Acceptance Under the MYBA MOA – How a yacht is accepted and what happens next

Acceptance is one of the most important milestones in any yacht sale conducted under the MYBA Memorandum of Agreement. It marks the buyer’s official commitment to purchase the vessel and sets the process in motion toward final completion.

HOW A YACHT CAN BE ACCEPTED

Under Clause 28 of the MYBA MOA, there are three possible outcomes following the Sea Trial and Condition Survey:

1. UNCONDITIONAL ACCEPTANCE

The buyer is satisfied with the vessel and confirms acceptance in writing within the contractual deadline.

Once declared, the process moves forward:

• The buyer pays the remaining 90% balance. 
• The seller prepares all closing documents for title transfer. 
• The yacht proceeds to completion and delivery.

2. CONDITIONAL ACCEPTANCE

The buyer accepts the yacht but under specific conditions, such as:

• Agreed repairs to be carried out by the seller, or 
• A mutually accepted price adjustment for identified defects. 

The conditions must be agreed upon in writing. Once confirmed, the yacht is considered accepted and proceeds to closing. If the parties cannot reach an agreement, the buyer may reject the yacht.

3. ACCEPTANCE BY DEFAULT

If the buyer fails to notify the seller in writing of their decision before the acceptance deadline, the vessel is automatically deemed accepted.

This acceptance is binding. If the buyer then refuses to pay the balance, the deposit is forfeited, and the seller may claim additional damages.

4. REJECTION

If undisclosed significant defects or discrepancies are discovered during the survey, the buyer has the right to reject the yacht.

Rejection must:

• Be based on substantiated findings from a certified marine surveyor. 
• Exclude previously disclosed defects. 
• Be submitted in writing within the contractual timeframe. 

Upon rejection, the buyer’s deposit is refunded, provided the buyer has not breached any contractual obligations.

KEY POINTS TO REMEMBER

• Written confirmation is mandatory for acceptance, rejection, or conditional acceptance. 
• Silence equals acceptance – failure to respond by the deadline results in automatic acceptance. 
• Once acceptance is declared, withdrawal is no longer possible unless new material issues arise before completion.
  
• The broker ensures all communications are properly documented and deadlines are respected.

FINAL THOUGHTS

Acceptance under the MYBA MOA finalizes the buyer’s due diligence phase. It signals readiness to complete the purchase, triggers payment of the remaining balance, and prepares both parties for closing. Proper communication, documentation, and timing are essential, ensuring a smooth transition from inspection to ownership.