Understanding Yacht Purchase Agreements – MYBA vs. IYBA

Once the price is agreed upon and your Letter of Intent (LoI) is accepted, the next crucial step is drafting and signing a yacht purchase agreement. This contract protects both buyer and seller by clearly outlining each party’s rights, responsibilities, and timelines.

In most transactions over 24 meters, one of two standardized agreements is used: the MYBA MoA or the IYBA Purchase and Sale Agreement. Each was developed by major broker associations and widely accepted by the industry.

WHY STANDARDIZED AGREEMENTS MATTER?

These documents serve as a legal framework for high-value yacht transactions. They define the rules around deposits, surveys, sea trials, rejection or acceptance of the vessel, closing dates, and dispute resolution. Using a recognized form ensures:

• Legal clarity
• Industry alignment
• Predictable procedures for complex international deals

MYBA VS. IYBA – WHAT’S THE DIFFERENCE?

Here are the key differences between the MYBA (Mediterranean Yacht Brokers Association) and IYBA (International Yacht Brokers Association) agreements:

1. GOVERNING LAW

• MYBA Agreement: Governed by English law
• IYBA Agreement: Governed by Florida law (U.S.)

This affects how disputes are resolved and which legal principles apply to contract interpretation. The choice may depend on the flag of the yacht, the location of the sale, or the nationality of the parties involved.

2. RIGHT TO REJECT THE YACHT

• MYBA: The buyer has the right to reject the yacht at their sole discretion after the sea trial and survey.
• IYBA: The buyer may only reject the yacht if a material defect is found during the inspection.

Why it matters: MYBA gives the buyer more flexibility and control, while IYBA offers the seller more protection against arbitrary cancellations.

3. DEFAULT ACCEPTANCE RULES

• MYBA: If the buyer doesn’t explicitly reject the yacht by the agreed deadline, they are deemed to have accepted it.
• IYBA: If the buyer doesn’t explicitly accept the yacht within the timeframe, they are deemed to have rejected it.

Why it matters: The MYBA structure favors the seller by encouraging acceptance unless the buyer acts. The IYBA structure favors the buyer, requiring explicit confirmation before the deal progresses.

WHICH AGREEMENT SHOULD YOU USE?

The choice depends on the context of your transaction:

• If the yacht is located in Europe or involves EU buyers, MYBA is typically used.
• If the yacht is in the U.S., Caribbean, or involves American parties, IYBA is more common.

At breezeYachting.swiss, we help you select the right contract based on your goals and legal context, and guide you through every clause so you know exactly what you’re signing.

FINAL THOUGHTS

Your yacht purchase agreement isn’t just paperwork, it’s the backbone of your entire transaction. Understanding the legal distinctions between MYBA and IYBA ensures you enter the deal protected and empowered. Whether you’re purchasing in Monaco, Miami, or Malta, we make sure your contract reflects your best interests.