Sale agreement and deposit: securing the deal

A boat sale agreement is the contract that locks in the price, inventory, timeline and conditions of the transaction before the final bill of sale. Combined with a deposit — typically 10% of the price — held in escrow, and subject-to clauses (survey, sea trial, financing), it protects both parties: the buyer can walk away cleanly if a condition fails, and the seller takes the boat off the market against a serious commitment. On larger yachts it often takes the form of a memorandum of agreement (MOA).

What the agreement is really for

Between an accepted offer and handover, four to eight weeks usually pass: survey, sea trial, financing approval, paperwork checks. The agreement organises that period: who does what, by when, and what happens if a step fails. Think of it as the flight plan for the transaction: dull to write, priceless when the weather turns. Without a written contract, everything rests on someone's word — and boating disputes are full of the consequences: deposits never seen again, inventory that evaporates between viewing and delivery, sellers accepting a better offer in the meantime. A written agreement is not a formality reserved for large yachts: from a few tens of thousands of euros, it is essential, even between well-meaning private parties.

Subject-to clauses: your structured exit

Three clauses protect the buyer:

• satisfactory survey: spell out what 'satisfactory' means — the most protective wording leaves the buyer sole judge on the basis of the report, an intermediate version sets a costed threshold of work beyond which they may withdraw (the process is detailed in our survey guide);
• conclusive sea trial: engine, rig and electronics tested in real conditions, not at the dock;
• financing obtained: amount, maximum acceptable rate and response deadline in black and white.

Each clause carries a deadline and an explicit consequence: full return of the deposit if the condition is not met. Beware vague wording — 'subject to survey' with no criterion and no date is where disputes are born.

The deposit and escrow: who holds the money

The deposit gives substance to the buyer's commitment: 10% of the price is the common standard. The golden rule fits in one sentence: it never passes through the seller's personal account. It sits in escrow — a dedicated account held by a broker, lawyer or notary — and is only released at the signing of the bill of sale, or returned if a subject-to clause is triggered. Check that the escrow holder is named in the contract and professionally insured, and that the release conditions are written without ambiguity. A seller or intermediary who pushes for a direct transfer 'to keep things simple' is doing you an accidental favour: they are showing you exactly who you are dealing with.

Checks before signing: title, mortgage, VAT

Before signing, review the whole file: the seller's identity against the boat's papers, the title deed or original invoice, up-to-date registration, the state of any marine mortgages at the flag registry, and the VAT or tax status — original invoice or proof of payment, depending on your cruising area and flag. On that last point, caution is essential: cross-border situations and older boats hide nuances only a specialist will untangle; our guide to the VAT essentials lays out the principles, without replacing personalised advice. A maritime lawyer or an experienced broker will verify a file for a few hundred euros — set against the risk of buying a boat carrying a debt or a doubtful tax status.

From conditions lifted to the bill of sale

Once survey, sea trial and financing are cleared — in writing, with dates —, the bill of sale can be signed. It restates the parties' identities, the boat's precise designation (name, hull identification number, registration), the price, the countersigned inventory, and the date and place where ownership and risk transfer. The balance moves through escrow before handover — never cash, never a last-minute transfer to an unfamiliar account. Then come the formalities: transferring the registration, insurance effective on the day of transfer, deletion from the previous registry where applicable. On the day, one hour of administrative checks saves months of untangling.

Where to start

• Insist on a written agreement as soon as the offer is accepted, even between private parties: broker or yachting-federation templates are a good starting point.
• List your three subject-to clauses with deadlines and measurable criteria.
• Identify the escrow holder before paying a single euro.
• For a significant purchase, have title, mortgages and tax status reviewed by a professional — our yacht buying service includes this end-to-end securing of the deal.