Making an offer and the memorandum of agreement

Making an offer

An offer is a written proposal to buy at a stated price on stated conditions. Your broker usually sends it. Offer only after the checks in Due diligence before you pay a deposit have passed, and state that it depends on the survey and the sea trial.

The conditions that protect you

• Subject to survey. You may reject or renegotiate based on the report. See Survey and sea trial: how it works, who pays, what happens next.
• Subject to sea trial. Engines, gear and systems perform as expected.
• Subject to documents. VAT, ownership, registration and absence of charges are proven. See Proving and verifying VAT status: which documents count, and checking before you offer.
• Subject to finance, if you borrow. See Financing a yacht in Europe: marine mortgages and leasing.

What the MOA contains

1. The parties, the boat and its hull number.
2. The price, the currency and the VAT treatment.
3. The deposit, who holds it and when it is released. See The deposit: how escrow protects you.
4. The inventory: what is included, listed item by item.
5. The place and date of the survey and the sea trial, and who pays the haul-out.
6. The deadline to accept or reject after the survey.
7. The closing date, the place and the payment method.
8. The condition of the boat on delivery, and the seller's promise of clear title.
9. What happens if either side defaults, and which law and courts apply.

Forms

Industry standard forms exist for yacht sales, and a broker often uses one. Standard wording is a starting point. Read each line, ask what it means, and have the clauses on deposit, defaults and governing law checked by a lawyer in the country whose law applies.

Negotiating

Price is one term among several. A seller can agree to repairs, a longer berth, a delivery, or spares in place of a lower price. Check comparable boats before your first offer. See How to search for a used yacht in Europe.

Before you sign

• The price and VAT line match what you agreed.
• The inventory lists what you saw.
• The refund conditions for the deposit are clear.

Related guides

• 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