Understanding Buyer Responsibilities Under the MYBA MOA

Purchasing a yacht under a MYBA MOA involves clear obligations designed to protect both parties and ensure a smooth transaction. Knowing these responsibilities helps buyers act professionally, avoid delays, and maintain trust with the seller and brokers.

1. PAY THE DEPOSIT

Immediately after signing the MOA, the buyer is required to pay a 10% deposit to the Stakeholder. This deposit:

• Confirms the buyer’s commitment
• Secures the yacht while the sale process continues

Failing to pay on time can jeopardize the transaction and may result in penalties.

2. ARRANGE SEA TRIAL AND SURVEY

The MYBA MOA allows the buyer to inspect the yacht to ensure it meets expectations:

• Sea Trial: Conducted at the seller’s expense
• Condition Survey: Conducted at the buyer’s expense

These inspections are usually completed within 14 days of signing the agreement, giving the buyer confidence in the yacht’s condition.

3. ANTIFOULING AND MAINTENANCE CLAUSE

If the parties agree, the yacht may be hauled out for antifouling paint or anode replacement:

• If the sale completes, costs are paid by the buyer
• If the sale does not complete, costs are paid by the seller

This ensures clarity around minor maintenance work during the sale process.

4. DECLARE ACCEPTANCE

After the survey, the buyer must declare in writing within the agreed timeframe (typically 5–7 days) whether to:

• Accept the yacht
• Reject the yacht
• Accept with conditions (e.g., requesting repairs or price adjustments)

This step is essential to move the transaction forward in a structured manner.

5. PAY THE BALANCE

Once the yacht is accepted, the buyer must pay the remaining 90% balance on the Completion Date in exchange for the vessel and the relevant closing documents. Timely payment ensures a smooth handover.

6. TAX OBLIGATIONS

The buyer is responsible for all applicable taxes related to the purchase, including:

• Sales tax or VAT
• Indemnifying the seller and brokers against any tax claims

Understanding local tax obligations in advance avoids last-minute complications.

7. TAKE DELIVERY

The buyer must be ready to receive the yacht at the agreed location and time, coordinating logistics, crew arrangements, and any transport requirements.

8. COVER OWN COSTS

Certain costs fall solely on the buyer, including:

• Surveyor and haul-out fees
• Travel and accommodation for inspections
• Legal review, tax consultation, or additional inspections

Being prepared ensures the buyer can manage these expenses efficiently.

9. RESPECT DEADLINES

The MYBA MOA is strict about timelines. Missing deadlines for survey, acceptance, or closing may result in:

• Loss of the deposit
• Liability for damages or broker fees

Staying organized and proactive is key to a successful transaction.

FINAL THOUGHTS

The MYBA MOA is a trusted framework that protects both buyers and sellers during yacht transactions. By understanding and fulfilling your obligations, from deposits and surveys to acceptance, payment, and delivery, you ensure a smooth, professional, and stress-free purchase.

For buyers, preparation, transparency, and timeliness are essential. Meeting these responsibilities not only facilitates a successful sale but also helps build a reputation as a serious, reliable buyer in the yachting community.