Buying or selling a yacht isn't like buying a car or even a house.
It's more like buying a floating business, one that sails across borders, carries international liabilities, and can be worth more than a skyscraper penthouse.
The brochures, champagne handovers, and glossy PR photos tell one story. The contracts and liabilities tell another. And unless you've got the right legal expertise by your side, the gap between the two can swallow a deal whole.
In yacht transactions, the lawyer isn't the obstacle slowing you down with red tape; they're the one protecting you from a what could be a costly storm.
THE SALE & PURCHASE REALITY
At the core of any yacht sale or purchase, is the Memorandum of Agreement (MOA) often grounded in MYBA terms. Industry standard? Yes. Risk-proof? No.
With such bespoke assets, a generic template doesn't cut it. Whilst the MOA lays out the framework: deposit, survey, sea trials, delivery, warranties, a seasoned maritime lawyer will tailor each clause. Not doing so could leave your yacht purchase with more holes than a fishing net.
Take a classic risk. The buyer believes they've acquired a flawless vessel, only for latent osmosis or structural issues to emerge later. Without a clear warranty, resolving such disputes can feel like swimming against the tide. Contracts must define what happens when defects surface. Can the buyer walk away? Demand repairs? Renegotiate? Without clarity, your risk litigation or being saddled with a yacht that's more headache than haven.
What about deposit conditions and escrow payments? Ten percent down is the norm. But who holds it, and when is it released? Without an airtight escrow arrangement, a buyer can lose a fortune in a collapsed deal, or a seller might see their yacht handed over without being paid in full. Your maritime lawyer will ensure that deposits held in escrow are not released until conditions are met.
Then there is the vessel's delivery. "As is, where is" might sound simple, but what if the yacht is mid-refit or tied up under arrest in another jurisdiction? A reputable maritime lawyer should make sure delivery means more than just the keys being handed over; they ensure it's clean, compliant, and ready. They will ensure there are precise delivery terms, covering parking the yacht in the correct jurisdiction with all paperwork in order.
Just one overlooked clause has the ability to sink an entire deal.
HIDDEN LIABILITIES
A yacht is not just an asset – it can also be a vessel for debt.
Maritime liens don't care who holds title; they stick to the yacht. Think unpaid fuel, marina dues, yard fees, crew wages, or orphaned supplier bills. Buy the yacht, buy the debt.
Before title can be transferred, maritime lawyers perform forensic-level due diligence: checking registry records, ensuring clear title, and uncovering hidden encumbrances – they will make sure you're not buying someone else's liabilities.
And billionaires are not exempt.
Remember "Venus," the yacht built for Steve Jobs' family?
The Lauraine Powell Job's yacht was briefly seized and impounded in Amsterdam over a dispute about unpaid design fees – further proof that even the most high-profile clients aren't immune to transactional friction.
Prestige offers no protection against poor paperwork.
WHEN COMMISSIONS BECOME COURT CASES
Yacht broker commission disputes happen more often than you think, and often end up in court. The reason? Because the contracts weren't watertight.
There was a case in the Netherlands, where still claimed commission despite the sale falling apart – and won. The Rotterdam District Court upheld his right to commission even after the deal collapsed due to communication missteps; put simply, the agreement didn't clearly set conditions for his entitlement.
In another Dutch ruling, a shipyard was held liable for owing commission connected to a yacht sale – reminding us that clarity in contractual agreements in non-negotiable.
When 110m superyacht Radiant (then Darius) was put on the market in 2008, its sale triggered a landmark legal dispute over brokerage commission.
When the 110m superyacht Radiant (then Darius) went on the market in 2008, its sale sparked a landmark legal dispute over commission. Edmiston & Co, instructed by the seller, led the marketing but relied on sub-broker Merle Wood, who in turn worked through Captain Sean Wrigley to introduce the Al Futtaim family (Wrigley's employer) as prospective buyers.
The buyers showed serious interest, and a 2.5% commission was agreed between Edmiston and the seller. But the Al Futtaim family later opted to negotiate directly with the seller, bypassing Edmiston. When the deal closed, the seller argued that Edmiston had not earned their fee.
The UK High Court disagreed, ruling that Edmiston's introduction was the "effective cause" of the sale. In fact, the judge awarded them a higher commission than originally agreed.
The Radiant case remains a defining example of how "effective cause" is applied in yacht brokerage and why clear, precise commission terms are critical.
A good maritime lawyer will review contracts and ensure they lock down who gets paid, when, and under what circumstances – otherwise you could be writing cheques long after the champagne's gone flat.
FINANCING, INSURANCE & STRUCTURING
When financing is involved, the stakes climb higher. Banks demand properly registered mortgages, perfected security interests, and iron-clad insurance. The role of the maritime lawyer is to co-ordinate this three-way dance between buyer, seller, and lender, ensuring no clause is missed and that ownership can transfer smoothly.
They will ensure mortgages are registered correctly so that lenders; interests are fully protected, a review and negotiate loan agreements on your behalf, checking covenants, repayment triggers, and enforcement rights so you are not caught out by overly onerous terms. They may also verify that insurance terms align with financing and contractual obligations.
Then comes structuring.
If acting for the buyer, a maritime lawyer will usually (whilst working with a professional corporate service provider like Sentient International) to advise whether the yacht should be acquired directly, through a special purpose vehicle (SPV), or a more sophisticated ownership vehicle, weighing confidentiality., liability shielding and financing requirements. They should align the ownership structure with any lending. Banks will often insist on a clean SPV registered in a reputable jurisdiction, with no other assets or liabilities, and the maritime lawyers can ensure it dovetails with your long-term goals.
They will also guide whether a share purchase (acquiring the company that owns the yacht) or an asset purchase (buying the yacht outright) is the better route. Share deals can be quicker, attractive to lenders (if the corporate structure is clean) and maintain existing contracts but may transfer hidden liabilities so a maritime lawyer should conduct due diligence to identify and avoid such risks. Asset deals give a cleaner slate but can add cost and complexity.
If acting for the seller they will also advise on whether to transfer ownership via share sale or asset sale. Sometimes it makes sense to sell the yacht itself. Other times, the smarter move is transferring the shares of the owning company. Each path carries tax, confidentiality, and liability implications. The lawyer's role is to map the risks, protect the client, and keep the deal moving forward.
A misstep in any of the above can stall ownership, or worse, leave major exposure behind.
WHY LAWYERS MATTER MOST WHEN THINGS GO WRONG
Disputes usually don't come from what's expected, they come from what isn't.
- Buyers inheriting massive repair bills because "as is, where is" wasn't clearly defined.
- Brokers suing for unpaid commissions and winning because terms weren't nailed down.
- Superyachts detained over unpaid debts that new owners didn't know existed.
- Yachts caught up in personal litigation or asset freezes.
Look at recent geopolitics: the Alfa Nero, seized in Antigua as part of Russian sanctions, has been tied up in multiple ownership battles. Title uncertainty turned the sale into a public spectacle, another reminder that yachts aren't immune to the wider world of law and politics.
Good contracts anticipate trouble. They embed exit triggers, arbitration terms, and clear legal jurisdiction.
WHY IT ALL MATTERS
A yacht transaction isn't a lifestyle purchase, it's a legal battleground packed with high financial stakes and global exposure. The right legal adviser is the difference between a seamless handover and a stranded vessel with a lawsuit in the water.
A yacht purchase should end with a glass of champagne on deck, not a summons in court. But that only happens when lawyers do what they do best. They:
- Stress-test contracts.
- Protect deposits.
- Confirm clean title.
- Synchronise financing and insurance.
- Build in dispute resolution before it's ever needed.
The yacht may be the dream. But the deal behind it is the reality. And without the right legal expertise, that dream can quickly turn into a nightmare at sea.
When you're buying or selling a yacht, it's not just the vessel you need to trust. It's the paperwork.
BEYOND THE PURCHASE
A good maritime lawyer's role doesn't end the day the yacht changes hands. The best advisors stay close for the life of the yacht's ownership, acting as a steady hand whenever new issues arise.
From technical refits to refinancing, from crew disputes to regulatory changes, a maritime lawyer becomes an extension of the owner's private office; someone who already knows the yacht, the structure, and the client's objectives.
Just as importantly, they bring with them a trusted network. Owners don't have to search blindly for the right people; they can tap into a circle of seasoned professionals from lawyers to surveyors, to corporate service providers, tax advisers, insurers, and managers; all who understand the nuances of high-value yacht ownership.
What this does is create a protective ecosystem around the owner. Instead of navigating fragmented advice, they have a cohesive team safeguarding their asset, their lifestyle, and their reputation.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
