When buying a yacht, whether new or used, we recommend that you work with an experienced yacht broker. In addition to the high price tag when buying a yacht, the complicated paperwork can be a headache. In this article, we have listed 10 essential documents when buying a yacht, which can protect the rights of both buyers and sellers and ensure that the transaction is legal.
Bill of Sale
The bill of sale is a very important document in the yacht transaction process and is usually drafted by the broker. This document lists key information about the yacht in detail, including the yacht's registration number, the specific model, the brand it belongs to, and the year of manufacture, among other basic information. Most importantly, the bill of sale will indicate whether or not the yacht has any outstanding financial situations.
In addition, the bill of sale contains the transaction price of the yacht, the contact information of the buyer and seller, and some conditions of sale. At the time of the transaction, the buyer and seller will need to sign the bill of sale. Electronically signed bills of sale are not recognized and traditional paper signatures must be used to ensure the legal efficiency of the bill of sale and the rigor of the transaction.
Yacht Insurance Policy
Yacht insurance is not mandatory in some countries, but it is recommended from a practical point of view. This is because insurance is mandatory in some ports, marinas and other countries and regions, and it is also a requirement if you want to obtain the marine mortgage you need. Whether you are buying a new or used yacht, a proper yacht insurance policy can effectively minimize the financial loss of your yacht due to unforeseen events and protect your assets.
Vessel Safety Program Certificate
A Vessel Safety Program Certificate protects the yacht's navigation safety by clearly setting the national minimum standards for legal safety requirements. The certificate is valid for 4 years once the yacht has passed the relevant examinations and certifications. For yachts intended for inland waterways (e.g. rivers, canals, etc.), a Ship Safety Plan Certificate is usually required prior to registration and purchase, except for yachts without gas, electrical, heating or fuel systems.
Yacht maintenance records
If you are purchasing a used boat, the seller should provide the yacht's maintenance records, which detail the condition of the yacht, including the maintenance tasks that have been carried out, when exactly they were carried out and by whom. Maintenance records are very important for critical components such as the engine, gas system, and rigging of the sailboat.
If you are successful in becoming an owner, you will need to prepare a logbook detailing all subsequent maintenance work performed on the yacht, including routine inspections performed by yourself. This log can be passed on to the next owner if you have plans to sell the yacht in the future. A complete and clear maintenance record will not only increase the market value of the yacht, but will also make the transaction process more transparent and smoother.
Inventory lists and manuals
Inventory lists and manuals are not mandatory, and having a complete inventory list and manuals for the unit yacht has many benefits for the owner. Inventory lists help owners keep track of all types of items on board, from everyday items to critical equipment, and help to keep track of how many items are available and how they are being used. Manuals, on the other hand, contain important information such as yacht operating instructions, maintenance points and other important information to provide the owner with professional guidance.
VAT documentation
In the field of yacht trading, there is a certain amount of tax that needs to be paid when purchasing a yacht. This document can prove that the VAT of the yacht is in a tax-paid status. As a buyer or owner, it is important to ensure that you have the relevant documentation on hand so that it can be produced in time to satisfy the regulatory system if required. It should be noted that older yachts may find it difficult to provide proof that VAT has been paid and careful consideration should be given to the purchase of such yachts. Generally, the key evidence that VAT has been paid is the invoice, which clearly shows the VAT elements as well as the VAT number, which is proof of tax payment.
Yacht license (required for inland waters)
Although it is not compulsory to need a yacht license in order to purchase a yacht, a yacht license is a must if you want to sail your yacht in inland waters. It is important to note that to successfully obtain a yacht license for sailing in inland waters, you will need to purchase yacht insurance and obtain a Vessel Safety Plan certificate.
Builder's Certificate (required when purchasing a new yacht)
If you decide to purchase a new yacht, you will need to obtain a builder's certificate from the yacht manufacturer. This certificate details all the key information about the yacht and the builder's contact details. Most importantly, this certificate will state that you are the first owner of the yacht and is an important proof of the legitimacy of the yacht's ownership and provenance. For buying a used yacht, this certificate adds credibility and convenience to the transaction.
