht Brokers Association (MYBA) sale and purchase form, known as the MYBAMemorandum of Agreement (MYBAMOA). Any additional terms or amendments of the standard terms should be recorded (eg transfer of any charters currently booked for the season or specific art works to be removed). It is important that any agreements made verbally are recorded in writing.You should consider carefully before signing any personal guarantee which underwrites the obligations of the selling or buying company. This may compromise the ownership structure you have carefully put in place, and it could cause tax problems on the sale • Are there any mortgages, charges or other encumbrances registered against the superyacht (as these will need to be discharged at delivery)? This is a question any prudent buyer should ask and if you are selling, you must ensure that you

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