All the world's major yacht and superyacht shows, conferences, races and rendezvous - listed in one place. A comprehensive guide to all the world's leading yacht and superyacht shows, races, conferences and related events. Such events are a must for those looking to buy or charter a yacht, or looking to source services such as yacht builders, naval architects or interior designers. Home Insights Events / / events Calendar This page aims to list all yacht-related events which may be of interest to our Members and their representatives. Click on any listing to go straight to the organiser's website. You can also see a map here . The Club has no commercial relationships with any organisers. Listings are not endorsements. Events can be subject to change or cancellation without notice, and may not take place every year. Please check with the organisers directly before making any arrangements. Have we missed an event? Please tell us . Thailand International Boat Show Phuket to 18 January 2026 15 January 2026 boot Düsseldorf Düsseldorf to 25 January 2026 17 January 2026 Seattle Boat Show Seattle to 7 February 2026 30 January 2026 New Zealand Millennium Cup Auckland to 3 February 2026 31 January 2026 Superyacht Design Festival Kitzbühel to 3 February 2026 1 February 2026 Discover Boating Miami International Boat Show Miami to 15 February 2026 11 February 2026 Sydney Charter Show Sydney to 23 February 2026 22 February 2026 Superyacht Challenge Antigua Antigua to 8 March 2026 3 March 2026 Superyacht Technology Show Barcelona to 11 March 2026 10 March 2026 St Barths Bucket St Barths to 15 March 2026 12 March 2026 Superyacht UK Technical Seminar London 19 March 2026 Improving Yacht Crew Retention Nice 19 March 2026 Palm Beach International Boat Show West Palm Beach to 29 March 2026 25 March 2026 China (Shanghai) International Boat Show Shanghai to 1 April 2026 29 March 2026 Mediterranean Superyacht Forum Palma de Mallorca April 2026 Singapore Yachting Festival Singapore to 26 April 2026 23 April 2026 PalmaVela Palma to 3 May 2026 23 April 2026 MYBA Charter Show Sanremo to 30 April 2026 27 April 2026 Palma Superyacht Village Palma to 2 May 2026 29 April 2026 BI World Superyacht Awards Venice to 2 May 2026 1 May 2026 Mediterranean Yacht Show Nafplion to 6 May 2026 2 May 2026 Asia-Pacific Superyacht Summit Kobe to 8 May 2026 7 May 2026 East Med Multihull & Yacht Charter Show Poros to 10 May 2026 7 May 2026 TYBA Yacht Charter Show Göcek to 11 May 2026 7 May 2026 British Motor Yacht Show Southampton to 17 May 2026 14 May 2026 Blue Design Summit La Spezia to 20 May 2026 18 May 2026 Limassol Boat Show Limassol to 24 May 2026 21 May 2026 Sanctuary Cove International Boat Show Gold Coast to 24 May 2026 21 May 2026 Giorgio Armani Superyacht Regatta Porto Cervo to 30 May 2026 26 May 2026 Venice Boat Show Venice to 31 May 2026 27 May 2026 Cyclades Cup Antiparos to 13 June 2026 10 June 2026 MTB Superyachts 2026 Lake Maggiore to 13 June 2026 10 June 2026 Loro Piana Giraglia Saint Tropez to 20 June 2026 12 June 2026 Newport Charter Yacht Show Rhode Island to 25 June 2026 22 June 2026 The Superyacht Cup Palma to 27 June 2026 24 June 2026 Cowes Week Isle of Wight to 7 August 2026 1 August 2026 Safe Harbor Race Weekend Rhode Island to 9 August 2026 7 August 2026 Maxi Yacht Rolex Cup Porto Cervo to 12 September 2026 6 September 2026 Cannes Yachting Festival Cannes to 13 September 2026 8 September 2026 Ibiza JoySail Ibiza to 20 September 2026 17 September 2026 Southampton International Boat Show Southampton to 27 September 2026 18 September 2025 Monaco Yacht Show Monaco to 26 September 2026 23 September 2026 Les Voiles de Saint-Tropez Saint-Tropez to 4 October 2026 26 September 2026 Genoa Boat Show Genoa to 6 October 2026 1 October 2026 Salon Nautico Internacional de Barcelona Barcelona to 18 October 2026 14 October 2026 Understanding Superyachts & Business Aviation Tax Barcelona 15 October 2026 Fort Lauderdale International Boat Show Fort Lauderdale to 1 November 2026 28 October 2026 METSTRADE Amsterdam to 19 November 2026 17 November 2026 Abu Dhabi International Boat Show Abu Dhabi to 22 November 2026 19 November 2026 Dubai International Boat Show Dubai to 29 November 2026 25 November 2026 Les Voiles de St Barth St Barths TBC The Turkey Superyacht Forum Istanbul TBC International Yacht & Aviation Awards Cannes TBC World Yachting Summit Monaco TBC Bahamas Charter Yacht Show Nassau TBC The South Pacific Superyacht Rendezvous Fiji TBC SeaYou Yacht Sales & Charter Days Genoa TBC Explorer Yachts Summit Monaco TBC Improving Yacht Crew Retention & Welfare US Fort Lauderdale TBC Managing Tomorrow’s Superyacht Monaco TBC Opportunities in Superyachts Valletta TBC Antigua Charter Yacht Show English Harbour TBC Rolex Sydney Hobart Yacht Race Programme Sydney & Hobart TBC Gulf Superyacht Summit Abu Dhabi TBC Kata Rocks Superyacht Rendezvous Phuket TBC Balearic Superyacht Forum Palma TBC South Coast Powerhouse Summit Southampton TBC Rolex Middle Sea Race Valletta TBC Croatia Yacht Show Zadar TBC Olympic Yacht Show Lavrion TBC Superyacht Investor London London TBC Superyacht Summit Adria Porto Montenegro TBC World Yachts Trophies Cannes TBC 7th Super Yacht Americas 2026 Fort Lauderdale TBC Superyacht Summit Türkiye Istanbul TBC International Charter Expo Amsterdam TBC Malta Boat Show Valetta TBC Lantau Yacht Club Boat Show Hong Kong TBC Hong Kong International Boat Show Hong Kong TBC

A map of all the world's major yacht and superyacht shows, conferences, races and rendezvous. A comprehensive guide to all the world's leading yacht and superyacht shows, races, conferences and related events. Such events are a must for those looking to buy or charter a yacht, or looking to source services such as yacht builders, naval architects or interior designers. Home Insights Events / / Events Map This page aims to map all yacht-related events which may be of interest to our Members and their representatives. You can also see a list of events, in date order, here . The Club has no commercial relationships with any organisers. Listings are not endorsements. Events can be subject to change or cancellation without notice, and may not take place every year. Please check with the organisers directly before making any arrangements. Map locations are approximate. Have we missed an event? Please tell us .

Without sufficient security in place, having provided a loan to a shell company to buy an expensive, mobile asset, lenders could be left out-of-pocket and finance would be impossible to obtain. While loan security can be found in various documents, the requirements themselves can always be traced back to the loan agreement. Home Handbook Financing / / Loan Security 4 April 2017 Last revised minutes 6 Reading time Without sufficient security in place, having provided a loan to a shell company to buy an expensive, mobile asset, lenders could be left out-of-pocket and finance would be impossible to obtain. While loan security can be found in various documents, the requirements themselves can always be traced back to the loan agreement. minutes 6 Reading time 4 April 2017 Last revised Without sufficient security in place, having provided a loan to a shell company to buy an expensive, mobile asset, lenders could be left out-of-pocket and finance would be impossible to obtain. While loan security can be found in various documents, the requirements themselves can always be traced back to the loan agreement. Unpaid crew, suppliers, and collision victims have liens over yachts, creating competing claims for lenders. Port authorities can detain a yacht for unpaid dues, further complicating the lender's position. Yards can have possessory liens on yachts if the owner hasn't paid for works carried out. Mortgages grant lenders rights against the yacht itself in the event of default, and they are the most important type of security. Mortgage registration is essential, either as a statutory mortgage or a common law mortgage, to establish priority and enforceability. Covenants and assignments supplement the mortgage document and dictate obligations and transfers of rights. Deeds of covenant and collateral security documents cannot be registered but are still important for additional protection. Non-statutory mortgages serve as a backup when statutory mortgages are invalid, but they have limitations in enforcement. Yacht registration is required, and the deed ensures the yacht remains registered throughout the mortgage term. Insurance covenants are crucial, and policies must cover the yacht and third-party liabilities to safeguard the lender's interests. Covenants and assignments supplement the mortgage document and dictate obligations and transfers of rights. Deeds of covenant and collateral security documents cannot be registered but are still important for additional protection. Non-statutory mortgages serve as a backup when statutory mortgages are invalid, but they have limitations in enforcement. Yacht registration is required, and the deed ensures the yacht remains registered throughout the mortgage term. Insurance covenants are crucial, and policies must cover the yacht and third-party liabilities to safeguard the lender's interests. Unpaid crew, suppliers, and collision victims have liens over yachts, creating competing claims for lenders. Port authorities can detain a yacht for unpaid dues, further complicating the lender's position. Yards can have possessory liens on yachts if the owner hasn't paid for works carried out. Mortgages grant lenders rights against the yacht itself in the event of default, and they are the most important type of security. Mortgage registration is essential, either as a statutory mortgage or a common law mortgage, to establish priority and enforceability. At the outset, it’s important to note that, with regards the yacht, the lender can still be left competing with the following who may automatically have claims against a yacht – which is why security has to be so wide-ranging: Unpaid crew and suppliers, collision victims, etc, all have liens over yachts Port authorities can have a statutory right to detain a yacht for unpaid dues Yards can have possessory liens where works have been carried for which the owner hasn’t paid: where the yacht is out of the water, it’s a case of no-cash-no-splash MORTGAGES A mortgage grants a lender (the ‘mortgagee’) rights against the yacht itself (known as rights ‘in rem’), rather than just against the owner (the ‘mortgagor’) in the event of default. While it still needs to be beefed-up by other types of security, such as covenants, and assignments of earnings and insurances, the mortgage is the most important type of security taken by a lender. Mortgages over yachts are known as ship mortgages to distinguish them from real estate mortgages. A mortgage can be taken over the whole yacht or just a number of the 64 available shares. MORTGAGE REGISTRATION The mortgagee’s power to sell the yacht in the event of default is specifically granted by statute. A mortgage is said to be ‘statutory’ where it has been set out and registered as prescribed by statute (in this case, regulation 57 of, Merchant Shipping (Registration of Ships) Regulations 1993 (SI 1993/3138) and paragraph 7 of Schedule 1 to the Merchant Shipping Act 1995. Otherwise, they are known as ‘common law’ mortgages but these are very unusual. A statutory mortgage can only be created over a yacht registered under Part I (but not the Part III ‘Small Ships Register’). The mortgagee will likely use a Form 4736 ‘Account Current’ statutory mortgage to secure not just the principal sum and interest but also costs and expenses. A Notice of Mortgage Intent MSF 4739 can be lodged in advance in order to record as early a date as possible for the mortgage: this is important when establishing the priority of debts in the event of later default. The mortgage is a brief document, just setting out the names of the parties, details of the yacht, and a short description of the secured obligation with reference to the agreement and the deed of covenant that supplements the mortgage. It must be lodged with the Registrar General of Shipping and Seamen, and the relevant fee paid. The Registrar will the register and returned the mortgage document. Where the mortgagor is a company registered in England and Wales, then, by virtue of section 860 of the Companies Act 2006, details of the statutory mortgage, the deed of covenant and any other security documents must be sent to the Registrar of Companies within 21 days, failing which such documents will be void as against a creditor, liquidator or administrator. COVENANTS & ASSIGNMENTS As the mortgage document itself is so brief, and there’s no scope for amending or adding to it, and also as the mortgage attaches to the yacht rather than the owner, it must be supplemented by covenants and assignments. Covenants dictate various dos and don’ts, and may be set out in the loan agreement and/or separately in a deed of covenant according to the lender’s house style. Assignments transfer rights from one party to another. The remainder of this article considers common covenants and assignments. For convenience, it is assumed that all covenants are set out in a deed. Unlike mortgages, deeds of covenant, and any other collateral security documents, cannot be registered with the Registrar of Ships. NON-STATUTORY MORTGAGE While a deed supports the mortgage, deeds can still have a clause by which the yacht is mortgaged. This is needed as a backup in case the statutory mortgage is invalid – which can be the case where, for example, the mortgage hasn’t been registered with the Companies Register. The deed will create a non-statutory mortgage which, while better than nothing, won’t be enforceable against a buyer who buys in good faith and isn’t aware of the mortgage, and will be ranked below a statutory mortgage should the mortgagor default. YACHT REGISTRATION The mortgagor will promise in the deed the yacht will be registered as a ship in the United Kingdom, and will remain, so, under the same registered name, for as long as the yacht is mortgaged. This is necessary as UK Part I ship registrations expire after only five years unless renewed. CHARGE REGISTRATION The deed will require, where the owner is a company registered in England or Wales, the mortgage to be registered as a charge with the United Kingdom companies register (known as Companies House). This is fallback requirement as the mortgagee isn’t going to leave anything to chance and will (or should) have registered the mortgage as soon as possible as not doing so risks the mortgagee loosing both the security and priority. INSURANCE Arguably just as important as the mortgage is the borrower’s covenants in respect of insurance, and policy assignments. In particular, the borrower covenants to: At the borrower’s expense, insure the yacht, for a value, on terms, and with an underwriter(s), all agreed with the lender. Comply with all policy terms throughout the term of the loan, including, of course, prompt payment of insurance premiums. Renew policies as needed to maintain cover. Not settle a claim without the lender’s consent It’s not only the yacht itself which must be insured, but third party liabilities which, if not satisfied, will expose the yacht itself to claims which might rank higher than the lender’s as mortgagee. Particular risks must also be covered, such as war risks, and mortgagee’s interest insurance. The latter provides cover where a failing on the borrower’s part means that other policies are rendered ineffective. For larger yachts, the policies must be assignable to the lender, and confirmation will have to be provided by underwriters that such assignments are noted on the policies and that proceeds of the insurance will be paid to the lender if necessary. For smaller yachts, it may be sufficient for the lender to be named as a co-assured on the policy. CLASSIFICATION SOCIETY An explanation as to the role of classification societies (often known as ‘class’) can be found here . Assuming the yacht must be classed, if the yacht isn’t maintained and surveyed as Class Rules stipulate, the yacht is said to be ‘out of class’ – which can lead to insurance policies being invalidated, as well as the yacht not being maintained properly. As this would jeopardise the mortgagee’s security, the deed of covenant will stipulate maintenance in class. REGULATORY COMPLIANCE Depending on the yacht’s length, gross tonnage and whether it’s registered for chartering, it will be subject to various regulations which help ensure it’s used safely. H ere’s a summary of those affecting your yacht . As well as being detained by port officials, non-compliance can render insurances void, which has obvious implications for the mortgagee’s financial security. Compliance with such regulations will be a key provision. INSPECTION As Class rules and flag state regulations only help to ensure the safe construction, maintenance and operation of the yacht, the mortgagee will want to have the opportunity to inspect the vessel to ensure that aesthetic aspects, and with them much of her value, are also being maintained. The mortgagee must therefore have a right to inspect, and this can be supported by a specific minimum value. MANAGEMENT While ‘yacht management’ can cover a broad spectrum of support services, regulations may require management of a specific type and quality, failing which the vessel may be off-cover for insurance purposes and liable to detention following a port state inspection. Managers also vary in approach and quality. Unsurprisingly, therefore, mortgagees will want to approve which manager is appointed. OPERATIONS The mortgagee may wish to restrict the movement of the yacht, not only by stipulating that she is to be kept out of waters close to areas known for piracy or adjacent to unstable countries, but also away from areas where actions in the event of default may be difficult or impractical. It may also be necessary for the deed to spell out that the yacht is to be used in a legal way – for example, not chartering out where the yacht is not registered as a commercial vessel and insured accordingly. CHARTERING An assignment of chartering income (if any) can be a helpful tool for a lender looking to recoup money, especially while awaiting the sale of a yacht in the event of default. Written notice will need to be served on the charterers – which can be commercially awkward for the borrower and a good incentive to keep on track with loan repayments. INCIDENTS Where any kind of incident occurs involving the yacht, whether that be a fire, grounding, flooding, or a legal action such as arrest or other formal court proceedings, the mortgagee will want to know right away, and the deed of covenant will reflect this. Crucially, liens can rank higher than a mortgage. MODIFICATIONS Refits don’t always improve or even add value to yachts: an owner’s ‘personal stamp’ can adversely affect value and may not even be carried in compliance with regulations. The mortgagee will want to know about, and if necessary veto, any proposed modifications. DISPOSAL While obvious, it needs to be set out in the deed of covenant that the mortgagor cannot sell the yacht while it provides security. COLLATERAL SECURITY As well as the mortgage and deed of covenant, the lender may want a mortgage or charge over the shares in the yacht owning company, involving share certificates being deposited with the lender, together with signed but undated stock transfers. Going one stage further, the lender may also require a personal guarantee from the beneficial owner. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Loan Enforcement Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Loan Enforcement

Piracy raises a matrix of legal issues, just at the time when the consideration of these will be the last thing on anyone’s mind. This reinforces the desirability of taking advice in advance and, if necessary, placing a trained and equipped security team on board. For those with real concerns about security, compared with highways, houses and offices, yachts will always be – by far – the most secure location. Home Handbook Managing / / Piracy & Protection 16 April 2010 Last revised minutes 4 Reading time Piracy raises a matrix of legal issues, just at the time when the consideration of these will be the last thing on anyone’s mind. This reinforces the desirability of taking advice in advance and, if necessary, placing a trained and equipped security team on board. For those with real concerns about security, compared with highways, houses and offices, yachts will always be – by far – the most secure location. minutes 4 Reading time 16 April 2010 Last revised Piracy raises a matrix of legal issues, just at the time when the consideration of these will be the last thing on anyone’s mind. This reinforces the desirability of taking advice in advance and, if necessary, placing a trained and equipped security team on board. For those with real concerns about security, compared with highways, houses and offices, yachts will always be – by far – the most secure location. Piracy is defined as any illegal act of violence, detention, or destruction committed by the crew or passengers of a private vessel against another vessel or persons/property on board, outside any country's territorial waters. Hotspots for piracy include the coasts of Indonesia, Somalia, Bangladesh, Nigeria and some South American countries. Insurance coverage for yachts usually has restrictions on cruising areas, and breaching these restrictions may void coverage . Insurers have a broader definition of piracy than the legal definition, as attacks are more likely to occur within territorial waters. Obtaining up-to-date information on current piracy hotspots is crucial, and insurers and maritime security firms can provide assistance. Maintaining vigilance and employing defence measures such as acoustic defence systems and strong-rooms are recommended for yachts in high-risk areas. The legality of carrying weapons depends on the laws of the flag state (where the yacht is registered) and the port state (where the yacht is located). Some countries allow firearms on board as part of the yacht's equipment, while others prohibit certain weapons entirely. Legal consequences and the use of firearms in self-defence can vary depending on the laws of the flag state, port state, and international criminal law. Recognizing pirates can be challenging, and preemptive action may have legal implications. Self-defence and defence of others must be reasonable and proportional to the perceived threat. Maintaining vigilance and employing defence measures such as acoustic defence systems and strong-rooms are recommended for yachts in high-risk areas. The legality of carrying weapons depends on the laws of the flag state (where the yacht is registered) and the port state (where the yacht is located). Some countries allow firearms on board as part of the yacht's equipment, while others prohibit certain weapons entirely. Legal consequences and the use of firearms in self-defence can vary depending on the laws of the flag state, port state, and international criminal law. Recognizing pirates can be challenging, and preemptive action may have legal implications. Self-defence and defence of others must be reasonable and proportional to the perceived threat. Piracy is defined as any illegal act of violence, detention, or destruction committed by the crew or passengers of a private vessel against another vessel or persons/property on board, outside any country's territorial waters. Hotspots for piracy include the coasts of Indonesia, Somalia, Bangladesh, Nigeria and some South American countries. Insurance coverage for yachts usually has restrictions on cruising areas, and breaching these restrictions may void coverage . Insurers have a broader definition of piracy than the legal definition, as attacks are more likely to occur within territorial waters. Obtaining up-to-date information on current piracy hotspots is crucial, and insurers and maritime security firms can provide assistance. Piracy is defined internationally by the United Nations Convention on the Law of the Sea, Articles 101–103. Although local laws may add to this definition, the crime essentially consists of: Any illegal act of violence, detention, or destruction, Committed for private ends, By the crew or passengers of a private vessel, Against another vessel or against persons or property on board another vessel, Which is outside any country’s territorial waters; or Any act of inciting or intentionally facilitating such an act. HOTSPOTS Attacks are logged on the website of Commercial Crime Services (CCS), a division of the International Chamber of Commerce. Currently, while the principal hotspots are to be found off the coasts of Indonesia, Somalia, Bangladesh and Nigeria, acts have been committed off the coasts of various South American countries and even in the Caribbean. INSURANCE Insurers are usually very strict about where yachts can and cannot cruise while remaining covered. Any breach of these restrictions will allow them to escape paying out in the event of a claim for absolutely anything. Once the owner has decided where he or she wishes to cruise, this must be disclosed to the insurer if it is outside the area permitted in the policy, and additional cover negotiated – the cost of which will reflect any perceived increase in risk. In common with the IMB, the definition of ‘piracy’ used by insurers is generally much wider than that given above. This is fortunate since, statistically, attacks are more likely to occur within a state’s own territorial waters – i.e. within 12 nautical miles of the adjacent shoreline. Although piracy risks are specifically covered by the standard ‘Institute Yacht Clauses (1/11/85)’, which are the most commonly-used first-party insurance terms, the risks should still be discussed with the broker anyway. Where, unusually, the policy is not subject to English law, then it may be prudent to take independent legal advice. INFORMATION Patterns of worldwide piracy fluctuate with the political stability and, to a lesser extent, the economic fortunes of adjacent states. It is imperative to obtain up-to-date advice on where the current trouble spots are. Insurers can help with this, although specialist maritime security firms can often provide more detailed information. It should be noted that the security industry is not well regulated in some countries, and firms’ services vary in quality. DEFENCE Although the advice to all yachts travelling in high-risk areas is to maintain particular vigilance, and defences such as acoustic defence systems, satellite-alert systems and strong-rooms are options, the question most commonly raised is whether weapons are, legally, an option. To decide what’s legal and what’s not, it’s necessary to know which countries’ laws apply to any given situation. One needs to consider both the ‘Flag State’ law and the ‘Port State’ law. The Flag State law is the law of the country where the yacht is registered: it governs what happens on board the yacht, wherever in the world the yacht is located, as if the yacht was a small, floating piece of that country. The Port State law is that of the country in whose territorial waters the yacht is located – not just in or around any particular port. EQUIPMENT To take the example of one of the most popular Flag States, the United Kingdom, weapons may kept on board, but not all types. Under the Firearms Act 1968, as amended, firearms (including shotguns) and associated ammunition normally require a licence for purchase and possession. A firearm and ammunition, however, can be possessed on board a yacht, if it forms part of that yacht’s ‘equipment’, without the need for such a licence. A police permit is still needed to bring the firearm to and from the yacht, and a licence required to purchase the firearm in the first place. Section 5 of the same Act still outlaws some weapons altogether for the general public, including: Automatic and semi-automatic weapons, Pump-action weapons, Pistols, other than flare guns, Rocket launchers, other than those used for line-throwing or signalling, Air guns using gas cartridges, and Pepper sprays, TASER®s, etc. Port States will have their own laws relating to possession and disclosure. Researching and complying with these can be difficult and expert advice is a must. ACTION Clearly, there is no point in having weapons on board unless someone is prepared to use them. Introducing them into the equation might change a confrontation into a shoot-out. Guns in untrained hands are not an option. It is also very difficult to work out in advance what the legal consequences of firing shots might be. Thankfully, this choice can be neatly sidestepped by placing a specialist security team on board just for the necessary passages. Shooting at someone whilst they are on another vessel potentially constitutes an act of violence committed on both vessels. The shooter will therefore be subject to the laws of both Flag States, plus that of the Port State if the shooting occurs within 12 nautical miles of the coast (although this limit may not be respected in all countries). Looking by way of example at the UK criminal law, which is followed in much of the world, the raising of a weapon at a suspected pirate, who in fact wasn’t, could constitute an ‘assault’, i.e. putting someone in fear of violence. Shooting a pirate (or otherwise harming him) could lead to charges of grievous bodily harm, where serious injury is caused. Where the pirate is unintentionally or intentionally killed, manslaughter or murder charges could follow. Obviously, a number of defences could be put forward in response, the most useful of which would be self-defence or the defence of another. The accused would not need to have retreated as far as possible before the act of self-defence. Indeed, an act of self-defence or the defence of another may be pre-emptive, given reasonable apprehension. If the threat of force would have been enough, it may be unreasonable to go ahead and use force. If one person on a yacht is threatened, all are can be seen as having been threatened. The force used in self-defence or in the defence of another must be ‘reasonable’ in the circumstances as the accused saw it. What is reasonable would be up to the jury and difficult to predict. The main practical problem is recognising whether or not the yacht is faced with pirates. Until they raise a weapon in your direction or commit any act of violence against anyone, they are just other seafarers. Attack first, and you risk becoming the pirate. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Going Dark Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Going Dark

Unavailable at present Latest Position Yachts & More Listing Email WhatsApp +44 7773 246 246 Central Agent 46 m Length Placeholder Yards Builder 2016 Build year 499 Gross tonnage Cayman Islands Registry Particulars Exemplar

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The International Management Code for the Safe Operation of Ships and for Pollution Prevention (‘ISM’) Code applies to a significant number of large yachts. Members may think they need have little to do with day-to-day logistics, but they would be well advised to familiarise themselves with the basics of the code. And there’s much to learn for Members owning yachts to which the Code does not apply. Home Handbook Regulation / / The ISM Code 18 May 2009 Last revised minutes 7 Reading time The International Management Code for the Safe Operation of Ships and for Pollution Prevention (‘ISM’) Code applies to a significant number of large yachts. Members may think they need have little to do with day-to-day logistics, but they would be well advised to familiarise themselves with the basics of the code. And there’s much to learn for Members owning yachts to which the Code does not apply. minutes 7 Reading time 18 May 2009 Last revised The International Management Code for the Safe Operation of Ships and for Pollution Prevention (‘ISM’) Code applies to a significant number of large yachts. Members may think they need have little to do with day-to-day logistics, but they would be well advised to familiarise themselves with the basics of the code. And there’s much to learn for Members owning yachts to which the Code does not apply. The Code developed by the International Maritime Organisation is mandatory for certain yachts flying the flag of a maritime nation and affects yachts calling at ports in these countries. The Code applies to yachts of at least 500 gross tonnage engaged in "trade," which includes chartered yachts. The Code requires the implementation of a safety management system (SMS) to ensure safety and pollution prevention. The responsibility for safety lies with the 'Company' that has assumed responsibility for the yacht's operation from the owner. The SMS consists of set procedures outlined in manuals held ashore and onboard the yacht. Non-conformities reported to the Company must be remedied, and the Company must keep itself informed and act if issues arise. Compliance with the Code also requires observance of other international and flag state safety regulations. A designated person ashore (DPA) is appointed to ensure compliance with the SMS and statutory requirements. The Company must obtain a Document of Compliance (DOC) and a Safety Management Certificate (SMC) to operate the yacht legally. The Code helps prevent pollution, but compliance is not guaranteed, and prosecutors and insurers may scrutinize the actual implementation and maintenance of safety systems. Non-conformities reported to the Company must be remedied, and the Company must keep itself informed and act if issues arise. Compliance with the Code also requires observance of other international and flag state safety regulations. A designated person ashore (DPA) is appointed to ensure compliance with the SMS and statutory requirements. The Company must obtain a Document of Compliance (DOC) and a Safety Management Certificate (SMC) to operate the yacht legally. The Code helps prevent pollution, but compliance is not guaranteed, and prosecutors and insurers may scrutinize the actual implementation and maintenance of safety systems. The Code developed by the International Maritime Organisation is mandatory for certain yachts flying the flag of a maritime nation and affects yachts calling at ports in these countries. The Code applies to yachts of at least 500 gross tonnage engaged in "trade," which includes chartered yachts. The Code requires the implementation of a safety management system (SMS) to ensure safety and pollution prevention. The responsibility for safety lies with the 'Company' that has assumed responsibility for the yacht's operation from the owner. The SMS consists of set procedures outlined in manuals held ashore and onboard the yacht. The Code was developed by the International Maritime Organisation and, being uncontroversial, has become a part of domestic law in most maritime nations. The Code is therefore mandatory on board certain yachts flying the ensign of such a country, under what is known as the ‘flag state’ law. It also affects certain yachts calling at ports in some of these countries, by virtue of the ‘port state’ law, even if it is not required by the flag state law. The Code does not apply to all yachts subject to a particular flag state law, however. It only applies to those of at least 500 gross tonnage (GT) which are engaged in ‘trade’. Yachts which are chartered will normally be considered to be engaged in trade. SCOPE The Code concerns a great deal more than just having the right number of fire extinguishers or liferafts. It requires owners (or their appointed managers) to put in place management systems which are designed to ensure that the yacht is operated with the utmost regard to safety and pollution prevention. A complete culture of safety and continual improvement must be created. RESPONSIBILITY Where the yacht is technically owned by a single-purpose offshore owning company, ultimate responsibility for safety can nevertheless still lie with the beneficial owner. Responsibility under the Code, however, is said to lie with the ‘Company’. The Company is the party which has assumed responsibility for the operation of the yacht from the owner: it must establish the appropriate policies, and provide the necessary resources and shore-based support. The Company could be anyone, but someone has to formerly agree to take on this role if the owner is to avoid liability. This is where the managers step in. Under the Code, arranging safety systems becomes a surprisingly specialised task. This is why the managers should be chosen, and engaged, with the utmost care and attention to detail. SYSTEM The Company must implement a safety management system (‘SMS’), consisting of set, verifiable procedures. These are tailored to the individual yacht, and should ensure that the yacht is run in a way which complies with the Code. The SMS is contained in sets of manuals, held both ashore and on board. They typically outline the system itself, state general safety and environmental policies, and describe the organisation of the Company. Shoreside manuals will set out the régime for audits, risk assessment and accident analysis. Shipboard manuals will also give the planning, operating and reporting procedures. They cannot just be left on the shelf like an engine manual, however. Port inspectors, for example, may examine the manuals and interview the crew, who will be expected to be both familiar with them and actually using them. Key operational procedures and corrections are planned and recorded, as well as being audited internally and externally. Taken out of context some procedures may appear almost laughably prescriptive. In fact, in the context of the Code, this process leads both to a continual process of refinement, and independently certifiable standards of conduct. NON-CONFORMITY Where a Code ‘non-conformity’ is reported to the Company but is not remedied, or if a blind eye is turned to it, or if the system is such that non-conformities go reported, the Company will be in breach of the Code. Before the Code was introduced, the owner or manager could have legitimately said that there may have been safety issues on board the yacht which they were not aware about. By contrast, the burden is now on the Company to keep itself informed and act if all is not in order. All roles are now more accurately defined, meaning that it is now much easier to assess after an incident who was responsible for what, and what they knew or should have known. FURTHER COMPLIANCE The Code also requires and ensures observance of other international and flag state safety regulations. The obvious example is the fire drill, which cannot be meaningfully conducted unless all the correct fire fighting equipment is present. In fact, compliance with the Code requires compliance with a considerable array of international maritime conventions, ranging from crew training to vessel stability. From the owner’s point of view, this is a good thing. DESIGNATED PERSON A formal line of communication must exist between the Company and the yacht. This is absolutely vital. The Company has to appoint a designated person ashore (normally abbreviated to ‘DPA’ or ‘DP’) to sit at one and of that line. His (or her) job is to keep an eye on the safe and efficient operation of the yacht as the SMS demands, and take all necessary steps to ensure compliance. The DP must also ensure that proper provision is made for the yacht to be manned, equipped and maintained such that it is fit to operate in accordance with both the SMS and whichever other statutory requirements are dreamt up from time to time. The role of DP is often combined with others such as Technical or Operations Manager. In order that the DP is able to do all this, he must have: Direct access to the highest level of the Company’s management; Sufficient authority to influence decision-making; and Appropriate knowledge and experience of the operation of the type of yacht in question. So important is the DP’s role, that he may be jailed by the flag state should he fail to discharge certain key responsibilities. Port states can also be merciless with a DP, even where the DP is based overseas. A DP based in Denmark, for example, was recently the subject to an indictment by the United States Department of Justice. As the DP can be called upon to take action at any time, a deputy may be appointed. Some managers have been known to appoint personal assistants or secretaries to this role. This is poor practice, and indicates a culture of profit over safety. Beyond the DP and his deputy, the Code states that the Company must ensure that all personnel involved with the SMS have an adequate understanding of the relevant rules, regulations, codes and guidelines. Safety used to be the Captain’s domain, or at least the buck stopped with him or her. In terms of the immediate safety of the yacht, this remains the case. As the Company bears the responsibility of Code compliance on behalf of the owner, the existence of the DP ensures that the Company cannot leave responsibility resting on the Captain’s shoulders. Captains and managers must work together to ensure an adequate and workable system is developed. This is enshrined in the preamble to the Code, which explicitly states that in matters of safety and pollution prevention it is the commitment, competence, attitudes and motivation of individuals at all levels that determines the end result. LIABILITY Before the Code was imposed, yacht managers tended to take on the role of owner’s agent. They might have assisted the owner’s accountants, but it was the Captain who had the most to do the owner. The arrangement was based on reducing hassle for owners as much as possible. This arrangement may still, of course, suit owners of yachts not subject to the Code. As managers must take up a more interfering and directing role by virtue of the Code, there is no scope for resentment of this on the part of the crew. Instead, comfort should be taken in the fact that liability is shared with those ashore, who must keep safety issues under close scrutiny, and make sufficient resources available. Nevertheless, the owner may wish to keep an eye on whether the manager’s style is becoming too autocratic, perhaps leading to a dissatisfied crew. CERTIFICATION Once auditors from the flag state have examined the SMS, both on paper and in practice, a Document of Compliance (‘DOC’) will be issued in respect of the Company. A Safety Management Certificate (‘SMC’) may then be issued in respect of the yacht managed by that Company, as long as the SMS has been successfully implemented on board. Both these documents must be in place for the yacht to be operated legally. They will be audited regularly. Because of the number of individuals involved in the planning, undertaking and recording of actions, and the independence of external auditors, deliberate falsifications are sure to highlight themselves. Where logs have been ‘flogged’, i.e. where false entries have been made with regard to, for example, hours worked, the DOC may be withdrawn immediately. APPEARANCES In comparison with trading ships, yachts may appear to have an unblemished safety record. This is a little illusory. Whilst crewmembers may exude joyful efficiency, and the yachts themselves are kept in immaculate condition, this can have more to do with complying with the owner’s aesthetic wishes than with the maintenance of a safety culture. Accidents involving yachts do happen: they tend, however, not to involve large scale loss of life or pollution, and are not especially newsworthy. That courteous crewmember may in fact have worked excessive hours during a busy charter season, or may have been left in command without the necessary experience or qualifications. INSURANCE Following an incident, insurers will consider their liability for the claim thoroughly. Standard insurance clauses typically allow an insurer to avoid paying out, if the yacht was subject to certain perils resulting from a lack of ‘due diligence’ by the yacht’s management. The actions of the Company will be open to scrutiny by the insurer seeking to establish whether due diligence was exercised, and will be subject to a post-incident analysis. The ISM Code paper-trail is the obvious starting point. All documents in the possession of the Company which may be useful to the insurer, including internal documents, may have to be made available in the event of litigation. Any conviction of the Company or DP for Code failings would provide the insurer with the best possible evidence of a failure to exercise due diligence. INSPECTIONS Inspections of yachts by port officials tend to occur less frequently than for trading ships. This is understandable given that yachts tend to wear more respectable ensigns, and it is normally the official policy at ports to concentrate inspections on vessels which are likely to pose the greatest hazard to that port and the surrounding coastline. Nevertheless, where safety failings lead to even trivial incidents, authorities may choose to detain or even take action against a yacht herself, making the use of standard liability-avoidance vehicles, such as companies and trusts, futile measures. The knock-on effects of breached charter agreements and all-round inconvenience are obviously best avoided. The fact that the Code also helps to prevent pollution is a very good thing as far as owners are concerned. Pollution in some jurisdictions can lead to surprisingly hefty fines and even imprisonment. Spotter planes can find offending yachts with ease, and it is surprising how far even the smallest quantity of fuel will spread across the water. Unfortunately, the Company cannot simply wave the DOC and SMC in the air and expect forgiveness from prosecutors or insurers. Whilst useful, neither guarantees compliance. They simply show that, at a particular point in time in the past, the SMS, as applied by the Company and on board the yacht, met the minimum internationally agreed standards. Further, the external audit which led to the award of the DOC and SMC will have been based only on samples, will not have taken that long, and will have been far from exhaustive. By contrast, once a prosecutor or insurance company is able to access the various manuals and records, these can be scrutinised against actual findings at their leisure. It has been recognised that less respectable flag states may chose to ignore their responsibilities and may be prepared to certify compliance in any event. CONCLUSION From a legal viewpoint, the Code can be the owner’s closest ally or most feared enemy, depending on just how successful its implementation and maintenance has actually been. Owners do least have the luxury of being able to buy-in the appropriate expertise. Arranging and maintaining Code safety systems is a highly specialised task, however, and owners should grasp the fundamentals of the Code, and choose the appropriate managers accordingly. Thereafter, they should consider whether the managers and crew are successfully working together: this required by the Code and is important for morale and staff retention. Although the implementation of the Code does involve more paperwork and expense, it is the consequence of concerns about ineffective safety management stretching back many decades. Full and successful implementation will go a long way to ensuring that physical safety and pollution risks are kept under control. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Port State Control Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Port State Control

Some liabilities, such as those arising from collisions or the injury of a guest or crew member, are obvious. Other liabilities are less obvious: a large wash made by excessive speed can damage both fixed and floating objects some distance away. Occasionally, it may be possible to limit liability just by spelling this out in a well-drafted charter agreement or employment contract. Often, however, there will be no such contractual relationship with an aggrieved party. Home Handbook Managing / / Limiting Liability 26 February 2011 Last revised minutes 5 Reading time Some liabilities, such as those arising from collisions or the injury of a guest or crew member, are obvious. Other liabilities are less obvious: a large wash made by excessive speed can damage both fixed and floating objects some distance away. Occasionally, it may be possible to limit liability just by spelling this out in a well-drafted charter agreement or employment contract. Often, however, there will be no such contractual relationship with an aggrieved party. minutes 5 Reading time 26 February 2011 Last revised Some liabilities, such as those arising from collisions or the injury of a guest or crew member, are obvious. Other liabilities are less obvious: a large wash made by excessive speed can damage both fixed and floating objects some distance away. Occasionally, it may be possible to limit liability just by spelling this out in a well-drafted charter agreement or employment contract. Often, however, there will be no such contractual relationship with an aggrieved party. Yacht owners who are considered the legal owners, rather than just beneficial owners, can be held personally liable for incidents involving their yacht, putting their other assets at risk. Effective insurance, known as Protection & Indemnity (P&I) insurance, is crucial to protect owners against liabilities to third parties. International conventions allow owners to limit their liability, which provides a maximum payout for insurers and encourages trade. The limitation figure for liability does not differentiate between trading ships and yachts, even though yachts are often worth more. International conventions have specific requirements and standards of behavior that must be met to qualify for limitation. The limitation amount is determined based on the tonnage of the yacht in most countries, except for Italy, the United States, and parts of South America. The 1957 and 1976 Limitation Conventions have subtle differences, such as the circumstances under which the right to limit can be lost. Besides the owner, charterers, managers, captains, crew, employees, salvors, and insurers may also have the right to limit liability under the conventions. Owners can set up a fund with a court or competent authority, depositing an amount up to the limitation, to prevent the yacht from being detained in the future and protect other assets. Jurisdictional issues can arise, and different jurisdictions may apply different conventions and rules, making it crucial to seek legal advice promptly and establish jurisdiction in a favorable location with a lower limitation figure. The limitation amount is determined based on the tonnage of the yacht in most countries, except for Italy, the United States, and parts of South America. The 1957 and 1976 Limitation Conventions have subtle differences, such as the circumstances under which the right to limit can be lost. Besides the owner, charterers, managers, captains, crew, employees, salvors, and insurers may also have the right to limit liability under the conventions. Owners can set up a fund with a court or competent authority, depositing an amount up to the limitation, to prevent the yacht from being detained in the future and protect other assets. Jurisdictional issues can arise, and different jurisdictions may apply different conventions and rules, making it crucial to seek legal advice promptly and establish jurisdiction in a favorable location with a lower limitation figure. Yacht owners who are considered the legal owners, rather than just beneficial owners, can be held personally liable for incidents involving their yacht, putting their other assets at risk. Effective insurance, known as Protection & Indemnity (P&I) insurance, is crucial to protect owners against liabilities to third parties. International conventions allow owners to limit their liability, which provides a maximum payout for insurers and encourages trade. The limitation figure for liability does not differentiate between trading ships and yachts, even though yachts are often worth more. International conventions have specific requirements and standards of behavior that must be met to qualify for limitation. Even though yachts tend to be the only asset of an offshore owning company, it is possible, after a serious incident, for the individual ‘beneficial’ owner to be seen as the legal owner. This means that all the beneficial owner’s other assets are at risk. The need for effective insurance against liabilities to third parties, often known as Protection & Indemnity (‘P&I’) insurance, is therefore all the more important. Fortunately, throughout much of the world, the law gives owners the opportunity to restrict their liability. This is for two reasons. Firstly, insurers are more comfortable giving cover if they know what their maximum pay-out could be. Secondly, it is normally government policy to encourage trade. The owners of trading ships are more likely to put to sea if they know what their maximum liability could be. As an English judge recently put it, a ship owner might be prepared to lose his shirt, but not his entire wardrobe. As far as limitation is concerned, the law does not distinguish between trading ships and yachts, and, even though yachts are usually worth much more than similar-sized trading ships, the limitation figure will still be the same. CONVENTIONS But with the appropriate insurance in place, why should the owner need to even think about limitation? The answer is that the international conventions providing the limitation require certain standards of behaviour to be met before granting this invaluable right. That way, it is hoped, the sea is made a safer place for everyone. To understand how the opportunity to limit can slip through the owner’s fingers, it is necessary to look a little more closely at the international rules. It used to be that an owner could give up his ship to a claimant and walk away. As the ship would have been the beneficial owner’s largest asset, this was as much as a claimant could sensibly hope for anyway. This principal survives in Italy, the United States and parts of South America, but in most other countries the tonnage of the yacht will determine the owner’s limit in purely financial terms. A few nations still have no limitation regime whatsoever. EXAMPLE For example, a 35-metre yacht, with a gross tonnage of 120, negligently rams a cargo ship at night. Neither sinks, although the ship requires repairs costing £500,000. A further £500,000 of cargo is damaged, and the time spent carrying out repairs costs the owner another £500,000 in lost business. The yacht owner’s total liability in the UK would be just £650,000 approximately, not £1,500,000. The exact figure is determined using a basket of major currencies, and therefore changes daily. Most countries are party to either the 1957 or 1976 Limitation Conventions. There are subtle but vital differences between the two. The 1957 Convention contains a lower limitation figure, but no limitation is allowed where an incident was the owner’s fault or was the result of something the owner knew about. The 1976 Convention sets a higher figure, but the right to limit will only be lost where the owner did (or failed to do) something with the actual intention of causing loss, or not caring whether or not loss will be caused. Whether or not ‘owner’ here refers to the beneficial owner who chooses to skipper his own yacht, will depend on how transparent the owning company will be to the courts concerned. CHARTERER & MANAGER Aside from the owner, the 1957 Convention allows a charterer or manager, and the captain, crew and any other employees, to limit liability. The 1976 Convention adds salvors and insurers to that list. Broadly, both Conventions limit claims for loss of life or personal injury to any person carried on board, loss of or damage to property, liabilities for dealing with a wrecked or abandoned yacht, and the infringement of any non-contractual rights. The Convention limits do not apply to payments to salvors, or claims by the captain, crew or any of the owner’s employees where the law, or the employment contact itself, does not limit liability. Each Convention has lower limits for property claims than for injury or loss of life. FUND Under the Conventions, where the owner could benefit from limitation, a fund can be set up with a court, or other competent authority. The owner can then make a deposit or present a guarantee of no more than the limitation amount. The setting up of the fund is not a prerequisite to limitation, but will help prevent the yacht being detained in future over the same incident, which would require the security to be provided anyway prior to release, seriously disrupting any charter. The owner’s other assets are also placed out of the reach. This is particularly important where a court considers the owner to mean the beneficial owner. Where the yacht has been detained as security for a claim before a fund is established, it will have to be released. JURISDICTION Of course, any Convention will only be as effective as the law implementing it allows. Details, even the limits themselves and those entitled to them, can vary, as countries embroider the Conventions with their own unique thinking. A claim may be subject to a number of possible jurisdictions, each applying different Conventions in different ways. What’s more, each jurisdiction applies it’s own rules in deciding whether or not their courts can hear a claim, and if so whether their own law should apply. Jurisdiction can be founded by an owner, by bringing a pre-emptive action, in a jurisdiction with a favourably low limitation. Otherwise, there is a risk that an aggrieved party may arrest the yacht in a less favourable jurisdiction, presenting a vague case at that stage, leading to the case being later tried in those courts. Jurisdictional arguments are highly complex and an adventure playground for unscrupulous lawyers looking to rack up large bills! Lawyers have also been known to contrive to keep the business in their own courts, even where this is not in the owner’s best interest. INSURANCE Insurance policies normally state that where the assured would have been entitled to limit liability, but failed, unreasonably, to take the necessary steps to do so, the insurers’ liability will not exceed what would have been the limitation figure. This implies that there is an obligation to ensure, if possible, that the claim is subject to a jurisdiction with a relatively low limitation figure. What’s more, the burden of proving that any failure to limit is not unreasonable often rests with the assured. The assured is also normally under a separate obligation to obtain the necessary legal advice and assistance, as and when required. ADVICE The important point is for owners (or their managers) to seek advice promptly in the event of an incident, in order for the jurisdiction to be established where the limitation is lowest. At the outset, a trusted lawyer in a reputable jurisdiction must be instructed, with the guidance and consent of the insurer, in order to work out a strategy for minimising liability. Other local lawyers in the most favourable jurisdiction can then be appointed. The insurers will have a network of reliable lawyers covering most maritime jurisdictions. Liaising with insurers, from the moment an incident occurs, will bring the insurers’ considerable expertise to bear and prevent the insurer from later claiming that the assured failed to do everything possible to limit liability. As well as being a source of unrivalled pleasure and prestige, yacht ownership also carries with it certain responsibilities. As long as owners appreciate the importance of taking timely advice, from a reputable source, and of liaising closely with their insurers, they can rest assured that they have done everything possible to limit any liability. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Piracy & Protection Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Piracy & Protection

The unique Regulations Radar sets out the minimum documentation owners are obliged to maintain for yachts and superyachts registered in the United Kingdom and carrying no more than 12 guests. Other ship registries have similar obligations. This page aims to set out the minimum documentation owners are obliged to maintain for yachts registered in the United Kingdom and carrying no more than 12 guests. Other flags have similar obligations. Non-compliance can lead to port detention and/or fines, and can have implications for insurance cover. Most documents will be needed by the next owner, so if you're looking to sell check that all necessary paperwork is present before your yacht is placed on the market. Don't leave it until a sale has been agreed. M-Notices and Notes are useful guides but not authoritative statements of law, and are regularly withdrawn. Home Handbook Regulation / / Regulations Radar This page aims to set out the minimum documentation owners are obliged to maintain for yachts registered in the United Kingdom and carrying no more than 12 guests. Other flags have similar obligations. Non-compliance can lead to port detention and/or fines, and can have implications for insurance cover . Most documents will be needed by the next owner, so if you're looking to sell check that all necessary paperwork is present before your yacht is placed on the market. Don't leave it until a sale has been agreed. M-Notices and Notes are useful guides but not authoritative statements of law, and are regularly withdrawn. BOTH ≥400 GT or >15 persons BOTH ≥400 GT BOTH ≥150 GT BOTH ≥24 m LOA to <400 GT BOTH ≥100 GT or >15 persons BOTH >130 kW engine(s) after 1 Jan 2000 COMMERCIAL ≥24 m LOA or ≥150 GT before 21 July 1968 COMMERCIAL ≥24 m LLL or ≥150 GT before 21 July 1968 BOTH ≥300 GT COMMERCIAL ≥300 GT BOTH all sizes COMMERCIAL all sizes PRIVATE all sizes BOTH >1000 GT COMMERCIAL ≥500 GT BOTH ≥24 m LOA PLEASE SELECT THE RELEVANT SIZE(S) TO SEE WHICH DOCUMENTS ARE REQUIRED AND WHY. SELECT ALL RELEVANT CATEGORIES INCLUDING SMALLER SIZES. FOR EXAMPLE, FOR 499GT SEE ≥400GT, ≥300GT, ETC WHILE GT AND USAGE CAN BE FOUND ON YOUR VESSEL'S CERTIFICATE OF REGISTRATION, IT IS THE ACTUAL USE TO WHICH YOUR VESSEL IS PUT WHICH IS KEY. THIS GUIDE IS NOT UPDATED AUTOMATICALLY. CHECK THAT M-NOTICES/NOTES, REGULATIONS AND ACTS ARE STILL IN FORCE. CONTACT US FOR ASSISTANCE. THIS GUIDE IS NOT UPDATED AUTOMATICALLY. CHECK THAT M-NOTICES/NOTES, REGULATIONS AND ACTS ARE STILL IN FORCE. CONTACT US FOR ASSISTANCE. WHILE GT AND USAGE CAN BE FOUND ON YOUR VESSEL'S CERTIFICATE OF REGISTRATION, IT IS THE ACTUAL USE TO WHICH YOUR VESSEL IS PUT WHICH IS KEY SELECT ALL RELEVANT CATEGORIES INCLUDING SMALLER SIZES. FOR EXAMPLE, FOR 499GT SEE ≥400GT, ≥300GT, ETC PLEASE SELECT THE RELEVANT SIZE(S) TO SEE WHICH DOCUMENTS ARE REQUIRED AND WHY PRIVATE all sizes N/A Convention Merchant Shipping Act 1970 Statute Merchant Shipping (Crew Agreements, Lists of Crew and Discharge of Seamen) Regulations 1991 Regulation N/A Code of Practice MGN 474 M-Notice//Note Crew Agreement and List of Crew COMMERCIAL ≥24 m LLL or ≥150 GT before 21 July 1968 Various Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Vessels in Commercial Use for Sport or Pleasure) Regulations 1998, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice N/A M-Notice//Note REG Yacht Code Certificate Various Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Vessels in Commercial Use for Sport or Pleasure) Regulations 1998, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M & N Code of Practice N/A M-Notice//Note Certificate of Classification COMMERCIAL ≥24 m LOA or ≥150 GT before 21 July 1968 International Convention on Load Lines 1966/1988 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Load Line) Regulations 1998, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice MGN 579 MSN 1752 M-Notice//Note Load Line Conditions of Assignment International Convention on Load Lines 1966/1988 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Load Line) Regulations 1998, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice MGN 579 MSN 1752 M-Notice//Note International Load Line Certificate International Convention on Load Lines 1966/1988 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Load Line) Regulations 1998, as amended Regulation Red Ensign Group Yacht Code, Part A, Chapter 11 Code of Practice MGN 579 M-Notice//Note Stability Information COMMERCIAL all sizes Maritime Labour Convention 2006 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Maritime Labour Convention) (Survey and Certification) Regulations 2013 Regulation N/A Code of Practice MSN 1849 M-Notice//Note On-board complaints procedure International Convention for the Safety of Life at Sea 1974 (SOLAS), Chapter IV Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Radio Installations) Regulations 1998 Regulation Red Ensign Group Yacht Code, Part A, Chapter 16 Code of Practice MGN 530 M-Notice//Note GMDSS Log Book Maritime Labour Convention 2006 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Hours of Work) Regulations 2018 Regulation Red Ensign Group Yacht Code, Common Annexes, Annex G Code of Practice MSN 1877 (M) Amendment 1 M-Notice//Note Table of Shipboard Working Arrangements N/A Convention Merchant Shipping Act 1970, as amended Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Official Log Book) Regulations 1981, as amended Regulation N/A Code of Practice N/A M-Notice//Note Official Log Book Maritime Labour Convention 2006 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Maritime Labour Convention) Minimum Requirements for Seafarers etc. Regulations 2014 Regulation N/A Code of Practice MGN 477 (M) Amendment 4 M-Notice//Note Seafarer Employment Agreement Maritime Labour Convention 2006 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Hours of Work) Regulations 2018 Regulation Red Ensign Group Yacht Code, Common Annexes, Annex G Code of Practice MSN 1877 Amendment 1 M-Notice//Note Record of Hours of Rest of Seafarers COMMERCIAL ≥300 GT International Convention for Safety of Life at Sea (SOLAS) 1974/1988 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Load Line) Regulations 1998, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes M & N Code of Practice MSN 1751 M-Notice//Note Safety Radio Certificate COMMERCIAL ≥500 GT International Convention for Safety of Life at Sea (SOLAS) Chapter XI-2 International Ship and Port Facility (ISPS) Code Convention European Communities Act 1972 (originally) Statute Ship and Port Facility (Security) Regulations 2004, as amended Regulation Red Ensign Group Yacht Code, Part A, Chapter 11 Code of Practice N/A M-Notice//Note Ship Security Assessment Maritime Labour Convention 2006 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Maritime Labour Convention) (Survey and Certification) Regulations 2013 Regulation Red Ensign Group Yacht Code, Common Annexes, Annex G Code of Practice MSN 1848 Amendment 3 M-Notice//Note Declaration of Maritime Labour Compliance International Convention for Safety of Life at Sea (SOLAS) Chapter XI-! Convention European Communities Act 1972 (originally) Statute Ship and Port Facility (Security) Regulations 2004, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice N/A M-Notice//Note Continuous Synopsis Record International Convention for the Safety of Life at Sea 1974 (SOLAS), Chapter IX Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (International Safety Management (ISM) Code) Regulations 2014, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice N/A M-Notice//Note Safety Management Certificate Maritime Labour Convention 2006 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Maritime Labour Convention) (Survey and Certification) Regulations 2013 Regulation Red Ensign Group Yacht Code, Common Annexes, Annex G Code of Practice MSN 1848 Amendment 3 M-Notice//Note Maritime Labour Certificate (including DMLC I and DMLC II) International Convention for Safety of Life at Sea (SOLAS) Chapter XI-2 International Ship and Port Facility (ISPS) Code Convention European Communities Act 1972 (originally) Statute Ship and Port Facility (Security) Regulations 2004, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice N/A M-Notice//Note International Ship Security Certificate International Convention for the Safety of Life at Sea 1974 (SOLAS), Chapter IX Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (International Safety Management (ISM) Code) Regulations 2014, as amended Regulation N/A Code of Practice N/A M-Notice//Note Document of Compliance International Convention on Standards of Training and Certification and Watchkeepers 1978/1995 (STCW) Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Standards of Training, Certification and Watchkeeping) Regulations 2015, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex G and M Code of Practice MSN 1868 Amendment 1 M-Notice//Note Safe Manning Document International Convention for Safety of Life at Sea (SOLAS) 1974/1988 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Survey and Certification) Regulations 2015, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes M & N Code of Practice MSN 1751 M-Notice//Note Safety Equipment Certificate International Convention for Safety of Life at Sea (SOLAS) 1974/1988 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Survey and Certification) Regulations 2015, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes M & N Code of Practice MSN 1751 M-Notice//Note Safety Construction Certificate International Convention for the Safety of Life at Sea 1974 (SOLAS), Chapter IX Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (International Safety Management (ISM) Code) Regulations 2014, as amended Regulation N/A Code of Practice N/A M-Notice//Note Safety Management System International Convention for Safety of Life at Sea (SOLAS) Chapter XI-2 & International Ship and Port Facility (ISPS) Code Convention European Communities Act 1972 (originally) Statute Ship and Port Facility (Security) Regulations 2004, as amended Regulation Red Ensign Group Yacht Code, Part A, Chapter 11 Code of Practice N/A M-Notice//Note Ship Security Plan BOTH all sizes International Convention for the Control and Management of Ships’ Ballast Water and Sediments 2004 Convention Merchant Shipping Act 1995, as amended Statute The Merchant Shipping (Control and Management of Ships' Ballast Water and Sediments) Regulations 2022 Regulation N/A Code of Practice None M-Notice//Note Ballast water management plan (if applicable) N/A Convention Wireless Telegraphy Act 2006 Statute N/A Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice N/A M-Notice//Note Ship Station Radio Licence N/A Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping and Fishing Vessels (Health and Safety at Work) Regulations 1997, as amended Regulation Red Ensign Group Yacht Code, Part A, Chapter 23A Code of Practice MGN 539 M-Notice//Note Code of Safe Working Practices International Convention for the Control and Management of Ships’ Ballast Water and Sediments 2004 Convention Merchant Shipping Act 1995, as amended Statute The Merchant Shipping (Control and Management of Ships' Ballast Water and Sediments) Regulations 2022 Regulation N/A Code of Practice None M-Notice//Note Ballast water record book (if applicable) International Convention for the Control and Management of Ships’ Ballast Water and Sediments 2004 Convention Merchant Shipping Act 1995, as amended Statute The Merchant Shipping (Control and Management of Ships' Ballast Water and Sediments) Regulations 2022 Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes L & M Code of Practice None M-Notice//Note International Ballast Water Management Certificate (if applicable) BOTH >130 kW engine(s) after 1 Jan 2000 Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex VI Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Air Pollution from Ships) Regulations 2008, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice MSN 1819 M-Notice//Note Engine International Air Pollution Prevention Certificate & NOx technical file BOTH ≥24 m LOA International Convention on Tonnage Measurement of Ships 1969 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Tonnage) Regulations 1997, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice MGN 398 M-Notice//Note International Tonnage Certificate BOTH ≥24 m LOA to <400 GT N/A Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Anti-Fouling Systems) Regulations 2009 Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes L & M Code of Practice MGN 398 M-Notice//Note Declaration on Anti-fouling System BOTH ≥100 GT or >15 persons Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex V Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Pollution by Garbage from Ships) Regulations 2020 Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes L & M Code of Practice MGN 398 M-Notice//Note Garbage management plan BOTH ≥150 GT Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex I Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Oil Pollution) Regulations 2019, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes L & M Code of Practice None M-Notice//Note Oil Record Book BOTH ≥300 GT N/A Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Compulsory Insurance of Shipowners for Maritime Claims) Regulations 2012 Regulation N/A Code of Practice N/A M-Notice//Note Certificate of Insurance (third party liabilities) Nairobi International Convention on the removal of Wrecks 2007 Convention Merchant Shipping Act 1995, as amended, & Wreck Removal Convention Act 2011 Statute N/A Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes L & M Code of Practice MIN 499 M-Notice//Note Wreck Removal Insurance Certificate BOTH ≥400 GT Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex I Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Oil Pollution) Regulations 2019, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex F Code of Practice MGN 231 M-Notice//Note Shipboard Oil Pollution Emergency Plan Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex VI Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Air Pollution from Ships) (Miscellaneous Amendments) Regulations 2019 Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice MGN 462 M-Notice//Note International Energy Efficiency Certificate International Convention on the Control of Harmful Anti-Fouling Systems on Ships 2001 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Anti-Fouling Systems) Regulations 2009 Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes L & M Code of Practice MGN 398 M-Notice//Note International Anti-fouling System Certificate Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex I Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Oil Pollution) Regulations 2019, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes L & M Code of Practice None M-Notice//Note International Oil Pollution Prevention Certificate Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex VI Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Air Pollution from Ships) Regulations 2008, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice MSN 1819 MGN 381 MGN 386 MSN 1819 Amendment M-Notice//Note International Air Pollution Prevention Certificate Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex VI Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Air Pollution from Ships) (Miscellaneous Amendments) Regulations 2019 Regulation N/A Code of Practice MGN 462 M-Notice//Note Ship Energy Efficiency Management Plan BOTH ≥400 GT or >15 persons Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex IV Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Pollution by Sewage from Ships) Regulations 2020 Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice MGN 631 M-Notice//Note International Sewage Pollution Prevention Certificate Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex V Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Pollution by Sewage from Ships) Regulations 2020 Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice MGN 632 Amendment 1 M-Notice//Note Garbage record book and reception facilities receipts BOTH >1000 GT International Convention on Civil Liability for Bunker Oil Pollution Damage 2001 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Oil Pollution) (Bunkers Convention) Regulations 2006 Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes L & M Code of Practice MGN 507 (M+F) Amendment 1 M-Notice//Note Civil Liability Certificate for Bunker Oil Pollution Damage This page aims to set out the minimum documentation owners are obliged to maintain for yachts registered in the United Kingdom and carrying no more than 12 guests. Other flags have similar obligations. Non-compliance can lead to port detention and/or fines, and can have implications for insurance cover. Most documents will be needed by the next owner, so if you're looking to sell check that all necessary paperwork is present before your yacht is placed on the market. Don't leave it until a sale has been agreed. M-Notices and Notes are useful guides but not authoritative statements of law, and are regularly withdrawn.

The Owners Club's Members' details are held in confidence by our General Secretary, and aren’t revealed to any third party, or other Members. The better part of valour being discretion isn’t just the Club’s guiding ethos. It’s a binding legal obligation. Home About Discretion / / The Soul of Discretion THE LAST GREAT LUXURY Privacy Policy Privacy is the last great luxury of our times. Highly prized by owners, it’s usually a contributing factor in buying a yacht. In an age where data has become a commodity, Members are glad to know that our discretion is absolute. Members' details are held in confidence by the Club’s General Secretary, and aren’t revealed to any third party, or other Members. The better part of valour being discretion isn’t just the Club’s guiding ethos. It’s a binding legal obligation. Some in the yachting industry can be fairly indiscrete. If we, as owners, are going to come together as a club, then we need to safeguard our privacy. This has been achieved. OWNER, 35M MY DISCRETION IS OUR DUTY Learn More Our General Secretary is an English lawyer, for whom discretion isn’t just a promise but a regulated professional requirement. Used to maintaining client confidentiality, he is a Partner at a leading international firm, regulated by the Solicitors Regulation Authority, the Financial Conduct Authority and the London Stock Exchange. The Club’s management company is registered with the United Kingdom Information Commissioner’s Office pursuant to the UK General Data Protection Regulation and the Data Protection Act 2018. By law, the data the Club holds must be held securely and protected against unlawful processing and accidental loss.

Unavailable at present Latest Position Superyachts'R'Us Listing Email WhatsApp +44 7773 246 246 Central Agent 26 m Length Builder & Co Builder 2012 Build year 80 Gross tonnage Marshall Islands Registry Particulars Yardstick

Many of our Members will already be familiar with the reasoning behind corporate ownership and the use of trusts. If that’s you, then feel free to skip to the next step of building your team. Too many buyers, however, still purchase in their own names. As well as raising privacy concerns, legal owners can be held liable for accidents and regulatory non-compliance. Corporate services aren’t cheap, but it’s a sensible choice when building and owning a large yacht. Home Handbook Building / / A Firm Foundation 10 May 2023 Last revised minutes 5 Reading time Many of our Members will already be familiar with the reasoning behind corporate ownership and the use of trusts. If that’s you, then feel free to skip to the next step of building your team . Too many buyers, however, still purchase in their own names. As well as raising privacy concerns, legal owners can be held liable for accidents and regulatory non-compliance. Corporate services aren’t cheap, but it’s a sensible choice when building and owning a large yacht. minutes 5 Reading time 10 May 2023 Last revised Many of our Members will already be familiar with the reasoning behind corporate ownership and the use of trusts. If that’s you, then feel free to skip to the next step of building your team . Too many buyers, however, still purchase in their own names. As well as raising privacy concerns, legal owners can be held liable for accidents and regulatory non-compliance. Corporate services aren’t cheap, but it’s a sensible choice when building and owning a large yacht. Companies have a seperate legal personality, which allows companies to buy and sell goods and services like people. Trusts are arrangements where property is held by a trustee for the benefit of a beneficiary, sometimes with the same person as the settlor and beneficiary. Companies and trusts can be used to protect assets, reduce tax exposure, and shield personal wealth. Yachts can be owned through companies to ring-fence liability and protect other assets of the owner. Yachts can still be arrested in cases of accidents, pollution allegations, or unpaid debts. Releasing a yacht release from arrest requires payment of the claim or providing acceptable security, often requiring a personal guarantee from the beneficial owner. Lifting the corporate veil may expose individuals involved in fraudulent or tax evasion. The use of nominees can help to protect the identity of real directors and shareholders. Privacy is not guaranteed, as international treaties and conventions may override privacy laws, and trusts aren't always recognized. Offshore jurisdictions offer tax-efficient and legal ways for multinational companies and yacht owners, but careful consideration of jurisdiction is essential for reputation, integrity, costs, rule of law, political stability, and practicalities of winding-up corporate structures. Lifting the corporate veil may expose individuals involved in fraudulent or tax evasion. The use of nominees can help to protect the identity of real directors and shareholders. Privacy is not guaranteed, as international treaties and conventions may override privacy laws, and trusts aren't always recognized. Offshore jurisdictions offer tax-efficient and legal ways for multinational companies and yacht owners, but careful consideration of jurisdiction is essential for reputation, integrity, costs, rule of law, political stability, and practicalities of winding-up corporate structures. Companies have a seperate legal personality, which allows companies to buy and sell goods and services like people. Trusts are arrangements where property is held by a trustee for the benefit of a beneficiary, sometimes with the same person as the settlor and beneficiary. Companies and trusts can be used to protect assets, reduce tax exposure, and shield personal wealth. Yachts can be owned through companies to ring-fence liability and protect other assets of the owner. Yachts can still be arrested in cases of accidents, pollution allegations, or unpaid debts. Releasing a yacht release from arrest requires payment of the claim or providing acceptable security, often requiring a personal guarantee from the beneficial owner. Companies are said by lawyers to have their own ‘legal personality’. This colourful phrase just means that they are able to buy and sell goods and services in just the same way as a human being. Although corporations were developed as a means to allow entrepreneurs to raise money and conduct business without risking their personal wealth, companies can also be used for non-commercial purposes – as vehicles for asset ownership. TRUSTS Trusts are a rather different concept. They have no such personality. They are simply an arrangement whereby property is handed over by one party (the ‘settlor’) to another (the ‘trustee’) for the benefit of another (the ‘beneficiary’), on the basis that the property will be held and used as the trustee wishes. The settlor and beneficiary can be the same person. Although legal title is actually transferred from the settlor to the trustee, the beneficiary’s rights are recognisable and enforceable by the courts. As with companies, the use of trusts has come along way since their invention: they were first used to protect the property of medieval knights while away on crusade. BENEFITS Now and then, yachts are involved in accidents. Liability could easily exceed the value of the yacht, and, should the owner be held liable, his or her other assets are at risk. More sensible, then, to ring-fence any such source of liability by owning the yacht through a company. Companies and trusts can also be used, quite lawfully, to reduce an individual’s apparent wealth and personal tax exposure, and to protect assets from creditors where the beneficial owner is asked to provide personal guarantees in respect of the financing of his or her commercial activities. With very limited exceptions, yachts must, by law, be registered somewhere. In some cases, including during the build stage. Shipping registers being open to inspection by the public, details of a yacht’s owner are readily available. Most owners just don’t like the idea of journalists – or perhaps even former spouses – knowing what they own. Although the identity of company directors and shareholders is often a matter of public record, many jurisdictions allow directorships and shares to be held in the name of nominees. LIMITATIONS No amount of corporate structing can prevent the arrest of the yacht itself. Where this happens, the yacht is legally prevented from leaving her mooring. Typically, police or customs officers present the yacht with the court papers – this is the process which used to involve the nailing of a writ to the mast. Yachts are often arrested following a collision, an allegation of pollution, or where a good or service has been provided to the yacht without the provider (including crew) having been paid. There is no need for judgment to have been given and there may be little or no warning before the yacht is arrested – potentially leaving the owner in an awkward and embarrassing position in the middle of a busy charter season. The only way to release the yacht from arrest is either to pay the claim or to provide security. Such security may only be acceptable if provided or supported by a large bank. In turn, the bank will require a personal guarantee from the yacht’s beneficial owner. On occasion it may be possible to look behind the company at the individuals involved. This is known as lifting the corporate veil. The laws of certain jurisdictions, for example, state that where it appears that, in the course of winding-up a bankrupt company, transactions have been carried out with the intent to defraud creditors, a court may declare the individuals involved liable. Criminal sanctions can also apply. Creditors here only includes those owed money at the time the transfer was made, excluding future creditors. The burden of proving the necessary intent lies with the creditors. The same principle applies where it looks as if a company was set up to frustrate a court order to freeze assets. The use of nominees only prevents the true identity of directors and shareholders being made available to the public. It is not normally possible to offload liability onto the nominees, and there is likely to be a clause in the agreement to set up the company, obliging the actual directors and shareholders to indemnify the nominees. Privacy cannot be entirely guaranteed in any event. Not unreasonably, international treaties on the exchange of information relating to criminal activities, including tax evasion, can allow require even the strongest privacy laws to be brushed aside. Further, although trusts are usually recognised in common law jurisdictions, and some countries are party to an international convention on the recognition of trusts, known as the Hague Trust Convention, trusts aren’t always recognised. One final drawback of buying through a company is that the laws which automatically protect consumers only applies to people - not to companies. Such laws are of limited value where a bespoke yacht is being built, but consumers will have ambiguous build contract provisions interpreted in their favour. CHOICE OF JURISDICTION Offshore jurisdictions still have a reputation as being sunny places for shady people. In fact, virtually all the world’s leading multinationals use offshore companies and trusts to undertake business in a private, tax-efficient yet entirely legal way. ‘Offshore’ simply means a jurisdiction other the one someone is already resident or domiciled. They certainly don’t need to be far-flung islands – although many are as it can form a lucrative boost to otherwise tourist-dependent economies. In fact, a good example of an offshore centre is the United Kingdom – which was becoming increasingly popular long before Brexit. For yacht owners, the principal advantage of using a respectable, well-known offshore jurisdiction is that there is rarely the need to reinvent the wheel: they are geared up to provide yacht owning structures. As these activities often provide a sizeable proportion of foreign income, their governments make it a priority to make matters simple for those looking for this type of service. It is important to choose the jurisdiction(s) with care, however. No two are the same. There are bad apples in the barrel, especially with regards the integrity of local practitioners. With companies, but more particularly with trusts – where legal title is transferred to a local trustee who may have discretionary powers – there exists opportunities to extract more from their clients than had been expected. Other factors to consider include initial and ongoing costs (including local taxes), international reputation, and the strength of their rule of law – in other words how tough their courts are. Political stability is another important factor, as is the time zone, the exchange controls, and any escape provisions – which allow companies to change jurisdictions while maintaining their legal personality and trusts to be transferred without needing to be rewritten. Finally, the most overlooked aspect is the ease, timeframe and expense of winding-up a corporate structure when it’s no longer needed. Working with a local branch of an international legal or accounting group may provide reassurance, but on the other hand one may end up being steered towards just those places where they happen to have an office. Ideally, guidance in the earliest stages should be sought from an independent, trusted source, capable of providing an impartial, global overview. Reach out to our General Secretary if you need a steer. With the correct ownership structure in place, it's time to build your team . Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Build Your Team Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Build Your Team

Unavailable at present Latest Position Wright A Way & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 22 m Length Italia srl Builder 1994 Build year 45 Gross tonnage Jersey Registry Particulars Sunray

Other standard forms are in use, but the poorly drafted and incomplete MYBA Memorandum of Agreement (MOA) remains the standard agreement for the sale and purchase of yachts, used by brokers large and small, whether a member of that organisation or not. Before considering what needs to be added, let’s look at what’s there at the outset. Home Handbook Buying / / MYBA MOA Clause by Clause 9 December 2022 Last revised minutes 11 Reading time Other standard forms are in use, but the poorly drafted and incomplete MYBA Memorandum of Agreement (MOA) remains the standard agreement for the sale and purchase of yachts, used by brokers large and small, whether a member of that organisation or not. Before considering what needs to be added, let’s look at what’s there at the outset. minutes 11 Reading time 9 December 2022 Last revised Other standard forms are in use, but the poorly drafted and incomplete MYBA Memorandum of Agreement (MOA) remains the standard agreement for the sale and purchase of yachts, used by brokers large and small, whether a member of that organisation or not. Before considering what needs to be added, let’s look at what’s there at the outset. The article focuses on the MYBA Memorandum of Agreement (MOA) November 2008 edition, which is the most commonly used contract in large yacht sales and purchases. The MOA should not be accepted at face value, and it is crucial to amend and supplement it before any transaction takes place. Clause 14 allows the seller to negotiate with other potential buyers as long as no commitments are made, even after signing the MOA. Clause 15 removes the statutory buyer protection provided by the Sale of Goods Act 1979 (as amended), and it is important to clarify the meaning of "warranty" in this context. The list of things that the vessel should be "free and clear of" in Clause 15 should be expanded to avoid ambiguity and potential disputes. Clause 16 highlights the importance of maintaining an inventory of the vessel's items, especially for larger vessels, and clarifies the consequences of rejecting the inventory. Clause 17 emphasizes the mandatory nature of making the vessel available for sea trials and surveys, and precautions should be taken to prevent conflicting charter arrangements. Clause 18 requires the seller to provide specific documents known as "Addendum One" that prove compliance with regulations and establish the vessel's value and validity of the sale. The list of things that the vessel should be "free and clear of" in Clause 15 should be expanded to avoid ambiguity and potential disputes. Clause 16 highlights the importance of maintaining an inventory of the vessel's items, especially for larger vessels, and clarifies the consequences of rejecting the inventory. Clause 17 emphasizes the mandatory nature of making the vessel available for sea trials and surveys, and precautions should be taken to prevent conflicting charter arrangements. Clause 18 requires the seller to provide specific documents known as "Addendum One" that prove compliance with regulations and establish the vessel's value and validity of the sale. The article focuses on the MYBA Memorandum of Agreement (MOA) November 2008 edition, which is the most commonly used contract in large yacht sales and purchases. The MOA should not be accepted at face value, and it is crucial to amend and supplement it before any transaction takes place. Clause 14 allows the seller to negotiate with other potential buyers as long as no commitments are made, even after signing the MOA. Clause 15 removes the statutory buyer protection provided by the Sale of Goods Act 1979 (as amended), and it is important to clarify the meaning of "warranty" in this context. This article considers the MYBA MOA, clause by clause. We’re looking at the November 2008 edition, because this is most commonly used. It’s available online. The February 2005 edition is still occasionally used and a 2021 electronic edition, featuring a few nips and tucks, has been published but is not yet in widespread use. The key takeaway is that, despite its official appearance, the MOA must not be accepted at face value, and no transaction should ever take place without the MOA being amended and supplemented. The MOA clauses themselves are in an illogical sequence, but are looked at in numerical order nevertheless. CLAUSES 1-13 The first two pages contain Clauses 1 to 13 in the form of boxes for the relevant details. A format commonly used in the commercial shipping sector. The attention to detail is immediately obvious: assuming “G.R.T.” is meant to mean Gross Register(ed) Tonnage, this is a term which was consigned to history long ago by the International Convention on Tonnage Measurement of Ships 1969. Clause 1 refers to "banking days" without reference to a specific location. And it may be wise to not to leave Clause 5 blank in the context of Clause 25 and Clause 38 : buyers may not want to pay a pay a deposit to the seller’s statutorily unregulated broker. CLAUSE 14 While this clause commits seller to the sale process, the seller isn’t prevented from negotiating with other would-be buyers – as long as no commitments are made with any such third party. Having signed the MOA, if the buyer comes under pressure from a broker to improve on the deal – as other would-be buyers are circling – this can be ignored. CLAUSE 15 While, in law, the term “warranty” has a specific meaning, it appears under this context – confusingly – that it simply means “represents”. This clause is important as the ordinary statutory buyer protection provided by the Sale of Goods Act 1979 (as amended) is normally removed by Clause 34 . Compared to the sale agreements for trading ships, the list of things which has to be “free and clear of” is a bit simplistic and limited – and should be expanded to include charters, mortgages, writs and port state and other administrative detentions rather than leave scope for argument over what “encumbrance” encompasses in the context of the MOA. The seller needs to ensure that anything of this kind is affecting the vessel: it’s not good enough to expect that the buyer will come across details of these in the public domain. Releasing the vessel from such encumbrance is a prerequisite to the sale completing as set out in Clause 30 . Where any such only comes to light after completion, the seller obliged to indemnify the buyer – which is of no use where the seller’s a company the only asset of which was the vessel just sold. Hence the need for a guarantee from a bank or the seller’s beneficial owner. Under Clause 15, the seller also represents that it(or he/she) is the legal registered owner of the vessel, with title to and the right to sell the vessel – and this will remain the case right up to the point of delivery to the buyer. This is the case anyway under section 12(1) of the Sale of Goods Act 1979 (as amended) in spite of Clause 34 which only excludes statutory protection “in relation to the VESSEL, fault or errors in her description or her quality or her fitness, for any particular purpose”. CLAUSE 16 The larger the vessel, the greater the inventory, and the longer it’s going to take to compile or update and check. This should be produced or updated as soon as the vessel is placed on the market, having regard to Clause 21 , as the buyer’s surveyor will need to check the items off against it as part of the pre-purchase survey. Once agreed on, the inventory forms part of the sale agreement. Clause 16 is silent as to consequences of rejection of the inventory by the buyer, but it seems likely that the agreement itself will be unaffected – and it’s still open for the buyer to reject under Clause 26 . Regarding significant works of art, sculptures, equipment, tenders and toys, it’s helpful to obtain a clear understanding of what’s staying on board (and, as importantly, what's not) before the MOA is signed. CLAUSE 17 While self-explanatory, this clause makes it clear that making the vessel available for a Clause 26 sea trial and Clause 27 survey is mandatory, not a nice-to-have, and the seller must take care that a charter broker does not arrange for a charter to take place which might prevent this. CLAUSE 18 While this clause simply sets out that the “Addendum One” documents must be provided by the seller, the MOA doesn’t come with Addendum One – or any addenda for that matter. The documents are so much more than mere paperwork: they are evidence that the vessel complies with certain regulations. Non-compliance may require major works to be carried out. Certain documents will be needed for re-registration and for proving title – without which the vessel may be worth less or even worthless. The sale itself could be invalidated where the correct corporate authorities and powers of attorney aren’t in place. And such documents may need to be authenticated in a particular way(s) in order to be accepted by the vessel’s new or existing flag state. CLAUSE 19 Unusually for the MOA, this clause is self-explanatory. Keep in mind that “berthing fees and crew’s wages” are implicitly not an exhaustive list. CLAUSE 20 This clause makes clear that where the seller fails to deliver the vessel (that is, in the legal sense of the word ‘deliver’) per Clause 21 or documentation per Clause 18 then all bets are off and the agreement is cancelled. However, as will be seen with regard to Clause 30 , all that’s needed with broad compliance with Addendum One - there’s no mention of the documentation needing to be authenticated as the buyer may require – or even to be effective at all. CLAUSE 21 The vessel must be delivered in the condition it was in at the time of the Clause 9 / Clause 26 sea trial and Clause 9 / Clause 27 condition survey, making this a sale of the vessel on an ‘as was’ basis – not ‘as-is’. ‘Delivery’ in this clause means the transfer of physical possession, rather than the vessel being moved. The vessel may have to be delivered elsewhere than at its usual mooring – usually for tax purposes – after which it’ll head straight back to its berth. While the financial consequences for the buyer of having the vessel delivered in the wrong place could lead to an unexpected Value Added Tax liability of up to 25% of the sale price, it seems that delivering elsewhere than that stated in Clause 11 will only entitle the buyer to claim damages. By contrast, the delivery date is a contractual condition breach of which allows the buyer to cancel the agreement: this is clear from the use of the phrase “time being of the essence” in Clause 12 . How this element of Clause 21 is affected by Clause 35 - which deals with force majeure events - isn't clear. By listing in Clause 21 various specific items which are to be included in the sale, those items not listed are, arguably, excluded. It would have been better simply to state “with everything belonging to the VESSEL on board and on shore” or some such – at least the scope for disagreement would have been reduced. CLAUSE 22 As risk of loss of, or damage to, the vessel passes under this clause immediately upon delivery, the buyer must make sure that suitable cover has been obtained well in advance. CLAUSE 23 This may seem like an obvious provision, but keep in mind that where the seller is a company which is in liquidation it may require authorisation to sell the yacht. CLAUSE 24 The companion to Clause 14 this clause commits the buyer to the sale process. The buyer may only exit from the deal - should the buyer have a change of heart - will be as the agreement allows. CLAUSE 25 While the “four banking days” clock only begins to tick once the agreement has been signed, as with Clause 1 , the term “banking days” isn’t defined in terms of any particular country’s banks. And that’s a problem as a failure to pay is breach of contract, allowing the seller to terminate and sue for damages – which could be an amount equivalent to the unpaid deposit. It’s not the case that the deposit needs to be paid for the agreement to come into effect. It’s also unclear whether the date of signature is included or excluded in the four-day period. Buyers must be aware of, and take into account, the time taken for identity checks and anti-money laundering to be carried out. CLAUSE 26 One of the many ways in which the drafting of the MOA leaves much to be desired is Clauses 26 and 27 – which between presuppose that the vessel is in the water at the outset. Of course, large yachts can be out of the water for months at a time. No sensible owner would normally place his or her pride and joy on the market while she’s on the hard: often parts of the interior will have been covered-up or removed while works are ongoing, but if the sale is urgent there may be no choice. Where the vessel is out of the water, the necessary amendments will have to be detailed. Assuming the vessel is in the water when the MOA is agreed, then the seller must make her available for a sea trial of up to four hours. This does not mean that the seller is obliged to make all necessary arrangements. It’s unclear, for example, who would be responsible for ordering pilots if required. While this clause fails to mention this, the buyer would be well advised to arrange for a surveyor to attend to examine certain aspects of the vessel’s performance which can’t be tested out of the water. How easily the main engine(s) and gensets start, and how much smoke is emitted at various engine temperatures, for example, typically can’t be tested as the engine’s heat exchangers require the vessel to be in the water, and the engines should be tested under load. Following the sea trial, the buyer may then elect not to go ahead with the purchase – although it’s not clear whether the grounds for this are for any reason (i.e. the saloon cushions are the wrong colour or a similar trivial reason) or whether the reason must relate to the performance of the vessel during the sea trial. To be effective, the buyer must ensure that the rejection is: In writing; To the seller or broker; Within 24 hours of the sea trial; and Submitted as a formal notice in compliance with Clause 43 . CLAUSE 27 It should not be underestimated how difficult it can be to find at short notice a suitably qualified surveyor, appropriately insured, with availability, who the buyer can be reasonably confident will be thorough and independent. It may not be advisable to go along with the seller’s broker’s suggestion. Yard space and facilities may also be a premium – especially out of season. It is also usually be advisable for samples to taken of the engine’s lubricating oil for laboratory analysis. Elemental spectroscopy of the oil can reveal premature engine wear, while the presence of water might indicate a gasket or heat exchanger seal failure. Combined with testing for acidity a picture can be built of the seller’s crew’s approach to equipment maintenance. Differences in results for two identical engines can be an obvious cause for concern. It’s crucial to consider timescales for surveying and testing before dates are set in stone in the MOA. The object of the survey is only to discover defects which haven’t already been disclosed to the buyer in writing – although the buyer may wish to ascertain the nature and extent of disclosed defects. It’s not clear when the nature and extent of such defects is such that it could be considered that these defects haven’t actually been disclosed. While a “defect” is determined in Clause 27 to be a defect which “affect(s) the operational integrity of the VESSEL or her machinery or her systems or renders the VESSEL unseaworthy”. There’s no definition of “operational integrity” either in the MOA or in the law generally. Unseaworthiness is also not defined in the MOA. Broadly, as a matter of law, a vessel is unseaworthy when she is not reasonably fit in all respects to encounter the ordinary perils of the seas – but this still leaves plenty of scope for factual and legal argument. Where such an undisclosed defect is found by the surveyor, the buyer must choose one of the option given in (a) paragraph (a), bearing in mind that such notice must be given: In writing; To the seller or broker; Within seven days of the completion of the survey; and In conformity with Clause 43 . If the buyer elects for the seller to carry out remedial works, then it would be wise to set a realistic date for the completion of these, rather than just rely on the “without undue delay” provision. CLAUSE 28 This clause makes clear that the notice provisions in Clause 26 and Clause 27 must be complied with to the letter – failing which the vessel will have been accepted. CLAUSE 29 While it is hard to imagine circumstances where the vessel is damaged as a result of the captain complying with a request from the buyer during a sea trial, given the captains duty of care to the seller, it is conceivable that the buyer’s surveyor causes damage. This underlines the importance of checking that the surveyor carries suitable insurance. CLAUSE 30 Completion (more often known as ‘closing’) is the final stage of the sale and purchase process, during which payment of the balance is made, and the vessel and documents are delivered to the buyer. Subject to any Clause 27 notice or Clause 35 force majeure event, the Clause 12 completion date is the date on which the buyer must pay the balance. There is no mention of this also being the date upon which the seller must receive the funds, but it’s clearly in everyone’s interests for payment to be made as quickly as possible. The currency, bank details and payment method should be agreed in Addendum One and expressly made conditions of the agreement to be strictly adhered with. Payment is required as soon as the Addendum One documents have been tendered to the buyer – seemingly even if they are defective in terms of their effectiveness or authentication, as long as they comply with their descriptions set out in Addendum One. CLAUSE 31 This clause elaborates on Clause 25 . It’s odd that these two clauses aren’t drafted as a single clause for greater clarity. CLAUSE 32 This clause elaborates on Clause 23 . Again, it’s odd that these two clauses aren’t also drafted as a single clause for greater clarity. CLAUSE 33 While it used to be considered bad luck to change the name of a yacht, the MOA copies the now standard practice in the shipping industry to change name upon change of ownership. It’s as good to be aware of this clause, given that it is the default position. Given the amount of equipment on board bearing the yacht’s name, logo or monogram, the expense of compliance isn’t to be underestimated. An oil tanker’s name can be changed with a paintbrush: a modern yacht will almost certainly have a custom-made, illuminated name which must be installed and the immediate surrounding area filled and repainted as required. The standard seven days may be no way near long enough. That said, the seller is going to face an uphill task in proving what losses may have followed from any delay in remaining. CLAUSE 34 In the normal course of events, sections 13, 14 and 15A of the Sale of Goods Act 1979 (as amended) will apply to the sale and purchase of the vessel. Under these sections, goods sold must corresponded with the seller’s description of them, they must be of satisfactory quality, fit for purpose, etc. But parties are free, subject to certain statutory limitations, to agree to exclude such provisions. And this is what Clause 34 aims to do. It succeeds in this aim, albeit in respect of corporate buyers : individual buyers are ‘consumers’ meaning that these sections cannot be excluded. This clause does not affect the seller’s Clause 15 warranty. CLAUSE 35 This clause sets out what the parties are to do where certain external events beyond their control delay the sea trial, survey or closing. As the law aims to ensure that the parties carry through with the deal, force majeure clauses are interpreted restrictively and against the party seeking to rely on them. And even then, that party must then prove that it used reasonable endeavours to minimise the delay. CLAUSE 36 This is a standard so-called boilerplate clause, which are normally placed after all the commercial terms. But MYBA, it seems, likes to do things differently. CLAUSE 37 Though detailed, Clause 37 is self-explanatory and requires no further explanation. CLAUSE 38 While Clause 5 presupposes that the stakeholder will be a broker, the seller should think long and hard about whether it’s wise to place money at the disposal of a statutorily unregulated party which is acting for the buyer. It is increasingly common for funds to be placed with the buyer’s lawyer – which also alleviates the broker from the increasing bureaucracy associated with satisfying anti-money laundering rules. Even then, the choice of lawyer is important. CLAUSE 39 This otherwise self-explanatory clause only applies where the parties agree that the bottom should be painted with antifouling and anodes replaced. Notably, it makes no mention of more modern and environmentally-friendly antifouling wraps. Where there is significant fouling but the sacrificial anodes do not require replacing, there could be a cathodic grounding fault which the surveyor should investigate. The anodes are implicitly those on the hull, shafts and rudders – rather than those within the raw-water side of the engines’ cooling systems. CLAUSE 40 Arbitration is a way of setline disputes in private, which is no less effective than going through the public courts potentially in the media spotlight. Missing from the MOA is a specific reference to the arbitration being conducted in accordance with the London Maritime Arbitrators Association (LMAA) terms – which allow for different levels of procedural complexity according to the amount in issue. CLAUSE 41–44 These are standard boilerplate clauses, but the reference to the “telefax” is now obviously very outdated and needs amending. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Corporate Ownership Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Corporate Ownership

Unavailable at present Latest Position Example Brokerage & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 80 m Length DMS & Co Builder 2006 Build year 1300 Gross tonnage Spain Registry Particulars Example

Superyacht owners have a collective worth greater than the annual GDP of Sweden. They are influencers in the truest sense. And now you can reach out to them and their gatekeepers through a platform which is independent and respected. Home About Advertise / / A Wealth of Opportunity The global fleet over 30 metres in length consisted of 5,396 superyachts in operation at the start of 2022 ... The total average final asking price for all used yachts sold, went up in 2021 to €11.8 million. The State of Yachting 2022 REACH THE GLOBAL ELITE Get In Touch Our Members are, by definition, some of the wealthiest people in the world. Working on the widely-accepted Ten Percent Rule, large yacht owners are together worth €637bn.* Which is slightly more than the annual GDP of, say, Sweden.* They are influencers in the truest sense. And now you can reach out to them and their gatekeepers through a platform which is independent and respected. *Sources: SuperYacht Times, The State of Yachting 2022, €(11.8m average value x 10 x 5,396 units), International Monetary Fund World Economic Outlook Database, April 2024 No Conflicts of Interest Contact Us Transparency and impartiality being central to the Club’s ethos and success, we will welcome advertising and sponsorship in this, our new website. We are not, however, a yachting media outlet and do not rely on advertising revenue. There are plenty of such platforms, and they do a great job. But we’re exclusively on the side of owners. In order to avoid any conflicts of interest, we cannot carry advertising in respect of yachts, or yachting products or services. If you’d like to explore promoting your non-marine business, please get in touch.

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Life’s short: build a yacht. Seems simple enough. For some, only new will do. But building a large yacht is a complicated process, the result of which is a complex series of systems, which need to work reliably, and in harmony. With the right guidance, the process is an exciting and satisfying journey. If you’re not already a Member, your first step's to contact us so we can help you find the right people. Home Handbook Building / / Build Your Team 10 May 2023 Last revised minutes 4 Reading time Life’s short: build a yacht. Seems simple enough. For some, only new will do. But building a large yacht is a complicated process, the result of which is a complex series of systems, which need to work reliably, and in harmony. With the right guidance, the process is an exciting and satisfying journey. If you’re not already a Member, your first step's to contact us so we can help you find the right people. minutes 4 Reading time 10 May 2023 Last revised Life’s short: build a yacht. Seems simple enough. For some, only new will do. But building a large yacht is a complicated process, the result of which is a complex series of systems, which need to work reliably, and in harmony. With the right guidance, the process is an exciting and satisfying journey. If you’re not already a Member, your first step's to contact us so we can help you find the right people. Exceptional projects require exceptional teams, and building a good working relationship with all team members from the start is essential. Small projects allow individuals to combine roles, especially in design. Trusted brokers with industry knowledge add value and may help in maintaining resale value. Exterior and interior designers, naval architects, and project managers are essential team members. Project managers coordinate efforts and seek compromises: some seagoing experience is helpful. Yachts are typically owned through companies for liability and privacy reasons. Cost savings can be achieved through proven hull designs and repurposing existing designs. Clear definitions of team roles, strict timescales, and engaging a lawyer with build experience are important. Project managers coordinate efforts and seek compromises: some seagoing experience is helpful. Yachts are typically owned through companies for liability and privacy reasons. Cost savings can be achieved through proven hull designs and repurposing existing designs. Clear definitions of team roles, strict timescales, and engaging a lawyer with build experience are important. Exceptional projects require exceptional teams, and building a good working relationship with all team members from the start is essential. Small projects allow individuals to combine roles, especially in design. Trusted brokers with industry knowledge add value and may help in maintaining resale value. Exterior and interior designers, naval architects, and project managers are essential team members. As with the counterparts building trading and passenger vessels, yacht builders tend to be conservative in their outlook. Why change what’s worked before? They’re also in business to make money and will look to save costs where they can – in particular by interpreting poorly-drafted build agreements to suit themselves. To a certain extent, builders’ yards are, in reality, pieces of waterside real estate where a multitude of suppliers and subcontractors come together to create the finished article. So putting the right team in place is a vital first step, whose members will advise, negotiate and integrate the efforts and wares of countless third parties. And the more exceptional the project, the more exceptional your team needs to be. All the participants need to be involved right from the start and an excellent working relationship must be built up and maintained. The smaller the project, the greater the scope for individuals to combine roles, especially when it comes to the vessel’s design. KEY TEAM MEMBERS Having decided on how and where they wish to use their yacht, a trusted broker is the best starting point for some Members. Trusted is the key word here. Brokers usually work on commission. Are they looking to build a relationship which could last many happy years, or are they just looking to complete the next deal? Good brokers will have excellent industry knowledge and will add real value. They are sounding boards for ideas, and arbiters of practicality and good taste: the latter two elements being essential in maintaining resale value. The next team members to have on board are the exterior and interior designers, plus a naval architect where a custom yacht is envisaged, and a project manager. Designers produce designs, not technical solutions. Even the most accomplished designers won’t know exactly how workable their designs are, and architects don’t always have an eye for design. So a project manager will also be needed to coordinate all their efforts, and – diplomatically – seek compromises here and there. The project manager should have recent seagoing experience, as captain or engineer, on a vessel of similar type and size. Everyone in the team – you included – need honest feedback on what is and isn’t going to work. Because yachts are sources of liability as well as being assets, and to provide privacy and make accounting easier, yachts are nearly always owned through companies. Trusts can provide an additional layer of secrecy, but keep in mind that obtaining justice can be challenging in some far-flung jurisdictions should your expectations not be met. DON’T ECONOMISE Costs can be kept down by using a proven hull design. Many builders offer semi-custom yachts, where you’ll be making mostly aesthetic choices. If you want to stand out from the crowd, commercial and even military designs can be repurposed to make striking yachts. You need to be clear on who owns the intellectual property and that you have the right to use such designs. Some team roles can be taken on by the same individual or company. Exterior and interior design can be carried out by the same person – arguably leading to more harmonious aesthetics. But trying to save costs by omitting any of the core technical skills sets can have significant adverse effects. Oversights at this first stage can require expensive modifications later, causing lengthy delays. Everyone’s remit must be clearly defined and dovetailed, with strict timescales baked-in to their service contracts. Engaging a good lawyer, with build experience, is crucial here. DESIGN ESSENTIALS A yacht’s design will be determined, in part, by the minimum technical standards dictated by the Flag State , which in turn may require your yacht to be built in compliance with classification society Rules. These are based on internationally agreed-to standards, which must be adhered to if your yacht is going to ever to sail anywhere, and without which you will find it near impossible to insure the vessel. They vary according to length, internal volume and use. But such standards do not generally cover some aspects, such as preventive maintenance, which, over time, will help support the vessel’s condition and resale value. Remove the panels of any yacht and you’ll see an array of pipes, wires and items of equipment. If it’s too difficult or time-consuming to reach such items, they can be overlooked and, eventually, fail. The result is not just you and your guests being inconvenienced. Some repairs can be disproportionately expensive, and in extreme cases this can lead to your yacht not being accepted by a buyer when it’s time to sell. With regards aesthetics, most buyers are reasonably conservative. Avant garde designs are going to look newer for longer, and this will help to maintain their value. But when futuristic tips into plain weird the resale market shrinks rapidly and cost of ownership skyrockets. THE END RESULT Playwright George Bernard Shaw once quipped that reasonable people adapt themselves to the world, while unreasonable people adapt the world to themselves – hence progress depends on unreasonable people. Challenging the innate conservativeness of builders and regulatory authorities requires an experienced, imaginative and practical team. In the case of a full custom yacht, the end result of this exciting pre-build stage should be a design and specification you’re happy with, which is ready to be put out to tender with shortlisted builders, and a team ready to oversee the build. If a semi-custom or series production yacht is your preference, the result is a team which understands your vision and is ready to review, negotiate and modify the builders’ pre-existing designs and specifications. With your team in place, it's time to chose a Flag State , and possibly a classification society , before engaging a builder . Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Choose a Flag Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Choose a Flag

Unavailable at present Latest Position Example Brokerage & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 70 m Length Finest Craft Builder 2013 Build year 805 Gross tonnage Marshall Islands Registry Particulars Simulation

The first question your naval architect is likely to ask is where your yacht will be registered. That registry’s regulations will do much to determine the design of your yacht. But, beyond that, the registry provides the legal framework for crew employment, and may determine how easily insurance and finance can be obtained. So research this in-depth rather than accepting your architect’s suggestion. Home Handbook Building / / Choose A Flag 10 May 2023 Last revised minutes 4 Reading time The first question your naval architect is likely to ask is where your yacht will be registered. That registry’s regulations will do much to determine the design of your yacht. But, beyond that, the registry provides the legal framework for crew employment, and may determine how easily insurance and finance can be obtained. So research this in-depth rather than accepting your architect’s suggestion. minutes 4 Reading time 10 May 2023 Last revised The first question your naval architect is likely to ask is where your yacht will be registered. That registry’s regulations will do much to determine the design of your yacht. But, beyond that, the registry provides the legal framework for crew employment, and may determine how easily insurance and finance can be obtained. So research this in-depth rather than accepting your architect’s suggestion. Registering a yacht in a country's ship registry determines its nationality, owner's responsibilities, and compliance with laws and regulations. The choice of registry impacts insurance availability, financing options, chartering regulations, taxation requirements, scrutiny from port officials, and service provided. Unusual flags may reduce insurance options and increase premiums. Lenders require high maintenance and safety standards and confidence in the country's rule of law for financing agreements. Chartering requires compliance with international regulations, and certain registries have simplified safety codes for cost-effective compliance. Cabotage rules may require local registration for commercial operations in specific jurisdictions. Temporary Admission allows tax avoidance in the EU for non-commercial use, but specific advice is necessary. Scrutiny by port officials can cause delays and inspections may be prioritized based on flag categorization. Helpful registries with easily accessible regulations and guidance are preferred. Local agents and service providers can assist with overcoming time zone difficulties, but may come with additional costs and risks. Cabotage rules may require local registration for commercial operations in specific jurisdictions. Temporary Admission allows tax avoidance in the EU for non-commercial use, but specific advice is necessary. Scrutiny by port officials can cause delays and inspections may be prioritized based on flag categorization. Helpful registries with easily accessible regulations and guidance are preferred. Local agents and service providers can assist with overcoming time zone difficulties, but may come with additional costs and risks. Registering a yacht in a country's ship registry determines its nationality, owner's responsibilities, and compliance with laws and regulations. The choice of registry impacts insurance availability, financing options, chartering regulations, taxation requirements, scrutiny from port officials, and service provided. Unusual flags may reduce insurance options and increase premiums. Lenders require high maintenance and safety standards and confidence in the country's rule of law for financing agreements. Chartering requires compliance with international regulations, and certain registries have simplified safety codes for cost-effective compliance. With some limited exceptions, all yachts have to be registered in a country’s ship registry, and fly that nation’s maritime flag, known as an ensign. That registry is often know as the Flag State, especially to distinguish it from the Port State – the latter being the country where a yacht is located when not in international waters. Registration is about much more than just choosing a flag to wear on the stern: it’s what gives a yacht nationality and frames owner’s, manager’s and crewmembers’ responsibilities. The choice of registry affects the laws and regulations the owner must adhere to, the ready availability of insurance and finance, whether certain taxes must be paid and the attention port officials may pay the vessel. Registration can also prove ownership and is a requirement for international cruising. Notably, there are registries entry into which proves nothing in terms of title. Examples of these include Delaware and the United Kingdom Part III Small Ships Register. Fees and expenses for registration are relatively small, but choosing the wrong registry can be a very costly error. Making that selection is a complicated process requiring independent, expert advice. A trap for the unwary is the recommendation of a certain flag with which a naval architect, project manager or other adviser happens to be familiar – without due consideration of all the owner’s particular circumstances and wishes. SIX FLAGGING FACTORS While the registries themselves are state agencies, many popular ones are managed on a commercial basis and – to an extent – compete with each other. This is a good thing since levels of service must be raised above that which one might otherwise expect from the government departments of certain countries. However, there can also be an incentive to be overly flexible when it comes to the drafting and enforcement of safety regulations. To an extent, flag choice can come down to a process of elimination. Emotions can be a factor but it’s best to let head rule heart. Here are the six main factors you should consider: Insurance Finance Chartering Taxation Scrutiny Service INSURANCE All yachts should be insured and third party cover is normally mandatory. Underwriters will want to understand the risk they’re agreeing to cover, and key to this will be the flag. An unusual flag will not make insurance impossible to find, but it will reduce the number of underwriters with an appetite to write such business thereby pushing up premiums. FINANCE Some yachts are financed, by means of a lease or loan , as a means to free-up investment capital for owners’ businesses. As with insurers, lenders will be taking a financial and legal interest in the vessel, and will want to make sure that the owner abides by high maintenance and safety standards. Lenders will also need to have confidence in the rule of law in the country of registration itself, since the mortgages will be entered in the registry. CHARTERING For the protection of paying guests, chartering requires adherence to a wide range of international regulations. Fortunately, certain registries have created safety codes to simplify compliance which reduces cost and administration. Certification by a classification society is normally required above a certain size, although this size varies. Some owners may regard classification as expensive and unnecessary (and it may not be possible for some vessels not originally built to class rules) while others choose this route for peace of mind regardless of charter activity. Chartering isn’t possible at all with some flags when the vessel is over a certain size, for example Jersey and Guernsey. The existence of any cabotage rules should also be considered. These are protectionist measures requiring vessels operating commercially to be registered locally if not engaged in international voyages. The best example of this is the United States. If the plan was to charter in US waters there would no other real choice but to fly the Stars and Stripes. TAXATION If not being used commercially, it is possible – where the beneficial owner is not tax resident in or connected with the European Union – to avoid the payment of Value Added Tax and customs in the EU on the yacht itself, for up to 18 months, through Temporary Admission. However, this requires registration outside the EU amongst other conditions. It also requires detailed, specific advice to ensure that the correct information is given and at the right time. VAT can be up to 25% and charged on the hull value. Port officials may detain a vessel pending payment (and any fines and/or interest). SCRUTINY Any yacht can be boarded, at any time, by a port official whose job it is to make sure that all the paperwork is in order – which can be invasive and can cause unexpected delays. As their time and resources are limited, inspections are often prioritised according to flag. The Paris Memorandum of Understanding, for example, is a group of 27 European and North Atlantic nations which inspect safety, security and environmental standards of more than 18,000 vessels each year. Other similar such groups exist worldwide. Information is shared between members, and flags categorised into White, Grey and Black lists. White List categorisation should mean fewer inspections but does not lead to immunity altogether. SERVICE If a registry isn’t helpful and doesn’t make its regulations and guidance easily available, in a language which managers, captains and crew can understand, then as a matter of common sense it can be ruled-out. Local agents and corporate service providers can be used to overcome time zone difficulties, but at a cost and with the risk of misunderstandings and further delays. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Keep it Classy Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Keep it Classy

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The loan finance business model is as simple as it sounds: the owner borrows part of the purchase price from a bank or other lender, and is the legal, registered owner of the yacht. The lender takes security over the yacht. While most yacht loan agreements and associated documentation is complex, most of this relates to the lender’s security. Home Handbook Financing / / Loans Overview 21 July 2015 Last revised minutes 2 Reading time The loan finance business model is as simple as it sounds: the owner borrows part of the purchase price from a bank or other lender, and is the legal, registered owner of the yacht. The lender takes security over the yacht. While most yacht loan agreements and associated documentation is complex, most of this relates to the lender’s security. minutes 2 Reading time 21 July 2015 Last revised The loan finance business model is as simple as it sounds: the owner borrows part of the purchase price from a bank or other lender, and is the legal, registered owner of the yacht. The lender takes security over the yacht. While most yacht loan agreements and associated documentation is complex, most of this relates to the lender’s security. Lenders typically use their own documentation, which may lack clarity and organization. The loan agreement outlines the availability of funds and conditions for repayment. Security provisions are crucial and can be detailed in the loan agreement and additional documents. Covenants in the loan agreement specify borrower obligations and restrictions, such as the sale and navigation of the yacht. Assignments of rights under insurance policies and charter earnings may be required. The mortgage on the yacht is registered as part of the loan agreement. Guarantees from third-party companies and beneficial owners provide additional security. Covenants and restrictions aim to ensure proper management, operational compliance, and insurance coverage. Choosing English law and jurisdiction is common in the ship finance sector due to expertise and favorable legal conditions. Opting for English law can save costs and promote amicable relationships among parties involved. The mortgage on the yacht is registered as part of the loan agreement. Guarantees from third-party companies and beneficial owners provide additional security. Covenants and restrictions aim to ensure proper management, operational compliance, and insurance coverage. Choosing English law and jurisdiction is common in the ship finance sector due to expertise and favorable legal conditions. Opting for English law can save costs and promote amicable relationships among parties involved. Lenders typically use their own documentation, which may lack clarity and organization. The loan agreement outlines the availability of funds and conditions for repayment. Security provisions are crucial and can be detailed in the loan agreement and additional documents. Covenants in the loan agreement specify borrower obligations and restrictions, such as the sale and navigation of the yacht. Assignments of rights under insurance policies and charter earnings may be required. Lenders will usually have their own ready-made documentation. While reasonably uniform in scope and contents, the taxonomy and readability usually leave much to be desired. Within the loan agreement, the loan clause sets out that the loan will be available, either in one lump sum where the yacht has already been built, or at certain newbuild milestones. Given that the lender’s not the owner, the security, detailed in the agreement, is comprehensive. Default events are set out in the loan agreement, to make clear the circumstances which will trigger the lender’s right to demand immediate repayment of the loan and what happens in the event such payment is not forthcoming. Finally, various standard boilerplate clauses in the loan agreement deal with key housekeeping matters, with the most important being the law and jurisdiction clause: parties must make sure they are taking advice from an experienced, insured lawyer duly qualified in the correct jurisdiction. SECURITY Security provisions make up most of the loan documentation, and can be set out both in the loan agreement and further documents: A covenants clause within the loan agreement, and/or a separate deed of covenant Assignments to the lender of the borrower’s rights under yacht’s insurance policies An assignment of the yacht’s charter earnings to the lender The mortgage on the yacht, registered pursuant to the loan agreement A guarantee from a third party company owned by the yacht’s beneficial owner A guarantee from the beneficial owner him or herself Covenants set out positive and negative promises on the part of the borrower. There is usually a restriction on the sale of the yacht, and restrictions the geographical navigation and use of the yacht – for example, the yacht may not be allowed to visit places where enforcement of loan could prove challenging. Chartering and operational management often may only be undertake on approved terms. Where management is deficient, insurance cover could be withdrawn and the lender’s security unnecessarily jeopardised. A more detailed analysis of the security requirements is set out here . LAW & JURISDICTION As, for historical reasons, the centre of the world’s ship finance sector is London, it makes sense to ensure that all the contractual relationships are governed by English law and subject to English jurisdiction. Although it is not easy to think of yachts as being ships, that is exactly what they are in the eyes of the law. A greater concentration of yachting lawyers and case-law, coupled with an innovative banking culture and a legal regime which encourages settlement, means that this choice may well save legal costs and maintain good relations among the parties. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Loan Security Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Loan Security

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Compliance with the more obscure flag state regulations and local laws can sometimes seem like unnecessary hassle and expense. Yet if you, as a yacht owner, are to remain protected in the event of an accident, investing in detailed compliance may be money well spent. You also need to keep lines of communication with your insurance broker open. Home Handbook Insuring / / Staying Covered 10 May 2023 Last revised minutes 6 Reading time Compliance with the more obscure flag state regulations and local laws can sometimes seem like unnecessary hassle and expense. Yet if you, as owner, are to remain protected in the event of an accident, investing in detailed compliance may be money well spent. You also need to keep lines of communication with your insurance broker open. minutes 6 Reading time 10 May 2023 Last revised Compliance with the more obscure flag state regulations and local laws can sometimes seem like unnecessary hassle and expense. Yet if you, as owner, are to remain protected in the event of an accident, investing in detailed compliance may be money well spent. You also need to keep lines of communication with your insurance broker open. Warranties are requirements that must be fulfilled by the policyholder to manage risk in insurance situations. Breach of warranty no longer automatically avoids all liability for underwriters since 2016. Underwriters remain liable for losses occurring after a breach of warranty if it can be remedied. If a loss occurs while the insured is in breach of warranty and the breach increases the risk, underwriters can deny liability. Breach of warranty regarding past facts may permanently suspend the underwriter's liability. Identifying warranties in a policy is crucial as they can be expressed or implied by law. Popular policy forms include warranties related to the purpose of use, navigation limits, vessel control, etc. The warranty of legality is an important implied warranty that covers lawful adventures and lawful usage of the yacht. Seaworthiness may not be explicitly required in policies, but it can impact coverage and claims. Sensible precautions, such as using approved charter agreements and verifying crew qualifications, are recommended to ensure coverage and compliance with laws and regulations. Identifying warranties in a policy is crucial as they can be expressed or implied by law. Popular policy forms include warranties related to the purpose of use, navigation limits, vessel control, etc. The warranty of legality is an important implied warranty that covers lawful adventures and lawful usage of the yacht. Seaworthiness may not be explicitly required in policies, but it can impact coverage and claims. Sensible precautions, such as using approved charter agreements and verifying crew qualifications, are recommended to ensure coverage and compliance with laws and regulations. Warranties are requirements that must be fulfilled by the policyholder to manage risk in insurance situations. Breach of warranty no longer automatically avoids all liability for underwriters since 2016. Underwriters remain liable for losses occurring after a breach of warranty if it can be remedied. If a loss occurs while the insured is in breach of warranty and the breach increases the risk, underwriters can deny liability. Breach of warranty regarding past facts may permanently suspend the underwriter's liability. Warranties serve to manage risk in various situations. They are requirements that need to be fulfilled by the policyholder. Warranties can be promissory, where the policyholder commits to a specific action or condition, or they can affirm or deny the existence of certain facts. Simply labelling a term as a warranty is insufficient, and the courts will consider the parties' intentions as well. They can be set out in the policy, or are implied by law – for example that the yacht will be used for lawful purposes, and operated in a lawful manner. BREACHES OF WARRANTY Since 2016, the old ‘basis of the contract’ clauses have been abolished. This means that underwriters cannot automatically avoid all liability if an express warranty is breached. The underwriter is liable for losses that occurred before a breach of warranty – as was always the case. But now, if the breach can be remedied, the underwriter remains liable for losses that happen after the breach has been fixed. If a loss occurs while the insured is in breach of a warranty, and if (crucially) the breach actually increased the risk of the actual loss, underwriters can still deny liability. Once (if) the insured rectifies the breach before the loss happens, the insured will again be back on-cover. After a breach of a warranty, the insured is still responsible for paying the premium. However, underwriters may be cautious when demanding payment to avoid waiving their right to rely on the breach. If the breach cannot be rectified, such as a breach of warranty regarding past facts (e.g., previous insurance claims or losses), the liability of the underwriter remains permanently suspended, and the insured will not have had any cover. RECOGNISING WARRANTIES So, with such serious consequences flowing from a breach of warranty, it is vital to be able to identify what warranties apply to a policy. The trouble is that warranties can be expressed in the contract, but not actually described as a warranty. More worryingly, they can be implied automatically by law, without even having to be agreed upon. Thankfully, express warranties must at least be included in the policy, or must at least be contained in some document referred to in the policy. So in the event of a claim it wouldn’t be good enough for an underwriter to simply dust-off some previously unknown ‘standard’ terms and refuse to pay. They are normally added as a deliberate and obvious fundamental stipulation of the contract. While implied warranties cannot be found in policies, they are easy to ascertain from the UK’s Marine Insurance Act 1906, and we’ll consider the more important ones below. While it may seem narrow-minded just to look at English law, it’s worth considering that most of the world’s risks are insured on the London market, and most countries model their own insurance laws on this Act – sometimes word for word. Whereas express warranties tend to be specific, implied warranties can be overarching and vague; so there can be overlaps between them. But an express warranty will not exclude an implied warranty on a related matter, unless directly inconsistent with it. EXPRESS WARRANTIES The two most widely used policy forms, the Institute Yacht Clauses and the American Yacht Form, contain warranties that the yacht is only to be used for ‘private pleasure purposes’ and is not to be chartered unless the underwriters specifically agree. The Institute Yacht Clauses also frame agreed navigation limits and the vessel’s maximum speed as warranties. Other popular forms often demand that when the yacht is underway a competent person must be on board and in control of the vessel. In a 2006 English case, concerning a claim following a serious fire on board the motor yacht Newfoundland Explorer while she was laid up afloat in Fort Lauderdale, the court held that the phrase ‘warranted vessel fully crewed at all times’ meant that the owner had to keep at least one crew member on board the yacht 24 hours a day, subject to (i) emergencies rendering crew departure necessary, or (ii) necessary temporary departures for the purposes of performing crewing duties or related activities such as adjusting mooring lines. It wasn’t good enough to employ a captain who lived ashore 30 minutes away. History was repeated in 2008 with a fire on board another vessel, Resolute, whose crew lived nearby – and the court in that case came to the same conclusion. WARRANTY OF LEGALITY Arguably the most important warranty is not expressed, but implied. Under the UK’s Marine Insurance Act 1906 (and in the laws of many other nations) there is an implied warranty that: The ‘adventure’ (i.e. a charter or a period of use by the owner and/or crew) will be lawful; and The yacht will be used in a lawful manner – as far as the insured can control the matter. With regard to legality of the adventure, at one end of the spectrum a yacht will clearly not be covered where the owner uses it for smuggling. Problems arise where the owner has no knowledge of doing anything illegal. Illegality may stem from local law as well as the yacht’s flag state law: a yacht chartering in without a local charter licence may not be covered. One would also want to ensure that the complex US security regulations are complied with when entering their waters. As for the second part – using the yacht in a lawful manner – this is only an issue as far the owner can control it. Compliance with safety-related regulations, such as the International Safety Management (ISM) Code or the Red Ensign Group Yacht Code Large Yacht will be a prerequisite to the underwriter paying related claims. So important is the warranty of legality that breaches of it cannot be waived by a kind underwriter, neither can the parties agree to overlook it. The warranty of legality has been used to avoid payment even where the crew failed to keep a proper watch – as this was in itself a breach of international collision regulations. In one landmark case, a yard was also denied cover where fire destroyed yachts in the yard, but where the yard itself did not conform to municipal byelaws. SEAWORTHINESS As surprising as it may seem, where a policy is for a period of time (as nearly all are) rather than for a specific passage, there is no implicit requirement in law for your yacht to be maintained in a seaworthy state. While some policies overcome this by expressly obliging the owner to maintain the yacht in a seaworthy condition, some standard forms don’t. Where there’s no stated obligation to do so, the underwriter will not be liable for any losses arising from unseaworthiness if the yacht actually puts to sea in that state with the knowledge of the insured. Where, as is normally the case, the legal owner (and therefore the named insured) is an offshore company, perhaps held in trust, identifying the individual(s) with such knowledge is difficult. The managers are an obvious starting point. Whilst it is for the underwriters to prove such knowledge, not for the insured to disprove, a review of the documents and correspondence held by the ISM Code ‘designated person’ could prove fatal to the chances of a pay-out. Being in a seaworthy condition means just that: falling short, but nevertheless making every effort, will not do. Even if a policy does not insist on seaworthiness, this is likely to be examined by the underwriter in any event after a claim, as any material non-disclosure would still provide a separate route for invalidating the claim. Many flag states, in particular within the Red Ensign group, have technical Codes of Practice that apply specifically to large yachts and those which are chartered. These provide objective measures of unseaworthiness, but, whilst helpful, should not be considered as providing a complete description of what constitutes a seaworthy yacht. SENSIBLE PRECAUTIONS If you’re chartering your yacht out, underwriters may insist on the use of a charter agreement that has been specifically approved by them, or is in a standard industry format, such as that published by MYBA . Likewise, if you’re going to race your sailing yacht, you may net to provide advance notification. However you use your yacht, be sure to get written confirmation of the ongoing information needed by underwriters – and provide this clearly, verifiable and in good time. It's also vital to check that your yacht is operating in accordance with flag and port state laws, and that you have the paperwork to provide this. Check, also, that your crew have the qualifications they claim they have: there are various third parties which provide this standalone service. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Making a Claim Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Making a Claim

Yacht brokers play an essential role in the sale and purchase market. Reputable brokers know the current market, how to market the vessel, how much for and to whom. While they can also be engaged to represent buyers, this article looks at their role as the seller’s representative. Home Handbook Buying / / The Brokers' Role 2 September 2020 Last revised minutes 5 Reading time Yacht brokers play an essential role in the sale and purchase market. Reputable brokers know the current market, how to market the vessel, how much for and to whom. While they can also be engaged to represent buyers, this article looks at their role as the seller’s representative. minutes 5 Reading time 2 September 2020 Last revised Yacht brokers play an essential role in the sale and purchase market. Reputable brokers know the current market, how to market the vessel, how much for and to whom. While they can also be engaged to represent buyers, this article looks at their role as the seller’s representative. Yacht brokers are generally unregulated in most parts of the world, allowing anyone to become a broker without barriers to entry. Due diligence is essential for prospective yacht buyers to assess the credibility and ethics of brokerages and individual brokers. Brokers often prefer to work under a Central Agency Agreement, granting them exclusive rights to market the yacht and ensuring a return on their investment. It is important for buyers to verify if the broker they are dealing with is the Central Agent to avoid complex communication chains. The exclusivity term in the Central Agency Agreement can be negotiated, but sufficient time should be given to the broker for marketing and selling the vessel. Even if a sale is not directly related to the broker's efforts, they may still be entitled to a commission during the agreement period. Joint Central Agency Agreements may involve multiple agents deciding on marketing and commission splits, requiring careful consideration. Disputes between sellers and brokers often arise due to vague or ambiguous broker instructions. Standard terms and conditions provided by brokers should be examined carefully to understand the scope of services and any limitations or exclusions. Yacht brokers have fiduciary duties to act in the best interest of their principals, exercise reasonable care and skill, and avoid conflicts of interest. Even if a sale is not directly related to the broker's efforts, they may still be entitled to a commission during the agreement period. Joint Central Agency Agreements may involve multiple agents deciding on marketing and commission splits, requiring careful consideration. Disputes between sellers and brokers often arise due to vague or ambiguous broker instructions. Standard terms and conditions provided by brokers should be examined carefully to understand the scope of services and any limitations or exclusions. Yacht brokers have fiduciary duties to act in the best interest of their principals, exercise reasonable care and skill, and avoid conflicts of interest. Yacht brokers are generally unregulated in most parts of the world, allowing anyone to become a broker without barriers to entry. Due diligence is essential for prospective yacht buyers to assess the credibility and ethics of brokerages and individual brokers. Brokers often prefer to work under a Central Agency Agreement, granting them exclusive rights to market the yacht and ensuring a return on their investment. It is important for buyers to verify if the broker they are dealing with is the Central Agent to avoid complex communication chains. The exclusivity term in the Central Agency Agreement can be negotiated, but sufficient time should be given to the broker for marketing and selling the vessel. In most parts of the world, yacht brokers aren’t regulated in law. There are no barriers to entry. Anyone can set themselves up as one – and many frequently do. Some brokers are not averse to offering insurance, for example, without the necessary regulatory permits to do so – which often paints an accurate picture of their approach to professional ethics and legal niceties. Recommendations are useful, but prospective buyers need to conduct due diligence on both brokerages and individual brokers. CENTRAL AGENTS As well as working under their own terms and conditions, brokers usually prefer to work under a Central Agency Agreement – under which they have the exclusive right to market the yacht. This gives them peace of mind and will encourage them to do their best to sell the vessel, safe in knowledge that – unless the vessel fails to sell at all – they will see a return on their investment. As a prospective buyer, you should ensure that the broker you are dealing with is indeed the Central Agent: otherwise an unnecessary and inefficient chain of communications can be set up which makes negotiating that much more complex, lengthy and uncertain. MYBA, for example, produces its own approved, standard Central Agency Agreement which is reasonably fair if somewhat simplistic. The exclusivity term of the Central Agency Agreement is a matter of negotiation, but the broker should be afforded a sufficient chance to market and sell the vessel – keeping in mind the yacht show calendar, the vessel’s usual mooring location and the time needed to produce promotional materials, videos, etc. Crucially, under such agreement the broker is usually entitled to commission where the yacht is sold during the period of its currency – even if the sale had nothing to do with the broker’s efforts. Perhaps the seller has a business associate looking to buy her – or a regular charterer is looking to make her his own: if these are realistic possibilities, the agreement will need amending. Alternatively, the seller may prefer to appoint more than one central agent under a Joint Central Agency Agreement, with multiple agents deciding between themselves how the vessel is to be marketed and the commission split. Attention must still be paid to what is to happen where a sale occurs regardless of the joint central agents’ efforts. Disputes between sellers and brokers most often occur because of the vagueness of, or ambiguities contained in, the broker's instructions. Brokers may also seek to regulate the relationship between them and their clients with ‘standard’ terms and conditions. Any prospective client would be urged to examine these carefully, and take advice, to ensure that there are no misunderstandings about the scope of the services being supplied – and the limitation and exclusions which may apply. Any clauses seeking to exclude or limit liability will be subject to laws governing unfair contract terms – and so cannot necessarily be taken at face value. Further, in the unlikely event that the seller is an individual, rather than a company, the terms must usually comply with the Consumer Rights Act 2015 which seeks to ensure that contracts within its remit are, broadly, as fair as possible. In providing brokerage services, a legal agent/principal relationship is established. This means that the relationship between seller and broker is governed not only by the written arrangements made in the brokerage agreement, but by the unwritten (as far as the parties are concerned) law of agency. Well understood by lawyers, but not necessarily by the parties, there can be obligations owed by broker to the seller, and vice versa, of which one or neither is completely unaware. INTERMEDIARY BROKERS Sometimes, central agents just don’t have sufficient market penetration. Perhaps they just don’t have the necessary geographic or cultural reach, or it’s just that their little black book doesn’t have the right numbers in it. They may use other brokers (known as intermediary or sub brokers) and/or other parties to reach the ear of the prospective client. While this should be avoided, for the reasons touched on above, sometimes it’s unavoidable if an opportunity isn’t to be lost. While intermediary brokers have no contractual connection with the seller, they nevertheless have certain rights and obligations. The law recognises the intermediary broker’s right (unless other arrangements have been agreed between them and the Central Agent) to be paid a commission – but only where such broker introduces the buyer to the purchase opportunity, and – crucially – was thereby the, or an, “effective cause” of the sale. In determining where an intermediary broker’s’ actions formed an effective cause rather than simply a cause, the question is whether the party actually brought about the relationship between the buyer and seller. There is no clear set of principles which can be distilled from the many legal cases on this subject. Whether such broker is the effective cause simply depends on the facts of each case – but such an effective cause will be very readily implied by the courts. The intermediary broker does not have to complete or even take part in the negotiations which do take place, nor arrange any meeting, nor persuade either party to enter into the contract. Commission will still be due where the price agreed is lower than that originally put forward. REASONABLE CARE & SKILL Under section 13 of the Supply of Goods and Services Act of 1982, the broker will have an automatic legal duty to exercise reasonable care and skill in performing its services - subject to any express terms of the brokerage agreement. What constitutes reasonable care and skill is what one would expect of a competent yacht broker. In court, independent and authoritative expert testimony would likely be sought to establish what such expectations are and whether these have been met. Intermediary brokers also owe sellers a duty to exercise reasonable care and skill – even in the absence of a direct contractual link. FIDUCIARY DUTIES As agents, brokers owe their principals other particular legal duties, including acting in good faith, and not acting in its own interest (or that of a third party) without the principal's consent. It’s no excuse that the principal would have consented had he or she been asked. COMMISSION There can be confusion regarding the extent to which broker must disclose third party commissions paid, by the broker, in connection with each sale. The courts have accepted that – in the commercial shipping world at least – market practice encompasses the paying of commission, by brokers, to intermediary brokers and other third parties, as part of the broker’s own outgoings. The broker is not required to disclose such costs to his principal unless specifically requested. But (and it’s a big but!) brokers must ensure that their actions do not lead to anyone breaching the provisions of the Bribery Act. It is easy to foresee circumstances under which a captain of the yacht for sale receives a commission without the consent of his employer – thereby committing a criminal offence to which the broker is then an accessory. BROKER AS STAKEHOLDER Under the MYBA Memorandum of Agreement (MOA), the seller’s broker normally acts as ‘stakeholder’ – holding the deposit. This is typical of many such standard sale agreements. The broker must distribute the funds upon the occurrence of certain events listed in the agreement – and must not follow the instructions of other parties including the broker’s own client. Surprisingly, there’s nothing in the MYBA MOA obliging the broker to keep funds in a separate client account, nor pay interest on the cash it holds. PAYING THE BROKER Under the MYBA sale form, the seller must pay the commission directly to the broker(s) identified in the MOA, on successful completion of the sale, or where the sale is not finalised but the seller and the buyer agree a sale within two years of the sale agreement. The broker is made a party to the agreement for certain purposes – giving it the right to enforce those clauses relating to commission. Where the broker isn’t party to the sale agreement, a right of enforcement may be provided by the Contracts (Rights of Third Parties) Act of 1999, which grants a third party the right to enforce a contract under certain circumstances. What practical use this would be where the seller is an owning company which has just sold its only asset and distributed the resulting funds is another matter. COMPLAINTS Where owners are dissatisfied with a broker’s behaviour, it is often worth seeing if matters can be brought to satisfactory conclusion without the need for litigation. Brokers are often members of associations which may have their own codes of conduct, and may have a complaints mechanism. Professional indemnity insurance may be required, and a conversation with underwriters may focus minds especially where there is a substantial policy excess. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about MYBA MOA Clause by Clause Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about MYBA MOA Clause by Clause

Most yacht builders have their own ‘just sign here’ standard build terms. They vary enormously in length and complexity. Such agreements often miss out important aspects and can be subject to local law and jurisdiction - whose courts may not be impartial and where you may struggle to find competent, specialist lawyers. Don’t sign them. Contact us for guidance. Given the amount of money at stake, such contracts should only be viewed as an opening to contractual negotiations. Home Handbook Building / / The Build Agreement 10 May 2023 Last revised minutes 10 Reading time Most builders have their own ‘just sign here’ standard build terms. They vary enormously in length and complexity. Such agreements often miss out important aspects and can be subject to local law and jurisdiction - whose courts may not be impartial and where you may struggle to find competent, specialist lawyers. Don’t sign them. Contact us for guidance. Given the amount of money at stake, such contracts should only be viewed as an opening to contractual negotiations. minutes 10 Reading time 10 May 2023 Last revised Most builders have their own ‘just sign here’ standard build terms. They vary enormously in length and complexity. Such agreements often miss out important aspects and can be subject to local law and jurisdiction - whose courts may not be impartial and where you may struggle to find competent, specialist lawyers. Don’t sign them. Contact us for guidance. Given the amount of money at stake, such contracts should only be viewed as an opening to contractual negotiations. Privacy concerns and the need for NDAs should be addressed early on with the engagement of an experienced lawyer. Payments should be made upon completion of build milestones, with independent surveyor signoff, and account for material costs, transport, and exchange rates. Security measures should be in place to protect against builder insolvency, including ownership transfer and guarantees from the builder's bank. Consider local legal requirements for ownership transfer and potential statutory liens by unpaid subcontractors. Clearly define the triggering events and duration of guarantees to ensure protection in case of builder insolvency or yacht issues. Establish clear and rigid procedures for change orders to avoid cost overruns and delays. Subcontractors should be carefully vetted, and the builder should remain liable for their mistakes. Materials should not be subject to title retention. Specify insurance requirements for the part-built project and ensure the wording is adequate and obtained from reputable insurers. Address force majeure events, their effect on the delivery date, and the need for a cap. Clarify buyer-ordered modifications' impact on delays. Ensure all correct legal documents for the yacht's registration are presented before final payment and agree on the place of legal delivery. Allow access for tests, inspections, and reasonable rectification of faults before delivery. Define criteria for acceptance or rejection of the yacht. Formal testing at sea is necessary to verify performance against specifications, and a margin of tolerance with incremental compensation may be agreed upon. Establish the buyer's right to refuse delivery if faults are not rectified, and differentiate between minor non-conformities and deliverable condition requirements. Warranty period should be agreed upon for materials and workmanship, and provisions for rectifying defects and compensation should be addressed. Dispute resolution mechanisms should include independent technical experts for technical matters and arbitration or litigation for non-technical or high-value disputes. Consider enforceability and confidentiality aspects when choosing between arbitration and litigation. Ensure all correct legal documents for the yacht's registration are presented before final payment and agree on the place of legal delivery. Allow access for tests, inspections, and reasonable rectification of faults before delivery. Define criteria for acceptance or rejection of the yacht. Formal testing at sea is necessary to verify performance against specifications, and a margin of tolerance with incremental compensation may be agreed upon. Establish the buyer's right to refuse delivery if faults are not rectified, and differentiate between minor non-conformities and deliverable condition requirements. Warranty period should be agreed upon for materials and workmanship, and provisions for rectifying defects and compensation should be addressed. Dispute resolution mechanisms should include independent technical experts for technical matters and arbitration or litigation for non-technical or high-value disputes. Consider enforceability and confidentiality aspects when choosing between arbitration and litigation. Privacy concerns and the need for NDAs should be addressed early on with the engagement of an experienced lawyer. Payments should be made upon completion of build milestones, with independent surveyor signoff, and account for material costs, transport, and exchange rates. Security measures should be in place to protect against builder insolvency, including ownership transfer and guarantees from the builder's bank. Consider local legal requirements for ownership transfer and potential statutory liens by unpaid subcontractors. Clearly define the triggering events and duration of guarantees to ensure protection in case of builder insolvency or yacht issues. Establish clear and rigid procedures for change orders to avoid cost overruns and delays. Subcontractors should be carefully vetted, and the builder should remain liable for their mistakes. Materials should not be subject to title retention. Specify insurance requirements for the part-built project and ensure the wording is adequate and obtained from reputable insurers. Address force majeure events, their effect on the delivery date, and the need for a cap. Clarify buyer-ordered modifications' impact on delays. An immediate concern usually not covered is privacy, which may, of course, be one of the reasons you’re looking to have a yacht built in the first place. An experienced lawyer must be engaged at the outset – not brought in at the last minute to cast an eye over what everyone else considers to be a done deal. And his or her priority will be to get NDAs in place with the builder. SPECIFICATION & COST There’s no point finding designers who pen the perfect yacht, which the builder then interprets in its own (possibly cost-cutting) way. Moreover, modifying a yacht retrospectively can be particularly time-consuming and expensive. An incorrectly interpreted specification might prevent a yacht being chartered out . So the design and specification, in compliance with specific Flag State regulations and classification society Rules (if applicable) must be set out in exquisite detail, and agreed – in principle – with the builder, along with the build cost. With this settled, attention can be turned to the principal elements of the build agreement. PAYMENTS It’s customary for payments to be made upon the completion of certain build milestones. This way, your exposure is minimised while the builder has sufficient cashflow. Whether or not a stage has been satisfactorily completed is a technical question, needing signoff from an independent surveyor instructed by you – not the builder. The first payment is made by way of a deposit before construction starts. With large projects taking years to complete, account should be made for fluctuations in materials costs and transport, and exchange rates. Placing the builder under real financial strain will be to no one’s advantage. SECURITY Consideration must be given to the consequence of the builder folding mid-build. It happens. Without agreement otherwise, the builder would be left with both instalments and an incomplete yacht as assets, with you standing at the end of a long line of creditors. So your security takes two forms. Firstly, ownership of the yacht is transferred to the buyer as it is built. Secondly, the builder supplies the buyer with guarantees, issued by the builder’s bank, for the refund of pre-delivery instalments, against which the buyer pays each such instalment. Such guarantee can also take the form of an insurance-backed Advance Payment Bond (remembering that banks can, on occasion, themselves go bust). Keep in mind that any transfer of ownership may be subject to formalities under local law – regardless of the build agreement’s law and jurisdiction – so it’s important to take local legal advice. If the worst does happen, in spite of all the financial due diligence you undertook, then you will still need to have the project moved elsewhere for completion, so check that, under local law, unpaid subcontractors aren’t automatically entitled to a statutory lien over the yacht and materials, which may prevent removal. It is vital to state in the contract that only ownership, and not risk (which may otherwise also automatically be transferred at the same time), is being transferred. If the yacht is being financed, it may also be possible to register a mortgage over the incomplete project in favour of the lender. As to the specific small print of the guarantee, the most important element is what triggers the ability of the buyer to make a demand for payment under it. The most favourable option is for the buyer to have the ability to make a demand by stating that there has been a default on the part of the builder, under the terms of the build agreement, which therefore merits payment. The builder or bank may wish instead to expressly state the particular events which could lead to payment. By far the most important triggering event which must be described in the guarantee is the builder’s insolvency. It will not be good enough, for example, for the guarantee to become payable only when a receiver has been appointed, or any dispute between buyer and builder is settled, as these may take many months or even years in some jurisdictions. Far better for the guarantee to become payable as soon as it can be shown that the builder is in financial difficulties. Moreover, the procedure for presenting the bank with a demand for payment should be simple and straightforward. And there’s no point in having a guarantee which offers high protection, but which expires too soon. Where a guarantor will only pay after the matter has been litigated (in the absence of settlement) the guarantee must last for a period of years to take account of lethargic court processes. A number of owners have, in the past, enjoyed using their own business acumen to diagnose mismanagement and their own capital to save it. But this takes time and may not lead to a solution. Moreover, if the builder survives until completion of the yacht, there may still be issues with the delivered yacht for which the buyer wants significant compensation, and may still need the protection of the guarantee. If it expires immediately upon delivery and sea trial, for example, then there will be virtually no time in which to decide whether or not demand payment, and calculate the appropriate figure. CHANGE ORDERS It may well be that it’s only when you see your yacht start to take shape that realise that the layout or specification could be improved. While there’s a temptation to discuss modifications orally – for convenience – cost overruns and disproportionate delays may result. Modification procedures must be clear, and rigidly adhered to. As large numbers of changes may also start to affect the builder’s other projects, the builder may want terms in the contract to the effect that such modifications will only take effect if the builder agrees to the proposed adjustment to the contractual price and delivery date. The builder may also want to reserve a right of refusal if other projects would be affected. Additional payments may also be required. Clearly, the builder could be put in an overly dominant position if such a clause was not well drafted. In the case of very large projects taking many years, you may also want to leave gaps in the specification to allow for last-minute choices of high-tech equipment. SUBCONTRACTORS It’s common to subcontract significant elements of the builds, but you must make sure that only approved third parties can be brought in. If there’s any doubt, ask your project manager to visit the subcontractors and their previous projects to assess quality. To avoid confusion, the builder should still be expressly liable for any of its suppliers' or subcontractors' mistakes. Further, the builder must be obliged to pay suppliers promptly, and the materials provided must not be allowed to be subject to any form of title retention – to prevent anything being reclaimed later. DAMAGE While the builder should be obliged to insure the part-built project, the quality and wording of that insurance must also be clearly specified if it’s to be worth more than the paper it’s written on. The Institute Clauses for Builders’ Risks policy wording is adequate, and security obtained on the Lloyd’s of London insurance market (or equivalent) should be insisted upon. The builder and buyer should be named as joint assured, with any claims payable to the builder and buyer as a reflection of their interests at the time of the claim. There will also be other matters to be considered in the event of the project being damaged. You should have the option of either cancelling the contract and being refunded payments made up to that point, or requiring the builder to use its insurance pay-out to carry on with the build, in spite of the enormous delays involved. Where the damage causes the project to be scrapped rather than just delayed, builders will normally be reluctant to agree to compensate buyers for the loss of their slot, and for any premium a speculative buyer hoped to make on the build. It is still open to buyers to seek separate insurance for this loss. A new delivery schedule will need to be agreed. FORCE MAJEURE Events beyond the control of the builder are known as ‘force majeure’ events. These may or may not be defined by law. Where they are not, the parties need to ensure that all possibilities are covered, and what their effect will be. Typically, the contractual delivery date will be extended, but the parties will need to clarify whether this is by reference to the number of days the force majeure event continued or the effect on the project’s critical path. Even where delay is caused by a force majeure, such latitude should be subject to a cap – so that the point where enough is enough is clear. The exception to this will be delays due to modifications ordered by the buyer. DELIVERY Sorting matters out with a builder after the final instalment has been paid can be especially difficult. It is crucial that all the correct documents relating to legal title are presented before payment is made. Otherwise the new yacht cannot be registered and will not be allowed to sail anywhere. The place of legal delivery may also have tax implications, and must be agreed. At the point of delivery, the yacht should not only function and appear as envisaged, but it should meet all the classification society and Flag State regulations, especially if it is going to be chartered. Build agreements should allow not only access to the builder for the buyer’s representative, but reasonable tests and inspections, including those to be undertaken at subcontractors’ and suppliers’ premises. The representative should be allowed to require the builder to rectify evident faults immediately. TESTING The newly completed yacht will have to be formally tested, at sea, to make sure that the performance matches the specification. This is the buyer’s opportunity to determine whether the yacht has been built in conformity with the agreed contractual specifications and meets the contractual performance criteria. The owner’s representative, Class and Flag State surveyors will attend these trials and sign off the individual test protocols. As no two yachts are ever identical, their performance in terms of displacement, speed, noise levels, vibration and range, are difficult to predict even whilst using the latest computer-aided design techniques, FEA (finite element analysis), CFD (computational fluid dynamics), tank testing and wind tunnel testing. A practical solution is to agree a small margin of tolerance followed by incremental compensation which the builder must pay if the performance criteria aren’t met but still fall within certain limits. This incremental approach can only be applied to a certain extent and thereafter the right of rejection must lie with the buyer. REJECTION Ultimately, if faults are not put right, the buyer must have the right to refuse delivery. So the build agreement must make it crystal clear whether a particular requirement is to have the legal status of a condition, entitling the buyer to refuse delivery – especially as small defects are simply inevitable in any large project. The laws of most jurisdictions are vague on such matters, involving considerations of whether the yacht is of ‘satisfactory quality’ and ‘reasonably fit’ for purpose, and therefore in a ‘deliverable’ condition. This problem is made much worse by the critical importance of aesthetic elements. The standard contractual term for the small and inevitable defects is a ‘minor non-conformity’. Usually, the buyer will be forced to accept delivery with the minor non-conformity list outstanding, under the proviso that the list is taken care of by the builder as soon as possible. WARRANTY Not all of your new yacht’s inevitable little faults will come to light during the trails. Only over time will all the equipment and systems be used in varying weather conditions. The builder should guarantee materials and workmanship for a period of warranty – at least a year – after delivery. Builders will usually agree to correct defects during this period, but not to compensate. The builder may demand that otherwise pre-existing legal rights are given up, and that once the warranty period has expired no further responsibility will rest with the builder. The builder may not wish to compensate for loss of use and charter income, and a detailed notification procedure may also have to be complied with. Such demands should be considered carefully. Where significant concessions are granted by the buyer, the contract should ideally provide for the last payment instalment to be withheld until the end of the warranty period. It may be necessary to bring the yacht into dry-dock, so the buyer must be entitled to have work carried out by a yard other than that in which she was built if cruising schedules are not going to be spoiled.. DISPUTES Disputes between the buyer and builder are most likely to be technical in nature. Even the lustre of paint, for example, can be objectively measured. As courts are better at deciding points of law rather than fact, it makes sense to decide which points would be better decided by an independent expert. A representative from the classification society, for example, is typically agreed on to decide points upon which the society has created technical rules, but the use of another mutually agreed third-party expert should also be agreed for other matters. The expert should be asked to provide an independent opinion, and not act as arbitrator. Arbitrators can decide upon matters of law and evidence, and this requires the expertise of an experienced legal expert. Matters which are non-technical, or which involve large sums, should be agreed to be arbitrated according to the rules of an established arbitrators’ association, or referred to court. The choice of arbitration or litigation may depend on the enforceability or otherwise of an arbitrator’s decision, compared with a court judgment, in the home states of the parties involved. Sometimes, an arbitrators’ decision will be the more powerful of the two, and – unlike court proceedings – arbitrations are confidential in nature. To include long-term flexibility, and an acceptance that some flaws will be evident in the finished product, into a cast-iron contract, is no easy task. Time spent discussing and agreeing on this at the start will be a sound investment compared with the potential arguments which bubble-up later on. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about The Build Process Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about The Build Process

Unavailable at present Latest Position Example Brokerage & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 48 m Length DMS & Co Builder 2003 Build year 420 Gross tonnage British Virgin Islands Registry Particulars Future

While the refitting of an older yacht may appeal to some owners, others may prefer to go a stage further and upcycle a naval or other working vessel. These often have an attractive aesthetic born of practical necessity - which can be transformed into uniquely beautiful yachts, inherently well suited to cruising in unusual locations. Home Handbook Upcycling / / Conversion Projects 8 August 2018 Last revised minutes 2 Reading time While the refitting of an older yacht may appeal to some owners, others may prefer to go a stage further and upcycle a naval or other working vessel. These often have an attractive aesthetic born of practical necessity - which can be transformed into uniquely beautiful yachts, inherently well suited to cruising in unusual locations. minutes 2 Reading time 8 August 2018 Last revised While the refitting of an older yacht may appeal to some owners, others may prefer to go a stage further and upcycle a naval or other working vessel. These often have an attractive aesthetic born of practical necessity - which can be transformed into uniquely beautiful yachts, inherently well suited to cruising in unusual locations. Some commercial and surplus military vessels can be purchased at a fraction of the price of large yachts, creating interesting opportunities. Buying directly from the seller or their appointed broker is preferable to using an intermediary, which can lead to increased costs and communication issues. Refit and repair yards, rather than builders, are more likely to undertake conversion projects, providing more choice and negotiation power for owners. Conversion projects involve combining new and old designs into a single vessel, requiring integration and compliance with evolving regulations. Interfaces between old and new elements can present challenges during and after the conversion process. Structural changes can affect the distribution of pressures and forces, potentially compromising previously sound parts of the vessel. There is a risk of unexpected costs and lost commercial opportunities during conversions, leading to compensation payments from the yard. Yacht conversions require a measured approach to ensure high-quality fit and finish. Legal and practical issues specific to conversion projects should be addressed before entering into an agreement with the yard. Converting ships to yachts is a niche business, and experienced project management is crucial to ensure high standards and attention to detail. Structural changes can affect the distribution of pressures and forces, potentially compromising previously sound parts of the vessel. There is a risk of unexpected costs and lost commercial opportunities during conversions, leading to compensation payments from the yard. Yacht conversions require a measured approach to ensure high-quality fit and finish. Legal and practical issues specific to conversion projects should be addressed before entering into an agreement with the yard. Converting ships to yachts is a niche business, and experienced project management is crucial to ensure high standards and attention to detail. Some commercial and surplus military vessels can be purchased at a fraction of the price of large yachts, creating interesting opportunities. Buying directly from the seller or their appointed broker is preferable to using an intermediary, which can lead to increased costs and communication issues. Refit and repair yards, rather than builders, are more likely to undertake conversion projects, providing more choice and negotiation power for owners. Conversion projects involve combining new and old designs into a single vessel, requiring integration and compliance with evolving regulations. Interfaces between old and new elements can present challenges during and after the conversion process. Commercial vessels exist to fulfil particular roles. When no longer needed they become liabilities which are generally disposed of without delay – often at a fraction of the price of a similar-sized yacht. High-performance military vessels can also become dated or surplus to requirements as geopolitical sands shift, with government bureaucrats having little interest in maximising sale prices. Opportunities to purchase tend to arise on an ad hoc basis. As when buying a yacht, you should ensure that you’re dealing with the seller directly or the seller’s appointed broker. Using an intermediary broker leads to extended lines of communication, more costs and a greater chance of the purchase falling through. YARD CHOICE While conversions may involve the rebuilding of entire parts of the original ship, such projects are always unique, and cannot readily be fitted into a build slot. For this reason, it is generalised refit and repair yards rather than builders which tend to undertake the work. And, as there are more of the former than the latter, owners have more choice and can drive a harder bargain. PROJECT CHARACTERISTICS All conversion projects have a number of common characteristics. To a greater or lesser degree, they will all combine new and old designs into a single vessel, which must then function effectively as an integrated whole. All this against a backdrop of constantly evolving regulations governing specifications, materials and equipment. And so there will exist various interfaces between old and new elements which do not exist in the context of newbuilds. Issues may arise not only during the conversion process but well after the vessel has re-entered service in its new role. Depending on the extent of any structural changes, hydrodynamic forces may no longer be distributed as originally intended, possibly compromising previously sound parts. Even where the yard has provided a post-redelivery guarantee of workmanship and materials, it may be an unforeseeable aspect of the combination of old and new elements that leads to a fault – rather than a deficiency in the workmanship and (new) materials. When trading ships are converted from one role to another, there is always the risk that the project will cost more than expected because the works have taken longer than expected and charters and other commercial opportunities have been lost. A yard will often have to pay a fixed, daily rate in compensation as part of their agreement with the owner. The works can be rushed and/or the vessel not properly surveyed prior to agreeing a timescale. As the quality of fit and finish is paramount, a more measured approach is needed for yacht conversions. The unique characteristics of the conversion project give rise to a number of practical and legal issues that need to be considered and addressed before entering into any agreement with the yard. And sometimes even before acquiring the would-be project in the first place. PROJECT MANAGEMENT Converting ships to yachts is, to say the least, a niche business. Using yards more used to converting ships for use in one trade to another can lead to significant cost savings, but the high standards of workmanship and the attention to detail demanded by yacht owners can come as a surprise to the yard’s management. Various specialist third party contractors might be needed – and this may not be how the yard typically operates. It is therefore vital that owners have an experienced and effective project manager in attendance on a full-time basis. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Conversion Agreements Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Conversion Agreements

Home Journeys Pacific Northwest / / Strait & Narrow Conclude your journey in Pendrell Sound, a tranquil inlet known for its warm waters. Not “Oh, it’s warm for Canada” warm: actually warm. It means kayaking without frostbite. It means you can jump off your swim platform in the morning without needing a defibrillator. In British Columbia, this is practically witchcraft. Part fjord, part secret lagoon, the Sound is tucked well away from the busier cruising routes, meaning that you’ll often find yourself sharing this aquatic paradise with nothing but the local wildlife. It’s also a prime oyster breeding ground. So you can knock back locally-sourced oysters while waiting for the seaplane to take you back to Vancouver. Waypoint 7 Pendrell Sound Tucked away in Desolation Sound, Prideaux Haven is so pretty, so utterly perfect, that it makes the Amalfi Coast look like it’s trying too hard. It’s a maze of coves, bays, and fjord-like fingers, offering excellent opportunities for hiking and kayaking, and. The calm waters and stunning scenery also create a perfect setting for wildlife viewing. You might spot seals, dolphins, eagles, or even the occasional black bear having a bit of a paddle on the shore. And then, in the evening, as the sun starts to turn the granite cliffs golden, you pour yourself something cold, sit back, and try to work out how anywhere can be this outrageously beautiful. Waypoint 6 Prideaux Haven Lund’s not big. Blink and you’ll miss the downtown entirely, which is mostly a historic hotel, and a dock that serves as the local social hub, ferry terminal, and seagull battlefield. But what Lund lacks in size, it makes up for in scenery and sheer bloody-minded charm. Now, you might assume that a place this remote would be quiet. You’d be right. But not in the boring sense. It’s purposeful quiet. This is where people come when they’ve had enough of traffic and spreadsheets. And Lund has culture, too - in the rich, indigenous history of the Tla’amin Nation, whose connection to these lands runs deeper than most of us can imagine. The landscape here isn’t just scenery—it’s story, legend, and living memory. Waypoint 5 Lund Savary Island is renowned for its warm waters, but it’s the white sandy beaches which are the real draw. They wrap around the island like a smug smile. South Beach, Indian Point, Duck Bay - it doesn’t matter where you go, you’ll find sand that squeaks underfoot and water that’s absurdly warm for this latitude. You’ll swim, paddleboard, lie down and wonder whether you’re still in Canada or if you accidentally crossed into Narnia. And the sunsets: they don’t so much set as perform. The sky becomes a riot of gold, lavender, and crimson while the silhouettes of Douglas firs stand around like theatre patrons clapping politely. Waypoint 4 Savary Island It’s been called the "Venice of the North," which is a bit rich, given the total absence of gondolas and the fact that you’re more likely to be accosted by a curious seal than an opera-singing boatman. But the spirit is there. Pender Harbour is a watery jigsaw puzzle of coves, inlets, lagoons, and channels. And it's beautiful. Not in a manicured sort of way. No. This is Canada, so it's all granite outcrops and dense evergreens. You won’t find designer boutiques or cocktail bars here. You’ll find something far better. Soul. Real people. Real landscapes. And a pace so relaxed that time seems to stop, shrug, and go fishing. Waypoint 3 Pender Harbour Next day, take your tender or mothership to Gibsons, a quaint seaside town known for its artistic community and laid-back atmosphere. In Canadian terms, Gibsons is practically next door to Vancouver. Culturally, however, it’s like going from Monaco to a farmer’s market run by surfers and retired poets. It has a marina, a pub, a few art galleries, and more kayak racks than parking spots. And yet, there’s a strange magic to it all. The place smells of salt air and cedar and mild self-satisfaction. It’s the sort of town where you arrive thinking you’ll stay for a while and end up Googling the local real estate offerings by nightfall. Waypoint 2 Gibsons Join your yacht in Vancouver, a city where modern architecture meets natural beauty, resulting in one of the most beautiful urban environments anywhere. Explore the vibrant neighbourhoods, indulge in world-class dining, and take in panoramic views of the surrounding mountains and ocean. You can ski in the morning, and sail in the afternoon. Seemingly everywhere, people are running, hiking, paddleboarding, and behaving like their resting heart rate is a matter of civic pride. Waypoint 1 Vancouver This page outlines a journey bookended by Vancouver's cosmopolitan allure and the secluded embrace of Pendrell Sound. A blend of urban sophistication, natural splendour, and secluded luxury. The area’s quiet anchorages and stunning scenery balances adventure, serenity, and unspoiled beauty. By sharing some Members' itineraries, we're helping others unlock their yachts’ full potential, reducing crew turnover and making ownership a more rewarding experience. Country(ies): Canada Time zone(s): Winter: PST (UTC-8) Summer: PDT (UTC-7) Currency(ies): Canadian Dollar (CAD) Temperature: February: 5°C (41°F) August: 18°C (64°F) Sunshine: February: 3 hours August: 9 hours Humidity: February: 80% August: 68%

If, as owners, we are to continue to enjoy the freedoms and privileges we currently enjoy – without interruption or stigmatisation – then we need to engage with those who are beginning to target our assets and way of life. Quietly, we need to educate the press and policymakers about yachting’s current and potential positive impact on the environment generally in shipping in particular. Home Handbook White Papers / / Blue is the New Green Whether or not you are persuaded about the underlying causes of global temperature rises, a critical mass of democratically-elected leaders are now convinced. Protests no longer take the form of marches and placard-waving. Increasingly, activists are taking direct action. Their websites and image-curation are becoming more slick. They have an increasing grasp of public relations and social media. For now, the campaigns are self-defeating. Their disruption alienates the wider public as traffic jams build, meetings are missed and emergency services disrupted. But, increasingly, protests have started to target symbols of conspicuous consumption, such a ‘luxury’ car dealerships. And why stop at cars? Why not business jets? Why not… ‘superyachts’? At least the general public won’t be inconvenienced. And the messages can be conflated with broader political messages as well. It's beginning to happen. The blockading of general aviation terminals is becoming more commonplace. Then there was a protest at Port Vauban, Antibes, followed by one at the Superyacht Forum in Amsterdam. Massive nearby commercial airports and ports are being ignored. And while the underlying data used in academic papers owes is, to say the least, paper-thin - see our white paper Damn Lies & Statistics - the trajectory of this movement is clear. SHORT-SIGHTEDNESS In the case of yachts, this fury is short-sighted. The more time one spends afloat, the more one is aware of the amount of pollution entering the sea and the food chain – especially in the form of plastics. Not only do they bear witness first-hand, the owners of large yachts are better placed than anyone to actually address the issues beyond making changes to their own habits. They are likely to own companies which can enforce rapid behavioural change on a massive scale. Or they may own media outlets which band the drum of change. Or they may know politicians who can enact change. It is impossible not to be moved by the beauty of the marine environment, or outraged at seeing it compromised. Owners are in the position to act across a spectrum of environmental issues. NIGHTMARE SCENARIO Far-fetched today, but picture a possible scene a few years from now. A resolute Greta Thunberg, her outlook still binary and adolescent, implores her social media followers to flock to the Mediterranean – to picket ports en masse. WhatsApp groups coordinate the protests. Social media livestreams go viral. High-profile celebrity charterers cancel their summer bookings for fear of being “cancelled” themselves. The French, Italian and Spanish governments cave in to a vocal minority and introduce punitive taxes in berths and bunkers. Youngsters are discouraged from training for a role working on yachts. The costs of ownership spiral, and the assets themselves devalue alarmingly. Even financiers and insurers begin to withdraw from the market for fear of a popular backlash and a corresponding commercial impact on other business lines. TESTBEDS FOR CHANGE We have seen various new low and no-carbon yacht propulsion technologies being proposed in recent years. The 3D renderings are impressive and the press releases compelling. But this is cutting little ice with the campaigners, who just claim that this is “greenwashing”. It is incumbent on everyone within the yachting industry to urge environmental campaigners to see the broader picture of maritime transport. According to the Organisation for Economic Co-operation and Development (OECD), around 90% of traded goods are carried by sea . Yet shipping is a naturally conservative business: investments are large and the returns uncertain. The last thing trading ship owners want to do is to dabble in unproven green technology – unless obliged to by law. Any why are lawmakers going to change the law if the no technology hasn’t been proven on a smaller scale? PAST MISTAKES The yachting industry has, it must be said, singularly failed to portray the correct message to the wider society. We have worked project to project, season to season, sale to sale. Most information put out has been about yachts’ specification and features. It’s been about the wow factor – about one-upmanship, where bigger is better and consumption is king. Aside from all exciting new research going on, there are dozens of environmental and other philanthropic initiatives quietly being undertaken by owners. Yet the wider public knows nothing about this. SHORT-TERM STRATEGY Doing nothing is not an option. Carbon neutral schemes for yachts have been around since the mid 2000s. Taking up such schemes is – quite literally – the least we, as owners, can do. We also need to engage with the general media, and help them understand that, in terms of technological development, yachting is to shipping what haute couture is to everyday fashion. The wonderful work of organisations such as SeaKeepers needs to be known about far more widely – and more owners need to involve themselves. Ports and marinas also need to take advice and make preparations to ensure that, in so far as the law allows, any protests which prevent crew or suppliers going about their daily business are shut down as rapidly as possible before these patterns of behaviour become entrenched and emulated. LONG-TERM STRATEGY In the long term, those making bold claims with regard to truly viable carbon-neutral power sources need to make the investment necessary to bring these project to fruition. Aside from the tech, the refuelling infrastructure and regulatory framework must be developed. And insurance underwriters need to be onboard. For too long, owners have failed to act coherently in the face of a growing threat to our cherished liberties and way of life. It’s time to make blue the new green. Return to top Thank you to all our Members who provided perspectives for this white paper. If, as owners, we are to continue to enjoy the freedoms and privileges we currently enjoy – without interruption or stigmatisation – then we need to engage with those who are beginning to target our assets and way of life. Quietly, we need to educate the press and policymakers about yachting’s current and potential positive impact on the environment generally in shipping in particular. 21 November 2022 Last revised minutes 4 Reading time minutes 4 Reading time 21 November 2022 Last revised If, as owners, we are to continue to enjoy the freedoms and privileges we currently enjoy – without interruption or stigmatisation – then we need to engage with those who are beginning to target our assets and way of life. Quietly, we need to educate the press and policymakers about yachting’s current and potential positive impact on the environment generally in shipping in particular. Recent years have seen an increase in protests and direct action by climate activists. They are targeting symbols of conspicuous consumption, including luxury car dealerships and large yachts. However, this fury against yachts is short-sighted. We, the owners, have a unique position to address environmental issues. We can help to enforce behavioral change through our companies and media outlets. The yachting industry needs to portray a different message to the wider society, highlighting our environmental and philanthropic initiatives. Taking up carbon neutral schemes is the least we can do. We should engage with the media to showcase technological developments and initiatives like SeaKeepers. Ports and marinas should prepare to handle protests swiftly to prevent disruption. In the long term, investment is needed in viable carbon-neutral power sources, refueling infrastructure, and regulatory frameworks. We must act coherently to protect our liberties and way of life. You can also read about Damn Lies & Statistics Questions or comments? Please contact us Join the discussion over in the Club's group You can also read about Damn Lies & Statistics Questions or comments? Please contact us

Building a large, custom yacht is a complex process which must be carefully choreographed. There’re a lot of specialists involved, and much which can wrong. Here we look at what construction actually involves, and why building your team at the outset is such a vital first step. Home Handbook Building / / The Build Process 10 May 2023 Last revised minutes 4 Reading time Building a large, custom yacht is a complex process which must be carefully choreographed. There are a lot of specialists involved, and much which can wrong. Here we look at what construction actually involves, and why building your team at the outset is such a vital first step. minutes 4 Reading time 10 May 2023 Last revised Building a large, custom yacht is a complex process which must be carefully choreographed. There are a lot of specialists involved, and much which can wrong. Here we look at what construction actually involves, and why building your team at the outset is such a vital first step. Large yacht construction involves a tightly-controlled sequence of events, and adherence to classification society standards for welding and quality control. Machinery and larger systems must be installed before the superstructure is joined ot the hull. Filling, fairing, insulation, and the addition of cable trays and pipework must be carefully choreographed. Interior panels are prefabricated and should be removable for access and maintenance. The sooner the build captain is recruited the better. Project managers should be present at all stages of the build and provide progress reports. Crewmembers, other than the build captain, are engaged as the build nears completion, with the build captain overseeing recruitment. Insurance coverage should be clarified in the build agreement, including employer's liability insurance for crew. Sea trials are conducted to test the yacht's systems and performance, followed by formal legal delivery and a warranty period to address any issues that arise. Project managers should be present at all stages of the build and provide progress reports. Crewmembers, other than the build captain, are engaged as the build nears completion, with the build captain overseeing recruitment. Insurance coverage should be clarified in the build agreement, including employer's liability insurance for crew. Sea trials are conducted to test the yacht's systems and performance, followed by formal legal delivery and a warranty period to address any issues that arise. Large yacht construction involves a tightly-controlled sequence of events, and adherence to classification society standards for welding and quality control. Machinery and larger systems must be installed before the superstructure is joined ot the hull. Filling, fairing, insulation, and the addition of cable trays and pipework must be carefully choreographed. Interior panels are prefabricated and should be removable for access and maintenance. The sooner the build captain is recruited the better. Generally speaking, yachts are far more complex than working vessels of a similar size, and finishes must, of course, be of a far higher standard. Yard cleanliness and orderliness make ensuring this much easier. You’ll have gotten a feel for the builder’s work practices having visited beforehand . Once the build is underway, there’s a lot going on and a lot to go wrong. For steel-hulled yachts, huge plates are cut to shape before being assembled and welded into place. Steps must be taken in precisely the right order. Where the vessel will be classed, welders must be qualified in accordance with the classification society standards. The welds themselves must conform to measurable standards with tolerances measuring less than a millimetre. If it’s not right it must be corrected until it is. It can take a year and half to complete a bare 100-metre hull, during which about 1,000 tonnes of steel will be used. Superstructures are typically made from aluminium – requiring even greater welding skills. They are usually constructed in sections, away from the hull, then bonded together. Larger items of machinery, such as engines and generators, must be installed before superstructure encloses the internal spaces. The project will then typically be moved way from under the gantry cranes of the construction facility, to a fitting-out facility, where the machinery and systems will be fitted. The hull’s surface will be slightly rippled and will need filling and fairing: a skilled and labour-intensive process. The epoxy fillers, and paints covering them, are sensitive to temperature and humidity. Insulation, cable trays and pipework can now be installed – in exactly the right sequence. Interior panels are normally prefabricated by subcontractors, before being brought to the yard for installation. They will normally produce full-scale mock-ups of various interiors which you can check before they are installed. It’s important that the bulkhead and deckhead panels be removeable to allow access as needed for regular system maintenance. It's vital that photographs are taken during construction so that what’s behind the panels can be checked easily. SUPERVISION The builder will employ its own project manager(s), but with so much going on it’s easy to see why your project manager needs to be present at all stages of the build. Your project manager should compile monthly reports showing progress, with photos and detailing how this compares to the agreed time schedule. Your project manager should also know the build agreement inside-out, and must remind you of upcoming decision deadlines in good time. As with any large project, communication is key. ENGAGING CREW More and more crew are brought in as the build nears completion. The build captain is first – and in the case of larger projects may have been engaged at the outset. Where the build is on a more modest scale, the project manager also performs the role of build captain and may be the vessel’s first captain following launch. Build captains perform two roles: firstly they add a helpful seagoing captain’s perspective to the build, and secondly they recruit and oversee other crewmembers. The build captain will need excellent organisational skills, an analytical mindset and be a superb manager and motivator. Next comes the Chief Engineer, who can bring real value right away, followed by other heads of departments, who will be key in recruiting those who report to them – and may already have contacts waiting in the wings. Some hires may have been misjudged and just aren’t the right fit. This is to be expected. Not hiring crew until absolutely necessary can be a false economy. There’s much to be got ready before launch. Aside from completing the build, operational and regulatory procedures need to be established, and if these are rushed they may not be fit for purpose. INSURANCE The build agreement should be clear on when the build no longer bears the risk of damage occurring to the yacht, or the liabilities incurred to third parties. There should be no gaps in cover. Keep in mind, too, that you will need employers’ liability insurance in respect of crew as soon as they are engaged. While insurance brokers owe a legal duty to you, as insured, in reality they can value their commercial relationships with underwriters more. Indeed, some will expressly be your agent at the time of inception, but become the underwriter’s agent once a claim has been made. Be warned, and examine the policies in detail. TRIALS At last, your new yacht is complete and is ready for her first sea trial. You may like to come along – but it’s not going to be the most exciting cruise. Before she goes anywhere, there’s a dock trial. The generators and main engines are started and their cooling systems checked for leaks. Once the captain is satisfied that she is ready, she can head out to sea. Aboard will be representatives from the builder, subcontractors and classification society, as well as your own team. All kinds of objective measurements are made which can be checked against the contractual specification. The trial will take most of the day, or a few days for a large, complex vessel. DELIVERY At last your yacht is ready for formal, legal delivery. There may still be teething problems evident at the time of delivery, which the builder hasn’t had time to correct, but which you’re happy to live with for now. The scope and nature of such works must be formally agreed. The build documentation will have been examined and approved by your lawyer, and will be released to you against receipt of the penultimate payment – the final payment being made upon successful completion of the warranty period. WARRANTY PERIOD Because yachts are, in essence, a matrix of complex systems operating together in a harsh environment, it is inevitable that some systems will fail, or fail to perform as expected. The warranty period should be clearly set out in the build agreement. It is vital for crewmembers to inform the captain, and the captain to inform you and the builder, right away and in writing, of any faults. Documentation and record keeping are key. Keep in mind any notice formalities which must be observed. It's in the builder’s interests to work with you to create a yacht which will serve as a masterpiece – quite literally a shining example of what that yard is able to produce. Finding new clients is expensive and time-consuming. It’s far easier to keep existing clients happy and work towards selling them a larger yacht. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about A Firm Foundation Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about A Firm Foundation

The 10% deposit is a relic of tradition, misaligned with modern yacht transactions. This white paper proposes splitting upfront payments: one paying for a more comprehensive sea trial, the other for a purchase option. The model compensates brokers much more fairly for their hard work, ensures that sellers are fairly protected, and creates a more balanced and practical framework for high-value sales. Home Handbook White Papers / / Deposits Reimagined THE DEFAULT POSITION Where the contract doesn’t state why a deposit is paid and how it can be recovered, then the default position (under English law – which is commonly used in international agreements) is that it is more than a mere part-payment: it is a guarantee that the buyer will complete, which the seller gets to keep as ‘liquidated’ (i.e. pre-agreed) damages if the buyer defaults – regardless of whether the seller has suffered any actual loss. And 10% has traditionally been the magic number. Anything more has been treated by the courts as punitive rather than compensatory – and so an unenforceable penalty clause. But this could be hard to justify in the context of the sale of an asset as expensive as one of our Members’ yachts. MYBA'S APPROACH MYBA’s Memorandum of Agreement is the dominant transactional framework for yacht sales in European waters. Under the MYBA MOA, the deposit (usually 10%) is payable upon signing, with the balance paid on completion after a successful sea trial and survey. The deposit is typically held by the broker, as stakeholder for both parties, and cannot be released except in accordance with the agreement's terms. If the buyer fails to pay the balance in accordance with the MOA, the seller can cancel and the deposit is released on a 50:50 basis between seller and broker. Various versions of this form are used, but the buyer typically has only four hours maximum for a sea trial. Even the prospective purchasers of cars can often spend a weekend test driving. And if the buyer walks away after the sea trial, the deposit must be repaid by the broker (less “all expenses … if any” although what this encompasses isn’t clear). And spare a thought for the broker(s) who will have put in an enormous amount of work into humouring a tyre-kicker - with no commission to show for it. IYBA’S APPROACH The International Yacht Brokers Association (which, despite the name, predominantly covers the US market) publishes its own Purchase and Sale Agreement (PSA). This differs in several material respects from its European cousin, the MYBA MOA. There’s no stipulation for a 10% deposit, although this is commonly the starting point. In practice, deposits can be as low as 5% for higher-value vessels. There’s no set time for how long the “trial run” should take, just a provision that this should be completed “as soon as practicable”. Unlike the MYBA MOA, “all running expenses” being for the seller’s account – not the buyer’s. Moreover, whether or not the buyer has inspected the vessel, the buyer will be deemed to have rejected it unless a timely written notice of acceptance is submitted to the seller. DUAL UPFRONT PAYMENTS It’s time for traditional deposits to evolve. Here’s the idea. The buyer has the option of paying two separate amounts upfront: Firstly, a payment reflecting the actual cost of a meaningfully-long sea trial (of, say, a week) using as a guide the equivalent amount paid to charter a similar-size vessel for the same period; and Secondly, a payment paid to secure the right to purchase within the closure timeframe, just large enough to deter any daydreamers. Both amounts are set-off against the final balance due on completion, but the buyer can walk away after the sea trial no questions asked, in which case only the second amount would be repaid. This approach is surely better for the seller, who knows at the outset that an agreed fixed amount has already been paid as reasonable compensation for preparing the vessel and undertaking the sea trial. Crew can prepare the vessel to perfection. The broker should also be delighted, as he or she can still continue marketing the vessel where the prospective buyer hasn’t made the second payment. That buyer can also trial a selection of vessels, so that the choice changes from whether to buy – to which to buy. The broker could even take this a step further and charge for vessel tours, further fending off timewasters. With the seller’s blessing, sea trial payments could be retained by the broker to reward ongoing efforts and a sometimes uncertain income stream. The buyer might wish to try out several yachts – without the need to book a charter (keeping in mind that only a minority of yachts are registered for commercial use). And having had the opportunity to conduct a more thorough sea trial, buyer’s remorse is far less likely. The amount paid for this privilege being deducted from the final balance, he or she is no worse off after completion. Crewmembers will have an opportunity to display their skills to a prospective new employer, increasing the chances of them being retained by the new owner. CONCLUSION The 10% deposit owes as much to tradition than to the practical needs of today’s marketplace. It’s time to take a fresh look at this subject and make sale agreements work more effectively for everyone involved. Yes, there would need to be a dialogue with Flag States and insurance underwriters – to ensure that they understand that the sea trial is not a charter by another name. But both have shown in recent years that they are open to fresh ideas. Certainly, the sale agreement incorporating such dual upfront payments will need very careful drafting. Return to top Thank you to all our Members who provided perspectives for this white paper. The 10% deposit is a relic of tradition, misaligned with modern yacht transactions. This white paper proposes splitting upfront payments: one paying for a more comprehensive sea trial, the other for a purchase option. The model compensates brokers much more fairly for their hard work, ensures that sellers are fairly protected, and creates a more balanced and practical framework for high-value sales. 15 October 2025 Last revised minutes 4 Reading time minutes 4 Reading time 15 October 2025 Last revised The 10% deposit is a relic of tradition, misaligned with modern yacht transactions. This white paper proposes splitting upfront payments: one paying for a more comprehensive sea trial, the other for a purchase option. The model compensates brokers much more fairly for their hard work, ensures that sellers are fairly protected, and creates a more balanced and practical framework for high-value sales. For over a century, yacht brokers and lawyers have treated the 10% deposit as gospel. A ritual payment that signals commitment, deters flakiness, and soothes sellers’ nerves. But this figure, rooted in dusty English caselaw and carried into modern international agreements, is starting to look hopelessly outdated. In today’s yacht market, where buyers expect flexibility and transparency, this old model is looking outdated. This paper argues that the industry should abandon the “one-size-fits-all” single deposit and embrace a more nuanced, dual-payment model — one that reflects modern realities, aligns incentives, and makes the buying process fairer for sellers, brokers, and serious purchasers alike. You can also read about A Flood Not a Trickle Questions or comments? Please contact us Join the discussion over in the Club's group You can also read about A Flood Not a Trickle Questions or comments? Please contact us

Unavailable at present Latest Position New Horizons Listing Email WhatsApp +44 7773 246 246 Central Agent 62 m Length Builder & Co Builder 2009 Build year 700 Gross tonnage Cayman Islands Registry Particulars Result

When a deal’s on the table, it can be annoying to be asked not only for endless documents but for documents which must be authenticated in seemingly arcane ways. In the case of Bills of Sale, there’s no often no choice: it’s what many ship registries require for (re)registration. Providing authenticated documents doesn’t have to take too much additional time or resources: it just takes planning and forethought. Home Handbook Selling / / Document Authentication 8 August 2024 Last revised minutes 6 Reading time When a deal’s on the table, it can be annoying to be asked not only for endless documents but for documents which must be authenticated in seemingly arcane ways. In the case of Bills of Sale, there’s no often no choice: it’s what many ship registries require for (re)registration. Providing authenticated documents doesn’t have to take too much additional time or resources: it just takes planning and forethought. minutes 6 Reading time 8 August 2024 Last revised When a deal’s on the table, it can be annoying to be asked not only for endless documents but for documents which must be authenticated in seemingly arcane ways. In the case of Bills of Sale, there’s no often no choice: it’s what many ship registries require for (re)registration. Providing authenticated documents doesn’t have to take too much additional time or resources: it just takes planning and forethought. Ensuring document authenticity is crucial to prevent fraud and confirm the validity and irreversibility of transactions, particularly in high value purchases like yachts. As it's easy to fake documents, multiple methods and cross-checks are necessary to build confidence in their authenticity, though no method is fool-proof. A certified copy is a true copy of an original document, usually certified by a lawyer or company director, but it doesn’t confirm the original document’s genuineness. Notarisation is the verification, certifying, and sealing of documents, which is mandatory in some jurisdictions to make documents valid and enforceable. Legalisation involves government bodies authenticating the signature or seal on a document, especially for international use, often requiring an apostille certificate if both countries are Hague Convention signatories. Certification must be done by authorized individuals like lawyers or company officials, and deliberate false certification can lead to serious legal consequences. The correct wording and format for certification and notarisation must be used, often specified by the third party requiring the document. Notaries follow strict procedures, including checking IDs and corporate documents, and may require translations for documents in foreign languages. Even notarised and legalised documents can be forged, so further verification through online searches and government registers is recommended. Proper planning and adherence to authentication requirements can prevent delays and ensure compliance with legal and registration needs, particularly for documents like Bills of Sale. Certification must be done by authorized individuals like lawyers or company officials, and deliberate false certification can lead to serious legal consequences. The correct wording and format for certification and notarisation must be used, often specified by the third party requiring the document. Notaries follow strict procedures, including checking IDs and corporate documents, and may require translations for documents in foreign languages. Even notarised and legalised documents can be forged, so further verification through online searches and government registers is recommended. Proper planning and adherence to authentication requirements can prevent delays and ensure compliance with legal and registration needs, particularly for documents like Bills of Sale. Ensuring document authenticity is crucial to prevent fraud and confirm the validity and irreversibility of transactions, particularly in high value purchases like yachts. As it's easy to fake documents, multiple methods and cross-checks are necessary to build confidence in their authenticity, though no method is fool-proof. A certified copy is a true copy of an original document, usually certified by a lawyer or company director, but it doesn’t confirm the original document’s genuineness. Notarisation is the verification, certifying, and sealing of documents, which is mandatory in some jurisdictions to make documents valid and enforceable. Legalisation involves government bodies authenticating the signature or seal on a document, especially for international use, often requiring an apostille certificate if both countries are Hague Convention signatories. When yachts are bought, there’s much which needs to be proven by the seller before the buyer feels comfortable handing over a considerable sum. Who is the vessel actually owned by? Has the owner (if a company) formally resolved to sell the vessel – and appointed an individual to represent it at the closing and sign the necessary paperwork? The list goes on. And that list must be included in the sale agreement. To be presented with documents is one thing, but how do buyers know that such documents are what they appear to be? This is especially important when it comes to a selling company’s incorporation and powers: originals of the vessel’s own documentation can be provided, but the selling company will not usually be providing originals of its incorporating documentation. No single method of authentication is foolproof, as the authenticating documents, certificates, seals and signatures can themselves all be forged with ease. It’s about building sufficient confidence, combining different approaches and cross-checking with other sources where possible. It’s always good to avoid unnecessary bureaucracy and expense, but keep in mind that third parties, such as yacht registries, may need documents to be authenticated in a particular way. Whatever methods are chosen, these need to be agreed upon at the outset. Now let’s look at the main methods. CERTIFICATION What is a certified copy? A certified copy is an accurate, complete and current copy (usually a photocopy, scan or photo) of an original document. It’s used when it’s not practical or possible to produce the original document. The certified copy will include a statement that it is a true copy of the original as at the date certified. Crucially, it does not certify that the original document is genuine, only that it is a true copy of the original. Who can certify a document? The certifying person is usually a lawyer or, in the case of a document relating to a company, a director or secretary of that company. If the document is also needed by a third party then it’s worth checking with that third party who can and can’t certify. In the United Kingdom, if an authorised person deliberately falsely certifies a document as being a true copy of the original, they can go to prison for up to 18 months. What’s the correct format? Any third party needing the copy may also specify the wording used. If not, the following wording is usually acceptable: “I [insert full name of the certifying person] certify that this document is a true and complete copy of the original.” In the case of photographic identification, the following could be used: “I [insert full name of the certifying person] certify that this document is a true and complete copy of the original and a true likeness of the individual [insert name].” The certifying person will then need to sign, write his or her full name under the signature, and add their law firm’s name and address. Finally, the date is added. The exact wording and format can vary, but the essential elements must be there. Provided all pages are attached together, then there’s not normally any need to certify each page – with the notable exception of Powers of Attorney, all pages of which must, in the UK, be certified "I certify this is a true and complete copy of the corresponding page of the original". Fees for certification There is no set fee for certification: fees must be fair and reasonable and will reflect time spent. NOTARISATION What is notarisation? The job of a notary (also known as a notary public) is to prepare, attest or certify documents (originals or copies) under an official seal, especially for use in certain jurisdictions. Notaries are usually (but not necessarily) qualified lawyers. Why is notarisation needed? Notarisation may seem unnecessary – given that a far wider range of professionals can just certify copies – but it’s simply part of the legal landscape in some countries. Failing to notarise can render a document invalid or unenforceable. What does notarisation involve? At the outset, notaries must also comply with anti-money laundering (AML) and data protection legislation, so it’s useful to have documents likely to be needed readily available so as to avoid unnecessary delays. Individuals involved will need to provide photographic identification. Where an individual presents corporate documents for notarisation, the company’s constitutional documents must also be presented, along with a Power of Attorney empowering that individual, and the appropriate resolutions. The relevant document is read in full in the notary's presence. If a foreign language document is to be notarised, a translation may be needed. A notary can only authenticate a document drawn up in a foreign language if they are satisfied as to its meaning. Scrivener notaries must be fluent in at least one language other than English. Once satisfied, the notary adds his or her notarial certificate to the document being notarised. The specific form of the certificate will depends on who needs the document to be notarised, and this information needs to be obtained beforehand. The notarial certificate is then signed by the notary and sealed with the notary's official seal. The notary keeps a set of the originals, or copies of all documents that they make, which then serves as a permanent record. These records must be made available to anyone with a right to see them including the notary's client and any other party involved. The final document should not be taken apart (for example, to scan) as notarised documents which have been tampered may not be accepted by the party requiring it. E-notarisation is available in some jurisdictions, which can make the whole proves much quicker. LEGALISATION What is legalisation? Certification and even notarisation isn’t good enough for some recipients. After all, who’s to say that the certifier or notary is duly qualified? And so it is that such document (in practice, normally notarised) may need to be ‘legalised’. This is the process by which one government body authenticates the signature, seal and/or stamp to the satisfaction of another country’s government body. As with the other forms of authentication, a failure to legalise a document may mean that the document is invalid or unenforceable (or both) in the jurisdiction where it is to be relied on. Who can legalise a document? Who needs to legalise the document in one country depends on the whether that county, and the recipient’s country, have both ratified the Hague Convention of 1961 Abolishing the Requirement of Legalisation for Foreign Public Documents (commonly known as the Hague Convention). 91 countries are signed-up at present. Where both are Hague Convention countries, then a standardised ‘apostille’ certificate can be obtained, relatively quickly and inexpensively. In the UK, this is done by sending the document to the Legalisation Office of the Foreign, Commonwealth and Development Office (FCDO). The FCDO checks the notary's or certifier’s name and signature against its register. If all’s in order, an apostille is applied to the document and it’s returned. The increasing use of e-apostilles is reducing fees and turnaround time, but it’s worth checking how long it could take in advance and planning accordingly. Where one country isn’t a Hague Convention signatory, then it’ll be up to the recipient’s country’s local embassy or consulate to legalise the document. Under their rules, it may also be necessary to obtain a Hague Convention apostille beforehand. The parties can arrange legalisation themselves. Legalisation can also be arranged by a notary on the parties' behalf. This is often preferable as the notary will be familiar with the process. FURTHER VERIFICATION Certified copies, notarial certificates and apostilles can all be, and occasionally are, forged. At least apostilles issued by the FCDO, for example, can be checked online on a special UK government website, if the apostille date and number are available. More broadly, it makes sense to conduct broad online searches into individuals and companies. Increasingly, company documents can be viewed on, or downloaded directly from, online government company registers and/or third party corporate information providers. The UK has long-since provided a wealth of company information. Now many classic offshore jurisdictions also provide extensive information which can be used to cross-check directorships and constitutional documents. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Preparing Your Crew Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Preparing Your Crew

Home Journeys Eastern Seaboard / / New England Charm At last we reach Boston Harbor and its islands. Boston Harbor is older than most countries. It’s gritty. Polished – lightly – for the tourists, but without losing its edge. There’s the glint of glass skyscrapers, sure, but they’re sitting awkwardly next to 18th-century brick buildings. It’s a city that’s never quite made up its mind about whether it wants to be New York’s cooler cousin or a living history museum. Then there are the islands: little green blips like Spectacle, Thompson, and George’s that offer refuge from the city’s pace, with forts, trails and beaches. It’s authentic, and all the better for it. Waypoint 7 Boston Harbor The penultimate waypoint is Provincetown (or “P-Town,” as it’s known by those who wear feather boas unironically) is a glorious explosion of art, colour, and character perched on the edge of Cape Cod. It’s one of the very few places in the States where the weird, the wild, and the wildly wealthy have all agreed to share a bit of sand and sea without shouting at each other. It’s part art colony, part fishing village, part social experiment—and all of it works in a glorious, slightly chaotic way. Climb the Pilgrim Monument, explore Herring Cove Beach, or go whale watching. Waypoint 6 Provincetown This is where the journey peaks in old-money splendour: an island where cobblestone streets and historic whaling cottages transport you back in time. It’s got taste. And manners. Even the seagulls seem well-behaved. This is not a place where you show off your wealth by revving a Lamborghini. You park your battered car outside a house with perfectly weathered shingles that’s been in the family since the Civil War. Explore the Whaling Museum to delve into the island's rich maritime history, or visit the Sankaty Head Lighthouse for breathtaking coastal views. It’s charming, peaceful, and absurdly picturesque. Waypoint 5 Nantucket Known as Amity in the 1975 film Jaws, it’s less workaday than depicted. Martha’s Vineyard exudes charm and sophistication It’s a place where people ‘summer’ rather than merely spend their vacation. The island is a patchwork of little towns, each with its own flavour. You can cycle the entire island, get lost in farmers’ markets, eat lobster rolls, or browse art galleries. Strolling through Edgartown, all white picket fences and centuries-old captain’s houses, you half expect Chief Brody to burst onto the street shouting about closing the beaches. It does add a certain thrill to paddleboarding. Waypoint 4 Martha’s Vineyard Today we’re dropping by Cuttyhunk Island, a tranquil retreat known for its pristine beaches and abundant marine life. Cuttyhunk is the westernmost of the Elizabeth Islands, a chain of rugged, mostly private lumps of land owned by people who have last names that sound like Ivy League libraries. But public Cuttyhunk is the exception. When you arrive, it feels less like entering a port and more like stumbling into someone’s well-kept secret. There are no cars and no boutiques. In fact, there’s not much to do here except eat fresh local oysters and congratulate yourself on your life choices. Waypoint 3 Cuttyhunk Island Next is Block Island, anchoring at Great Salt Pond. At only about 7 miles long and 3 miles wide, it’s one of the most charming, gloriously old-fashioned specks of land in the United States. The island runs on what one can only describe as “lobster time.” People are either going to eat it, catch it, or talk about how good it was last night. Explore the island's scenic trails by bicycle, visit the iconic Southeast Lighthouse, or relax on the beaches. The town of New Shoreham is basically a handful of weather-beaten buildings which have probably looked exactly the same since Roosevelt was president. There’s something refreshingly unbothered about the place. Waypoint 2 Block Island We’re beginning our journey in Newport - the spiritual home of American yachting. Back in the Gilded Age, the great and the grotesquely wealthy (think Vanderbilts, Astors, people whose surnames sound like investment banks) descended on this seaside town and decided to build summer ‘cottages’ not too far from New York. Cottages, that is, roughly the size of Versailles. The opulent Breakers mansion is worth visiting. Then explore the historic waterfront – packed with sloops and schooners. As evening descends, dine at one of the harbour’s upscale restaurants, savouring seafood delicacies. Waypoint 1 Newport Welcome to old America. The kind of place where the towns weren’t designed around cars but horses, and the harbours have seen everything from pirate ships and whaling vessels to America’s Cup contenders. The coast hugs you like an old friend. It’s glorious, elegant – and exactly how summer should be. By sharing some Members' itineraries, we're helping others unlock their yachts’ full potential, reducing crew turnover and making ownership a more rewarding experience. Country(ies): United States Time zone(s): Winter: EST (UTC-5) Summer: EDT (UTC-4) Currency(ies): United States Dollar (USD) Temperature: February: 4°C (40°F) August: 18°C (64°F) Sunshine: February: 6 hours August: 9 hours Humidity: February: 62% August: 71%

The Owners Club's Rules from an agreement between the Club on the one hand, and all Associates, Members and Governors and anyone using this website on the other. They establish a fair and balanced framework which governs respective rights and responsibilities. Home About Rules / / Them's the Rules These Rules from an agreement between the Club on the one hand, and all Associates, Members and Governors and anyone using this website on the other. They establish a fair and balanced framework which governs respective rights and responsibilities. You’re bound by the Rules, so please take a moment to read them thoroughly. Please contact us if there’s anything you’d like clarified. 1. DEFINITIONS 1.1. In the Rules the following words have the following meanings: 1.1.2. 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If such modification is not possible, the relevant provision or part-provision will be deemed deleted. Following such modification or deletion, the remainder of the Rules will continue in effect. 12. REVISIONS 12.1. We may revise the Rules from time to time, and will always post the most current version on the Website. By continuing to use or access the Website or Material, You agree to be bound by the most recent revision of the Rules. 13. ENTIRE AGREEMENT 13.1. Unless otherwise specified, the Rules constitutes the entire Rules between You and Us with respect to the matters covered by the Rules, and extinguishes all previous Ruless, arrangements, representations and understandings between You and Us, whether written or oral, relating such matters. 14. ASSIGNMENT 14.1. You must not assign or otherwise transfer any right granted under the Rules. We can freely assign Our rights under the Rules. 15. WAIVER 15.1. A failure or delay by Us to exercise any right or remedy provided under the Rules or by law will not constitute a waiver of that or any other right or remedy, nor will it prevent or restrict any further exercise of that or any other right or remedy. 16. THIRD PARTIES 16.1. A person who is not a party to the Rules will not have any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of the Rules. 17. LAW & JURISDICTION 17.1. The Rules and any dispute or claim arising out of or in connection with it or its subject matter or formation will be governed by and construed in accordance with English law. 17.2. The courts of England and Wales will have non-exclusive jurisdiction to settle any dispute or claim arising out of or in connection with the Rules or its subject matter or formation. Contact Us

The automatic identification system (AIS) is a tracking system that establishes the positions of ships, and fixed and floating objects, in real time. Used as a navigational aid, it also lets the world see a yacht’s position - which isn’t always what we owners want. There are times when ‘going dark’ is allowed and times when it’s not. Home Handbook Managing / / Going Dark 28 November 2022 Last revised minutes 4 Reading time The automatic identification system (AIS) is a tracking system that establishes the positions of ships, and fixed and floating objects, in real time. Used as a navigational aid, it also lets the world see a yacht’s position - which isn’t always what we owners want. There are times when ‘going dark’ is allowed and times when it’s not. minutes 4 Reading time 28 November 2022 Last revised The automatic identification system (AIS) is a tracking system that establishes the positions of ships, and fixed and floating objects, in real time. Used as a navigational aid, it also lets the world see a yacht’s position - which isn’t always what we owners want. There are times when ‘going dark’ is allowed and times when it’s not. The Automatic Identification System (AIS) enhances safety and security by providing positional information and supplementing radar for traffic situation awareness. AIS is used in search and rescue operations, providing accurate information on the position of survival craft. It automates mandatory ship reporting to port authorities or vessel traffic service stations. Ships over 300 gross tonnage engaged in international voyages are required by SOLAS regulations to be fitted with Class A AIS equipment. Local regulations may be significantly more stringent. Yachts not subject to SOLAS requirements can carry Class B AIS devices. AIS systems consist of a small box with VHF transmitters, receivers, and a central processing unit, connected to various shipborne sensors and navigation systems. It transmits static information, dynamic information updated from ship sensors, and voyage-related information. AIS should not be solely relied upon for collision avoidance and does not replace radar target-tracking. It can be switched off under certain circumstances, but the master should report it to the competent authority and restart it when the source of danger has disappeared. Failure to operate AIS may lead to penalties by port state authorities and insurance underwriters may claim the vessel was unseaworthy in case of a collision without AIS. AIS systems consist of a small box with VHF transmitters, receivers, and a central processing unit, connected to various shipborne sensors and navigation systems. It transmits static information, dynamic information updated from ship sensors, and voyage-related information. AIS should not be solely relied upon for collision avoidance and does not replace radar target-tracking. It can be switched off under certain circumstances, but the master should report it to the competent authority and restart it when the source of danger has disappeared. Failure to operate AIS may lead to penalties by port state authorities and insurance underwriters may claim the vessel was unseaworthy in case of a collision without AIS. The Automatic Identification System (AIS) enhances safety and security by providing positional information and supplementing radar for traffic situation awareness. AIS is used in search and rescue operations, providing accurate information on the position of survival craft. It automates mandatory ship reporting to port authorities or vessel traffic service stations. Ships over 300 gross tonnage engaged in international voyages are required by SOLAS regulations to be fitted with Class A AIS equipment. Local regulations may be significantly more stringent. Yachts not subject to SOLAS requirements can carry Class B AIS devices. AIS enhances safety and security in various ways. By plotting positional information provided by nearby vessels, it supplements the picture produced by radar, so enhancing traffic situation awareness. Many of the problems common to radar, such as clutter, target swap as ships pass close by and target loss following a fast manoeuvre, do not affect AIS. AIS is also used in search and rescue operations. Search And Rescue operators, on land, at sea and in the air, get more accurate information, especially on the position of survival craft. Further, because AIS is used to exchange data ship-to-ship and with shore-based facilities, it is useful in automating mandatory ship reporting to port authorities or vessel traffic service (VTS) stations. LEGAL REQUIREMENT By virtue of Regulation 19 of Chapter V of the International Convention for the Safety of Life at Sea (SOLAS) 1974, as amended, all ships of 300 gross tonnage or more and engaged on international voyages must be fitted with Class A AIS equipment. In law, all yachts are ships – and it is irrelevant whether registered as a private or commercial vessel. Class B devices may be carried on yachts which are not subject to the SOLAS requirements. Certain national laws take this further. For example, US Federal law requires commercial vessels of just 65 feet and over to be fitted with a Class A AIS device. HOW IT WORKS The system is contained within a small box, containing one very high frequency (VHF) radio transmitter, various VHF receivers and a central processing unit. To this is attached antennae, and interfaces for heading, speed devices and other shipborne sensors, plus interfaces to radar, Automatic Radar Plotting Aids (ARPA), Electronic Chart System/Electronic Chart Display and Information System (ECS/ECDIS) and Integrated Navigation Systems (INS). There’s also a display and keyboard to input and retrieve data. The AIS can be connected either to an additional dedicated AIS display unit, possibly one with a large graphic display, or as an input to existing navigational system devices such as a radar display, ECS, ECDIS, or INS. INFORMATION SHARED The AIS information is transmitted continuously by a ship, and includes the following three types: Static information, which is entered into the AIS on installation and need only be changed if the ship changes its name, Maritime Mobile Service Identity (MMSI), location of the electronic position fixing system (EPFS) antenna, or undergoes a major conversion from one ship type to another; Dynamic information, which, apart from navigational status information, is automatically updated from the ship sensors connected to AIS; and Voyage-related information, some of which such as destination and estimated time of arrival (ETA) will need to be entered manually at the start of the voyage and kept up to date as necessary. INCOMPLETE PICTURE AIS doesn’t always give the complete picture, and – as with any navigational aid – should only be used by itself – especially for collision-avoidance. It doesn’t take the place of radar target-tracking. The officer of the watch (OOW) should always be aware that other ships, in particular smaller leisure craft, fishing boats and warships might not be fitted with AIS. The OOW should always be aware that AIS fitted on other ships as a mandatory carriage requirement might, under certain circumstances, be switched off on the master's professional judgement. SWITCHING OFF Details of yachts whose AIS is switched on maybe accessed by anyone, anywhere, simply by looking at MarineTraffic , VesselFinder or any of the other myriad of similar websites. Not all owners will be happy about this. According to the International Maritime Organisation’s Resolution A.1106(29) of 14 December 2015, entitled Revised Guidelines for The Onboard Operational Use of Shipborne Automatic Identification Systems (AIS): AIS should always be in operation when ships are underway or at anchor. If the master believes that the continual operation of AIS might compromise the safety or security of his/her ship or where security incidents are imminent, the AIS may be switched off. Unless it would further compromise the safety or security, if the ship is operating in a mandatory ship reporting system, the master should report this action and the reason for doing so to the competent authority. Actions of this nature should always be recorded in the ship's logbook together with the reason for doing so. The master should however restart the AIS as soon as the source of danger has disappeared. If the AIS is shut down, static data and voyage-related information remains stored. Restart is done by switching on the power to the AIS unit. Ship's own data will be transmitted after a two-minute initialization period. In ports AIS operation should be in accordance with port requirements. CONSEQUENCES Port state authorities will expect AIS to be operational, and may impose penalties for this not being the case – especially where there is a collision which AIS may have helped to avoid. Keep in mind, too, that non-compliance with more stringent local regulations will be punished . Even in international waters, where a yacht goes dark other than allowed by Resolution A.1106(29), while this may not be noticed by the flag state authority, if there’s a collision then insurance underwriters could claim that, without this important navigational aid working, the vessel was, in law, unseaworthy, and they are entitled to refuse payment. But going dark may not be intentional. Interference, weak radio signals and patchy satellite reception can all compromise AIS data exchange. Distinguishing intentional from unintentional signal drop-outs is difficult but not impossible. The frequency and regularity of drop-outs prior to a full blackout may be indicative. And the reason may not be malevolent. It is known, for example, that in certain parts of the world fishing vessels switch off AIS in order not to reveal productive catch areas to competitors. CONCLUSION Whether we, as owners, like it or not, AIS is governed by international convention – and it’s here to stay. If there are legitimate concerns then going dark may be permissible, but it’s as well to discuss this with the captain and insurance underwriter well in advance of a transit through waters in which it may be prudent or desirable. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about State Yachts Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about State Yachts

Unavailable at present Latest Position Yachts & More Listing Email WhatsApp +44 7773 246 246 Central Agent 62 m Length Thompson Yachts Builder 2005 Build year 670 Gross tonnage Malta Registry Particulars Guide

While your yacht insurance broker should understand and be able to explain policy terms to you, there can be ambiguity as to the role played by intermediaries. If you’re going to do your utmost to make sure that you remain covered, you need to be clear about the insurance contract itself, beyond deductible amounts. Underwriters are in business to make money and, despite marketing to the contrary, can and will fight larger claims. Home Handbook Insuring / / Understanding The Contract 18 April 2023 Last revised minutes 3 Reading time While your broker should understand and be able to explain policy terms to you, there can be ambiguity as to the role played by intermediaries. If you’re going to do your utmost to make sure that you remain covered, you need to be clear about the insurance contract itself, beyond deductible amounts. Underwriters are in business to make money and, despite marketing to the contrary, can and will fight larger claims. minutes 3 Reading time 18 April 2023 Last revised While your broker should understand and be able to explain policy terms to you, there can be ambiguity as to the role played by intermediaries. If you’re going to do your utmost to make sure that you remain covered, you need to be clear about the insurance contract itself, beyond deductible amounts. Underwriters are in business to make money and, despite marketing to the contrary, can and will fight larger claims. Where there's a dispute, ambiguous terms in a policy are construed in favour of the insured . Consumer protection may vary based on whether the insured uses the yacht privately or commercially. Insurance contracts consist of four types of terms: terms descriptive of the risk, exclusions, warranties, and conditions. Breach of warranty can release the underwriter from future liability or suspend coverage, while breach of a condition can lead to liability rejection or claims for damages. Terms descriptive of the risk define the perilscovered , and the insured must prove that the loss resulted from one of these perils. Exclusions limit the scope of coverage and suspend cover during the excluded circumstances. Warranties are fundamental terms that must be strictly followed, regardless of whether they are labeled as such. Conditions can be either conditions precedent (before coverage) or bare conditions (during the policy), and breach can result in different outcomes. The insured party must have an insurable interest in the matter being insured, typically the owner of the yacht. Other interested parties must be declared in the contract and can be entitled to notifications, but to claim directly, they need to be named as joint or co-insureds. Exclusions limit the scope of coverage and suspend cover during the excluded circumstances. Warranties are fundamental terms that must be strictly followed, regardless of whether they are labeled as such. Conditions can be either conditions precedent (before coverage) or bare conditions (during the policy), and breach can result in different outcomes. The insured party must have an insurable interest in the matter being insured, typically the owner of the yacht. Other interested parties must be declared in the contract and can be entitled to notifications, but to claim directly, they need to be named as joint or co-insureds. Where there's a dispute, ambiguous terms in a policy are construed in favour of the insured . Consumer protection may vary based on whether the insured uses the yacht privately or commercially. Insurance contracts consist of four types of terms: terms descriptive of the risk, exclusions, warranties, and conditions. Breach of warranty can release the underwriter from future liability or suspend coverage, while breach of a condition can lead to liability rejection or claims for damages. Terms descriptive of the risk define the perilscovered , and the insured must prove that the loss resulted from one of these perils. Insurance contracts must set out the risk, the duration of cover, the premium and the amount payable in the event of loss. That’s it. They don’t need to be set out in any particular way. And, aside from marine insurance, they don’t even need to be in writing. The policies for larger risks can be long-winded and written in rather theatrical terms. These old-fashioned words and phrases have well-known and judicially considered meanings and implications. In recent years, there has been a move towards simpler terminology – but such words may not have been considered in court. In the event of a dispute arising between insured and underwriter, unfamiliar terms can lead to doubt. If words are ambiguous, they will be construed in favour of the insured. Whilst an owner who keeps the yacht solely for private use may be given the benefit of any doubt as a consumer, where the vessel is chartered or otherwise maintained on a commercial basis for tax reasons, this consumer protection evaporates. Where words have a technical legal meaning, this definition will prevail, as will any definitions set out in the contract. Where there are rival meanings, the construction consistent with commercial common sense will triumph. The contract will also be construed in line with the purpose of the contract, such that insuring clauses are interpreted widely, and exclusions narrowly. TYPES OF TERMS Insurance contracts contain four types of terms. It’s important to know which category a term falls into, as this affects what happens where such terms aren’t complied with. The categories are: Terms descriptive of the risk; Exceptions and exclusions; Warranties; and Conditions. For those who already know a little about general contract law, the terms ‘warranty’ and ‘condition’ are used differently. In insurance law, a breach of warranty can discharge an underwriter from all future liability, or may suspend cover for the period during which the insured is in breach, rather than merely rise to a claim for damages. Breaching a condition can give the underwriter the right to reject liability – or claim damages. TERMS DESCRIPTIVE OF THE RISK These are terms that describe the risk, and so define the cover in terms of the perils insured against. The insured must prove that its loss was caused by one of these perils. EXCEPTIONS & EXCLUSIONS Exceptions and exclusions set limits on the scope of the risk. They have the effect of suspending cover while the excluded circumstances are in effect. WARRANTIES Warranties are fundamental terms and must be strictly complied with. They may or may not labelled as such, but exist where the insured declares that something will or will not be done, or that a condition has or has not been fulfilled, or that it holds a particular intention or belief. It used to be that underwriters made all kinds of terms warranties simply by including ‘basis of contract’ clauses. This is no longer allowed, but statements as to particular facts (past or present) can still be deemed to be warranties. CONDITIONS Conditions take the form of either: A ‘condition precedent’, which requires compliance by the insured before being on-cover, and which, if breached, allows the underwriter to reject liability altogether; or A ‘bare condition’, which requires compliance by the insured during the currency of the policy, and which, if breached, allows the underwriter to claim damages for any loss suffered as a result of a breach. Examples of a condition precedent might be the payment of the premium, or compliance with claim notification requirements, while a bare condition might take the form of an obligation to give prompt notice to the underwriter of any circumstance likely to give rise to a claim, or a requirement to co-operate with the underwriter in respect to a claim. Either way, the underwriter bears the burden of proving that a condition has been breached. And labelling a condition as such is not conclusive as to its status. INSURABLE INTEREST It may sound obvious, but the party taking out the insurance must be the owner of the yacht – not the beneficial owner. Otherwise, in law, the beneficial owner would merely be taking a bet. The insured is said to need to have an ‘insurable interest’ in the matter being insured. Other parties may have an interest which is insurable, and this must be declared in the contract. The noted party can be entitled to notification by the underwriter of changes to cover, cancellation or non-renewal. If such parties want to be able to claim directly from the underwriter, however, they need to be named either as joint or co-insureds in the policy. Joint insureds each have a contractual right to indemnity, perhaps because they both jointly own a yacht. But the wrongdoing of one joint insured can preclude a claim by the other (innocent) joint insured. A co-insured, such as a mortgagor bank, is not precluded from claiming under such circumstances. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Providing Information Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Providing Information

Preparing the crew for the sale of your yacht is an essential part of the selling process. Tact and transparency are key to ensuring that crewmembers play their part in a swift sale. A lack of cooperation on the part of crew can make marketing that much harder, while a disgruntled crewmember can potentially bring the sale process to a halt. With a good chance of being re-employed by the buyer, crew should be encouraged to see the sale process as a recruitment opportunity, and a normal part of a career afloat. Home Handbook Selling / / Preparing Your Crew 29 January 2025 Last revised minutes 7 Reading time Preparing the crew for the sale of your yacht is an essential part of the selling process. Tact and transparency are key to ensuring that crewmembers play their part in a swift sale. A lack of cooperation on the part of crew can make marketing that much harder, while a disgruntled crewmember can potentially bring the sale process to a halt. With a good chance of being re-employed by the buyer, crew should be encouraged to see the sale process as a recruitment opportunity, and a normal part of a career afloat. minutes 7 Reading time 29 January 2025 Last revised Preparing the crew for the sale of your yacht is an essential part of the selling process. Tact and transparency are key to ensuring that crewmembers play their part in a swift sale. A lack of cooperation on the part of crew can make marketing that much harder, while a disgruntled crewmember can potentially bring the sale process to a halt. With a good chance of being re-employed by the buyer, crew should be encouraged to see the sale process as a recruitment opportunity, and a normal part of a career afloat. Cooperation is crucial. The sale of a yacht typically requires terminating existing crew employment. Early engagement with the captain ensures crew cooperation, vessel upkeep, and a smooth transition. Buyers prefer a clean purchase. Rather than acquiring the owning company (which may have hidden liabilities), buyers usually re-register the yacht, necessitating crew redundancies. Most crew members are legally considered employees, though specialist technicians may be independent contractors with different rights. Employers must consult crew about redundancy, both individually and collectively if 20+ jobs are affected. Written notifications and meeting records are essential. Notice depends on service length, but if immediate sale is required, pay in lieu of notice may be agreed. Crew with at least two years’ continuous service are entitled to redundancy pay, calculated based on age, service duration, and salary. Under the Maritime Labour Convention (MLC) 2006, employers must cover costs for returning crew home, including travel and accommodation. Crew Release Letters, signed by crew confirming receipt of all owed payments, help protect sellers from future claims. Employment Tribunal claims remain a risk. Notice depends on service length, but if immediate sale is required, pay in lieu of notice may be agreed. Crew with at least two years’ continuous service are entitled to redundancy pay, calculated based on age, service duration, and salary. Under the Maritime Labour Convention (MLC) 2006, employers must cover costs for returning crew home, including travel and accommodation. Crew Release Letters, signed by crew confirming receipt of all owed payments, help protect sellers from future claims. Employment Tribunal claims remain a risk. Cooperation is crucial. The sale of a yacht typically requires terminating existing crew employment. Early engagement with the captain ensures crew cooperation, vessel upkeep, and a smooth transition. Buyers prefer a clean purchase. Rather than acquiring the owning company (which may have hidden liabilities), buyers usually re-register the yacht, necessitating crew redundancies. Most crew members are legally considered employees, though specialist technicians may be independent contractors with different rights. Employers must consult crew about redundancy, both individually and collectively if 20+ jobs are affected. Written notifications and meeting records are essential. For clarity’s sake, we’re going to look at the case of United Kingdom law, which applies to any UK-registered yacht, or any vessel operating for the UK, or to any crewmember operating from the UK (which is very broadly defined). Similar rules apply to other Red Ensign vessels. COOPERATION Buyers will usually want to buy the yacht, rather than its owning company, and re-register it in the name of their new owning company – enough though this is a more complex route than simply transferring company shares. There are various reasons for this, but the most important is that an owning company’s debts, lawsuits, unpaid taxes and other obligations may not be immediately apparent. Debts can still attach to a yacht directly, but at least such risks are minimised. The upshot of this is that the existing crew’s employment has to come to an end. But they can’t simply be ‘let go’. There are legal and financial obligations that sellers must meet ahead of the sale. As soon as you’re minded to sell your yacht, you or your representative needs to discuss this with your captain(s) to ensure their full engagement and cooperation. The captain will be instructed to disseminate this information to the crew. The vessel must look her best for photoshoots, and the pre-purchase survey must not highlight missed maintenance. Recruitment is an expensive process for buyers. Re-hiring makes sense – especially in the case of engineers who will know the vessel’s systems and technical idiosyncrasies better than anyone, but the existing crew’s expectations need to be managed. The marketing period is their opportunity to shine. STATUS Nearly all crew will, as a matter of law, have the status of employee – but this isn’t always the case. Specialist technicians might be engaged on board in respect of a specific project, but they’re likely to be contractors and won’t have the same rights. CONSULTATION With redundancy on the horizon, employers are obligated to consult with crewmembers, both on an individual basis – and a collective one if 20 or more are to lose their jobs. This is not just a formality; it's about ensuring a transparent and fair process. For both types, employers should provide a written notification of any potential redundancy, and a representative should discuss the situation in person – with records of this kept. NOTICE How much notice period is required depends on the length of service, i.e. 1 week’s notice for 1 month to 2 years of service, 1 week’s notice per year of service for 2 to 12 years17, and 12 weeks’ notice for 12 or more years of service. If the employment contract specifies a longer notice period then this must be honoured. Of course, this is a problem where the sale of a yacht is to complete within a short timeframe. So, employers can offer pay in lieu of notice if the contract allows for this, or otherwise the amount will be that which is mutually agreed. REDUNDANCY PAY Employees who have at least two years’ continuous service will be eligible for redundancy pay, calculated on the basis of age, length of service and pay. REPATRIATION Repatriation is an essential seafarer’s right, enshrined in the Maritime Labour Convention (MLC) 2006. Employers are obligated to cover all costs including travel, accommodation, and subsistence until the individual is safely home. The home country should be stated in the employment agreement, and if that’s where the vessel is then the crewmember will have been repatriated simply by stepping off the passerelle. RECORDS While the importance of record-keeping throughout cannot be over-emphasised, the most important documents to obtain are the Crew Release Letters. Drafted by the seller’s lawyer, these are addressed to the seller and signed by each crewmember, confirming that they have received everything owed to them and have not claim against the owning company or the yacht. Once signed, while not a complete bar to legal action, this provides the best evidence that the crewmember concerned has no claim against the seller. The provision of a full set of such from each and every crewmember is likely to be a condition of the sale, so a refusal to provide one can be disruptive. Crewmembers can also bring a later claim in an Employment Tribunal. This is a public forum, akin to a court, in which beneficial owners can be – and have been – named. PREPARE EARLY For a long time, it was assumed that if crew didn’t like the fact that the yacht was being sold then that was simply tough luck. But, with easier access to advice, and with seafarer unions (especially Nautilus ) more willing to act on behalf of individual members, it is important to prepare crew for a sale as early and fully as possible. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Preparing the Paperwork Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Preparing the Paperwork

Unavailable at present Latest Position Rapid Brokers Listing Email WhatsApp +44 7773 246 246 Central Agent 67 m Length Italia srl Builder 2000 Build year 608 Gross tonnage United Kingdom Registry Particulars Simulator

As soon as you enter any country’s waters, you’re under an obligation to abide by all their laws. Detailed onboard examinations are used to check compliance. Port State Control (PSC) is the system of inspection by officials to check vessels’ condition and operation. Safety, security, environmental protection and seafarer welfare are the areas of interest. Port States can require defects to be put right, and detain vessels if necessary. This is all separate, and in addition to, any consideration of the tax status of the owner, beneficial owner and yacht. Home Handbook Regulation / / Port State Control 19 June 2011 Last revised minutes 3 Reading time As soon as you enter any country’s waters, you’re under an obligation to abide by all their laws. Detailed onboard examinations are used to check compliance. Port State Control (PSC) is the system of inspection by officials to check vessels’ condition and operation. Safety, security, environmental protection and seafarer welfare are the areas of interest. Port States can require defects to be put right, and detain vessels if necessary. This is all separate, and in addition to, any consideration of the tax status of the owner, beneficial owner and yacht. minutes 3 Reading time 19 June 2011 Last revised As soon as you enter any country’s waters, you’re under an obligation to abide by all their laws. Detailed onboard examinations are used to check compliance. Port State Control (PSC) is the system of inspection by officials to check vessels’ condition and operation. Safety, security, environmental protection and seafarer welfare are the areas of interest. Port States can require defects to be put right, and detain vessels if necessary. This is all separate, and in addition to, any consideration of the tax status of the owner, beneficial owner and yacht. The Paris Memorandum of Understanding on Port State Control (Paris MoU) includes European Union coastal countries, Canada, Croatia, Norway, and Russia, among others. The Netherlands Ministry of Infrastructure & Environment provides the secretariat for the Paris MoU. The Paris MoU introduced the New Inspection Regime (NIR) which aims to inspect 100% of all ships, including yachts, visiting ports in the Paris MoU region over a three-year period. Yachts are now included in the NIR and are subject to assessments regarding safety, health, and the environment. Vessels are categorized into High Risk Ships, Standard Risk Ships, and Low Risk Ships, determining the frequency of inspections. The risk categorization is based on factors such as previous inspections, vessel type and age, the yacht's manager's performance, and the country of registry. Inspections are not meant to disrupt cruising schedules but are necessary for compliance. Inspections focus on training, management systems, and the physical integrity of the yacht to ensure safety for the owner, guests, and crew. Preparation is key to a hassle-free inspection, including compliance with relevant rules, crew training, and detailed guidelines. Safety and security procedures must be followed, and honesty is crucial during inspections, as falsifying records or lying to officials is a serious offence. The risk categorization is based on factors such as previous inspections, vessel type and age, the yacht's manager's performance, and the country of registry. Inspections are not meant to disrupt cruising schedules but are necessary for compliance. Inspections focus on training, management systems, and the physical integrity of the yacht to ensure safety for the owner, guests, and crew. Preparation is key to a hassle-free inspection, including compliance with relevant rules, crew training, and detailed guidelines. Safety and security procedures must be followed, and honesty is crucial during inspections, as falsifying records or lying to officials is a serious offence. The Paris Memorandum of Understanding on Port State Control (Paris MoU) includes European Union coastal countries, Canada, Croatia, Norway, and Russia, among others. The Netherlands Ministry of Infrastructure & Environment provides the secretariat for the Paris MoU. The Paris MoU introduced the New Inspection Regime (NIR) which aims to inspect 100% of all ships, including yachts, visiting ports in the Paris MoU region over a three-year period. Yachts are now included in the NIR and are subject to assessments regarding safety, health, and the environment. Vessels are categorized into High Risk Ships, Standard Risk Ships, and Low Risk Ships, determining the frequency of inspections. All European Union coastal countries, and Canada, Croatia, Norway, and Russia, are party to the Paris Memorandum of Understanding on Port State Control (Paris MoU). The Hague-based Netherlands Ministry of Infrastructure & Environment provides the secretariat. There are 6 other MoU blocs worldwide. INSPECTION REGIME The Paris MoU New Inspection Regime (NIR) introduced a target of inspecting, over any three-year period, 100% of all the ships visiting ports and anchorages in the Paris MoU region. Yachts have been lumped-in with trading ships and ferries. The NIR applies to “ships”, which includes all yachts. Where a yacht is so small, or is not chartered, such that parts of the various maritime conventions (SOLAS, MARPOL, etc) do not apply, the PSC’s task is now to “…to assess whether the ship is of an acceptable standard in regard to safety, health or the environment.” Further, in assessing such vessels, account must be taken, “…of such factors as the length and nature of the intended voyage or service, the size and type of the ship…”. All vessels are deemed to fall into one of three risk profiles. High Risk Ships must be inspected 5 to 6 months after the last inspection, Standard Risk Ships 10 to 12 months after the last inspection and Low Risk Ships 24 to 36 months after the last inspection. Additional inspections, however, can also be triggered by overriding or unexpected factors. Time windows for the next periodic inspection re-start after any inspection. Where a window has come and gone without checks having been carried – because a yacht has not called at a participating port – that yacht will automatically be targeted on arrival. The risk categorisation is based on a number of factors – including the details and results of previous Paris MoU inspections, the vessels’ type and age, the performance of the yacht’s manager and the country of registry. In fact, for a yacht to be a Low Risk Ship, the flag must be approved and appear on the annual Paris MoU White List. The United States, Switzerland, Saint Vincent and the Grenadines, Panama, and the Netherlands Antilles all fail to make the List. Unless a yacht is a High Risk Ship, port officials have the option of undertaking an initial inspection – then deciding whether or not to carry out a detailed inspection. INSPECTIONS Inspections are not intended to interrupt cruising schedules. They are carried out because they have to be. Most officials in most ports will be polite and efficient, but they can make life difficult if they choose to. While nearly all large yachts are extremely well presented, it is the training and management systems – as well as the physical integrity of the vessel – which is being examined. Poorly-run vessels can still present a hazard to the owner, guests and crew: perhaps it is better that these issues are picked up sooner rather than later. PREPARATION It’s up to the yacht’s captain and manager to ensure that the relevant rules are being complied with and that all crewmembers know what do in an emergency. Detailed guidelines and instructions should already be laid out, where these are mandatory, in the Safety Management System and Ship Security Plan, but it’s how these and other forms of pre-prepared guidance translate into reality that’s key to a fast and hassle-free inspection. First impressions are crucial. Do all the deckhands and steward(ess)s automatically know to be especially courteous with the PSC inspector? They may not be wearing an official uniform, and could just be yet another supplier. They may not take kindly to being told to remove their shoes – so a box of disposable shoe covers kept by the passarelle will get the process off on the right foot. Safety and security procedures must be followed at all times: it is the checks that count – not the ticks. Even where a guest may be inconvenienced by a safety briefing, this will be as nothing compared to the yacht being detained later. Falsifying logs and records, or lying to officials, will constitute a serious criminal offence. It is always better to admit a failing than to cover it up: the inspectors have seen it all before. Members would be well advised to discuss the possibility of inspection with captains and managers sooner rather than later. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about The ISM Code Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about The ISM Code

The loan agreement and/or the deed of covenant will provide that the ship mortgage will become enforceable following a defined default event. What constitutes default will be set out in the loan agreement – and will cover more than just a failure to make loan repayments. A breach of any term of the security documentation, in particular positive or negative covenants, can constitute a default. Home Handbook Financing / / Loan Enforcement 3 March 2014 Last revised minutes 3 Reading time The loan agreement and/or the deed of covenant will provide that the ship mortgage will become enforceable following a defined default event. What constitutes default will be set out in the loan agreement – and will cover more than just a failure to make loan repayments. A breach of any term of the security documentation, in particular positive or negative covenants, can constitute a default. minutes 3 Reading time 3 March 2014 Last revised The loan agreement and/or the deed of covenant will provide that the ship mortgage will become enforceable following a defined default event. What constitutes default will be set out in the loan agreement – and will cover more than just a failure to make loan repayments. A breach of any term of the security documentation, in particular positive or negative covenants, can constitute a default. When there is a default, the lender may choose to waive it or demand that it be corrected by the borrower. The lender can enforce the mortgage through a deed of covenant that grants specific powers. The deed of covenant allows the lender to order the yacht to a specific port, manage the yacht, take possession of it, and sell it. The lender can use a power of attorney granted by the borrower to act on their behalf, including selling the yacht. Lenders have pre-existing rights, such as taking possession of the yacht or selling it when loan repayments are outstanding. Lenders can arrest the yacht through a court application, leading to a judicial sale that may attract higher prices. The lender is responsible for immediate expenses incurred after the arrest, such as crew salaries and mooring fees. The lender can apply for an order of sale before judgment, which involves appraisal, valuation, and advertising for sealed bids. If a default occurs during a charter, the lender's rights may be restricted if it interferes with the charter, but certain conditions must be met. The lender's claim as a mortgagee is prioritized over unpaid creditors with maritime liens and possessory liens. After a court sale, proceeds are distributed in a specific order. Lenders can arrest the yacht through a court application, leading to a judicial sale that may attract higher prices. The lender is responsible for immediate expenses incurred after the arrest, such as crew salaries and mooring fees. The lender can apply for an order of sale before judgment, which involves appraisal, valuation, and advertising for sealed bids. If a default occurs during a charter, the lender's rights may be restricted if it interferes with the charter, but certain conditions must be met. The lender's claim as a mortgagee is prioritized over unpaid creditors with maritime liens and possessory liens. After a court sale, proceeds are distributed in a specific order. When there is a default, the lender may choose to waive it or demand that it be corrected by the borrower. The lender can enforce the mortgage through a deed of covenant that grants specific powers. The deed of covenant allows the lender to order the yacht to a specific port, manage the yacht, take possession of it, and sell it. The lender can use a power of attorney granted by the borrower to act on their behalf, including selling the yacht. Lenders have pre-existing rights, such as taking possession of the yacht or selling it when loan repayments are outstanding. Where there is a default, the lender decide that the commercial relationship is worth saving. The lender may therefore choose to waive the default – either unconditionally or if the borrower complies with new conditions. Alternatively, the lender may demand that a default be put right by the borrower or even put things right itself and charge the borrower for this – such as renewing an insurance policy. If all else fails, the lender may press ahead with enforcement action. CONTRACTUAL ENFORCEMENT The deed of covenant sets out the lender’s enforcement powers, exercisable once the mortgage has become enforceable. This is on top of the rights existing in law anyway (set out below). Typical rights granted by the deed of covenant include the following: To order the captain to proceed to a port nominated by the lender – which will be within a jurisdiction where arresting the yacht is particularly easy or convenient; To manage the yacht, including chartering her out (assuming that the yacht is commercially registered and insured for chartering), and even replacing the entire crew if need be; To take possession of the yacht ahead of a sale, and take her to a jurisdiction where a relatively rapid sale can be concluded or where the lender will rank higher than other creditors; and To sell the yacht, either by public action or private sale. POWER OF ATTORNEY As well as the borrower’s covenants, the lender can use any power of attorney granted by the borrower to the lender, by which the lender can act in the borrower’s name to correct any default, or even go so far as to sell the yacht without much further ado. PRE-EXISTING RIGHTS Beyond the lenders rights which exist by virtue of the borrower’s covenants and any power of attorney, the law automatically gives lenders the ability to do any of the following: To take possession of the yacht, where the borrower has actually defaulted on loan repayments, or the lender’s security has been compromised as a result of the borrower’s (in)actions. In reality, this is rare as the lender will be on the hook for operational costs – even assuming that the lender has the relevant experience or can procure this at short notice. To sell the yacht, but only when the mortgage repayments are outstanding, and not simply where covenants have been breached: for this the lender will have to rely on the express provisions of the loan agreement and deed of covenant. To arrest the yacht, on application to the court, as a procedural step leading to the judicial sale of the vessel. A judicial sale may be preferred over a sale by the lenders this allows a buyer to but a yacht free from pre-existing liens and encumbrances – which benefits may help to boost the price of what will otherwise be something of a fire sale. The arrest of a yacht will result in the court’s officer, the Admiralty Marshal, incurring expenses right away, such as crew salaries, mooring fees and essential maintenance. The lender’s lawyer must provide a personal undertaking to pay such expenses, and will need a considerable sum paid to his or her firm on account. The lender will also need to arrange first and third party insurance if need be. Following arrest, the lender may apply to the court, even before judgment has been handed down, for an order for sale. The court order will contain instructions for the Admiralty Marshal to have the yacht appraised, valued and advertised for sale, typically on a sealed bid basis. The Admiralty Marshal’s Conditions of Sale will apply, under which – if the Admiralty Marshal accepts a sealed offer – the buyer must pay 10% right away and the balance within one week. CHARTERS Should a default occur when a charter has been booked or the she’s out on charter, the lender, as mortgagee, will be bound by the terms of charter, and prevented from exercising its rights under the mortgage, such as taking possession, arrest and/or sale, where doing so would interfere with the charter, as long as: Undertaking or completion of the charter doesn’t compromise the lender’s security; and The borrower is willing and able to complete the charter. PRIORITY Even with all the loan documentation, covenants, etc, in place, a lender’s claim as mortgagee is trumped by those with maritime liens such as unpaid crew, or those with a possessory lien such as a refit yard. This is the case even though neither maritime nor possessory liens can be registered anywhere. Mortgagees will take priority over all other unpaid creditors. The deed of covenant will usually stipulate that, following sale, the lender’s costs and expenses are paid first, then the outstanding principal and interest will be paid off. The borrower will then receive any amount left over. Following a court sale, the proceeds are distributed in the following order: Admiralty Marshal’s fees and expenses; Lender’s legal costs; Maritime liens; Possessory liens; Mortgages and charges over the yacht, in order of registration; and Statutory liens. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Leasing Overview Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Leasing Overview

Unavailable at present Latest Position Example Brokerage & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 37 m Length Finest Craft Builder 2011 Build year 156 Gross tonnage Cayman Islands Registry Particulars Type