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Identifying and avoiding common yacht transaction mistakes

On Behalf of | Dec 14, 2021 | Maritime Ownership

The purchase or sale of a yacht can be a complicated, exciting experience. These large transactions often represent years of planning and meticulous preparation. When facing the prospect of finalizing the transaction, however, it is not uncommon for an individual to rush to the conclusion of the process rather than examine each element of the agreement.

It is crucial, however, that individuals take the time to consider numerous circumstances that could impact their options and goals for the future after this transaction. Elements to consider can include:

  • Avoiding vague language in the purchase agreement: Like any type of business contract or real estate buy/sell agreement, vague language can prove disastrous. Both parties must include clear language regarding construction, repairs, or any other deliverables. Leaving these factors understood can cause numerous challenges in the future. It is important that the parties include specific language, timelines and expectations.
  • Avoiding any level of verbal agreement: Over the course of a transactional relationship, individuals might become at ease with each other to the point of making verbal agreements. While this might seem like the path of least resistance, verbal agreements cannot often be legally enforced if the terms of the contract are broken.
  • Including an escape clause in the purchase agreement: It is often wise to include language in the purchase agreement that allows you to cancel the deal. Whether this is due to insufficient repairs or a failed sea trial, it is important to ensure you are not locked in on a troublesome contract.

The strength of the purchase agreement is reliant on numerous factors. Both parties must negotiate numerous elements to ensure the transaction runs smoothly for the purchase and sale of the yacht. It is important to seek guidance on these complex matters to ensure the protection of your best interests.