Copyright © 2024 Association of Brokers and Yacht Agents Ltd. Registered in England no. 1898652.
Website by TheYachtMarket.
Website by TheYachtMarket.
ABYA Members are industry professionals and will provide advice and assistance with:
If you are buying, perhaps privately, and want a broker to deal with the paperwork for you to ensure you have all the right title documentation, many of them will offer this as a consultancy service for a negotiated fee.
ABYA advises that you should always use a professional to ensure you have all the correct documentation for legal ownership of your new boat.
Note: the use of the term broker here should be taken to mean any boat sales personnel, whether at a brokerage or a dealership, unless specifically stated.
Decide what you want your boat for before you start looking. Cruising/racing? Do you have a young family? Crossing the Solent or crossing the Atlantic? Charter?
Review your budget and don't forget mooring and marina fees, fuel, slipping and winter storage fees, life jackets. If you are thinking of chartering, the cost of setting up a company and having the boat Coded to the MCA requirements.
Talk to several brokers and gather information before viewing – there’s a huge amount of information on the internet. Take your time. Talk to friends, people at the sailing club, etc about the types of boats you are considering. Read reviews from the magazines – a number of magazines have libraries of reviews.
Arrange viewings with those you will be sailing/buying with. If you are unable to make the viewing, please telephone the broker as soon as you can to advise. Remember – the broker earns his fee from selling a boat – please do not just arrange a viewing because you fancy a look at a boat but have no intention of buying.
When you find a boat you like, talk it through with the broker, who will provide a Sale & Purchase Agreement that both parties sign. Any amendments must be agreed by both parties. This is a binding contract so be sure before you sign. (NB A broker, as opposed to a dealer, is not a party to the contract – he is acting as the seller's agent.)
You will need to place a deposit – usually 10% - which the broker must put in his Client Account (not his usual business trading account). This is your money held by the broker as stakeholder under the terms of the contract.
Arrange a survey: the broker cannot recommend a surveyor but may have a list of local surveyors. Yacht Designers and Surveyors Association (YDSA) is the sister association to ABYA and all YDSA surveyors are assessed rigorously before being elected into membership. See the YDSA website for a list of surveyors.
Read the survey report through carefully and discuss any queries with the surveyor. Advise the broker of any important defects. If they are substantial you may consider withdrawing under the terms of the contract, revising the price to complete the sale, or requiring the vendor to provide a repair or piece of equipment. The contract will have a time frame for actions to be taken – be clear what these are. You will be responsible for lifting fees and the surveyor's fees.
If you require finance ensure you contact a finance house in good time, as the money needs to be available when you reach completion. Funds such as Pension Funds tend to have a long release term – ensure you know what this is before you contract to buy a boat as it may be months.
If you want a trial sail, advise the broker when you sign the Sale and Purchase agreement so they can set this up, and allow for changes due to weather, for instance. You will be responsible for any slipping or skipper's fees.
Decision made, check the inventory and that the title documentation is lodged with the broker to save any problems later, including the VAT documentation as appropriate.
Set up the electronic transfer to the Broker's Client Account in good time. Once the funds have cleared, completion can take place. The broker will give you the documentation, including the Bill of Sale transferring title from the vendor to you, and the keys to the boat.
Don't forget to insure the boat before you take possession. You will almost certainly need a survey for this, so don't be tempted to skip the pre-purchase survey, which can be used for this purpose too.
If you haven't sailed or driven a powerboat before, do get some training before heading off. It is essential you know the 'Rules of the Road' and have adequate safety equipment. The RYA has a wide range of courses to assist you.
Brokers who are members of the Association of Brokers and Yacht Agents (ABYA) are governed by the ABYA Code of Practice. The Code requires brokers to have a Client Account where deposits are held, separate to their day to day trading accounts. The broker will have a letter from his bank stating the status of the account. This should ensure the funds cannot be taken into account by insolvency practitioners in the case of the company folding, and also that your deposit is not being used to pay the broker's phone bill! The broker has to operate the account and he holds the money on behalf of the parties as stakeholder. The Broker will provide a completion statement showing the deposit, balance, final payment and any VAT element.
BUYER'S TIP – never hand over more money than you need to until the contract is at completion. This is true of new-build and second-hand. New-build boats are normally paid for in identified instalments.
ABYA advises you should always use a professional to ensure your sale is managed properly and the correct documentation passed to the new owner.
Note: this page principally covers the sale of a boat through a broker acting as an intermediary.
You can choose to list with one broker (sole agency) or several. Alternatively, you can ask the sole agent to sub-contract with other brokers, meaning that he retains control of the sales process and the brokers negotiate the split of fees between themselves.
The seller pays the brokerage commission, which will be a fixed percentage of the final sale price (plus VAT). This fee includes:
The broker will also advise the seller of all offers and negotiate with the purchaser as well as liaising with the surveyor and assist in re-negotiating the fee if this is appropriate.
The % rate will be advised at the beginning of the contract, and the broker will provide you with a Listing Agreement setting out the contractual terms. This % is against the sale price ultimately paid.
Be guided by the broker over market price – he is the expert. You need to be realistic.
Discuss with the broker the arrangements for viewing, inspection and sea trials. You may find that some brokers require accompanied viewing or a skippered sea trial. The IPV Code will apply so ensure this is covered.
Vessels for sale in the UK should be VAT paid. Visiting yachts may not be offered for sale (HMRC Notice 8 refers). Due to the closure by HMRC of the type of Customs Warehouse held by ABYA (May 2019) to allow the sale of non-VAT paid boats, several brokers are setting up individual warehouses.
BREXIT – as information becomes available, we will update this website. We know UK yachts will become visiting yachts in Europe after Brexit. This is available for a period of 18 months and re-admission for a new 18 month term can be achieved by exiting the EU, logging a visit outside the EU for a couple of days and then returning. However, bear in mind some EU countries comply with the clause that states the boat may not be used commercially/offered for sale as a visiting yacht.
You should ensure the boat is clean and tidy and all personal effects removed, fridge empty, etc. Prepare a careful inventory of all the things that are staying with the boat and ensure they are available for inspection by prospective purchasers and surveyors. It is preferable to remove all personal items if you are not using the boat during the sale period. Do not remove items you have listed on the inventory and ensure items you have listed that are not on the boat are available prior to completion, not stored hundreds of miles away in a barn somewhere!
Ensure you have all the relevant boat documents gathered together and show them to the broker who may take copies of the significant ones to keep in his file. These must be passed to the new owner in due course and should include the paper trail of Bills of Sale showing the ownership history, evidence of the VAT status (see below), evidence of RCD compliance (see below) when first placed on the market in the EU, registration (if any), Builder's Certificate, Owner's Manual, Service History (engines, sails, etc.), outstanding finance details, any large repair bills, etc. This documentation is required for all sales, not just those done through a broker.
The broker will market your boat using a variety of options, such as websites, web portals, client lists, magazines, second-hand boat shows. He will let you know when he has any viewings, and when he receives an offer. He will negotiate an agreed sale price. This will either be conditional – that is, subject to survey and possibly in-water or sea trial and any other agreed conditions; or unconditional – "as is, where is".
The broker will provide a Sale & Purchase Agreement which both parties sign. Any amendments must be agreed by both parties. This is a binding contract so be sure before you sign. Note: The broker is not a party to the contract – he is acting as the seller's agent.
The prospective purchaser will advise the broker of anything that is of concern or any questions that have arisen in the survey. They may require negotiation of a revision of the price, a repair or replacement of some equipment, or, if there is significant defect found, the buyer may wish to withdraw and his deposit refunded.
When negotiations are complete, the broker will send the seller a Bill of Sale to complete and return, together with all the documentation (as above) and keys. He will advise when completion has taken place (when the funds have cleared) and once he has finalised all issues, such as payment of any outstanding finance, he will issue a completion statement and send you the balance of the monies, less his agreed fee. The Bill of Sale makes the legal transfer of ownership of the boat and should be correctly filled in.
This page contains general information only. You should seek advice and satisfy yourself as to the status of any vessel you consider buying.
The RCD is a European Directive that applies to virtually all recreational craft between 2.5m and 24m brought into or offered for sale in the EU market. It came into force on 16th June 1998. Boats covered by the Directive are required to comply with specific ISO standards, although equivalent standards may be applied. It is helpful to retain the compliance document with the boat's papers for future owners and in case of any query.
After Brexit, the RCD will become UK Regulation, as it is enshrined in UK law. There may subsequently be some changes to the requirements.
Unlike the MoT for cars, compliance is not an on-going requirement. Evidence of compliance will be found on the plaque provided by the boat builder which will, amongst other things, give a HIN/CIN/WIN (Hull/Craft/Watercraft Identification Number). This is a 14-digit number containing the manufacturer's code, year of build and model year. There should be a paper document as well - often found in the back of the owner's manual - whose details should agree with the plaque. The builder's invoice and/or certificate may also give the HIN. You should see a CE mark.
There are a few exemptions from the RCD such as boats built solely for racing, gondolas and commercial vessels (not recreational vessels used for charter, but vessels such as fishing boats and workboats). Be aware that a boat built for racing or commercial use that subsequently is moved to non-racing or non-commercial use needs to be checked for RCD compliance. This could, for instance, involve requirements for a new engine if the existing engine does not comply with RCD requirements, so it is important to look at this at an early stage.
Boats being brought into use or placed for sale onto the EU market for the first time must comply with the Directive at that time. Privately imported boats may need to be assessed for compliance with the Directive on arrival. Some US boats are built to the RCD and have the required documentation, but you need to find out before you buy. It is worth noting the possibility that the newly-imported boat may not economically be able to be brought to compliance, particularly if the engine does not meet the requirements. YDSA surveyors can give professional guidance, or use the RYA links below for additional information.
Boats that can show they were in an EU protectorate or other territory before 16th June are treated the same as boats within the EU States.
Boats built in the EU since 1998 should have documentation that they complied with the RCD when first offered for sale, and the same is true of most boats imported through authorised dealer networks.
Boats built or in the EU prior to June 1998 were not expected to comply retrospectively. Boats coming back into the EU, perhaps following sale, retain their status provided the owner can provide evidence the boat was built or in the EU prior to June 1998 - the Builders Certificate is ideal. A Bill of Sale, marina receipt or other dated evidence for non-EU built but located in the EU before June 1998 should suffice.
A vessel that has been supplied as a shell, or a "sailaway", or indeed built from scratch by a home builder, can be exempted from the certification and documentation requirements of the Recreational Craft Directive provided the builder retains ownership of the vessel for at least five years from the date that the vessel was first "put into commission". Be aware that there are uncertainties around the meaning of "put into commission": your surveyor should be able to provide some guidance in respect of your own case.
Hulls provided for fit-out should have an Annex 3 Declaration, which is the builder's certification that the hull has been built in accordance with the RCD.
Advice on the RCD is available from various sources:
This page contains general information only and there will be substantial changes after Brexit. Any queries should be made to HMRC's National Advice Line on 0845 010 9000.
Boats being used in the EU should have VAT-paid status unless they are just visiting (see UK CUSTOMS below). The original VAT invoice, from when the boat was either first bought within the EU, the latest invoice if the early sales were between VAT registered companies, or when it was imported from outside the EU, is usually sufficient evidence. A boat that is VAT-paid but is sold outside the EU loses its VAT-paid status and therefore VAT must be paid if the boat is brought back into the EU. Boats kept outside the EU for over 3 years may have to pay again, but this can generally be extended if it is the same owner and the boat has not been substantially changed (see Customs Notice 8).
The above applies to all boats built or brought into the EU since 1 January 1985, or on the joining dates of States that have become EU Members since then. Boats already in EU Member States and territories on 1 January 1985 pre-date the requirement.
The evidence of VAT-paid status will generally be an invoice, showing the VAT element and a VAT number, or similar document, such as a completion statement. Boats sold between companies should show the VAT element on the invoice. Some EU states (notably Holland) ask for the original invoice, but otherwise a certified copy kept on board should be adequate. Keep the original and a couple of certified copies safely elsewhere. It is vital to pass this information on when the boat is sold, as it may be requested by Customs officers in either the UK or elsewhere in the EU.
In the case of home-builds and fit-outs, copies of all the major invoices should be kept and passed to subsequent owners to show VAT-paid status. Customs Notice 8 sets out further details.
Please note that HMRC do not have copies of individual VAT invoices from boat builders, dealers or other boat sales transactions.
Any queries should be referred to HMRCs National Advice Line on 0845 010 9000. If they seem unsure, ask for the matter to be referred to the HMRC Yacht Unit of Expertise. Request any advice in writing, keep it with the boat's documentation, and pass it on to any subsequent owners.
Visiting yachts intending to stay for any length of time should advise UK Customs when they arrive so the appropriate form (1331) can be completed showing the date of arrival. Temporary Importation is available for a maximum of 18 months. Without this form the vessel could become liable for VAT. Customs Notice 8 contains further details.
The Sailaway Scheme was changed on 1 January 2012. Owners may no longer arrange their own export under the scheme. However brokers and dealers may do this for them - more details here.
If you are thinking of buying a boat to use for charter tell your broker and your surveyor so they he can help you buy the right boat. A number of brokers also operate charter management companies. Brokers and Agents who work in superyachts often provide charter and crew management services. Boats used commercially in UK waters or under the British flag have to comply to the MCA Code of Practice, so you will need to employ a surveyor to advise you if the boat you wish to buy will be able to comply. Commercial use applies to any boat for which the client is paying to be onboard. It is not just commercial boats such as workboats. A yacht taking out parties for fun must be coded. Only boats being used for the owner and the owner’s friends and family do not need to be coded.
The Maritime and Coastguard Agency (MCA) which provides the codes for compliance with commercial use is currently updating these (2020) so be aware there are changes coming.
To find out more about the MCA Codes of Practice and how to get your boat Coded, see the YDSA Certifying Authority.
The Intended Pleasure Vessel (IPV) Code applies when the boat is being used commercially such as delivery to a boat show or a sea trial for a potential new owner. The code provides the means whereby the private boat owner can comply with the law without having to go through the whole coding process for perhaps one or two trips. Talk to your broker or surveyor to ensure you are not acting illegally.