Selling any vehicle can include potential liabilities, and maritime vessels are no exception. When selling a large yacht, sellers must craft a contract that limits liability once the transaction concludes. You and your legal team can consider some specific clauses and practices to limit liabilities down the line.
As-is condition clause
An “as-is” condition clause ensures that the buyer accepts the yacht in its current state, with all faults and imperfections, whether known or unknown. This clause shields the seller from future claims if the buyer discovers issues with the yacht after the sale.
Limitation of liability
A limitation of liability clause clearly caps the seller’s responsibility for any post-sale claims. This clause can restrict liability to specific issues, such as title defects, while excluding responsibility for the yacht’s physical condition. Crafting this clause with clear, unambiguous terms helps avoid legal disputes later.
Disclosure of known defects
A disclosure clause allows the seller to list any issues they are aware of, such as mechanical problems or necessary repairs. Providing this transparency prevents accusations of withholding information and reinforces the effectiveness of the “as-is” clause.
Indemnification clause
An indemnification clause requires the buyer to hold the seller harmless from any future claims, losses, or damages related to the yacht after the sale. This clause becomes particularly important if the buyer plans to make modifications or if there is potential for future disputes.
Clear transfer of ownership
The contract should clearly outline when and how ownership transfers to the buyer. This includes specifying that all liabilities associated with the yacht, such as maintenance costs and legal responsibilities, shift to the buyer upon completion of the sale.
Protecting your interests in a yacht sale
By incorporating these clauses, sellers can significantly reduce their risk of post-sale liability when transferring maritime ownership. While no contract can eliminate all potential claims, these provisions provide solid protection, allowing the seller to move forward confidently.
