Due diligence before you pay a deposit
Before you pay a deposit, check who owns the boat, whether it carries debts, that the hull number matches, and what the engines and service history say.
Updated 2 min read
Key points
- Every check here is cheaper before the deposit than after it.
- Ownership, liens, hull number, hours and service history each have their own guide.
- If a check fails, the deposit stays in your account.
Why before the deposit
Once you pay a deposit, you have a contract and a reason to continue. A failed check afterwards costs time and sometimes money. A failed check before costs nothing. Build the sequence so the cheap, fast checks come first.
The five checks
- Ownership. The seller is the registered owner, or has the owner's authority. See Checking ownership.
- Liens, mortgages and charges. Nobody else has a claim on the boat. See Liens, mortgages and encumbrances.
- Hull number. The number on the boat matches the papers. See Verifying the HIN / CIN.
- Engine hours. The meters tell a story that fits the boat. See Engine hours, and whether they can be trusted.
- Service history. The seller can show what was done and when. See Service history: what a seller should provide.
VAT status is a sixth check and the most expensive to get wrong. See Proving and verifying VAT status: which documents count, and checking before you offer.
What to collect
- Registration certificate and a recent register extract.
- The chain of bills of sale.
- VAT evidence and the CE documents.
- Previous survey reports.
- Service invoices and logbooks.
- Marina contract and the statement that the berth is paid.
Who does what
You can do most of this yourself. A broker or lawyer reads the papers faster and spots gaps. A surveyor checks the physical boat, which is a separate step. See Why you need your own pre-purchase survey.
If something fails
Ask the seller to fix it before the deal moves on: pay off a loan, find a missing invoice, correct a registration. If they cannot, walk away or change the price. See Post-survey renegotiation: reduce, repair or walk away.
What follows
When the checks pass, you make an offer and sign the agreement, then pay the deposit, order the survey, and close the sale.
- Making an offer and the memorandum of agreement
- The deposit: how escrow protects you
- Survey and sea trial: how it works, who pays, what happens next
- Post-survey renegotiation: reduce, repair or walk away
- Closing and handover: bill of sale, payment, documents, keys
- Getting your boat home: delivery skippers, road transport and shipping
- Buying a new yacht: boat shows, build slots, options and commissioning
- Your first 30 days as an owner
Related guides
General information, not legal, tax or financial advice. Rules change; check your own case with a professional or ask us.