Choosing the Right Sale & Purchase Agreement for Your Yacht Transaction

When it’s time to formalize a yacht deal, everything comes down to one document, the Sale & Purchase Agreement (SPA). This contract defines how the deal unfolds, what happens if things go wrong, and how each side is protected.

In the yachting world, two main agreements dominate: MYBA and IYBA. Both are industry standards, both are tested through years of practice, but they are not identical. Understanding their nuances helps you choose the right framework for your transaction.

MYBA & IYBA – THE TWO INDUSTRY STANDARDS

MYBA stands for the Mediterranean Yacht Brokers Association. It’s the contract most often used for yacht sales in Europe and for larger vessels. Governed by English law, it carries a slightly seller-favored structure, offering clear terms and a strong legal foundation.

IYBA, on the other hand, originates from the International Yacht Brokers Association in the U.S. It’s frequently used in American or international transactions, particularly for smaller or newer yachts. Governed by Florida law, it tends to favor the buyer, offering more flexibility during the inspection and acceptance phase.

TIMELINES – HOW EACH CONTRACT HANDLES THE PROCESS

Both agreements follow a similar sequence: a buyer signs the contract, places a 10% deposit, and proceeds with Sea Trial and Survey before final acceptance.

However, the timeframes differ:

• MYBA Agreement:
  The buyer typically has 14 days to complete Sea Trial and Survey, followed by an additional 5–7 days to accept or reject the yacht. This slightly longer process provides more breathing room for large or complex vessels.
• IYBA Agreement:
  The timeline is more compact – usually 10 days total for both inspection stages, and only 3–5 days to confirm acceptance. It’s designed for faster-moving transactions, often involving smaller or production yachts.
  

DEFECTS AND DISCLOSURE – WHERE THE CONTRACTS DIVERGE

One of the most important distinctions lies in how each contract handles defects and transparency.

Under the MYBA Agreement:

• Any defect or issue disclosed in writing before signing is automatically deemed accepted by the buyer.
• This means the buyer cannot later reject the yacht based on disclosed items.
• As a seller, honesty is your best protection – full disclosure shields you from future disputes.
• As a buyer, careful review before signing is crucial – once disclosed, issues are part of the deal.

Under the IYBA Agreement:

• The buyer retains broader rights. Even if defects are disclosed, they can still reject the yacht after inspection, at their discretion.
• Acceptance only occurs when the buyer signs the acceptance form – not before.
• This structure favors buyers who want more flexibility during due diligence.

CHOOSING WHAT FITS YOUR DEAL

MYBA Agreement:

• Structured and seller-oriented
• Governed by English law
• Clear acceptance of disclosed defects
• Best suited for large yachts and European transactions

IYBA Agreement:

• Flexible and buyer-oriented
• Governed by Florida law
• Allows rejection even after disclosure
• Often used for smaller or U.S.-based transactions

Both are reliable, professional frameworks that protect all parties involved. The best choice depends on the location, size of the yacht, and the comfort level of both buyer and seller.

FINAL THOUGHTS

The Sale & Purchase Agreement isn’t just paperwork, it’s the foundation of a smooth and fair transaction. Whether you choose MYBA or IYBA, understanding the structure, timelines, and implications of each ensures you’re protected and prepared.

A skilled broker will guide you through these details, recommend the right contract for your case, and ensure every clause serves your best interests, from first signature to final handover.