Clauses 26 & 27 of the MYBA MOA – Protecting Buyers and Outlining Seller Responsibilities

Clauses 26 and 27 of the MYBA Memorandum of Agreement (MOA) are central to the yacht inspection process. They define the buyer’s rights to assess the vessel, outline the seller’s obligations, and ensure any defects are properly addressed before acceptance.

CLAUSE 26 – SEA TRIAL

The Sea Trial gives the buyer the opportunity to test the yacht under normal operating conditions.

• Costs: Paid by the seller
• Timing & Location: Conducted at a mutually agreed time and location
• Purpose: Evaluate engines, navigation systems, onboard comfort, and overall operational performance
• Note: The Sea Trial provides a practical “feel” for the vessel; it is not a performance guarantee

This step allows the buyer to verify that the yacht performs as expected before committing to acceptance.

CLAUSE 27 – CONDITION SURVEY

The Condition Survey is a detailed technical inspection conducted by a professional marine surveyor.

• Costs: Paid by the buyer
• Scope: Often includes a haul-out to inspect the hull, propellers, and underwater gear
• Checks: Engines, safety equipment, electrical and mechanical systems
• Optional Additions: The buyer may request specialist inspections (e.g., rigging, electronics, engine oil analysis) at their own expense

This survey ensures a thorough understanding of the yacht’s condition beyond what is visible during the Sea Trial.

BUYER DECISIONS AFTER INSPECTIONS

Once both inspections are completed, the buyer has three options:

• Unconditional Acceptance: The vessel meets expectations
• Conditional Acceptance: Acceptance subject to price reduction or agreed repairs
• Rejection: The yacht has undisclosed major issues or does not match the contract condition

Decisions must be declared in writing within the acceptance period (typically 5–7 days after survey completion).

DEFINITION AND HANDLING OF DEFECTS

A defect in the MYBA MOA is generally understood as:

• A fault or malfunction not disclosed in writing before signing
• A condition materially affecting safety, seaworthiness, or value
• Issues beyond fair wear and tear

If defects are discovered:

• The buyer may reject the yacht
• Conditional acceptance may be proposed
• If the seller refuses to adjust, the buyer may withdraw and reclaim the deposit

Key Note: Disclosed defects before signing are considered accepted by the buyer and cannot be grounds for rejection. Minor cosmetic items or previously disclosed issues are not negotiable for repairs or price reductions. All findings should be documented in a written survey report.

FINAL THOUGHTS

Clauses 26 and 27 of the MYBA MOA are designed to protect both buyer and seller by clearly defining inspection rights, handling of defects, and acceptance procedures. Understanding these clauses allows buyers to make informed decisions, ensures transparency, and reduces the risk of disputes. Properly executed sea trials and condition surveys build confidence and help facilitate a smooth yacht purchase.