When purchasing a used yacht it is important that the legal and financial processes are handled correctly.
ABYA Yacht Brokers are professionally qualified and as a requirement of membership must also carry Professional Indemnity Insurance, operate specifically designated Client Accounts and follow the ABYA Code of Practice.
Unlike a property transaction where an agent will market the property and then hand over to conveyancing solicitors after acceptance of an offer, the ABYA Yacht Broker continues with the conveyancing until completion.
The Yacht Broker will ensure the distribution of final funds are handled correctly and that the yacht’s title history, record of mortgages (if part 1 registered) and RCD and VAT status evidence have been requested, as well as administering the sale and purchase contracts and legal transfer of title.
Through ABYA brokers the purchase is made by using an ABYA Sale & Purchase Agreement. Buying a used yacht this way can be less stressful than the current English system of property buying, as everything is agreed in writing at the beginning and once an offer is accepted and a deposit is paid, the yacht is then essentially off the market. At that point, no other offers can be accepted whilst the agreement is in place.
An unconditional sale means the yacht is sold “as is, where is” without any other inspection other than the buyer’s own inspection. A conditional sale usually means the buyer will commission an independent surveyor to survey the yacht prior to purchase.
The usual sequence of events for a conditional sale is set out below:
It all works very well for both parties. The seller knows they have a committed buyer and financial protection. The buyer has time to find out exactly what they are buying and the knowledge that any money spent on surveys will not be wasted by the yacht being sold elsewhere during the process. There is a clear written framework, with a professional yacht broker as a third party to administer it, and a safe method of distributing the funds.
Although ultimately it is for buyers to satisfy themselves of the Title History and VAT and RCD status of a used vessel, John Rodriguez Yachts will request details and paperwork for all listed yachts with regard to VAT status, RCD status and Title History and present these findings as a matter of course to a prospective purchaser. For British Part 1 registered vessels, John Rodriguez Yachts will also obtain a Transcript of Registry from the register.
The ABYA Code of practice requires that all deposits and final payments are processed through a dedicated Client Account solely for this purpose. The John Rodriguez Yachts Client Account conforms to this requirement and is written in trust at Lloyds Bank.
When transacting through client accounts or to vendor and purchaser accounts, suitable identity should always be obtained and a two-step process should be in place. John Rodriguez Yachts will never ask clients to change bank account details via email or text.
It is a requirement that all ABYA brokers carry Professional Indemnity Insurance. John Rodriguez Yachts is fully insured.