MYBA MOA Structure: Step-by-Step Guide to a Yacht Purchase

When purchasing a yacht in Europe or through an international broker, the MYBA Memorandum of Agreement (MOA) is the most widely used framework for formalizing the sale. Created by the Mediterranean Yacht Brokers Association, this legally recognized contract guides both buyer and seller through each step of the yacht transaction, from signing to sea trials to final delivery.

Here’s a breakdown of how the MYBA MOA works and what to expect at each stage:

STEP 1: COMPLETING DEAL – SPECIFIC INFORMATION

The first two pages of the MYBA MOA are customized for each transaction and include:

• Yacht specifications and technical details
• Buyer and seller information
• Brokers involved (single or dual representation)
• The stakeholder (typically the buyer’s broker, lawyer, or escrow agent)
• Key milestones: signing date, survey date, completion date
• Clause 13 – Special Conditions, often expanded in Addendum One, detailing:
  • Required documentation
  • Legal or financial amendments
  • Country-specific requirements

STEP 2: SIGNING THE AGREEMENT & PAYING THE DEPOSIT

Once the MOA and Addendum One are finalized, all parties sign. The buyer then transfers a 10% deposit within four banking days to the stakeholder’s escrow account, this secures the yacht and shows intent to proceed.

STEP 3: SEA TRIAL & CONDITION SURVEY

SEA TRIAL (CLAUSE 27)

• Organized and paid by the seller
• Typically lasts up to 4 hours
• Crew and fuel included
• Buyer can reject the yacht for any reason within 24 hours

CONDITION SURVEY (CLAUSE 28)

• Performed by a certified marine surveyor of the buyer’s choice
• May include haul-out (at buyer’s expense)
• Covers technical systems, structural integrity, and seaworthiness
• Defect defined as an issue affecting safety or core operation

STEP 4: RESOLVING SURVEY FINDINGS

Survey findings are grouped into:

1. Safety-critical issues
2. Important but non-urgent issues
3. Minor or cosmetic items

The first two categories are treated as defects under the MYBA MOA.

The seller may either:

• Repair the defects before closing
• Or offer a price reduction, allowing the buyer to address them later

STEP 5: ACCEPTANCE LETTER

Once repairs are made or a price reduction is accepted, the buyer signs a formal Acceptance Letter. This step moves the process toward final documentation and closing.

STEP 6: CLOSING & HANDOVER

On the agreed completion date, representatives meet on board. The following takes place:

• Final payment (90%) is transferred
• Buyer receives keys, manuals, and original documents
• Protocol of Delivery and Acceptance (PDA) is signed
• Seller issues the Bill of Sale, transferring full ownership (64/64 shares) to the buyer

From this point, the yacht officially belongs to the buyer.

STEP 7: DELIVERY (IN PORT OR INTERNATIONAL WATERS)

Delivery depends on VAT status:

• If VAT-paid or commercially registered, delivery can happen in port
• If VAT is unpaid and the buyer is a non-EU tax resident, delivery must occur in international waters (12 NM offshore)

To document offshore delivery:

• The PDA is signed at sea
• A photo of the chartplotter showing coordinates is taken
• A local newspaper with the date is photographed onboard

Yacht may then re-enter EU waters under Temporary Importation (TI).

FINAL THOUGHTS

The MYBA MOA structure provides a transparent, professionally regulated framework for yacht purchases. With clear procedures for surveys, price renegotiation, and delivery, it protects buyers while keeping transactions efficient. At breezeYachting.swiss, we guide you through every detail, ensuring each step is completed correctly, legally, and in your best interest.