Buying a Boat

1) If buying a boat within EU, make sure the vessel is built to Recreational Craft Directive (RCD) standards and is RCD compliant. If buying a boat in UK, make sure its built to Recreational Craft Regulations (RCR) and is RCR compliant.

2) If using and / or mooring the new build vessel on Inland Waterways, check with the relevant navigation authorities for any required certificate of compliance (such as boat safety scheme standards) or river licences.

3) If buying direct from the manufacturer, or boat builder, make sure you obtain manufactures warranties and guarantees in respect of the vessel, engine and equipment.

4) If operating the new build vessel commercially, make sure you adhere to the relevant commercial regulations for vessel coding such as Maritime Coastguard Agency (MCA) Code of Practice.

5) If buying a new build boat outside of the EU, but you intend to use or keep the vessel in EU waters, it must still comply with RCD regulations and be CE marked (unless any exemptions apply) so be aware.

1) Avoid making verbal offers, always make it clear that if an offer is made it will made subject to a legal binding contract and survey / on-water-trial.

2) Always make an inventory of the machinery and equipment on board a vessel to be included in the sale. The inventory forms part of the contract and should be initialled and agreed by both parties after a joint inspection.

3) If buying from a yacht broker ensure the broker is a member of an industry approved organisation such as the Mediterranean Yacht Brokers Association (MYBA) and the Association of Brokers and Yacht Agents (ABYA) and make sure they have professional indemnity insurance.

4) A deposit of 10% is industry standard but there is nothing to prevent the buyer from negotiating a lesser amount.

5) Having made an offer, don’t be afraid to make a revised offer (in the same way as previously advised) following a survey or on-water-trial that wasn’t satisfactory.

When buying a boat within the EU, one of the main considerations is VAT, or the European equivalent such as IVA

As a buyer you will want to be satisfied that the VAT on the yacht has been paid to ensure you are not landed with VAT demand when your vessel is in the EU.

In the absence of the seller being able to prove the VAT status of a vessel, use this to re-negotiate the price, or insist on an indemnity from the seller.

You may be eligible for Temporary Admission so its worth enlisting the help of our VAT experts if you’re not sure.

If you have any concerns, or would like a member of our experienced team to help, get in touch.

If you are thinking of buying a boat abroad, our team are ready to guide you through the process.

We can liaise with the seller / broker and reduce the risks involved in buying a yacht overseas.

One of the main risks is getting the seller to warrant  that the tax and duties of the territory in which the yacht is being purchased have been paid.

You will also need to be aware of any local taxes or sales duties for vessels depending on which jurisdiction you are purchasing the vessel in, so get the right advice from the outset.

Taking out insurance for your vessel is vital for the protection of your boat, its passengers & crew, other vessels and any claims made against you by 3rd parties.

Before choosing an insurer, consider the options very carefully and always use a recognised and reputable marine insurance company, be wary of cheap quotes!

The type of insurance you need depends largely on the type of boat you have, how it will be operated and where the boat will be used, for example non-tidal waters, coastal cruising, full-coastal and sea-going cruising.

Make sure the insurance covers the value of the boat (including contents) and its liability for collisions or injuries at sea.

Depending on the size of the boat you may want hull coverage and protection indemnity coverage (P&I).

Our experienced team can provide lots of help & advice regarding your vessel’s insurance arrangements, so get in touch to find out more.

Although the boat may look like it is in good condition, carrying out a survey before purchasing a vessel is always advised.

Any offer to purchase a boat should always be made subject to a satisfactory survey and in most cases an on-the-water trial (such as sea trial or river trial)

The type of survey required will depend on the boat (age, condition, date of last survey etc), and to some extent the value.

It may be that a hull survey is required, or a full survey to include the rig, sails and engine and the equipment on board.

If the engines form a substantial part of the value of the boat, you may want to consider having a separate detailed engineers report. Or if there are particular technical aspects which you require verification on, make sure to instruct the surveyor on these aspects.

A surveyor’s report will provide some level of guarantee about the vessel since they will be legally liable for the costs of remedying any defects that they have negligently missed.  Any material defects discovered in the surveyors report can be used to negotiate a reduction of the purchase price for repairs, or requesting seller to rectify matters at their own expense, prior to completion of the contract.

Top tips for instructing a surveyor:

1. Ensure the surveyor is a member of a profession body such as International Institute of Marine Surveying (IIMS) or YDSA
2. Make sure the surveyor has professional indemnity insurance
3. Ask around your local boating community to get a referral or recommendation of a reputable surveyor
4. Ask the surveyor to accompany you on any on-the-water trial

When buying a boat you want to make sure that the seller owns the boat and therefore has the right to sell it, and that the boat is free of any charges and liens, such as mortgages, loans and interests from 3rd parties (e.g. outstanding marina fees). 

When investigating title, checking the UK Ship Register is a good starting point. Contact YachtingLawyers we can carry out this investigation and obtain searches on your behalf.

Although registering your vessel is strongly recommended there is no legal requirement for boat owners to register their boat on the Register of British Shipping so if the vessel you’re buying is unregistered, this makes investigating title more difficult.

1. Ask the seller to produce documents of title showing the chain of ownership from when the boat was built  to present time (paperwork should include building certificate and signed bill of sales).

2. Ask for evidence of mooring fees paid and insurance documents and/or sailing club membership, boat yard invoices for any repairs.

3. Check with the main marine finance institutions to see whether they have an interest in the intended boat you wish to purchase  (contact YachtingLawyers to carry out this investigation on your behalf).

4. In the absence of any proof of ownership, a seller should be treated with caution. If you are buying a new boat you should always receive a Builder’s Certificate from the boat builder when buying. With second hand boats you will receive a Bill of Sale as evidence of the sale contract.

Contact YachtingLawyers: we can prepare a Bill of Sale for you and negotiate and prepare a sale agreement on your behalf.