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%

It’s important to understand the yacht insurance claims process, in advance of an incident, to make sure that underwriters have no excuses when it comes to the crunch. If you’re an owner reading this because your yacht has just been involved in an incident, then you should contact us right away to make sure that you’re taking the appropriate advice. Home Handbook Insuring / / Making A Claim 18 May 2023 Last revised minutes 4 Reading time It’s important to understand the claims process, in advance of an incident, to make sure that underwriters have no excuses when it comes to the crunch. If you’re an owner reading this because your yacht has just been involved in an incident, then you should contact us right away to make sure that you’re taking the appropriate advice. minutes 4 Reading time 18 May 2023 Last revised It’s important to understand the claims process, in advance of an incident, to make sure that underwriters have no excuses when it comes to the crunch. If you’re an owner reading this because your yacht has just been involved in an incident, then you should contact us right away to make sure that you’re taking the appropriate advice. You must notify the underwriter, through your broker if your're using one, of a loss - and provide evidence within a specified time frame or (if none) a reasonable period. You should take reasonable steps to minimize the loss in the event of an incident. You are responsible for proving the amount and scope of the loss and that it was caused by a covered peril. Both you and the underwriter have obligations of cooperation during the claims process. Underwriters must pay valid claims within a reasonable timeframe, and delays may result in additional damages payable to you. Subrogation allows the underwriter to recover money paid to the insured from the third party responsible for the loss. Settlements reached with the underwriter can be invalidated if fraudulent misrepresentation by the insured is later discovered. Double insurance can occur when both the yacht and its tender are insured separately, requiring coordination between insurers. Independent advice may be necessary, as your interests anf those of the underwriter are not aligned. You must not jeopardize the underwriter's subrogation rights by settling or abandoning a claim against a third party. Subrogation allows the underwriter to recover money paid to the insured from the third party responsible for the loss. Settlements reached with the underwriter can be invalidated if fraudulent misrepresentation by the insured is later discovered. Double insurance can occur when both the yacht and its tender are insured separately, requiring coordination between insurers. Independent advice may be necessary, as your interests anf those of the underwriter are not aligned. You must not jeopardize the underwriter's subrogation rights by settling or abandoning a claim against a third party. You must notify the underwriter, through your broker if your're using one, of a loss - and provide evidence within a specified time frame or (if none) a reasonable period. You should take reasonable steps to minimize the loss in the event of an incident. You are responsible for proving the amount and scope of the loss and that it was caused by a covered peril. Both you and the underwriter have obligations of cooperation during the claims process. Underwriters must pay valid claims within a reasonable timeframe, and delays may result in additional damages payable to you. In order to receive payment or obtain the benefit(s) specified in the contract, the insured must inform the underwriter that it has experienced a loss that it believes is covered by the contract, and provide evidence demonstrating that their claim is indeed covered by the contract. A specific claims procedure may be set out in the contract. Written notice may be required – which may need to be in a particular form. Notice must be given within any specified time frame, or otherwise within a reasonable period. If the notice provision is considered a condition precedent, the underwriter may be able to deny liability. CAUSATION The insured is normally responsible for proving, on a balance of probabilities: The amount and scope of their loss; and That their loss was ‘proximately caused’ by a peril covered by the policy, unless the policy states that the loss may be ‘directly or indirectly’ caused by such a peril (or similar). Quite often, losses involve a chain of events, one or more of which are excluded from coverage. Generally, if there are two proximate causes of loss, one covered and one not covered, the underwriter will be on the hook for that loss. But if the insured cannot establish which peril (covered or not covered) caused the loss, or if none of the causes appear inherently likely, there will be no coverage. DUTY TO CO-OPERATE The insurance contract normally obligations of cooperation for both the insured and the underwriter when a claim is filed. In the case of a liability policy, the underwriter is generally required to negotiate with third party claimants in good faith, taking into account the insured's best interests – and, if necessary, assume responsibility for defending against a third party claim. The insured, meanwhile, must not admit liability without the underwriter's consent – and must obtain the underwriter's approval before settling a third party claim. PAYING CLAIMS Underwriters must pay valid claims within a ‘reasonable’ timeframe. If there is a delay or failure to pay, the insured can sue for damages for any additional losses suffered. It’s up to the insured to establish that the payment was only made after an unreasonable delay. Where the underwriter has reasonable grounds to dispute the claim, the manner in which it handles the claim can be a relevant factor in determining whether the implied term of timely payment was breached. SUBROGATION When an underwriter pays out money to an insured under an indemnity policy, such as Hull & Machinery , the rules of ‘subrogation’ allow the underwriter to recover all or part of that money from the third party who caused the loss. Subrogation means that the underwriter can step into the insured's shoes and pursue the third party itself, seeking to recover what it’s just paid out. The underwriter can not only claim the rights of the insured but also any benefits awarded by a court, such as interest on judgment debts and costs. The right of subrogation can be explicitly stated in the insurance contract, but it is also a pre-existing legal right. As set out above, it is essential for the insured not to jeopardize the underwriter's subrogation rights by settling or abandoning the claim against the third party, as this could lead to the underwriter seeking damages from the insured. FRAUDULENT CLAIMS Underwriters are always alive to the possibility of fraud. They’re seen it all before. Even where a settlement has been reached between underwriter and insured, this can be invalidated where it’s later shown that there was a fraudulent misrepresentation by the insured. Underwriters have the option to terminate the insurance contract from the date of the fraudulent act - without refunding any premiums. This means that the underwriter can refuse liability for genuine losses or claims made after the fraudulent act. Claims made before the fraudulent act will be unaffected. DOUBLE INSURANCE Recent years have seen a rise the use of support yachts, carrying large tenders and helicopters. If close attention isn’t paid to the policies of both yacht and tender (itself often a large motor yacht), it is possible to end up in a situation where the tender is ‘double insured’. In the event of a loss, the insured generally has the freedom to choose under which policy to claim payment. However, this is subject to the terms and conditions of each insurance contract, and some policies may prevent the making of a claim if there is other insurance covering the same risk. Double insurance does not provide additional protection to the insured. Instead, it may complicate the claims process and require coordination between multiple insurers. If an underwriter pays out a claim under an insurance policy, it may have the right to seek a contribution from another underwriter that provided coverage for the same loss. CONCLUSION Should any incident ever arise, potentially involving damage to the yacht or liability to a third party, sitting back is not an option. The insured is usually under an express obligation to notify the underwriter, and do everything reasonable to minimise the loss. The advice of the underwriter or broker, at the initial stages of an incident, is therefore vital, but the interests of underwriter and insured not being one and the same, and it will be prudent for you to take independent advice, right away. 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 Who's Who Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Who's Who

It’s time to free ourselves from a tun of unnecessary paperwork. In this white paper, drawn up at the suggestion of, and following consultations with, some of our Members, our General Secretary considers what Gross Tonnage is, why it’s used as the primary regulatory threshold, and what workarounds could be utilised to circumvent its blunt impact. Home Handbook White Papers / / Speaking Volumes Browse the website of any large brokerage and you will find numerous vessels said to have a “GT” of 499. This refers to Gross Tonnage. Owners of these are relieved from having to comply with a raft of regulations which apply to chartered vessels of 500 GT and above. Not doing so can lead to the yacht being detained and will lead to insurance policies being invalid. To be clear, this paper isn’t suggesting that the relevant safety regulations shouldn’t apply to certain larger yachts - it’s just that Gross Tonnage creates peculiar regulatory thresholds which can lead to compromised designs. Whether or not owners are looking to shave money off compliance costs, designers certainly consider there to be a market for such “paragraph” yachts. Keep in mind, also, that many such safety regulations don’t apply to private (i.e. non-chartered) yachts - even though they require the same number of permanent, full-time crewmembers. WHAT IS GROSS TONNAGE? The word ‘tonnage’ here does not mean weight. It is derived from the old English term ‘tun’ meaning a large wooden barrel – used for measuring, storing and transporting wine, oil or honey. They usually held 252 gallons, but other sizes were common. As it happens, a tun of wine weights about one long ton, which is 2240 pounds or 1016 kg, but the key point is that Gross Tonnage reflects volume – not weight, mass or displacement. Gross Tonnage is an abstract, unitless calculation, being the vessel’s total enclosed volume but modified by a logarithmic factor based on that volume. It was a compromise which met the needs of the shipping community of the 1960s. Yet these arcane rules still govern the design and specification of certain yachts over half a century later. Crucially, the figure is calculated as much as it is measured. It is defined by the Regulation 3 of Annex I of the International Convention on Tonnage Measurement of Ships, 1969 (normally abbreviated to “ITC 69”) by the formula: GT=K1V Where: V = the total volume of all enclosed spaces of the ship in cubic metres, and K1 = 0.2 + 0.02 log10V (or as set out in Appendix 2 of ITC 69) Calculating this requires a good grasp of both naval architecture and mathematics. UNDERLYING RATIONALE The reason why volume is used rather than weight is that, historically, ships were measured in order to calculate taxes. Aside from warships, all vessels were cargo ships of some description. And the easiest and fairest way to fund port operations and levy foreign trade was to tax ship owners according to cargo carrying capacity and, therefore, profitability. Overall vessel size was not the key factor. The same principles were applied to later passenger ships. Different countries used a variety of methods, which is why the ITC 69 was needed. This also did away with Gross Register(ed) Tonnage (GRT) - a measure of total internal capacity which is confused with GT even to this day – and at least ten other key measurements in use internationally. PROBLEMS CAUSED Inevitably, there is pressure on ship designers to minimise enclosed volume and reduce Gross Tonnage-based taxes and dues. Such amounts are minimal on relatively small vessels, such as yachts, but squeezing beneath a particular tonnage threshold seems to be a common aim. This can lead to freeboards (the distance between the waterline and the deck) being reduced to the minimum legal requirement. In turn, this reduces the available reserve buoyancy – those internal areas, above the waterline, which can be made watertight in the event of an emergency and help keep the vessel afloat for longer. Further, crew areas are reduced to the bare minimum in terms of floor space and headroom, and engine rooms are made as small as possible with machinery crammed in. Most pertinently for yachts, sterns tend to be cut off and slab-sided, sheer (the curving of the main deck upwards towards bow and stern) is reduced or eliminated, and swathes of the upper decks are given over to sundecks. Arguably, yachts are less elegant as a result. SHORT-TERM SOLUTION? Help could be at hand – if only more ship registry officials knew where to look. Regulation 1(3) of Annex I of ITC 69 states – arguably, in effect – that where there are “novel” aspects of a vessel’s design these aspects can be ignored when calculating Gross Tonnage. There is a small number of precedents for this in the context of trading ships, but this loophole does not appear to have been exercised when assessing yachts. This is surprising given that the latter are usually, almost by definition, full of novel features be they aesthetic elements or technical innovations. While there is Regulation 1(3) is written in vague terms, individual ship registries’ determination as to what “novel” means is definitive. Article 11 of ITC 69 makes it clear that tonnage certificates must be accepted at face value by other port states. It is perhaps surprising how this apparent loophole hasn’t been exploited more – especially by those registries marketing themselves at large yacht owners. But it would be better to change the rules than bend them. LONG-TERM SOLUTION The shortcomings of ITC 69 have been raised with the International Maritime Organisation (IMO), over the years, in respect of various types of cargo ships. Yet the convention has yet to be amended. Ship registries and owners have observed that too little or too much tonnage tax is being paid relative to other vessels of a similar displacement – depending on the point of view. The IMO’s view is that it doesn’t control tonnage tax and is unable to disallow the use of the gross tonnage in its calculation as this is a matter for individual port authorities. The most promising alternative has been mooted by the Australian government. Known informally as the “maritime real estate” and more formally as “Register Tonnage”, this is simply the length overall x breadth x summer draught. This seems fair as ports can charge ships on the basis of the amount of the port they take up, and the amount of dredging required. Yacht owners will need to work with trading ship owners in order to bring pressure to bear on the IMO. The procedure for amending the ITC 69 is particularly lengthy and involved. But surely worthwhile if yacht owners are going to put an end to this bureaucratic tail waging a very expensive dog. CONCLUSION No one system of measurement is going to satisfy all owners. ITC 69 is a compromise which has endured where numerous previous regimes have not. From a regulatory perspective, for nearly all trading and passenger vessels size doesn’t matter: all regulations will apply. And rightly so. Crew have every right to work in a safe and comfortable environment, and third parties have every right not to suffer the effects of collisions and pollution. But large, crewed yachts are different. Very few even existed when ITC 69 was drafted. Their crew live in comfortable quarters and are well paid (competition for the most able crewmembers ensures this). It can’t be right for yacht designers to be working around a figure to which vessel measurements form just one part, and which in any event attempts to satisfy the needs of a trading shipping community from a bygone era. It will be useful for Members to engage with ship registries at the outset regarding, via the Club Secretary, about Regulation 1(3) and what it could mean for the design of their yacht. Return to top Thank you to all our Members who provided perspectives for this white paper. It’s time to free ourselves from a tun of unnecessary paperwork. In this white paper, drawn up at the suggestion of, and following consultations with, some of our Members, our General Secretary considers what Gross Tonnage is, why it’s used as the primary regulatory threshold, and what workarounds could be utilised to circumvent its blunt impact. 8 February 2019 Last revised minutes 4 Reading time minutes 4 Reading time 8 February 2019 Last revised It’s time to free ourselves from a tun of unnecessary paperwork. In this white paper, drawn up at the suggestion of, and following consultations with, some of our Members, our General Secretary considers what Gross Tonnage is, why it’s used as the primary regulatory threshold, and what workarounds could be utilised to circumvent its blunt impact. Gross Tonnage (GT) is the key factor in determining which regulations apply, and this is vital to ensuring that insurance policies remain valid . GT is based on the total enclosed volume of the yacht and is derived from historical measurements used for taxation. The use of GT as a regulatory threshold can lead to compromised designs as owners and designers aim to minimize ongoing mangement costs. There is a loophole in the regulations that allows "novel" aspects of a yacht's design to be ignored when calculating GT, but this option has not been widely utilized. A potential alternative to GT is "Register Tonnage," which considers the physical dimensions of the yacht, and, as owners, perhaps we should engage with ship registries and pressure the International Maritime Organisation to change the regulations. You can also read about Language of Luxury Questions or comments? Please contact us Join the discussion over in the Club's group You can also read about Language of Luxury Questions or comments? Please contact us

While discussion about building a new British royal yacht ebbs and flows, it is often forgotten that a significant number of the world’s superyacht fleet already consists of royal and presidential yachts. These vessels occupy a particular place in international maritime law – often acting as floating embassies and extending extravagant hospitality and prestige. And just as diplomats hold special privileges in foreign countries, so do state vessels. Home Handbook Managing / / State Yachts 28 June 2010 Last revised minutes 5 Reading time While discussion about building a new British royal yacht ebbs and flows, it is often forgotten that a significant number of the world’s superyacht fleet already consists of royal and presidential yachts. These vessels occupy a particular place in international maritime law – often acting as floating embassies and extending extravagant hospitality and prestige. And just as diplomats hold special privileges in foreign countries, so do state vessels. minutes 5 Reading time 28 June 2010 Last revised While discussion about building a new British royal yacht ebbs and flows, it is often forgotten that a significant number of the world’s superyacht fleet already consists of royal and presidential yachts. These vessels occupy a particular place in international maritime law – often acting as floating embassies and extending extravagant hospitality and prestige. And just as diplomats hold special privileges in foreign countries, so do state vessels. Diplomatic privileges grant state yachts immunity from seizure and delay. Immunity is based on negotiated reciprocal agreements and has a legal and political foundation. State yachts represent a nation and seizing them could be seen as a diplomatic insult. Different countries have varying laws regarding immunity for state yachts. The privilege is often restrictive, requiring proof that the yacht is a state yacht and the circumstances justify the immunity. Immunity protects owners from disputes such as unpaid bills. Arrests of state yachts are governed by the laws of the jurisdiction where the yacht is located. Arrests serve to detain the yacht until financial security is provided. The International Convention on Salvage may not apply to state yachts entitled to immunity. Action can be taken against individuals responsible for negligence, even if the yacht is immune. Immunity protects owners from disputes such as unpaid bills. Arrests of state yachts are governed by the laws of the jurisdiction where the yacht is located. Arrests serve to detain the yacht until financial security is provided. The International Convention on Salvage may not apply to state yachts entitled to immunity. Action can be taken against individuals responsible for negligence, even if the yacht is immune. Diplomatic privileges grant state yachts immunity from seizure and delay. Immunity is based on negotiated reciprocal agreements and has a legal and political foundation. State yachts represent a nation and seizing them could be seen as a diplomatic insult. Different countries have varying laws regarding immunity for state yachts. The privilege is often restrictive, requiring proof that the yacht is a state yacht and the circumstances justify the immunity. For yachts, these diplomatic privileges take the form of immunity from seizure and delay. But such immunity is not automatic: it arises only because in the past various governments have reached negotiated, reciprocal agreements. This is important because it means that the immunity has a legal as well as a political foundation. So it is therefore possible to state precisely what the extent of the privilege is in any given set of circumstances. So why have such immunity anyway? The answer is that, like warships, state yachts are the floating embodiment of a particular nation, and to try to ensnare such vessels in foreign legal proceedings could be seen as a slap in the face of a foreign country, and diplomatically embarrassing. To make sure such faux pas do not happen, the treatment of state yachts is enshrined in the national laws of most states. It is a similar concept to the legal sanctity of foreign embassies. LIMITS But a line has to be drawn somewhere with regard to foreign sovereign immunities, to prevent them being taken advantage of. So a distinction is drawn between activities undertaken using vessels which are commercial in nature, and those of a governmental or public nature. For yachts, ‘commercial’ means simply being chartered. While this tenet was enshrined in 1926 in the Brussels Convention on Immunity of State Owned Vessels and later in the 1972 European Convention on State Immunity and the 1982 Law of the Sea Convention, these conventions must still have been enacted into particular countries’ domestic law to have any effect: which means that the commercial/non-commercial principle is not uniformly applied. In the UK, the State Immunity Act 1978 strips immunity even where there is just an intention that the yacht be chartered – therefore encompassing charter positioning passages. In the US, the Foreign Sovereign Immunities Act 1976 allows for state yachts to be seized not only when being used commercially but also to enforce a mortgage on the vessel. In France, the courts have held that a vessel may be seized simply when it is not performing a public act of state – which in reality is most of the time. In most parts of the world, the privilege is what lawyers call ‘restrictive’ in nature – in other words, if you are seeking to rely on the privilege it’s up to you to demonstrate that your yacht is indeed a state yacht and the circumstances justify what you’re seeking to rely on. ARREST Being immune from seizure and delay is, almost literally, a ‘get out of jail free’ card for an owner who disputes a bill, for example. Seizing a yacht is a dramatic and effective method for recovering debts. There is nothing like it in land-based law. Normally, if you were to supply goods or services to a yacht, and weren’t paid, you could only sue the person or company with whom you agreed to deliver the supplies or do the work. Liens cut through contractual matrices. Arrests are governed by the law of the jurisdiction in which the yacht is situated at the time. The yacht’s flag and the nationality of the individual or company seeking redress usually makes no difference. The arresting court can also become the trial court, making it possible to ‘forum shop’ for a country with favourable laws. Bringing an action against a ship is a remedy which has been around since ancient times. It exists because, traditionally, ships were owned by their captains and if anyone who had supplied goods or services to the ship was left unpaid, the captain could sail off, never to be seen again. Some see arrest as a punishment in itself; it isn’t – it’s just a way of detaining the yacht in order to force the owner to provide financial security, which could be in the form of a cash deposit or bank guarantee. Then the yacht is free to leave. Contrary to popular belief, at no time is the yacht actually chained to the dock. The order is served on the yacht and if the captain attempts to leave he or she will be in contempt of court and criminally liable. In the UK, a warrant of arrest will not be issued against a state yacht where, by any convention or treaty, the UK has undertaken to minimise the possibility of arrest until notice has been served on a consular officer of that state. Many countries have made similar ad hoc bilateral agreements not to arrest each other’s state vessels, in spite of any immunity laws allowing for arrest where they are being used commercially. SALVAGE If a state yacht is found to be in need of salvage assistance, the International Convention on Salvage 1989 will not apply if the vessel is entitled to immunity. This means that, unless the state owner consents, it may be impossible to arrest a salvaged yacht if financial security is wanted pending the litigation or arbitration of any salvage claim. COLLISION Where a state yacht has been sailed negligently, perhaps causing a collision, it remains possible to bring an action against the officer in charge at the time personally for negligence, just as it would be in any other situation: individuals cannot normally shelter from immunity afforded to the yacht. CONTRACTS So what can a supplier of goods and services do to ensure that the vital right to arrest is retained? Contracts should always include a ‘law and jurisdiction’ clause, although it is surprising how often this is omitted, even by sophisticated suppliers. It is a simple matter to include an extension to such a clause so that the yacht’s owning company is not entitled to claim any immunity in relation to itself (or any of its assets) under any law or in any jurisdiction in connection with any legal proceedings relating to the agreement. The owner should also be asked to irrevocably agree not to claim – and waive – such immunity. As it is always open to the owner to claim that national laws providing immunity will trump whatever is written in the contract, there is no guarantee that such a clause will be effective, but it is the most any supplier can realistically do. ROYAL YACHTS To be clear, not all yachts owned by royalty will be royal yachts in the context of international law. In those jurisdictions where the royal family is part and parcel of the state itself, it will usually be clear whether or not a royal yacht is a state yacht. The situation becomes less lucid where the royal family has a purely symbolic role: some royal households, while subject to widespread popular support and approval, are in fact constitutionally separate from the states they ‘reign’. COMPANY OWNED Further, some state yachts are owned by private owning companies, perhaps based in popular offshore jurisdictions, usually just to ring-fence the yacht as a source of potential legal liability. Where this is the case, the legal owner will be the owning company, not the royal personality or state, so any immunity would fall away. Given this, it would be preferable for state yachts which are to be chartered to be owned within the traditional company owning structure. When ownership is through such a company, the normal rules regarding whether it is possible to view the individual ‘beneficial’ owner as the actual legal owner will apply. This is known as ‘lifting the corporate veil’. It is usually only possible to reveal the beneficial owner where there has been tax evasion or an intent to defraud creditors – which is hardly likely in the case of state yachts. CONCLUSION While it is worth bearing in mind the immunity that state yachts enjoy, it is important not to lose sight of the fact that their owners are more likely to remain solvent, and will certainly behave after an incident in a manner which could be described, quite literally, as diplomatic. 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 Engaging a Manager Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Engaging a Manager

Just because charterer guests have paid a great deal of money for the exclusive use of a superyacht, this does not mean that he (or she) has the right to do with the boat and crew as he pleases. A Member recently sought advice with regard to redress following a charter during which guests behaved in a way which was at best depraved – and at worst illegal. Home Handbook Chartering Out / / Difficult Guests 3 October 2017 Last revised minutes 3 Reading time Just because charterer guests have paid a great deal of money for the exclusive use of a superyacht, this does not mean that he (or she) has the right to do with the boat and crew as he pleases. A Member recently sought advice with regard to redress following a charter during which guests behaved in a way which was at best depraved – and at worst illegal. minutes 3 Reading time 3 October 2017 Last revised Just because charterer guests have paid a great deal of money for the exclusive use of a superyacht, this does not mean that he (or she) has the right to do with the boat and crew as he pleases. A Member recently sought advice with regard to redress following a charter during which guests behaved in a way which was at best depraved – and at worst illegal. In the absence of an agreement stating otherwise, the broker marketing the yacht is considered the owner's agent and must act in the owner's best interests. Once the broker books the charter, the owner is bound by the charter agreement and must provide the yacht to the charterer. The terms of the charter agreement are often based on the MYBA Charter Agreement, which allows the owner to back out only in exceptional circumstances and with financial consequences. The captain is required by law to refuse illegal instructions from the charterer, but there are other unsavory or immoral actions that may not be illegal. The MYBA form explicitly prohibits certain behaviors, such as causing nuisance or disrepute, commercial photo shoots, and harassment of crewmembers. Any breach of the charter agreement may entitle the owner to terminate the contract immediately and claim damages. The captain must raise issues with the charterer before the owner can terminate the contract, according to the MYBA Charter Agreement. Despite the challenges, chartering can help offset the costs of owning large yachts with the right guidance and support. The MYBA form explicitly prohibits certain behaviors, such as causing nuisance or disrepute, commercial photo shoots, and harassment of crewmembers. Any breach of the charter agreement may entitle the owner to terminate the contract immediately and claim damages. The captain must raise issues with the charterer before the owner can terminate the contract, according to the MYBA Charter Agreement. Despite the challenges, chartering can help offset the costs of owning large yachts with the right guidance and support. In the absence of an agreement stating otherwise, the broker marketing the yacht is considered the owner's agent and must act in the owner's best interests. Once the broker books the charter, the owner is bound by the charter agreement and must provide the yacht to the charterer. The terms of the charter agreement are often based on the MYBA Charter Agreement, which allows the owner to back out only in exceptional circumstances and with financial consequences. The captain is required by law to refuse illegal instructions from the charterer, but there are other unsavory or immoral actions that may not be illegal. Had the owner known who the charterer was, he would have never have agreed. The charter broker was aware of the charterer’s reputation but remained silent until just before the start of the charter. In the absence of agreement to the contrary, the broker marketing the yacht on behalf of the owner will often be, in law, the owner’s agent. As such, the broker must perform with the appropriate care and skill, and not allow any conflict between personal interests and those of the principal. By booking a charter with someone known to be unsuitable, it could be said that the broker wasn’t careful and just wanted the commission. THE AGREEMENT Once the broker has booked the charter, however, the owner will have been bound by the charter agreement, and is bound to provide his yacht to the charterer. The terms will have been set out in the charter agreement. The most common terms are those published by the Mediterranean Yacht Brokers Association (‘MYBA’), which have also been adopted by the American Yacht Charter Association. The MYBA Charter Agreement only allows the owner to back out as a result of circumstances beyond his control, on pain of reimbursing the owner plus an extra 50%. EDGY BEHAVIOUR While, subject to the charter agreement, the yacht is the charterer’s to do with as he pleases, the captain is obliged by law to refuse to comply with illegal instructions. However, there are many things a charterer may do which, while unsavoury or immoral, are not illegal. The MYBA form therefore expressly bans, for example, behaviour causing nuisance or disrepute, commercial photo shoots, and harassment of crewmembers. Member’s Experience: “ I have been chartering my yachts for more than 15 years and have maintained an excellent relationship with brokers and charterers. In fact, my yachts are considered some of the most successful yachts on the charter market. What has occurred is certainly an aberration and not to be confused with the excellent work the broker community has done these many years. ” Generally, any breach may allow the owner to treat the charter as having come to an end immediately and claim damages, or just claim damages afterwards, depending on how serious the breach is. But the owner must have suffered some sort of actual loss as a result of the breach: an upset crew may not be enough. RAISING ISSUES The MYBA Charter Agreement specifically requires the captain to raise issues with the charterer first, before the owner has a chance to terminate the contract. A failure to do this could arguably be seen as a waiver of the owner’s rights, and owners may wish to amend such standard form contracts. The Member was at pains to point out that these circumstances are unusual, commenting, “I have been chartering my yachts for more than 15 years and have maintained an excellent relationship with brokers and charterers. In fact, my yachts are considered some of the most successful yachts on the charter market. What has occurred is certainly an aberration and not to be confused with the excellent work the broker community has done these many years.” DON’T BE PUT OFF For all the pitfalls and hurdles, chartering can substantially offset the costs associated with the ownership of large yachts – with the right guidance and support. 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 How to Charter Out Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about How to Charter Out

Everyone knows what a superyacht is - until they’re asked to define it. The term has no legal meaning, yet countless organisations claim one. A justifiable boast of prestige and craftsmanship, the term “superyacht” has also become a linguistic liability. Perhaps it’s time to drop the “super” altogether? Home Handbook White Papers / / Language of Luxury "When I use a word," Humpty Dumpty said, in rather a scornful tone, "it means just what I choose it to mean—neither more nor less." "The question is," said Alice, "whether you can make words mean so many different things." "The question is," said Humpty Dumpty, "which is to be master—that's all." Lewis Carroll, Through the Looking Glass (1871) While there is no legal definition of what a ‘superyacht’ is, this doesn’t stop some unilaterally deciding what it is: > 24 metres in length overall - Superyacht UK > 24 metres in length with full-time captain and crew – Burgess Yachts ≥ 24 metres in loadline length and commercially operated – Warsash Maritime School > 98 feet (29.87metres) in Length - The New Yorker > 30 metres in length – Superyacht Times > 30.48 metres in length overall – Offshore Racing Congress > 45.72 metres in length with a draught of ≥ 3 metres - Port Authority of New South Wales Generally, we know what we mean by the term: a pleasure vessel which, for regulatory reasons and on account of its sheer size, needs a permanent, full-time crew. This is the point at which, irrespective of size, the vessel isn’t just an asset but a place of employment and worker accommodation – all rolled into one. Large yachts, with a full-time crew, have been around since the dawn of the 20th century. But the term ‘superyacht’, and the now lesser-used label ‘megayacht’, have only been in widespread use since the mid-1980s. Looking back at the yachting journals of the 1980s, it’s clear that the terms ‘superyacht’ and ‘megayacht’ were simply applied to distinguish between larger vessels which were owner-operated and smaller ones which were not. It was used by brokers and journalists as hyperbole – long before digital media and online videos allowed size, style and pedigree to speak for themselves. This was an age – let’s not forget – when many owners not only sailed some of the larger yachts themselves but often built or at least fitted them out themselves, too. Fast forward to 2000, and there were still only a fraction of the number of large yachts is use compared to today. It was an industry still largely unknown to those not involved. Most brokers and many captains knew each other. Except for some opportunist paparazzi, most journalists paid little regard. A USEFUL DESCRIPTION To be fair, ‘superyacht’ is a useful term – within the industry itself. When an owner can afford crew, he or she can afford to pay for, say, paint of a higher quality but needing a more exacting application standards. A superyacht insurance policy will take account of the owner’s role as an employer and the vessel’s function as a workplace. But such details can be contained deep within a product’s specification.The term has a kudos all of its own. They are, after all, impressive and effortlessly cool. It makes sense to appropriate the term to distinguish oneself as a services supplier. It adds marketplace swagger – although there has been a tendency, for example, for shipping lawyers with little understanding of the market or business models to label themselves as superyacht lawyers. AN UNWELCOME LABEL? Time and again, however, since the early 2010s, environmentalists – and politicians looking to combine green virtue signalling with the politics of envy – have used the term superyacht in a pejorative sense. Rarely, if ever, do they simply refer to yachts: “ Specifically, we draw attention to assessing aspects of ecological footprints of super yachts [sic], super homes, luxury vehicles, and private jets. Taken together, the construction and use of these items in the United States alone is likely to create a CO2 footprint that exceeds those from entire nations .” Lynch, Long, Stretesky & Barrett: Measuring the Ecological Impact of the Wealthy: Excessive Consumption, Ecological Disorganization, Green Crime, and Justice (2019) “ Among the many possessions of billionaires, large “superyachts” are by far the largest producers of greenhouse gases. ” Barros & Wilk: The outsized carbon footprints of the super-rich (2021) “ Superyacht sale surge prompt fresh calls for curbs on their emissions ” The Guardian , 4 October 2022 “ Superyachts aim to go green – but at what cost? ” Financial Times , 1 September 2022 “ THE SUPERYACHT INDUSTRY IS A SINKING SHIP ” - Extinction Rebellion protestors’ banner unfurled during The Superyacht Forum, 16 November 2022 NOT WANTED & NOT NEEDED Informal discussions with Club Members reveal that many just do not like the term superyacht. It has nowadays, for some, the wrong connotations. It’s become a target as well as a description. A lot of owners neither want nor need the perceived kudos which attaches to the term. In short, they have nothing to prove. Their vessels just happen to be larger than most, more or less in proportion to their net worth. WHERE DO WE GO FROM HERE? Perhaps the industry needs to bite the bullet and do away with the term superyacht. Remember when The Superyacht Report was just called The Yacht Report? Maybe it's time to change back. Yes, rebranding is expensive, but such changes may prove far less expensive than not evolving. Brand refreshment is a regular necessity. When the next one’s due, let’s drop the ‘super’ and just call a yacht a yacht. It’s not about trying to make large yachts somehow less conspicuous. It is about removing the popular and mistaken distinction between yachts and superyachts, and instead viewing one being merely a subset of the other. Return to top Thank you to all our Members who provided perspectives for this white paper. Everyone knows what a superyacht is - until they’re asked to define it. The term has no legal meaning, yet countless organisations claim one. A justifiable boast of prestige and craftsmanship, the term “superyacht” has also become a linguistic liability. Perhaps it’s time to drop the “super” altogether? 13 October 2025 Last revised minutes 4 Reading time minutes 4 Reading time 13 October 2025 Last revised Everyone knows what a superyacht is - until they’re asked to define it. The term has no legal meaning, yet countless organisations claim one. A justifiable boast of prestige and craftsmanship, the term “superyacht” has also become a linguistic liability. Perhaps it’s time to drop the “super” altogether? The term 'superyacht' has many definitions, but none in law. The term gained widespread use in the mid-1980s to distinguish larger, crewed vessels from smaller ones. The word has become associated with luxury and prestige. In recent years, however, environmentalists and politicians have used the term in a negative way, linking it to excessive consumption and greenhouse gas emissions. Informal discussions among our Members reveals that many of us feel we neither want nor need the perceived kudos associated with the term. Some suggest doing away with the term 'superyacht' altogether and simply calling them yachts. Rebranding may be costly, but it could be a worthwhile change for the industry to make. You can also read about Cut to the Chase Questions or comments? Please contact us Join the discussion over in the Club's group You can also read about Cut to the Chase Questions or comments? Please contact us

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 Superyachts'R'Us Listing Email WhatsApp +44 7773 246 246 Central Agent 62 m Length Italia srl Builder 2002 Build year 612 Gross tonnage British Virgin Islands Registry Particulars Sample

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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%

Home Journeys Western Med / / Classic Côte If Saint-Tropez is a wild party, Porquerolles is the gentle, sun-kissed morning after. Effortlessly beautiful, Porquerolles is what the French Riviera looked like before casinos and boutiques. Notre Dame beach has sugar-soft white sand and crystal-clear turquoise water. The diving’s excellent here. But there are no blinged-up beach clubs, and absolutely no traffic jams - because cars aren’t allowed. Instead, visitors swap Bugattis for bicycles, gliding along sun-dappled paths through pine forests and vineyards that produce some of the finest rosé in existence. It’s the perfect antidote to the excess of the Riviera: luxury served with a side of serenity. Waypoint 7 Île de Porquerolles Once a sleepy fishing village, now the undisputed capital of excess. The harbour’s charming, but prepared to be gawped at by tourists when you're on board. The old town is a maze of cobbled streets, quaint cafés, and markets selling everything from truffle-infused cheese to handmade sandals. Nearby Pampelonne Beach (best reached by tender) is an institution. A place where bronzed bodies recline on perfectly arranged sunbeds while waiters at beach clubs sprint across the sand delivering magnums of Dom Pérignon. If you tire of the glitz, the surrounding countryside offers a retreat into vineyards and rolling hills. Saint-Tropez's not just a destination: it’s a lifestyle. Waypoint 6 Saint-Tropez Home of the most glamorous traffic jam on Earth - the Cannes Film Festival. Best avoided unless you’re part of that circus. The Boulevard de la Croisette is the centrepiece—a sun-drenched promenade lined with high-end boutiques. At one end is the charming Old Port, but large vessels must use Port Pierre Canto at the other end. Le Suquet (the old town) is charming, with cobbled streets, authentic French bistros, and panoramic views. Offshore, the Lérins islands offer an escape from the madness, complete with a fortress that once housed the mysterious Man in the Iron Mask – proving that even in the 17th century, Cannes had an exclusive guest list. Waypoint 5 Cannes Nestled between Nice and Cannes, Antibes has all the glamour of the Riviera but with an old-world charm that doesn’t try too hard. Step ashore at Port Vauban and you’re soon in the stunning medieval Old Town where cobbled streets lead you to chic boutiques. For lovers of culture, the nearby Picasso Museum sits proudly within the Château Grimaldi. Then there’s Cap d’Antibes, a scenic headland where the walking trails offer jaw-dropping views over the Med.If you really want to indulge, Hotel du Cap-Eden-Roc offers a range of stunning bars and restaurants. If you have money and taste, you’ll love Antibes. If you only have money, well, Cannes is just down the road… Waypoint 4 Antibes A place so absurdly beautiful it looks like it was designed by a Hollywood set designer with an unlimited budget. Nestled between Nice and Saint-Jean-Cap-Ferrat, this is where the Riviera dials down the excess of Monaco and swaps it for something altogether more refined. The bay is one of the deepest in the Med. Ashore, pastel-coloured buildings tumble down to the water, and charming little cafés serve seafood so fresh it practically waves at you. Atop Cap Ferrat, Villa Ephrussi de Rothschild is filled with priceless art. Villefranche-sur-Mer is the Riviera’s best-kept secret. A place where wealth merely whispers and never shouts. Waypoint 3 Villefranche-sur-Mer A tiny nation where the world’s wealthiest naturally coalesce. There's an undeniable magic about the place. Both glamorous and ludicrous, and it’s the ultimate playground for those who think a Bugatti is a sensible runabout. One moment, you’re sipping Dom Pérignon '76 at the Café de Paris, the next, you’re strolling through the same tunnel where Ayrton Senna once danced on the edge of disaster. It’s flashy and over-the-top - and that’s precisely the point. Monaco isn’t just a destination. It’s a statement: je suis arrivé. Enjoy some downtime at the Oceanographic Museum and La Collection De Voitures - right by Port Hercule. Waypoint 2 Monaco Known as la Città dei Fiori (City of Flowers), understated Sanremo is where old-school glamour meets a dash of delightful Italian disarray. The streets are lined with faded Belle Époque hotels, while cafés overflow with locals arguing loudly over espresso. Your berth in Portosole Marina is centrally located, with exclusive shopping along Corso Matteotti and the historic Casino di Sanremo within easy walking distance. Enjoy a lazy lunch at the Michelin-starred Paolo e Barbara on via Roma, before visiting Villa Nobel - a museum dedicated to Swedish inventor Alfred Nobel who lived here. Then a luxury spa treatment at the Royal Hotel. or a round at Circolo Golf degli Ulivi, before rejoining your yacht for dinner. Waypoint 1 Sanremo The Riviera awaits. Hairpin bends by the sea, lunches that become dinners, harbours with just enough glamour, speed and mischief to feel faintly irresponsible. Behind the luxurious harboursides lie charming cobbled villages and breath-taking landscapes. What's not to love? 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): Italy, Monaco, France Time zone(s): Winter: CET (UTC+1) Summer: CEST (UTC+2) Currency(ies): Euro (EUR) Temperature: February: 11°C (52°F) August: 24°C (75°F) Sunshine: February: 5 hours August: 14 hours Humidity: February: 68% August: 65%

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

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

Unavailable at present Latest Position Rapid Brokers Listing Email WhatsApp +44 7773 246 246 Central Agent 54 m Length DMS & Co Builder 2008 Build year 497 Gross tonnage British Virgin Islands Registry Particulars Benchmark

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

Unavailable at present Latest Position Rapid Brokers Listing Email WhatsApp +44 7773 246 246 Central Agent 27 m Length Finest Craft Builder 1999 Build year 240 Gross tonnage United Kingdom Registry Particulars Forerunner

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

AIS was created as a safety tool. But somewhere along the line, something changed. Today, an industry exists to collect, archive and monetise vessel location data. For commercial shipping, that raises few eyebrows. But large yachts are part-time floating homes often associated with identifiable individuals, families and children. Drawing on legislation, human rights judgments, and celebrity privacy cases, this article examines where maritime safety ends and perpetual surveillance begins. Home Handbook Managing / / The Right to Vanish 19 May 2026 Last revised minutes 9 Reading time AIS was created as a safety tool. But somewhere along the line, something changed. Today, an industry exists to collect, archive and monetise vessel location data. For commercial shipping, that raises few eyebrows. But large yachts are part-time floating homes often associated with identifiable individuals, families and children. Drawing on legislation, human rights judgments, and celebrity privacy cases, this article examines where maritime safety ends and perpetual surveillance begins. minutes 9 Reading time 19 May 2026 Last revised AIS was created as a safety tool. But somewhere along the line, something changed. Today, an industry exists to collect, archive and monetise vessel location data. For commercial shipping, that raises few eyebrows. But large yachts are part-time floating homes often associated with identifiable individuals, families and children. Drawing on legislation, human rights judgments, and celebrity privacy cases, this article examines where maritime safety ends and perpetual surveillance begins. AIS was created for navigation safety, not global public tracking. Yacht location data may qualify as personal data under UK GDPR where a yacht is closely associated with an identifiable owner, family or crew. Publishing real-time yacht locations may lack a lawful GDPR basis. Human rights and privacy law increasingly protect individuals against location surveillance. Public figures retain privacy rights despite wealth, fame or media attention. Courts may eventually decide when maritime transparency becomes unlawful surveillance. Human rights and privacy law increasingly protect individuals against location surveillance. Public figures retain privacy rights despite wealth, fame or media attention. Courts may eventually decide when maritime transparency becomes unlawful surveillance. AIS was created for navigation safety, not global public tracking. Yacht location data may qualify as personal data under UK GDPR where a yacht is closely associated with an identifiable owner, family or crew. Publishing real-time yacht locations may lack a lawful GDPR basis. It’s said that while money shouts, wealth whispers. And there was a time when you could sail quietly away to enjoy secluded adventure. No online tracking. No voyeurs or bad actors following your movements in real time. That’s all gone. Today, modern superyachts glide across the oceans leaving an invisible digital trail like a tin can tied to a wedding car. Every movement, every anchorage, every discreet arrival is vacuumed up, republished and monetised by online AIS tracking platforms. You could, of course, pull the plug. Some do. But that’s not lawful and there may be insurance repercussions if switching off were to be a contributory factor in a collision. So, that aside, what rights do owners have to vanish? USEFUL KIT AIS was not designed as a global voyeurism product. It’s a navigational tool. All yachts of 300 gross tonnage or more and engaged on international voyages must be fitted with Class A AIS equipment (per Regulation 19 of Chapter V of SOLAS). It enhances safety and security. By broadcasting key information through short-range radio signals to nearby vessels, it supplements the picture produced by radar, so enhancing traffic awareness. Many of the problems common to radar, such as clutter, do not affect AIS. So it’s also used in search and rescue operations. So far, so sensible. A HARMLESS HOBBY? There’s a comforting assumption that if something is broadcast, it’s public and you’re entitled to hoover this information up, monetise it if you want, then post it online with complete moral serenity. After all, tracking aircraft, like trainspotting, is harmless enough. But AIS’s core purpose is nearby safety, not global stalking. Commercial ships exist to trade. Ferries exist to transport passengers. Tugs, dredgers and offshore support vessels exist to work. Superyachts, by contrast, exist for one purpose only: private leisure. They are not mere transport assets. They are floating private residences, often carrying owners, families, children, guests and crew in circumstances that are deeply personal and deliberately secluded. Where a vessel is commonly associated with an individual, then it becomes a proxy for that person. The location data is thereby also – crucially – personal data. ENTER GDPR The General Data Protection Regulation (GDPR) is a comprehensive data protection law enacted by the European Union (EU) to safeguard the personal data within the EU and the European Economic Area (EEA). The UK’s own version of GDPR was retained in domestic law post-Brexit by virtue of the Data Protection Act 2018 . And data in respect of an individual’s location is undoubtedly ‘personal data’. Article 4(1) of UK GDPR defines personal data as “ any information relating to … an identifiable natural person … who can be identified, directly or indirectly, in particular by reference to an identifier such as … location data ”. So AIS data can become personal data when there’s a sufficient link to a habitual individual user, or even a crewmember, because of, for example, credible media reports. It becomes pattern-of-life information which can be used to map the movements of individuals. LAWFUL BASIS Under Article 6 of UK GDPR, every single act of processing personal data (such as posting online) must have a lawful basis. You cannot simply decide that because information is technically available, you can do whatever you like with it. There are six lawful bases under Article 6(1): Consent : has the owner consented to having their real-time location posted and published? Obviously not. They have not been asked. They have not consented. Contract : is there a contract? Of course not. Legal Obligation : is there a law requiring the publishing of a private individual's real-time location? Nope. Vital Interests : is publication necessary to save a life? Another no. Public Task : is the person posting this data a public authority exercising a public function? Unless the poster is, say, the coastguard, then this basis doesn't apply. Legitimate Interest : is publication necessary for legitimate interests of the publisher or a third party? This is the publisher’s last chance saloon. What legitimate interest could be invoked for posting someone's real-time location? Maritime safety? The vessel is already broadcasting AIS for that purpose. Reposting online adds nothing. Curiosity? Entertainment? These are not ‘legitimate interests’ in the legal sense. And crucially, even where there is a legitimate interest, the balancing test must be passed. The data subject's rights are weighed in the scales. Real-time, continuous disclosure of a specific person's location is a highly significant privacy intrusion. The scales would need something very substantial on the other side to tip them the other way. FURTHER HURDLES Even if a lawful basis were somehow established, the processing would still need to comply with the data protection principles in Article 5 of UK GDPR. These include: Lawfulness, Fairness & Transparency : publishing someone's location without their knowledge is not transparent. Whether it is fair is highly context-dependent, but continuous real-time location disclosure is unlikely to pass muster. Purpose Limitation : data must be collected for specified, explicit and legitimate purposes, and not further processed in a manner incompatible with those purposes. AIS data is broadcast for maritime safety. Republishing it to reveal an individual's location for non-safety purposes is incompatible with that original purpose. The vessel owner did not switch on their AIS transponder so that strangers on the internet could track their movements. Storage Limitation : data should not be kept longer than necessary. If an archive of a person's historical movements is being maintained, this requires separate justification. Data Minimisation : only data adequate, relevant, and limited to what is necessary may be processed. Real-time, continuous, geographically precise location tracking of a specific individual is the opposite of minimisation. HUMAN RIGHTS The European Convention on Human Rights ( ECHR ) is an overriding international treaty, protecting human rights and fundamental freedoms in Europe. All member states of the Council of Europe, including the UK and EU countries, are bound by the ECHR. Under Article 8 of the ECHR, everyone’s private and family life must be respected. The European Court of Human Rights, which oversees compliance with the ECHR, has stated in Uzun v Germany that GPS surveillance would via GPS would amounted to an interference with someone’s private life, as protected by Article 8, unless safeguards were put in place and the surveillance was targeted, proportionate and justified by strong public interests (such as a serious criminal investigation in that case). In the subsequent Shimovolos v Russia judgment the Court confirmed that, “ Collection, through a GPS device attached to a person’s car, and storage of data concerning that person’s whereabouts and movements in the public sphere was also found to constitute an interference with private life ”. Admittedly, these cases concerned state surveillance rather than yacht websites. But the principle is unmistakable: location data is intrinsically sensitive. MISUSE OF PRIVATE INFORMATION The misuse of private information is also a distinct civil wrong, according to Google v Vidal-Hall , liability for which is determined on the basis of whether the claimant has an objective, reasonable expectation of privacy in respect of the data. Clearly, any yacht owner has just such an expectation. The victim doesn't have to rely on data protection law at all: they can go straight to court on the grounds that their reasonable expectation of privacy has been violated, with claimants receiving damages for the loss or diminution of the right to control their private information, independently of any distress caused. CELEBRITY PRIVACY But to what extent does placing oneself in the public spotlight erode the right to privacy? In Campbell v MGN supermodel Naomi Campbell successfully sued the Daily Mirror for publishing details of her treatment at a narcotics clinic. The court established that being a public figure means you must tolerate some additional scrutiny but that does not extend to unlimited surveillance of your private movements and personal life. The Campbell test is: Does the individual have a reasonable expectation of privacy? If he or she does, is that privacy interest outweighed by a competing interest, such as freedom of expression or public accountability? A famous superyacht owner, sailing on their own vessel, clearly expects privacy, it’s very hard to see how this could be outweighed by any competing interest. In the subsequent case of Murray v Big Pictures author JK Rowling was out walking with her infant son, when they were photographed and those images were published in the Sunday Express. The court held that the son had a reasonable expectation of privacy even when out and about in a public place. Here, the targeted surveillance of the son beforehand mattered enormously. AIS data which can be used to track an individual's real-time location is precisely this sort of targeted surveillance. UNLAWFUL INTERCEPTION Finally, there is also an overlooked technical issue lurking beneath the surface: interception law. In the United Kingdom, it is an imprisonable criminal offence, under section 48 of the Wireless Telegraphy Act 2006, to intercept without lawful authority a communication in the course of its transmission by means of a public telecommunication system - including VHF radio signals produced by AIS equipment. CONCLUSION So where does this leave us? AIS itself is not the villain. It is a sensible, important safety system:. The problem begins when information emitted for collision avoidance is scooped up, archived, enriched, monetised and republished to a global audience, transforming a navigational aid into a perpetual surveillance mechanism. The law distinguishes between availability and permissibility. Merely because data can be obtained does not mean it may lawfully be gathered and posted online. The courts have been consistent and clear: precise location data attached to identifiable individuals is inherently sensitive and deserving of protection. The argument that the information is already pubic doesn’t wash. By that logic, one might argue that because someone drives on public roads, their every journey may be catalogued indefinitely and provided to strangers. Courts have shown little enthusiasm for such reasoning. The seas remain vast. Solitude remains valuable. The question the courts may yet have to answer is surprisingly simple: when does maritime transparency stop being safety, and start becoming surveillance? Please contact us if you have any privacy concerns. 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 Wright A Way & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 105 m Length Builder & Co Builder 2022 Build year 1980 Gross tonnage Panama Registry Particulars Role Model

Unavailable at present Latest Position Rapid Brokers Listing Email WhatsApp +44 7773 246 246 Central Agent 50 m Length Finest Craft Builder 2004 Build year 498 Gross tonnage Cayman Islands Registry Particulars Manifestation

Answers to questions often asked about The Owners Club, the worldwide association of superyacht owners. By pooling expertise and experience, we’re making ownership easier, more transparent and better value. Home About FAQs / / Any Questions? Have a question? Just contact us . Some regularly asked questions are set out below. Contact Us How do I become a member? Membership so far has been on an informal basis. To meet the needs of today’s rapidly growing numbers of owners and their representatives, we are now working towards online onboarding. This will allow immediate access to the Club’s suite of standard documents and specialist guidance. How long has the Club been in existence? The idea of creating the Club was first floated back in 2008. Only recently, with the return to pre-global financial crisis levels of building, and increasing public scrutiny of large yacht ownership, have Members sought to formalise their association. Which yacht broker do you recommend? While brokers play a vital role in the yacht market, we cannot recommend particular brokers. Each brokerage, and each individual broker, has its, his and her advantages and disadvantages in terms of contacts, experience and location. For the sake of simplicity and ease of completion, we would urge would-be buyers to ensure that they are dealing with central sales agents. Can we advertise with you? Yes – as long as your business isn’t selling yachts or any yachting-related goods or services. Members trust the Club to provide information and assistance without fear or favour. As we provide object owner-focused guidance, allowing yachting businesses to advertise might create a conflict of interest. Find out more here . Can I network with Members? If Members agree, the Club may organise social and networking events for Members and their representatives in future. Can you help find me a captain? Crew agencies, aside, our General Secretary is happy to publicise direct crew and shoreside staff vacancies. Just contact us . Can you manage my yacht? No, but Members will soon be able to use the Club’s standard yacht management agreement to contract with third party managers. Indeed, Members may consider that, using the Club’s suite of documents, there may be certain aspects of management which can be undertaken by their own family offices. Why doesn’t the Club use the term ‘superyacht’? It turns out that most of our Members don’t actually like the terms ‘superyacht’, ‘megayacht' or ‘gigayacht’. They generally feel that it isn’t helpful to be seen by authorities and the media as a special type of yacht. They feel there’s a fine line between label and target.

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 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. IP Rights: any and all intellectual property rights, whether registered or unregistered, including but not limited to any patents, trademarks, domain names, URLs, design rights, copyright, software rights, database rights, rights in and to business names, product names and logos, processes, trade secrets, confidential information and any similar rights in any jurisdiction. 1.1.3. Link(s): link(s), provided in the Website, to third party resources and businesses; 1.1.4. Material: information, articles, guides, documents and clauses, provided by Us, whether via the Website or otherwise; 1.1.5. Membership: a paid subscription granting You access to certain Material; 1.1.6. Our: belonging to, or emanating from, Us; 1.1.7. Rules: this present document, known as the Rules; 1.1.8. Staff: any employee or representative of The Owners Club, including but not limited to the Our General Secretary; 1.1.9. We, Us: The Owners Club; 1.1.10. Website: the website theownersclub.org, and all pages, parts and elements thereof; 1.1.11. You: You, whether Associate, Member or Governor of The Owners Club, or user of the Website, as the case may be, and Your employer or principal where you act on behalf of one; 1.1.12. Your: of or from You. 2. APPLICATION 2.1. For good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, You agree to be bound by all of the Rules. 2.2. By using the Website, or viewing, downloading, using, sending, storing or receiving, any Material, You agree to be bound by all of the Rules, as well as Our [privacy policy]. 2.3. You are responsible for ensuring that all persons who access the Website through Your internet connection are aware of all of the Rules and that they comply with them. 3. MEMBERSHIP 3.1. Memberships are for one year, payable monthly. 3.2. A Membership entitles You, for one year, subject to monthly Membership fee instalments having been paid to date, to access those parts of the Website which We may from time to time restrict access to those only with Membership, and to access and download certain Material. 3.3. On each anniversary of You joining Us, We will automatically renew Membership unless You have notified Us that You want to cancel Membership by emailing us at gensec@theownersclub.org. 3.4. We may store and when possible update Your payment method on file. It is Your responsibility to maintain current credit card information on file with Us. 3.5. We reserve the right to change Membership fees from time to time. 3.6. From time to time, we may also offer different Membership terms and benefits. 3.7. Membership fees are non-refundable. 3.8. You authorise Us, to collect, without notice, Membership fees using any valid payment source We have on record for You. 3.9. If You fail to provide a payment to Us in full and on time, or We are unable to obtain payment using Your designated payment, We may deem such a failure as notice of cancellation and cancel Membership immediately. 3.10 We may cancel Membership at any time where We consider that You are in breach of any part of the Rules. 3.11. You are responsible for ensuring all contact details You provide Us with are correct and up to date. 3.12. If You choose, or You are provided with, a user identification code, password or any other piece of information as part of Our security procedures, You must treat such information as confidential, and You must not disclose it to any third party. 3.13. We have the right to disable any user identification code or password, whether chosen by You or allocated by Us, at any time, if in Our reasonable opinion You have failed to comply with any of the provisions of these terms of use. 3.14. If You know or suspect that anyone other than You knows Your user identification code or password, You must notify Us promptly at gensec@theownersclub.org. 4. WEBSITE 4.1. You are responsible for making all arrangements necessary for You to have access to the Website. 4.2. You will not: 4.2.1. Use the Website for any purpose that is unlawful or prohibited by the Rules; 4.2.2. Use the Website in any manner which could damage, disable, overburden or impair the Website, or interfere with any other party’s use and enjoyment of the Website; or 4.2.3. Obtain or attempt to obtain any Material through any means not intentionally provided for on the Website. 4.3. We will use reasonable efforts to keep the Website available to You, but if necessary, We may suspend access to the Website, or close it indefinitely. We will not be liable if for any reason the Website is unavailable at any time or for any period. 4.4. The Website may include information and materials uploaded by other users of the Website, including to bulletin boards and chat rooms. Such information and materials have not been verified or approved by Us. The views expressed by other users of the Website do not represent Our views or values. 5. VIRUSES 5.1. We do not guarantee that the Website will be secure or free from bugs or viruses. 5.2. You are responsible for configuring Your information technology, computer programmes and platform to access the Website. You should use Your own virus protection software. 5.3. You must not: 5.3.1. Misuse the Website by introducing viruses, trojans, worms, logic bombs or other material that is malicious or technologically harmful. 5.3.2. Gain unauthorised access to the Website, the server on which the Website is stored or any server, computer or database connected to the Website. 5.3.3. Attack the Website via a denial-of-service attack or a distributed denial-of service attack. 6. UPLOADING 6.1. Any content You upload to the Website will be considered non-confidential and non-proprietary. You retain all of Your ownership rights in Your content, but You grant Us a licence to use, store and copy that content and to distribute and make it available to third parties. 6.2. We have the right to disclose Your identity to any third party who is claiming that any content posted or uploaded by You to the Website constitutes a violation of their intellectual property rights, or of their right to privacy. 6.3. You are solely responsible for securing and backing up Your content. 6.4. When You upload or post content to the Website, You grant Us the following rights to use that content: 6.4.1. A worldwide, non-exclusive, royalty-free, transferable licence to use, reproduce, distribute, prepare derivative works of, display, and perform that user-generated content in connection with the service provided by the Website and across different media, including to promote the site or the service, forever; and 6.4.2. A worldwide, non-exclusive, royalty-free, transferable licence for other users, partners or advertisers to use the content for their purposes, forever. 7. LINKS 7.1. Links are only provided for Your convenience and to help You identify and locate other resources that may be of interest to You. 7.2. We do not control, endorse or monitor the contents of any sites subject to a Link, including, without limitation, any further link contained in a site referenced by a Link, and any changes or updates to site referenced by a Link. 7.3. If You use any service provided on a site to which a Link refers: 7.3.1. We will not be responsible for any act or omission of any third party, including such third party’s access to or use of Your data; and 7.3.2. We do not warrant or support any product or service provided by the third party. 7.4. You may link to the Website home page, provided You do so in a way that is fair and legal and does not damage Our reputation or take advantage of it. 7.5. You must not establish a link in such a way as to suggest any form of association, approval or endorsement on Our part where none exists. 7.6. You must not establish a link to the Website in any website that is not owned by You. 7.7. Our site must not be framed on any other site, nor may You create a link to any part of the Website other than the home page. 7.8. We reserve the right to withdraw linking permission without notice. 8. MATERIAL 8.1. We do not guarantee that Material is correct, up-to-date, or suitable for particular persons or situations. 8.2. The Material may include inaccuracies or typographical errors. 8.3. From time to time, changes may be made to the Material, with or without You being notified. 8.4. Material must not be relied upon for legal, tax or financial decisions and You should consult an appropriate professional for specific advice tailored to Your situation. 8.5. Any templates within the Material are for use only as a starting point for the preparation of legal documents. They must be adapted by You to meet Your individual requirements. You should always take legal advice for Your specific situation. 8.6. We make no representations about the suitability, reliability, availability, timeliness, and accuracy of the Material. 8.7. All Material is provided ‘as is’ without warranty or condition of any kind including all implied warranties or conditions of satisfactoriness, fitness for a particular purpose, title and non-infringement. 8.8. You use the Material and the Website at Your own risk. 8.9. Neither Us nor any Staff will be liable to You or any other party for any losses or damages whatsoever or howsoever arising in connection with the Material or the Website, whether under contract or as a result of any misrepresentation, misstatement or tortious act or omission, including negligence. 8.10. Our and the Staff’s liability to You for any loss or damage, including any losses, damages, costs or expenses whatsoever or howsoever arising in connection with the use of the Material or Website, whether under the Rules or other Rules or as a result of any misrepresentation, misstatement or tortious act or omission, including negligence, is limited to damages of an amount equal to that received by Us from You for a year’s Membership. 9. INTELLECTUAL PROPERTY 9.1. We own and retain all rights, title, interest and IP Rights in relation to the Material. 9.2. Except in connection with the ownership or management of a yacht(s) which You own directly or indirectly or You manage, You must not reproduce, modify, translate or create derivative works of any Material. 9.3. Without exception, You may not sell, license, sublicense, rent, lease, distribute, copy, publicly display or publish any Material. 10. RELATIONSHIP 10.1. We only provide a platform for information and self-help. 10.2. Material is provided for Your private use, does not constitute legal and/or financial advice and should not be relied upon as such. 10.3. We are not a regulated or unregulated law firm. Communications between You and Us or Staff will not be protected by legal professional privilege and may be disclosable to third parties. 10.4. No communications between You and Us or Staff constitute legal advice or can be relied on as such. 10.5. Use by You of the Website or Material does not establish a duty of care (either in tort or in contract) between You and Us or Staff, or create a lawyer-client relationship between You and Us or Staff. 10.6. Names of third parties are published on the Website or in Material, or provided to Members, for information purposes only. We do not endorse or recommend any third party nor do We make any warranty as to the qualifications or competency of any third party. 10.7. You agree that no joint venture, partnership, employment, or agency relationship exists between You and Us as a result of the Rules or Your use of the Website or the Material. 11. SEVERANCE 11.1. If any part of the Rules is determined to be invalid or unenforceable under any applicable law, then the invalid or unenforceable provision will be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. 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 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. IP Rights: any and all intellectual property rights, whether registered or unregistered, including but not limited to any patents, trademarks, domain names, URLs, design rights, copyright, software rights, database rights, rights in and to business names, product names and logos, processes, trade secrets, confidential information and any similar rights in any jurisdiction. 1.1.3. Link(s): link(s), provided in the Website, to third party resources and businesses; 1.1.4. Material: information, articles, guides, documents and clauses, provided by Us, whether via the Website or otherwise; 1.1.5. Membership: a paid subscription granting You access to certain Material; 1.1.6. Our: belonging to, or emanating from, Us; 1.1.7. Rules: this present document, known as the Rules; 1.1.8. Staff: any employee or representative of The Owners Club, including but not limited to the Our General Secretary; 1.1.9. We, Us: The Owners Club; 1.1.10. Website: the website theownersclub.org, and all pages, parts and elements thereof; 1.1.11. You: You, whether Associate, Member or Governor of The Owners Club, or user of the Website, as the case may be, and Your employer or principal where you act on behalf of one; 1.1.12. Your: of or from You. 2. APPLICATION 2.1. For good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, You agree to be bound by all of the Rules. 2.2. By using the Website, or viewing, downloading, using, sending, storing or receiving, any Material, You agree to be bound by all of the Rules, as well as Our privacy policy . 2.3. You are responsible for ensuring that all persons who access the Website through Your internet connection are aware of all of the Rules and that they comply with them. 3. MEMBERSHIP 3.1. Memberships are for one year, payable monthly. 3.2. A Membership entitles You, for one year, subject to monthly Membership fee instalments having been paid to date, to access those parts of the Website which We may from time to time restrict access to those only with Membership, and to access and download certain Material. 3.3. On each anniversary of You joining Us, We will automatically renew Membership unless You have notified Us that You want to cancel Membership by emailing us at gensec@theownersclub.org. 3.4. We may store and when possible update Your payment method on file. It is Your responsibility to maintain current credit card information on file with Us. 3.5. We reserve the right to change Membership fees from time to time. 3.6. From time to time, we may also offer different Membership terms and benefits. 3.7. Membership fees are non-refundable. 3.8. You authorise Us, to collect, without notice, Membership fees using any valid payment source We have on record for You. 3.9. If You fail to provide a payment to Us in full and on time, or We are unable to obtain payment using Your designated payment, We may deem such a failure as notice of cancellation and cancel Membership immediately. 3.10 We may cancel Membership at any time where We consider that You are in breach of any part of the Rules. 3.11. You are responsible for ensuring all contact details You provide Us with are correct and up to date. 3.12. If You choose, or You are provided with, a user identification code, password or any other piece of information as part of Our security procedures, You must treat such information as confidential, and You must not disclose it to any third party. 3.13. We have the right to disable any user identification code or password, whether chosen by You or allocated by Us, at any time, if in Our reasonable opinion You have failed to comply with any of the provisions of these terms of use. 3.14. If You know or suspect that anyone other than You knows Your user identification code or password, You must notify Us promptly at gensec@theownersclub.org. 4. WEBSITE 4.1. You are responsible for making all arrangements necessary for You to have access to the Website. 4.2. You will not: 4.2.1. Use the Website for any purpose that is unlawful or prohibited by the Rules; 4.2.2. Use the Website in any manner which could damage, disable, overburden or impair the Website, or interfere with any other party’s use and enjoyment of the Website; or 4.2.3. Obtain or attempt to obtain any Material through any means not intentionally provided for on the Website. 4.3. We will use reasonable efforts to keep the Website available to You, but if necessary, We may suspend access to the Website, or close it indefinitely. We will not be liable if for any reason the Website is unavailable at any time or for any period. 4.4. The Website may include information and materials uploaded by other users of the Website, including to bulletin boards and chat rooms. Such information and materials have not been verified or approved by Us. The views expressed by other users of the Website do not represent Our views or values. 5. VIRUSES 5.1. We do not guarantee that the Website will be secure or free from bugs or viruses. 5.2. You are responsible for configuring Your information technology, computer programmes and platform to access the Website. You should use Your own virus protection software. 5.3. You must not: 5.3.1. Misuse the Website by introducing viruses, trojans, worms, logic bombs or other material that is malicious or technologically harmful. 5.3.2. Gain unauthorised access to the Website, the server on which the Website is stored or any server, computer or database connected to the Website. 5.3.3. Attack the Website via a denial-of-service attack or a distributed denial-of service attack. 6. UPLOADING 6.1. Any content You upload to the Website will be considered non-confidential and non-proprietary. You retain all of Your ownership rights in Your content, but You grant Us a licence to use, store and copy that content and to distribute and make it available to third parties. 6.2. We have the right to disclose Your identity to any third party who is claiming that any content posted or uploaded by You to the Website constitutes a violation of their intellectual property rights, or of their right to privacy. 6.3. You are solely responsible for securing and backing up Your content. 6.4. When You upload or post content to the Website, You grant Us the following rights to use that content: 6.4.1. A worldwide, non-exclusive, royalty-free, transferable licence to use, reproduce, distribute, prepare derivative works of, display, and perform that user-generated content in connection with the service provided by the Website and across different media, including to promote the site or the service, forever; and 6.4.2. A worldwide, non-exclusive, royalty-free, transferable licence for other users, partners or advertisers to use the content for their purposes, forever. 7. LINKS 7.1. Links are only provided for Your convenience and to help You identify and locate other resources that may be of interest to You. 7.2. We do not control, endorse or monitor the contents of any sites subject to a Link, including, without limitation, any further link contained in a site referenced by a Link, and any changes or updates to site referenced by a Link. 7.3. If You use any service provided on a site to which a Link refers: 7.3.1. We will not be responsible for any act or omission of any third party, including such third party’s access to or use of Your data; and 7.3.2. We do not warrant or support any product or service provided by the third party. 7.4. You may link to the Website home page, provided You do so in a way that is fair and legal and does not damage Our reputation or take advantage of it. 7.5. You must not establish a link in such a way as to suggest any form of association, approval or endorsement on Our part where none exists. 7.6. You must not establish a link to the Website in any website that is not owned by You. 7.7. Our site must not be framed on any other site, nor may You create a link to any part of the Website other than the home page. 7.8. We reserve the right to withdraw linking permission without notice. 8. MATERIAL 8.1. We do not guarantee that Material is correct, up-to-date, or suitable for particular persons or situations. 8.2. The Material may include inaccuracies or typographical errors. 8.3. From time to time, changes may be made to the Material, with or without You being notified. 8.4. Material must not be relied upon for legal, tax or financial decisions and You should consult an appropriate professional for specific advice tailored to Your situation. 8.5. Any templates within the Material are for use only as a starting point for the preparation of legal documents. They must be adapted by You to meet Your individual requirements. You should always take legal advice for Your specific situation. 8.6. We make no representations about the suitability, reliability, availability, timeliness, and accuracy of the Material. 8.7. All Material is provided ‘as is’ without warranty or condition of any kind including all implied warranties or conditions of satisfactoriness, fitness for a particular purpose, title and non-infringement. 8.8. You use the Material and the Website at Your own risk. 8.9. Neither Us nor any Staff will be liable to You or any other party for any losses or damages whatsoever or howsoever arising in connection with the Material or the Website, whether under contract or as a result of any misrepresentation, misstatement or tortious act or omission, including negligence. 8.10. Our and the Staff’s liability to You for any loss or damage, including any losses, damages, costs or expenses whatsoever or howsoever arising in connection with the use of the Material or Website, whether under the Rules or other Rules or as a result of any misrepresentation, misstatement or tortious act or omission, including negligence, is limited to damages of an amount equal to that received by Us from You for a year’s Membership. 9. INTELLECTUAL PROPERTY 9.1. We own and retain all rights, title, interest and IP Rights in relation to the Material. 9.2. Except in connection with the ownership or management of a yacht(s) which You own directly or indirectly or You manage, You must not reproduce, modify, translate or create derivative works of any Material. 9.3. Without exception, You may not sell, license, sublicense, rent, lease, distribute, copy, publicly display or publish any Material. 10. RELATIONSHIP 10.1. We only provide a platform for information and self-help. 10.2. Material is provided for Your private use, does not constitute legal and/or financial advice and should not be relied upon as such. 10.3. We are not a regulated or unregulated law firm. Communications between You and Us or Staff will not be protected by legal professional privilege and may be disclosable to third parties. 10.4. No communications between You and Us or Staff constitute legal advice or can be relied on as such. 10.5. Use by You of the Website or Material does not establish a duty of care (either in tort or in contract) between You and Us or Staff, or create a lawyer-client relationship between You and Us or Staff. 10.6. Names of third parties are published on the Website or in Material, or provided to Members, for information purposes only. We do not endorse or recommend any third party nor do We make any warranty as to the qualifications or competency of any third party. 10.7. You agree that no joint venture, partnership, employment, or agency relationship exists between You and Us as a result of the Rules or Your use of the Website or the Material. 11. SEVERANCE 11.1. If any part of the Rules is determined to be invalid or unenforceable under any applicable law, then the invalid or unenforceable provision will be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. 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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

Home Journeys North Atlantic / / Paradise Found Cruising northeast, we soon reach Hamilton, Bermuda's vibrant capital, where colonial charm collides with commerce and cocktails. Rows of pastel buildings with white stepped roofs gleam like they’ve been freshly iced, and everything seems annoyingly neat. Stroll along Front Street, lined with high-end boutiques, art galleries, and charming cafés. Visit the Bermuda Underwater Exploration Institute to delve into the island's maritime history. In the evening, dine at one of Hamilton's acclaimed restaurants, savouring dishes that blend local flavours with international flair. Waypoint 7 Hamilton Granaway Deep is a serene anchorage just a stone's throw from Hamilton. Occasional Bermudian fisherman glide over it as if they're skating on blue glass. Beneath them? A submarine landscape that’s like another world. Despite the name, it’s not particularly deep. And if diving’s not your thing, it’s time to get the toys out and spend the day exploring the surrounding waters by kayak or paddleboard. Beyond, lush shores stand before old colonial houses. Even the water here is quieter. More dignified. Waypoint 6 Granaway Deep At the far western tip of Bermuda sits the Royal Naval Dockyard. Great slabs of limestone. Bastions. Storehouses. Walls thick enough to repel cannon fire. Power in masonry form. Yet it has not attempted to erase its past. You feel it in the stone beneath your shoes. Wander through the old Commissioner’s House and you’re met with maritime history presented without fuss or gimmickry. It’s not a theme park; it’s a reminder that Britain once ruled the waves and built accordingly. A place of martial history softened by sea breezes and Bermudian charm. Waypoint 5 Royal Naval Dockyard Surrounding reefs may make this suitable for your tender only. But it’ll be worth it. Mangroves fringe the edges, limestone outcrops glow honey-gold in the late afternoon, and the breeze carries just enough salt to remind you that beyond the reef lies the full Atlantic — but here, inside the embrace of the harbour, all is civility. Perched atop a nearby ridge, Fort Scaur is a masterpiece of military paranoia — all stone ramparts, dry moats, and gun emplacements. Strategically, it was meant to repel the Americans. Today, it mostly repels joggers, because the hill is quite steep and there’s no café at the top. Waypoint 4 Ely’s Harbour There are beaches. And then there’s Horseshoe Bay. First, the sand. Not a shade of municipal beige, but a blushing, self-confident pink. Formed from ancient coral, it squeaks underfoot. Then the water. It begins in translucent gin at the shoreline and deepens into sapphire further out, where the Atlantic rolls in with just enough muscle to remind you this isn’t a paddling pool. Yes, cruise passengers arrive in cheerful battalions - but wander a few minutes along the curve of the bay and you’ll find pockets of solitude where the only soundtrack is wind, surf, and the faint clink of ice in a well-made drink. Waypoint 3 Horseshoe Bay Next we sail to Castle Harbour, tucked away on the eastern side of the island. Drop anchor in gin-clear waters, surrounded by lush greenery and the occasional curious turtle – and spend the day snorkelling among vibrant coral reefs. And then there are the castles - squatting on rocky islets like ancient sentinels. King’s Castle, Devonshire Redoubt, Charles Island… the names alone sound like they should be defended by men in feathered hats holding muskets. No hordes of tourists here: just vast swathes of aquamarine water and the odd boat wafting past as if it has nowhere important to be. Waypoint 2 Castle Harbour Begin your journey in St. George's, a UNESCO World Heritage Site that oozes colonial charm. Dock at Penno's Wharf, then wander through narrow lanes lined with pastel-hued buildings, each whispering tales of pirates and privateers. Dine at a local tavern, sampling Bermuda's famed fish chowder, spiced with a dash of sherry pepper sauce. In the harbour, the water is so blue it looks digitally enhanced, while Fort St Catherine broods on the headland like it’s still waiting for the Spanish to show up. It’s Britain abroad, but with better weather and more colour. The vide is one of sleepy elegance. Waypoint 1 St George’s Bermuda is a speck of Britishness, drifting in the Atlantic just two hours east of North Carolina. The beaches are pink, the shorts are red, and the rum is dark. Yet it's not part of the Caribbean. And while it looks from afar like one landmass, it's made up of 181 islands. Discovered by humankind in 1505, it has a rich history. 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): Bermuda (British Overseas Territory) Time zone(s): Winter: ADT (UTC-4) Summer: AST (UTC-3) Currency(ies): Bermudian Dollar (BMD) Temperature: February: 18°C (64°F) August: 28°C (82°F) Sunshine: February: 6 hours August: 9 hours Humidity: February: 73% August: 79%

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

Unavailable at present Latest Position Wright A Way & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 36 m Length Builder & Co Builder 1997 Build year 360 Gross tonnage France Registry Particulars Marker

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 52 m Length Finest Craft Builder 2018 Build year 470 Gross tonnage Marshall Islands Registry Particulars Emblem

Unavailable at present Latest Position New Horizons Listing Email WhatsApp +44 7773 246 246 Central Agent 30 m Length Builder & Co Builder 2004 Build year 70 Gross tonnage Cayman Islands Registry Particulars Snapshot

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Connect to us your way regarding any aspect of The Owners Club - by email, WhatsApp or through LinkedIn. Feel free to run anything past us regarding buying or building a yacht or superyacht, or any aspect of owning, managing or selling. Plus anything to do with superyacht crew recruitment and employment. Home / Contact Reach Out CONNECT YOUR WAY Feel free to drop us a line gensec@theownersclub.org Connect with the General Secretary on LinkedIn here Chat directly with the General Secretary on WhatsApp here Follow our LinkedIn page here

It is possible that political protests targeted at yachts and yachting infrastructure become more common. But such outcries are based on a complete ignorance about the nature and scope of the societal benefits flowing from ownership. It is up to us owners to inform and educate, as and when this is needed, and undertake research to support axiomatic assertions. Home Handbook White Papers / / A Flood Not a Trickle By far the majority of large, permanently-crewed yachts in existence today have only been launched since 2000. They’re new, and their positive impact is poorly understood by the general public, pressure groups and authorities alike. Yachts are increasingly becoming the targets of conflated environmental and political protests. As well as causing inconvenience in the short term, politicians may, in the long term be more reluctant to allow more marina developments, for example. After all, a small numbers of owners can only wield a small number of votes. It’s clear that yachting’s positive impact is woefully underestimated and misunderstood. Being confrontational will be counterproductive. As owners, we don’t want yachts to be on the political agenda. They exist, after all, for quiet enjoyment. But it’s as well to be prepared, with facts and figures at the ready, to respond to false accusations. And we may need to educate stakeholders and agitators quietly behind the scenes. PORTALS FOR THE REDISTRIBUTION OF WEALTH The most fundamental error is to consider a yacht purely as an asset – rather than a place of employment and worker accommodation. They are communities of individuals, most of whom are very well paid, and many of them are also entrusted to spend significant amounts of their employer’s hard-earned money. Whatever one’s views on the technical efficacy of trickle-down economics as part of a macroeconomic strategy, the boost to coastal economies is difficult to ignore. And this isn’t money being paid to an élite of lawyers and investment managers: it’s being paid directly into the accounts of waterside retailers and suppliers. Who, in turn, buy stock, employ staff and pay tax, leading to a significant quasi-Keynesian multiplier effect. BUYERS ALREADY PAY A PREMIUM Yachts are easy targets, because they are perceived – rightly – as being luxurious. But luxury isn’t just about opulence. Luxury is the combination of desirability and scarcity. Taking this to an extreme to illustrate the point, consider an expensive 50 year-old single malt Scotch whiskey. It’s matured in white oak barrels which – very slowly – allow some of the liquid to evaporate. There’s less and less of it as the years pass. So if this is what your heart desires you’ll pay more for it. The whiskey may or may not be any better than a 10 year-old dram, but it’s subjectively more desirable and objectively much scarcer. A yacht’s component parts are made in small numbers and/to an unusual specification. Producing them can be risky and unattractive for suppliers so they will demand higher prices. And precious few yards have the experience or equipment to craft the vessels themselves. All of this means that buyers pay significant premiums for yachts. As Mark Twain put it in The Adventures of Tom Sawyer (1876): " Tom … had discovered a great law of human action, without knowing it – namely, that in order to make a man or a boy covet a thing, it is only necessary to make the thing difficult to attain. " MODEST CREW BACKGROUNDS Long gone are the days when crewmembers came from privileged backgrounds – perhaps the children of the owner’s friends, or just sporty types whose leisure and social lives centred around prestigious yacht clubs. Like owners today, crew come from a wide variety of backgrounds – maybe having grown up in workaday towns situated far from the sea. They also come from all over the world, and must adapt quickly to a life afloat. The Owners Club is actively looking into ways to widen further the appeal of a career working on yachts – helping to make the industry as professional and meritocratic as possible. STATE-OWNED HARBOURS Mooring fees – together with harbour dues and associated services costs – form a significant outgoing for many yachts. While most marinas operate on a concession basis, it is usually the government or local municipal authority which owns the facility, and to whom the operator pays significant sums. These boost local coffers which are used to pay for vital local services which the whole community benefit from. REDUCING DEMAND FOR PROPERTY Recent decades have seen demand for property rise steeply. And as, in the most part, they stopped making land years ago, prices have risen accordingly. Starting in European capitals, a ripple effect then affects all parts of the relevant country. The result is property which is too expensive for most first-time buyers. They end up without a physical stake in society. Their lives are more transient, less settled and less secure. At the top of the property-owning tree, the world’s wealthiest can own multiple residences, each of which is perhaps only occupied for part of the year. Reducing a property portfolio in favour of a yacht purchase reduces demand at the highest end of the market, which should – eventually – reduce inflationary pressures at the bottom. Not by much, one suspects, but every little helps. HIGHLIGHTING MARINE POLLUTION 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. 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 introduce behavioural changes on a massive scale. Or they may own media outlets which bang 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. YACHTS INSPIRE SOCIETY French philosopher Roland Barthes wrote in Mythologies (1957): “ I think that cars today are almost the exact equivalent of the great Gothic cathedrals; I mean the supreme creation of an era, conceived with passion by unknown artists, and consumed in image if not in usage by a whole population which appropriates them as a purely magical object. ” In today’s context, this description applies to yachts far more than cars. And such sentiment is nothing new. Economist and key Enlightenment figure Adam Smith opined in his 1759 book The Theory of Moral Sentiments : “ The pleasures of wealth and greatness … strike the imagination as something grand and beautiful and noble, of which the attainment is well worth all the toil and anxiety which we are so apt to bestow upon it .” And so it is that, by symbolising wealth and success, yachts serve to inspire entrepreneurs to redouble their efforts. They encourage everyone inclined to do so, to work hard, take risks and use their imaginations. OWNERS INSPIRE CREWMEMBERS Owners’ energy, work ethic and meritocratic outlook often rubs off on the crewmembers who work for them. As crew usually do not have to pay income tax, and have little in the way of daily outgoings, when the time comes for them to come ashore they often do so with sufficient capital set aside to fund a new business. Many such enterprises will be related to yachting, but some will have nothing to do with their previous seagoing careers. Either way, yet more of the owners’ capital will be injected into economies far and wide. CONCLUSION Since the detention of certain Russian-owned yachts in early 2022, it looks at last as if large yachts can be rehabilitated from being seen in the popular imagination as icons of oligarchy to that which they were in previous times: symbols of success and the rewards for hard work and entrepreneurial élan. The possibility of future minority kickback shouldn’t be ignored. The benefits of yacht ownership are manifold for society generally. It is incumbent us owners to ensure, by supporting the Club and its aims, that all stakeholders understand the scope and extent of such benefits. The good news will be developed and deployed as needed. Other than that, let’s just get on enjoying the fruits of our labours and investments. To quote Eleanor Roosevelt: “ The purpose of life is to live it, to taste experience to the utmost, to reach out eagerly and without fear, for newer and richer experience .” Return to top Thank you to all our Members who provided perspectives for this white paper. It is possible that political protests targeted at yachts and yachting infrastructure become more common. But such outcries are based on a complete ignorance about the nature and scope of the societal benefits flowing from ownership. It is up to us owners to inform and educate, as and when this is needed, and undertake research to support axiomatic assertions. 15 November 2022 Last revised minutes 6 Reading time minutes 6 Reading time 15 November 2022 Last revised It is possible that political protests targeted at yachts and yachting infrastructure become more common. But such outcries are based on a complete ignorance about the nature and scope of the societal benefits flowing from ownership. It is up to us owners to inform and educate, as and when this is needed, and undertake research to support axiomatic assertions. Large, permanently-crewed yachts face misconceptions and challenges related to their environmental impact and public perception. It is important for us, as owners, to understand and communicate the positive aspects of yachting to counter this. Yachts are not just assets; they are floating communities, providing employment and contributing massively to local economies. Crewing provides employment for indivuals from all backgrounds. Yacht purchases can also reduce demand for expensive property and inspire society as symbols of success. We are in a position to drive environmental change through our businesses. Yachts can also inspire crewmembers to pursue entrepreneurial endeavors. Ownership should be seen as a positive contribution to society, and we have a responsibility to promote and educate others about its benefits. You can also read about Blue is the New Green Questions or comments? Please contact us Join the discussion over in the Club's group You can also read about Blue is the New Green Questions or comments? Please contact us

Crew romances on superyachts are inevitable, but banning them is often unlawful and impractical. Instead, owners should regulate relationships through clear written policies that respect crew privacy rights while managing operational, legal and reputational risks. Particular caution is needed where power imbalances exist, such as captain-subordinate relationships. Policies should require disclosure, prohibit favouritism, maintain professionalism and confidentiality, address post-breakup issues, and integrate with harassment procedures. Properly drafted and consistently enforced policies help reduce employment, discrimination and harassment claims while protecting yacht operations. Home Handbook Employing / / Crew Romance 4 May 2026 Last revised minutes 4 Reading time Crew romances on superyachts are inevitable, but banning them is often unlawful and impractical. Instead, owners should regulate relationships through clear written policies that respect crew privacy rights while managing operational, legal and reputational risks. Particular caution is needed where power imbalances exist, such as captain-subordinate relationships. Policies should require disclosure, prohibit favouritism, maintain professionalism and confidentiality, address post-breakup issues, and integrate with harassment procedures. Properly drafted and consistently enforced policies help reduce employment, discrimination and harassment claims while protecting yacht operations. minutes 4 Reading time 4 May 2026 Last revised Crew romances on superyachts are inevitable, but banning them is often unlawful and impractical. Instead, owners should regulate relationships through clear written policies that respect crew privacy rights while managing operational, legal and reputational risks. Particular caution is needed where power imbalances exist, such as captain-subordinate relationships. Policies should require disclosure, prohibit favouritism, maintain professionalism and confidentiality, address post-breakup issues, and integrate with harassment procedures. Properly drafted and consistently enforced policies help reduce employment, discrimination and harassment claims while protecting yacht operations. Blanket bans on crew relationships being often unenforceable and counterproductive, regulation is the only viable approach. Relationships involving a power imbalance, such as captain and subordinate, carry the greatest legal and operational risk. Even equal-level relationships require mandatory disclosure, as undisclosed romances create greater danger than transparent ones. Human rights and employment laws place real obligations on employers around privacy rights and harassment prevention. A written Relationships Policy, signed before boarding, is essential: without one, dismissals related to workplace romance are likely to be ruled unfair. Consistency in enforcing the policy is critical, as any variation can suggest bias and undermine an employer's position at tribunal. Human rights and employment laws place real obligations on employers around privacy rights and harassment prevention. A written Relationships Policy, signed before boarding, is essential: without one, dismissals related to workplace romance are likely to be ruled unfair. Consistency in enforcing the policy is critical, as any variation can suggest bias and undermine an employer's position at tribunal. Blanket bans on crew relationships being often unenforceable and counterproductive, regulation is the only viable approach. Relationships involving a power imbalance, such as captain and subordinate, carry the greatest legal and operational risk. Even equal-level relationships require mandatory disclosure, as undisclosed romances create greater danger than transparent ones. Superyachts are not just floating palaces. They are floating pressure cookers. Put young, adventurous people in close quarters, throw in long hours and a few sunsets, and the result is as predictable as the ebb and flow of the tide. The question for an owner is not whether relationships will occur. It’s how to manage them lawfully, sensibly and commercially. Some owners instinctively try to prohibit them. Simple. Except it isn't. Crewmembers retain rights to privacy and family life, particularly where employment arrangements involve living on board for extended periods. Blanket bans on consensual relationships can be difficult to justify and may create enforcement problems. More importantly, they rarely work in practice. And hidden relationships are potentially more dangerous than disclosed ones. The focus should be on regulation. If you don't have a proper written policy governing this entirely predictable behaviour, you could find yourself on the wrong end of an employment claim – or even a PR catastrophe. POWER IMBALANCES Let’s start with the stereotypical relationship which has the potential for causing the most problems: the captain-stewardess relationship. On a vessel, where the captain has ultimate authority over schedules, duties, references, and the welfare of everyone aboard, any romantic relationship between the captain and an inferior carries inherent power imbalance concerns that cannot simply be waved away by mutual consent. The greatest legal and operational risks arise when one party has authority over another. Research consistently identifies perceptions of favouritism as the principal organisational harm arising from workplace romances. Indeed, an allegation of bias (whether based in truth or not) can lead to claims of unfair treatment by other crewmembers. In any event, morale and retention can suffer. The safest approach is not to tolerate romantic relationships between two crew where one supervises another, perhaps by moving one party to a shoreside role. If this isn’t a viable option (and it normally isn’t) then this situation requires careful management through policies. And those policies need to have been in place at the outset. NO IMBALANCE Even where there’s no imbalance, couples may collude, cover for each other, or simply distract each other from their duties. Unintended flows of information can also be established, regarding guest information, security arrangements, or commercially sensitive matters. There’s no malicious intent. Just pillow-talk. This is not just a practical headache; it’s a legal one if it leads to negligence, accidents, or breaches of duty. There must still be mandatory disclosure, so such relationships and corresponding risks can be assessed and managed. A failure to disclose must be a serious disciplinary matter. APPLICABLE LAWS The employment law of the crewmember’s home country often applies. As well as that of the employment contract. And the vessel’s port of registry. And the local port law. So let’s just look at UK law, given the large numbers of British captains and crew and the ubiquity of the Red Ensign. The Human Rights Act 1998 gives employees the right to respect for private and family life. This means that employees have the right to have consensual relationships with people they meet at work. An outright ban on would almost certainly constitute an unlawful interference with those rights, and would invite an unfair dismissal claim if enforced by dismissal alone. So regulating relationships is the only way forward. If a romance turns sour, one party could allege harassment where unwanted conduct of a sexual nature that creates an intimidating, hostile, degrading, humiliating, or offensive environment. The Equality Act 2010 obliges employers to take 'reasonable steps' to prevent sexual harassment of employees in the course of their employment. And the normal burden of proof is reversed: if an allegation is made, then you must demonstrate that you, as employer, took those steps. Without a written policy and documented training, you’re already losing. And this is soon to change from ‘reasonable steps’ to ‘all reasonable steps’. RELATIONSHIPS POLICY Having a Relationships Policy in place, and expressly including it within the written employment agreement, is vital. It must be signed before the crewmember even comes on board. Without a policy in place, the employer’s expectations remain a known unknown. And the caselaw is clear: if a crewmember is dismissed in the context of a workplace romance, and there’s no policy, this is likely to have been an unfair dismissal. The best policies are surprisingly short, and should encompass the following key elements: Relationships are not prohibited Consensual sexual relationships between adult crewmembers are not forbidden. This encourages disclosure, keeping in mind that hidden relationships create greater risk than visible ones. Relationships must be disclosed Non-disclosure will lead to formal disciplinary action. All disclosures are confidential. No preferential treatment Preferential treatment of an inferior involved party is prohibited – whether the reporting lines are direct or indirect. This includes but is not limited to watchkeeping patterns, leave allocations, accommodation, promotions and rotations. Professional conduct remains mandatory Crewmembers must continue to maintain professional standards regardless of the relationship. There can be no public arguments nor public displays of affection on board, or any distracting behaviour while performing duties. Confidentiality obligations continue Relationships must never compromise owner or guest confidentiality, security procedures or commercial information. Post-breakup procedures Involved crewmembers must accept the imposition of new or different watch patterns, duties, or accommodation arrangements, in order to eliminate post-breakup fallout. Complaints procedure If an involved or uninvolved crewmember complains about any aspect of the relationship, you must investigate this immediately. Disciplinary procedures The consequences flowing from a breach of the policy must be made clear. Your Relationships Policy must run seamlessly alongside your existing Harassment Policy: crew must be in no doubt that unwanted advances will constitute harassment and are strictly forbidden. For yacht owners, the risk of a harassment claim are amplified because the workplace is also the employee's home. There is nowhere to escape. And be consistent with the handling of all relationship matters. Any variation in management can undermine credibility and suggest bias to an employment tribunal. CONCLUSION Crew live in extraordinary proximity, in a high-pressure environment. Crew romance is inevitable. The answer is not prudishness. It is not a ban. Be prepared - legally and practically. Have a policy, enforce it, treat everyone fairly, and don’t let your yacht become a floating soap opera. Love may be blind, but the law certainly isn’t. 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 Harassment Prevention Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Harassment Prevention

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

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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 .

The Owners Club started with a chance meeting between two owners racing in the Superyacht Cup. They wondered if yacht owners, could speak with one voice, and share best practice, when buying, building, owning and selling. They also thought to pool their considerable buying power to negotiate discounts for insurance, finance and lawyers fees. Home About Genesis / / A Fresh Start COMMON SENSE FOR UNCOMMON WEALTH FAQs Why is it that, while we can innovate, build strong businesses and drive economies forward, our voice as yacht owners remains so quiet? Sure, our brokers, managers and captains have our backs, but they’ve got their hands full. Who’s there to take a high-level view of ownership? Who’s there to provide guidance so we’re not each taking advice and reinventing the wheel? Who’s drafting the agreements and documents we have to have in place? Shouldn’t we be working together? Yes. It’s common sense. I can’t believe we’re all taking advice on pretty much the same things – crew employment, taxes, etc. It’s great to see owners and their reps come together like this. CAPTAIN 72m MY FROM COMPETITION TO COOPERATION Contact Us It all started with a chance meeting between two owners. Sitting on the rail of a Superyacht Cup competitor, they wondered why yachts were subject to so much regulation. Protecting seafarers on large ships, many of the complex rules are arbitrary and inconsistent when applied to smaller vessels. Could this be put right? Yes, if only we, the owners, could speak with one voice. And if coming together, let's share best practice, rather than seek expensive advice at every turn. And why not pool our considerable buying power to negotiate discounts?

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

There are two basic types of charter: those where the crew is provided by the owner and those where it is up to the charterer to provide the crew (known as ‘bareboat’ charters). Because of the complex crew certification requirements, larger yachts are rarely bareboat chartered although they may be the subject of such a charter as part of a complex finance and/or tax avoidance scheme. Home Handbook Chartering Out / / How to Charter Out 6 February 2011 Last revised minutes 5 Reading time There are two basic types of charter: those where the crew is provided by the owner and those where it is up to the charterer to provide the crew (known as ‘bareboat’ charters). Because of the complex crew certification requirements, larger yachts are rarely bareboat chartered although they may be the subject of such a charter as part of a complex finance and/or tax avoidance scheme. minutes 5 Reading time 6 February 2011 Last revised There are two basic types of charter: those where the crew is provided by the owner and those where it is up to the charterer to provide the crew (known as ‘bareboat’ charters). Because of the complex crew certification requirements, larger yachts are rarely bareboat chartered although they may be the subject of such a charter as part of a complex finance and/or tax avoidance scheme. Bareboat charters make the charterer responsible for crew actions and liabilities. Implied terms include yacht seaworthiness and compliance with descriptions. Yacht age doesn't excuse outdated safety and navigational equipment. Breach of charter terms may lead to charter termination or damages. Charterers can give instructions on the yacht's destination but not on seamanship matters. Charter rates may include additional expenses; attention to terms is important. Insurance is required for liabilities caused by the charterer; compliance with policies is crucial. Redelivery of the yacht must be prompt to avoid additional charges. Captains may have authority to make contracts on behalf of the owner. Owners should consider national and regional laws before placing a yacht on the charter market. Charter rates may include additional expenses; attention to terms is important. Insurance is required for liabilities caused by the charterer; compliance with policies is crucial. Redelivery of the yacht must be prompt to avoid additional charges. Captains may have authority to make contracts on behalf of the owner. Owners should consider national and regional laws before placing a yacht on the charter market. Bareboat charters make the charterer responsible for crew actions and liabilities. Implied terms include yacht seaworthiness and compliance with descriptions. Yacht age doesn't excuse outdated safety and navigational equipment. Breach of charter terms may lead to charter termination or damages. Charterers can give instructions on the yacht's destination but not on seamanship matters. Whether or not crew is provided makes a real difference to the legal positions of the parties. Generally, with bareboat charters, the charterer remains responsible as if he or she was the owner: since the crew are employees of the charterer and not of the owner, the acts and omissions of the crew are the responsibility of the charterer and not the owner, should the yacht, for example, be involved in a collision. Bareboat charterers can take comfort in the fact that the Limitation Conventions of 1957 and 1976 allow charterers to limit their liability 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 other non-contractual rights. IMPLIED TERMS Whatever the type of charter, the law will automatically imply further terms. These include conditions that the yacht is seaworthy and that she corresponds with the description given by or on behalf of her owner. Seaworthiness is taken to mean that the yacht, her equipment and crew (if any) must be able to cope with any foreseeable dangers. More specifically, in order to be seaworthy, the yacht must be as fit as an ordinary, careful owner would require at the start of any passage, taking into account all the likely circumstances of that passage. The age of the yacht is relevant, but age does not excuse having out-of-date safety and navigational equipment. All legal documents required must be held on board. The charter agreement may oblige the owner to maintain the yacht in a seaworthy condition for the whole duration of the charter rather than just the start. BREACH OF CHARTER Generally, a breach of any terms may allow the charterer to treat the charter as having come to an end immediately and claim damages, or just claim damages afterwards, depending on how serious the breach is, but the charterer must have suffered some sort of loss as a result of the breach. Just because the yacht is unseaworthy, for example, does not mean that the charterer can claim damages. The particular seaworthiness must have caused loss on the part of the charterer. This would certainly be the case, for example, if the yacht was detained because she did not have the correct papers on board. Moreover, the courts will, as a matter of law, overlook breaches that are so trivial as to be negligible. What is trivial, however, depends entirely on the facts. CHARTERERS’ INSTRUCTIONS Subject to the charter agreement (known by lawyers as a ‘charter party’) the yacht is the charterer’s to do with as he or she pleases. Accordingly, the charterer is entitled to give, and the captain is obliged to comply with, legitimate instructions as to where the charterer wishes the yacht to go. This also means that should the yacht be saved from misfortune, the charterer could be liable to pay the rescuers for their services. Unless a route proposed by the charterer will be inherently dangerous, the captain is bound to comply with the charterer’s request and must then use his navigational skills to avoid danger should it be encountered. Yet the charterer is not entitled to direct the captain on any matters of seamanship. In fact, the captain is not only entitled but also obliged to retain responsibility for all matters relating to the seaworthiness, navigation and the general safety of the vessel, and must refuse requests that might compromise these. A captain is also obliged to refuse to comply with instructions that are illegal under the laws governing the charter agreement. LITTLE EXTRAS While there is much else for the charterer to pay for aside from the hire, such other expenses are usually lumped in with the hire payment to produce the charter rate or fee. The charterer needs to pay close attention to the charter terms to avoid any unexpected bills, however. Quoted charter rates are normally inclusive of the brokers’ fees, but the charterer would be well advised to confirm this. MYBA AGREEMENT The most common terms are those published by MYBA (formerly the Mediterranean Yacht Brokers Association), which have also been adopted by the American Yacht Charter Association. On these terms, the operating costs of the yacht are in addition to the hire. The charterer must pay a self-explanatory Advance Provisioning Allowance, which must be topped up as required, although the captain is required to keep an eye on this expenditure. The charterer should be familiar with other key parts of the MYBA contract. DELAYS For various reasons beyond the owner’s reasonable control, the yacht may be delivered late to the charterer. The owner has 48 hours, or one tenth of the charter period – whichever is the shorter – in which to deliver the yacht for charter, with a proportionate refund being given, or the charterer may cancel the charter, but will only be entitled to a full refund. If the owner fails to deliver the yacht to the charterer, and the reason for this failure was within the owner’s reasonable control, then the charterer will be entitled to a full refund, plus an extra 50 per cent. The charterer may not, however, claim more, no matter how much inconvenience was caused. Should the owner choose to cancel before the start of the charter, the charterer will still only be entitled to a full refund plus 50 per cent. A chartering area is agreed, and the charterer is allowed to cruise for up to six hours per day within that area. Should the yacht break down or become disabled for any other reason, for any length of time over 48 consecutive hours or 10 per cent of the charter period – whichever is the shorter – the charterer has the option to terminate the agreement. INSURANCE Insurance is required against liabilities to third parties that may be caused by the charterer. In as much as the cover required is no less than that set out in the Institute Yacht Clauses in use in the London insurance market, owners may well wish to use these terms rather than any foreign alternatives to save future argument over what is or is not cover of such a standard. The charterer will still be liable, however, should the yacht or any crewmember be detained as a result of any illegal activity on the part of the charterer or any of his or her guests. The insurance policies for larger risks can be written in long-winded terms. In the event of a dispute arising between owner and insurer, unfamiliar terms can lead to doubt. While an owner who keeps the yacht for his or her own use may be given the benefit of any doubt as a consumer, where a yacht is chartered, this protection evaporates. The additional clause inserted by the insurer to allow the yacht to be chartered will usually take the form of a ‘warranty’ added to the policy, requiring the yacht to be skippered by a professional yacht captain. Being a warranty, if this is not abided by, the policy will be ineffective in its entirety. In the case of bareboat charters, the qualifications needed to be held by skipper-charterers will be set out in detail and, again, must be complied with to the letter. REDELIVERY Under the MYBA terms, the charterer should make sure that the yacht is redelivered back to the owner promptly, otherwise the charterer will be liable to pay the charter rate plus an extra 50 per cent, plus the owner’s resulting losses. There is also no agreed limit as to the amount that can be reclaimed should the charterer choose to cancel the contract. AUTHORITY A captain will often be given the authority to make contracts as the owner’s agent, as long as he or she is acting within his or her given authority. Where the yacht has been chartered and the charter agreement states that certain supplies, for example, are to be paid by the charterer, the owner will be liable to pay if the charterer doesn’t, even if the creditor knows of the existence of the charter agreement. POINTS TO CONSIDER Before a yacht is even placed on the charter market, there are a number of points owners should consider. Depending on the waters in which the yacht will be chartered, such activities will be affected by national laws and increasingly by capricious regional laws, especially in the Mediterranean. This may affect the number of guests allowed, safety requirements and the flag the yacht must sail under. Many flag states, in particular within the Red Ensign group, also have technical Codes of Practice applicable to chartered yachts, which can be expensive to comply with. 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 Difficult Guests Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Difficult Guests

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

Most large yachts are bought and sold on the basis of the MYBA MOA. While the mechanics of the sale process is dealt with in that document, there’s one glaring omission: what documents does the seller need to produce to prove ownership and liabilities? As mere paperwork, such matters are often only negotiated once the MOA has been agreed, leaving scope for an otherwise viable deal to falter. Consider what’s likely to be requested at the outset and prepare accordingly. Home Handbook Selling / / Preparing the Paperwork 29 January 2025 Last revised minutes 9 Reading time Most large yachts are bought and sold on the basis of the MYBA MOA . While the mechanics of the sale process is dealt with in that document, there’s one glaring omission: what documents does the seller need to produce to prove ownership and liabilities, and ensure a smooth transaction? As mere paperwork, such matters are often only negotiated once the MOA has been agreed, leaving scope for an otherwise viable deal to falter. Consider what’s likely to be requested at the outset and prepare accordingly. minutes 9 Reading time 29 January 2025 Last revised Most large yachts are bought and sold on the basis of the MYBA MOA . While the mechanics of the sale process is dealt with in that document, there’s one glaring omission: what documents does the seller need to produce to prove ownership and liabilities, and ensure a smooth transaction? As mere paperwork, such matters are often only negotiated once the MOA has been agreed, leaving scope for an otherwise viable deal to falter. Consider what’s likely to be requested at the outset and prepare accordingly. Clause 18 of the MOA requires "Addendum One" documents, but no such addendum is included. Essential documents are needed for re-registration and proving title, without which the vessel could lose value. Missing corporate authorities or powers of attorney could invalidate the sale. Documents may need specific authentication to be accepted by the flag state. Seller’s documents are crucial for proving ownership and regulatory compliance. Legal professionals have standard expectations for required documents, beyond outdated MYBA lists. Proper planning is needed before the MOA is agreed to ensure all documents are available. Sale documents fall into six categories, which are considered in detail below. Seller’s documents are crucial for proving ownership and regulatory compliance. Legal professionals have standard expectations for required documents, beyond outdated MYBA lists. Proper planning is needed before the MOA is agreed to ensure all documents are available. Sale documents fall into six categories, which are considered in detail below. Clause 18 of the MOA requires "Addendum One" documents, but no such addendum is included. Essential documents are needed for re-registration and proving title, without which the vessel could lose value. Missing corporate authorities or powers of attorney could invalidate the sale. Documents may need specific authentication to be accepted by the flag state. Unhelpfully, Clause 18 of the MOA simply sets out that the “Addendum One” documents must be provided by the seller, yet the MOA doesn’t come with Addendum One – or any addenda for that matter. 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. The seller’s documents are so much more than mere paperwork: they help prove ownership, and are evidence that the vessel complies with certain regulations. They’re fundamental, not a formality. Most lawyers involved in yacht sale and purchase will have their own standard document setting out what they expect to see when representing the buyer. At some point, MYBA has produced it own rather meagre list, versions of which are still doing the rounds years later. It’s best to think about what’ll be asked for, and who has possession of these (or can provide them) even before the MOA is agreed. Assuming the vessel is owned through a company, the paperwork can be divided into six broad categories: Seller due diligence, proving that the company exists and has the capacity to own and sell the vessel; Beneficial owner due diligence, confirming identity and providing a personal guarantee; Seller corporate documents, resolving to sell and appointing attorneys; Asset due diligence, demonstrating provenance and conformity with safety regulations; Liability due diligence, showing that those would could have a claim against the vessel do not; and Sale process documents, which will show that the sale took place, when and where. Let’s look at each group in further detail. SELLER DUE DILIGENCE A Certificate of Incorporation , Memorandum of Association and Articles of Association , in respect of the selling company (including any amendments) are needed to verify that the seller is the legally-registered entity it appears to be, which actually has the authority to own and sell the asset. This may sound obvious, but companies can only do what they’re empowered to do. A recent Certificate of Incumbency , or equivalent certificate, is important in verifying the current shareholders and directors of the seller, as well as confirming that the seller is in good standing and no action is being taken against them. A Certificate of Good Standing , or equivalent certificate, is also needed from the seller's registry to certify that they are in good standing with that registry. These documents are necessary fundamental to ensuring that the buyer is not at risk of fraud. BENEFICIAL OWNER DUE DILIGENCE A Personal Guarantee & Indemnity , whether on standard MYBA terms or otherwise, from the yacht’s beneficial owner, goes a long way to providing additional security for the buyer in case the seller is unable to fulfil its obligations under the sale agreement. The seller, after all, is almost certainly an offshore company with no assets to claim against other than the vessel which has just been sold. The guarantee should make provision for private arbitration so that, in the event of a dispute, matters aren’t settled in the public eye. Up-to-date personal identity documents are also useful in making sure that whoever signs the guarantee is who they claim to be. It should be noted that not all beneficial owners are happy to provide these documents. Some take the view that all their assets are owned through companies with which they don’t want to have any involvement. If you don’t want to agree to provide these to the seller, that’s your prerogative. This may or may not be a deal-breaker for the buyer. SELLER CORPORATE DOCUMENTS As with any large transaction undertaken by a company, the seller needs to produce written Resolutions , signed by someone with the requisite authority, confirming ownership, approving the sale, and authorising representatives to act on behalf of the company in respect of the completion of the sale (such attending on board at completion, and signing the sale documents). For the sake of certainty, Powers of Attorney are also needed to give the individuals the powers which the company has resolved to given them. ASSET DUE DILIGENCE It doesn’t provide conclusive proof, but the Certificate of Registry does help to prove ownership. The Builder’s Certificate shows who the builder was (yard pedigree being an important component of value) as well as it’s specification (which is vital when establishing what regulations will apply and establishing whether it can be chartered). Providing all the previous Bills of Sale will establish a chain of ownership transferal, extending back to its launch, which helps to confirm current ownership, as well as being documents which a fraudster would struggle to produce. The yacht will be subject to various regulations and all the relevant safety and convention certificates must be obtained well in advance of the sale so that the buyer knows that the yacht is capable of satisfying these rules. LIABILITY DUE DILIGENCE Debts incurred by an owner, in respect of their yacht, can be enforced against that yacht (as well as that owner) even after it’s been sold to an unsuspecting buyer. So a recent Transcript of Register will show that the vessel is free from any registered liens or encumbrances and is still solely owned by the seller. It’s also important to obtain a Manager’s Letter (if a yacht manager has been engaged) and a Captain’s Letter , confirming that the seller has no liabilities to the manager, or captain, or any third parties, and that the yacht has not been involved in any incidents or accidents since the pre-sale condition survey. Crewmembers’ Letters will confirm that each crewmember has been paid everything owed to them. And where the yacht is being sold as having a tax-paid status, evidence of this must be prepared – allowing sufficient time for the buyer to take advice from a local tax specialist. SALE PROCESS DOCUMENTS A Completion Timetable , which lists all parties involved in the completion of the sale, their contact details, and the necessary steps to be taken during and after completion, is essential to ensure that all parties are aware of the steps required to complete the sale and that they are well-coordinated. The Bill of Sale , signed by the seller, declares that the vessel is free from all debts, claims, liens, and encumbrances and transfers ownership to the buyer. This document is necessary to establish transfer of ownership, and is vital for re-registration in the buyer’s name. As the time and location of the transfer of ownership may have tax implications, a Protocol of Delivery & Acceptance , in an agreed format, must be agreed. As a formal payment request, the seller’s Commercial Invoice is essential for bookkeeping and provides customs authorities with essential information regarding the transaction. Finally, the seller must produce a Letter of Undertaking that the yacht will be deleted from the current ship registry soon after the sale. Deletion isn’t free and involves professional time which the seller will have to pay for. Feel free to contact us for further guidance. 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 Document Authentication Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Document Authentication

Selling a yacht should be relatively easy. Assuming the price is realistic, there'll be a buyer out there. Connecting with that buyer, however, can be unnecessarily complex. Current business models mean that otherwise viable deals can sometimes fall though. This white paper considers the pitfalls in greater detail, and proposes a solution. Home Handbook White Papers / / Cut to the Chase A RISKY BUSINESS With assets of this size and nature, people buy from people – not companies. Yachts may be advertised by brokerages, but they aren’t sold by them. It’s the individual brokers who do the selling. They often work extremely hard – especially during shows – with an uncertain outcome. They’re patient and diligent, and their commissions are well-earned. They perform a crucial role . THE CENTRAL AGENCY When instructing your broker to sell your yacht, a Central Agency (CA) agreement is imperative. The agreement makes it clear that your broker is in charge of the sale, and will be rewarded no matter who actually sells the vessel (including you – so make sure you have explored your own network first). Your CA can provide a valuation, a marketing plan and produce marketing materials (at their or your expense depending on what you negotiate). At a stroke, scope for argument as to which party was the effective cause of the sale – and so owed commission – is eliminated. Understandably, without a CA agreement in place, most brokers are unlikely to go all-in to prepare the yacht for sale and make every effort to sell: it’s just too easy for third parties to argue that the broker claiming commission wasn’t in fact the (or an) effective cause. Standard form agreements are available, but many of these are poorly drafted, so contact us to have this checked and amended. A pre-determined sales price is often the default setting, but some brokers may prefer a net-to-seller figure, which they can adjust up or down as they see fit. MULTIPLE LISTING SERVICES A Multiple Listing Service (MLS) is a database used by brokers (whether CAs or not) to share their listings, in order to reach a wider audience. MLSs usually have their own public online marketplace, and may supply listings automatically to subscribing brokers’ websites, through an application programming interface (API). The use of MLSs (and certain brokers’ associations require their use) can lead to very broad market penetration for the seller, potentially leading to a quicker sale, but there are drawbacks. Use Google Lens and you’ll find identical images posted by numerous brokers. It's not clear which broker has a direct line of communication with the seller. Where a yacht is listed on a marketplace website (and it’s these which tend to come up first when searching online) it is easy to assume – wrongly – that the broker named in the listing is the CA. The use of API-powered automatic listings may mean that the listing broker knows nothing about the vessel, and may be unaware of the listing itself until an inquiry comes in. The CA’s own website listing, meanwhile, will be languishing well behind on Google simply because the CA’s website’s SEO can’t compete with that of the MLS. The potential buyer is none the wiser. Also, by having the vessel listed everywhere, it's possible that the seller can look somewhat desperate. Nevertheless, once a second so-called ‘buyer-broker’ is involved (i.e. a broker acting for the buyer) they will be entitled to a share (a half or thereabouts) of the commission. Their brokers’ association rules may require it. With chains of communication also stretched, negotiations can become protracted while passions cool and interest fades. CLASS ACTIONS Various class actions have been brought in respect of MLSs. In Ya Mon Expeditions LLC v International Yacht Brokers Association Inc et al , the plaintiff brought an action, in February 2024, against 16 defendants, claiming, in essence, that (in violation of US federal antitrust law) brokers’ associations are requiring members (i) to list all their vessels on an MLS (which may also be owned by that association), and (ii) to follow non-negotiable commission-splitting rules. Ya Mon claimed that “ most buyer-brokers will not show vessels to their clients if a seller is offering a lower buyer-broker commission, or will show vessels with higher commission offers first ” meaning that “ sellers are incentivized when making the required non-negotiable offer to procure the buyer-brokers’ cooperation by offering a high commission ”. Ya Mon also claimed that the defendants’ business practices are anti-competitive, with buyer-broker commissions being about 4% to 5% which is artificially elevated beyond where they would be in a free market. In Defosey v Boats Group LLC et al , a plaintiff brought another class action, in May 2024, against some 18 defendants, making broadly the same claims as Ya Mon , arguing that broker associations’ rules “ force sellers to pay a portion of the commission … to the buyer-broker, someone who provided no service to the sellers ” and, as the commission paid to the buyer-broker is not subject to negotiation between the buyer and his/her broker, such rules prevent competition among buyer-brokers based on their commission rates. A similar case was pleaded in Magna Charter LLC v Boats Group LLC et al . At the time of writing (October 2024) Ya Mon is ongoing, while Defosey and Magna have been terminated, presumably because these have been settled or consolidated with other class actions. MLSs made a lot of sense where potential buyers would drop by their local harbourside brokerage and might have been interested in a vessel details of which weren’t displayed in the window. But they make less sense in a world where most buyers look online, and could reach out directly to the CA – if only they understood the pitfalls of not doing so, and knew where to look. FAKE LISTINGS Incredibly, some brokers will post on their own website, or an MLS, without even having been appointed as CA. Maybe they've had just a conversation with a friendly captain. Indeed, with so much at stake, truly unscrupulous brokers might list your yacht for sale without your broker’s permission – copying photos and plans regardless of copyright infringement. But a sales lead is a sales lead (assuming he or she has been qualified as being a bone fide UHNWI which doesn’t always happen) and such unethical business practices can be overlooked. If you see your yacht advertised with other brokerages, check to see that your CA agreement has permitted this. Unauthorised listings must be removed as soon as possible – before the content is indexed by search engines. PROPOSED SOLUTION In some cases, a commission of 10% can be perfectly reasonable – especially given the sheer amount of time, effort, outgoings and risk involved. The signing of CAs are widely (and proudly) publicised within the large yacht sector, with press releases circulated on LinkedIn and some specialist media outlets. Ideally, buyers would check through these to make sure that they’re dealing with the CA, and negotiate directly with them. Yet, seemingly, they don’t. Many buyers won’t even know what a CA is or does. They will see a yacht advertised and (not unreasonably) make inquires. As soon as they have done so, the advertiser will often have become what the law calls an “effective cause” and will be entitled to some of the commission – over and above any broker association rules requiring payment. The additional step added by the use of buyer-brokers causes delays and miscommunications – especially where there’s a mix of time zones and first languages. As well as educating would-be buyers as to the role and importance of the CA, the solution is surely to list as many CAs as possible, in one place. The CA agreements will need to be checked, prior to listing, in confidence, by a lawyer (the key information contained in the agreements (i.e. the name of the vessel and its registered owner) is freely available to the public anyway. If a potential buyer wants as second opinion on the asking price, an independent valuation can be obtained. Lawyers and surveyors are there to advise the buyer on legal and technical aspects. Return to top Thank you to all our Members who provided perspectives for this white paper. Selling a yacht should be relatively easy. Assuming the price is realistic, there'll be a buyer out there. Connecting with that buyer, however, can be unnecessarily complex. Current business models mean that otherwise viable deals can sometimes fall though. This white paper considers the pitfalls in greater detail, and proposes a solution. 16 October 2024 Last revised minutes 5 Reading time minutes 5 Reading time 16 October 2024 Last revised Selling a yacht should be relatively easy. Assuming the price is realistic, there'll be a buyer out there. Connecting with that buyer, however, can be unnecessarily complex. Current business models mean that otherwise viable deals can sometimes fall though. This white paper considers the pitfalls in greater detail, and proposes a solution. Brokers perform a vital role i n yacht sales, with Central Agency (CA) agreements protecting commissions and streamlining the process. By contrast, while supposedly broadening market reach, Multiple Listing Services (MLSs) can lead to confusion and delays. Class actions have been brought against MLSs in the United States. The proposed solution is to independently authenticate and centralise CA listings, maximising efficiency and transparency. You can also read about Deposits Reimagined Questions or comments? Please contact us Join the discussion over in the Club's group You can also read about Deposits Reimagined Questions or comments? Please contact 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

The types of yacht insurance you need depends on the size of your vessel – and how you use it. Various types of cover can be combined within one product. Having insufficient cover can breach local laws, but be careful not to be sold cover you don’t need. And make sure you understand the role of the company you’re buying the policy through. Home Handbook Insuring / / Types of Insurance 26 March 2023 Last revised minutes 8 Reading time The type of insurance you need depends on the size of your yacht – and how you use it. Various types of cover can be combined within one product. Having insufficient cover can breach local laws, but be careful not to buy cover you don’t need. And make sure you understand the role of the company you’re buying the policy through. minutes 8 Reading time 26 March 2023 Last revised The type of insurance you need depends on the size of your yacht – and how you use it. Various types of cover can be combined within one product. Having insufficient cover can breach local laws, but be careful not to buy cover you don’t need. And make sure you understand the role of the company you’re buying the policy through. Large yacht ownership involves various risks, and insurance coverage is available to mitigate those risks. Compulsory insurances are required by port authorities, including third-party liability cover for yachts over 300 gross tonnes. Protection & Indemnity (P&I) Clubs provide liability coverage and support for yacht owners, often combined with Freight, Demurrage & Defence (FD&D) cover. Employers' liability insurance is required under UK law for the legal owner's liability for employee injuries. Maritime Labour Convention (MLC) requirements include liability coverage for repatriation, outstanding salaries, and occupational injury-related payments for crew. Crew welfare insurance covers medical costs and financial repercussions for crew members in case of illness or accidents. Oil pollution insurance is necessary to cover the legal owner's liability for oil spills caused by crew members. Wreck removal insurance is required by some countries and mandates coverage for the costs of removing wrecks. Hull & Machinery insurance covers loss or damage to the yacht, its engines, equipment, fittings, and accessories. Additional coverage options include war & strikes, fine art & valuables, subsea equipment, kidnap & ransom, project risk, and project liability insurance. Crew welfare insurance covers medical costs and financial repercussions for crew members in case of illness or accidents. Oil pollution insurance is necessary to cover the legal owner's liability for oil spills caused by crew members. Wreck removal insurance is required by some countries and mandates coverage for the costs of removing wrecks. Hull & Machinery insurance covers loss or damage to the yacht, its engines, equipment, fittings, and accessories. Additional coverage options include war & strikes, fine art & valuables, subsea equipment, kidnap & ransom, project risk, and project liability insurance. Large yacht ownership involves various risks, and insurance coverage is available to mitigate those risks. Compulsory insurances are required by port authorities, including third-party liability cover for yachts over 300 gross tonnes. Protection & Indemnity (P&I) Clubs provide liability coverage and support for yacht owners, often combined with Freight, Demurrage & Defence (FD&D) cover. Employers' liability insurance is required under UK law for the legal owner's liability for employee injuries. Maritime Labour Convention (MLC) requirements include liability coverage for repatriation, outstanding salaries, and occupational injury-related payments for crew. Here we’re looking at the various risks which large yacht ownership entails, and the cover available. Individual policies go by various names, and multiple risks are sometimes covered by one product, especially for smaller vessels. Compulsory insurances are considered first, followed by discretionary coverage. Many port authorities require not only cover, but also immediate proof in the form of certificates, so make sure these are issued simultaneously with insurance documentation. THIRD PARTY LIABILITY Risk Risk of the legal owner’s liability to third parties, while your yacht is in service. Required For yachts of 300 gross tonnes or more, third party liability cover is required by, and in accordance with, the Merchant Shipping (Compulsory Insurance of Shipowners for Maritime Claims) Regulations 2012 (UK) and Directive 2009/20/EC on the insurance of shipowners for maritime claims (EU). Most port states and private marinas require third party cover. Remarks Offered as Third Party Liability (TPL) insurance, or as broader Protection & Indemnity (P&I) cover - particularly for larger yachts. Historically, because third party claims can be so large (think oil spills), commercial ship owners joined together to form Protection & Indemnity Clubs, known as P&I Clubs. The larger ones are members of the International Group which has liability pooling arrangements to cope with the largest claims. Operating on a mutual not-for-profit basis, meaning that members can be asked to pay additional amounts to make the books balance, yacht owners can be an awkward fit. Some Clubs now offer fixed-premium cover. P&I Clubs in particular have claims handlers and foreign correspondents able to provide immediate advice following an incident, and can provide useful loss prevention guidance. In the unlikely event of a yacht being detained at a port following, for example, an accidental diesel discharge, the club will also have the known and respected financial muscle to provide security and allow the yacht to be released while the claim is processed at a later date. This support can be extremely useful in helping to keep a charter schedule on track, especially where problems are encountered in exotic destinations where local insider knowledge and contacts are vital. Although owners and managers should always ensure that they make the most of the Clubs’ support, this network is often overlooked. It can be packaged with Freight, Demurrage & Defence (FD&D) cover, which combines hands-on legal support provided by P&I Club in-house lawyers, and cover for external legal advice. EMPLOYERS’ LIABILITY Risk Risk of the legal owner’s liability for bodily injury or disease sustained by any of its employees and arising out of and in the course of their employment. Required Required within the waters of, and yards within, Great Britain under the Employers' Liability (Compulsory Insurance) Act 1969 as supplemented by the Employers' Liability (Compulsory Insurance) Regulations 1998, in respect of any employee ordinarily resident in Great Britain. Remarks This is a specific requirement of United Kingdom law, but similar requirements apply in many other jurisdictions, such as under the Jones Act in the United States. Cover will usually already be provided by a P&I Club (if applicable) so make sure you’re not paying for separate employers’ liability unnecessarily. Your broker should be able to advise you of cover limits applicable. It’s easy for dayworkers to become employees for the purposes of the law – even though they aren’t formally employed as crew or otherwise. MLC REQUIREMENTS Risk Risk of the legal owner’s liability for repatriation of crew and associated essentials, liability for outstanding salaries, etc, and liability for contractual payments for death or long-term disability due to an occupational injury, illness or hazard. Required Required in respect of all chartered yachts, where the Maritime Labour Convention 2006, as amended, (MLC) is in force, and aboard yachts registered in countries applying the MLC, pursuant to Regulation 2.5 Standard A2.5.2 Paragraph 9 and Regulation 4.2 Standard A4.2.1 paragraph 1(b) of MLC. Remarks Cover will usually already be provided by a P&I Club (if applicable) so make sure you’re not paying for separate MLC cover unnecessarily. Your broker should be able to advise you on whether such cover is needed. CREW WELFARE Risk Risk of a crewmember being unavailable for work for longer than necessary. Required Some elements may be required by law. Remarks Typically covers treatment costs, and financial repercussions, for crew in the event of illness or accident – whether on duty or not, and whether on board or ashore. Cover varies considerably, and there may be some elements of the cover which overlaps with, or includes, employers’ liability insurance and/or cover required by MLC. Beyond legal requirements, unless you’re prepared to pay this out of your own pocket, it makes sense to insure against crew accidents and medical treatments costs. It’s a benefit which is appreciated and may help to ensure that crew with minor injuries can return to work as soon as possible. OIL POLLUTION Risk Risk of the legal owner being held liable for the criminal acts of crewmembers in causing oil pollution, and the effects and costs of cleaning up. Required Insurance is usually required in respect of all yachts over 1,000 GT by the International Convention on Civil Liability for Bunker Oil Pollution Damage 2001, but liability under this convention extends to vessels of all sizes. May also be required by other local laws, such as the United States Oil Pollution Act 1990. Remarks Fines and clean-up costs can be enormous, and the spectre of criminal liability – potentially meaning that beneficial owners cannot shelter behind an owning company – means that you must be clear that the requisite cover is in place. Cover is normally provided by P&I Clubs, and Blue Cards, proving cover, can normally be obtained on request. Fines can be issued for not carrying proof on board. WRECK REMOVAL Risk Risk of the legal owner being fined for not being insured against the costs of wreck removal. Required Insurance can be required in respect of all yachts of 300 GT and over – by a small but growing number of countries – under the Nairobi International Convention on the Removal of Wrecks 2007. It can also be mandated by local laws. Remarks Cover is normally provided by P&I Clubs, and Blue Cards, proving cover, can normally be obtained on request. Fines can be issued for not carrying proof on board. HULL & MACHINERY Risk Risk of loss of, or damage caused to, your yacht, its engines, equipment, fittings and accessories. Required Not normally required by law. Remarks The term Hull & Machinery is a little misleading since the whole yacht will be covered, not just the hull and ‘machinery’ – a shipping term essentially meaning the engine and sterngear. The precise scope of cover will vary. Check, for example, whether fine art and valuables are covered, as well as your other personal effects and those of guests and crewmembers. Be aware of conditions in respect of named storms, and geographical cruising limits. Also check whether tenders are covered. Aircraft and submersibles carried on board are normally excluded. WAR & STRIKES Risk Risk of loss of, or damage caused to, your yacht, its engines, equipment, fittings and accessories, caused by war, terrorism, insurrection and strikes, and not covered by your Hull & Machinery policy. Required Not normally required by law. Remarks While cruising in a war zone isn’t going to provide the most relaxing experience, this fills gaps in the Hull & Machinery policy which may exclude passages through waters known for piracy, and damage caused where volatile political demonstrations spill over into harbourside areas. FINE ART & VALUABLES Risk Risk of loss of, or damage caused to, works of art and other valuable items, installed or carried on board your yacht, and not covered by your Hull & Machinery policy. Required Not normally required by law. Remarks Because the sky could otherwise be the limit to losses – and because yacht insurance has its roots in commercial shipping, works of art and other valuable items are normally excluded from Hull & Machinery policies. This insurance fills that gap. Be alert of the need to agree item descriptions and valuations at inception. SUBSEA EQUIPMENT Risk Risk of loss of, or damage caused to, submersibles being carried on board your yacht, and not covered by your Hull & Machinery policy. Required Not normally required by law. Remarks Submersibles being too specialist a risk for many underwriters, they are normally excluded. KIDNAP & RANSOM Risk Risk of you having to pay for crisis response, negotiation services and ransoms in the event of a kidnapping. Required Not normally required by law. Remarks While damage caused to your yacht, by pirates, should be covered by Hull & Machinery or War & Strikes Risks, costs associated with any resulting kidnapping are not. This insurance looks to plug that gap. PROJECT RISK Risk Risk of loss of, or damage caused to, your yacht, its engines, equipment, fittings and accessories, while being built. Required Not normally required by law. Remarks Hull & Machinery insurance is for yachts that have been completed – not in-build projects. The builder will insure the project (and this should have been addressed in the build agreement ) but the builder’s cover may be limited. This cover looks to plug that gap, as well as covering parts and equipment in storage at the yard and awaiting installation. PROJECT LIABILITY Risk Risk of the legal owner’s liability to third parties, while your yacht is being built, refitted or repaired. Required May be required by law. Remarks While the builder’s insurances should provide cover in respect of its own contractors and employees, it will not normally cover your project manager(s), crewmembers and contractors which you engage in respect of the project, and its tenders. You may have specific employers’ liability insurance obligations, or the local equivalent. 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 Understanding the Contract Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Understanding the Contract

The media is full of data about the carbon footprint of large yachts. This data is taken as gospel by campaign groups. After all, the journalists refer to published, peer-reviewed academic papers. And these are clever people, right? Well it appears not. Or least their political jaundice means that they’re not fussed about fact-checking. If we’re not careful, policy makers may regard such research as correct and unchallengeable. Home Handbook White Papers / / Damn Lies & Statistics Imagine the scene. It’s November 2022. You’re a high-ranking governmental delegate at the 27th United Nations Climate Change conference in Sharm el-Sheikh. You represent a Mediterranean nation, and answer directly to the Minister of State. Within broad pre-set limits, you have free reign to negotiate and agree to tabled proposals. Over your morning cappuccino at a harbourside café, you peruse a report prepared by a diligent civil servant. Incredibly, it seems as if ‘superyachts’ are responsible for more greenhouse gases even than private jets. Who knew? And there are tens of thousands of such jets around the world. Something must be done. The civil servant points to a report by Oxfam, a highly respect international NGO, entitled Carbon billionaires The investment emissions of the world’s richest people . It states: “ Another study drew on public records to estimate that in 2018 emissions from the private yachts, planes, helicopters and mansions of 20 billionaires generated on average about 8,194 tonnes of carbon dioxide (CO2e). ” FURTHER REINFORCEMENT Oxfam’s report credits an academic paper as its source: “ B. Barros and R. Wilk. (2021). The outsized carbon footprints of the super-rich ”. Ever diligent, your civil servant has already found this paper online. It’s by Professor Richard Wilk and PhD candidate Beatriz Barros, no less. They claim “ Among the many possessions of billionaires, large “superyachts” are by far the largest producers of greenhouse gases. Three-quarters of the billionaires in our sample owned a yacht with an average length of 276 feet (84 meters), and their average carbon equivalent emissions were 7,018 tons per year. ” Wow – these superyachts are huge, with a carbon footprint to match. You ask the civil servant how many billionaires there are in the world. She taps away on her laptop and replies that Forbes’ 36th Annual World’s Billionaires List: Facts And Figures 2022 states that there are now 2,668 billionaires in the world. Oh my goodness – if that’s the output from just 20, how much CO2 are 2,668 yachts going to produce? I mean, they must nearly all have one – right? But how respected is Barros & Wilk’s paper? The civil servant Googles. She finds a Financial Times article entitled Superyachts aim to go green – but at what cost? in which it’s says “ Research by anthropologists Beatriz Barros and Richard Wilk of Indiana University into the carbon footprints of the super-rich found that yachts contributed an outsized share of the carbon emissions of the billionaires who own them — far more than their private jets or mansions .” The FT. Well that’s that then. As politicians, we must act – and fast. We must tax these superyachts out of existence. You finish your cappuccino and head over to the conference venue with a purposeful stride. REALITY CHECK But dig a little deeper, and you’ll also find that Wilk & Barros’s sample comprised just twenty billionaires. That’s right. Twenty. They even admit that, “ This is not in any way a representative sample of billionaires. ” Indeed not. Moreover, their “average” yacht with a length of 84 metres is likely to have a gross tonnage of, say 2,500. In fact, the actual average gross tonnage of all 30+ metres yachts sold in 2021 was just 440 (source: SuperYacht Times, The State of Yachting 2022 ). As it was outside the scope of their studies, Wilk & Barros calculated fuel consumption using a 2018 paper by Luisa Menano de Figueiredo, The Yacht of 2030 – which looked, according to Wilk & Barros, at the cruising records of just ten yachts. Wilk & Barros do not explain their methodology. Had they looked more closely at de Figueiredo’s paper, in fact just eight yachts (not ten) were tracked, for a 90-day period, while in the Caribbean – as this was all the AIS data available. And de Figueiredo’s paper only concerned motor vessels – not sailing yachts. MORE NONSENSE Indeed, a misleading body of academic literature is starting to build. Respected academics Lynch, Long, Stretesky & Barrett, from the University of South Florida, Oklahoma State University, Northumbria University and Eastern Michigan University respectively stated in their 2019 academic paper Measuring the Ecological Impact of the Wealthy: Excessive Consumption, Ecological Disorganization, Green Crime, and Justice that “ Specifically, we draw attention to assessing aspects of ecological footprints of super yachts, super homes, luxury vehicles, and private jets. Taken together, the construction and use of these items in the United States alone is likely to create a CO2 footprint that exceeds those from entire nations. These results are not necessarily surprising but suggest that excessive consumption practices of the wealthy may need to be reinterpreted as criminal when they disrupt the normal regeneration and reproduction of ecosystems by generating excessive ecological disorganization. ” Strong stuff. Specifically, this paper states “ From available data, we estimated that an average (71 meter) SY uses about 107,000 gallons gasoline/year and produces 2.1 million pounds of carbon dioxide emissions annually .” As set out above, 71 metres is, of course, way above average. And specific data sources aren’t given – as one might expect. Instead, there’s a list of references at the end. The only one relating to yachts is given as “ Mathew, Jerin. 2015. “True Cost of Owning a Super Yacht.” International Business Times, May 15. Retrieved April 19, 2019 (http://www.ibtimes.co.uk/true-cost-owning-super-yacht-1498302). ” This is a short report publicising a fun, marketing infographic produced by an insurance company. That infographic states that a 71-metre yacht will consume (exactly) 500 litres of diesel per hour, and the owner will spend precisely $400,000 on fuel. Not a cent more and not a cent less. Etc. General sources are listed at the bottom of the infographic, including Wikipedia and superyachtfan.com. A fun piece of marketing, but hardly data to form a foundation for erudite scholarship. More recently, a paper by Wang, Maidment, Boccolini and Wright, of Solent University in the UK, stated in their paper Life cycle assessment of alternative marine fuels for super yacht that, " There is little argument that, with an estimated average cost of US$275 million only the wealthiest individuals in the world can afford to purchase and operate a superyacht (Alicia, 2015). " An estimate which is inaccurate by a factor of, say, ten - at least - by which has been recycled without question or fact-checking. CONCLUSION It’s easy to dismiss such works as politically motivated tirades by joyless, virtue-signalling lecturers, with a jaundiced worldview. Yet the figures generated are taken at face-value not only by climate activists but by respected journalists. As owners, we need to collect accurate data, and present it clearly, alongside information about our many and various yacht-based climate research and conservation initiatives. Return to top Thank you to all our Members who provided perspectives for this white paper. The media is full of data about the carbon footprint of large yachts. This data is taken as gospel by campaign groups. After all, the journalists refer to published, peer-reviewed academic papers. And these are clever people, right? Well it appears not. Or least their political jaundice means that they’re not fussed about fact-checking. If we’re not careful, policy makers may regard such research as correct and unchallengeable. 23 November 2022 Last revised minutes 5 Reading time minutes 5 Reading time 23 November 2022 Last revised The media is full of data about the carbon footprint of large yachts. This data is taken as gospel by campaign groups. After all, the journalists refer to published, peer-reviewed academic papers. And these are clever people, right? Well it appears not. Or least their political jaundice means that they’re not fussed about fact-checking. If we’re not careful, policy makers may regard such research as correct and unchallengeable. There is a growing body of misleading academic literature on the ecological impact of luxury items. Yet the figures generated by such studies are taken at face value by climate activists and journalists. A recent academic report suggests that 'superyachts' emit more greenhouse gases than private jets, concluding with a call for action. The report, in turn, refers to a study by academics Barros and Wilk, claiming that superyachts owned by billionaires have significant carbon footprints. However, the sample size of the study is small and not representative, and the average yacht size mentioned is much larger than reality, and fuel consumption calculations are based on limited data. We, as onwers, need to be collecting accurate data and provide clear information about yacht-based climate impact. You can also read about Speaking Volumes Questions or comments? Please contact us Join the discussion over in the Club's group You can also read about Speaking Volumes Questions or comments? Please contact us

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 You Need Help! Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about You Need Help!

The Owners Club's General Secretary is an English superyacht lawyer. He is a Partner at a leading international law firm, regulated by the Solicitors Regulation Authority, the Financial Conduct Authority and the London Stock Exchange. Naturally used to maintaining client confidence, he has also provided expertise on the law and practice of yacht ownership to leading publications and broadcasters. Home About Secretariat / / At Your Service It’s a huge honour to be appointed. Having had many owners and managers as clients over the years, I am only too aware of the issues which need to be addressed. BENJAMIN MALTBY, GENERAL SECRETARY TRUSTED PROFESSIONAL CLUB SECRETARIAT We considered it important to have a regulated professional managing the Club and organising its affairs. We have therefore appointed an English lawyer as our General Secretary. He is a Partner at a leading international firm, regulated by the Solicitors Regulation Authority, the Financial Conduct Authority and the London Stock Exchange. Naturally used to maintaining client confidence, he has also provided expertise on the law and practice of yacht ownership to leading publications and broadcasters, including: Truly Independent Leadership FAQs The General Secretary’s role is to operate the Club at a high level, undertake research, provide guidance and draft the documents and agreements essential to yacht acquisition and ownership. Neither the Club nor General Secretary have vested interests in particular third party suppliers. We’re not beholden to particular yachting industry advertisers . So our approach is objective. Our contracts are fair, balanced and conducive to efficient, fuss-free ownership.