Yacht Law in Hannover. From the build contract to the sale.

Buying a pre-owned yacht carries risk in two places: in the survey and in the proof of title. An incomplete title chain blocks registration later, and a survey carried out badly removes any basis for a reduction in price.

• MYBA sale agreements, adapted to the particular sale and to the clauses excluding warranties
• Pre-purchase survey and sea trial, including the rights arising from any defects found
• Closing through the bill of sale, deletion from the previous register and discharge of existing mortgages
• Completion through an escrow account
• On register, finance and insurance questions we work with our practice area Aviation Law, where the same structures apply

Financing a large yacht calls for knowledge of the maritime market and of international security rights. We act for owners and for borrowers alongside internationally active private banks.

• Loan and syndicated facility agreements, tailored to the cash flows of the project
• Creation and registration of ship mortgages in the register of the flag state
• Assignment of insurance and charter claims, and bank guarantees
• Amending and restructuring existing finance in difficult market conditions
• The credit documentation itself is handled by our practice area Banking Law

The choice of flag and holding structure affects tax, customs, technical rules and crew at the same time. It should be made before the purchase, because a register is only changed later with effort and the mortgage depends on it.

• Holding structures through special purpose vehicles, including in Malta, the Cayman Islands and the United Kingdom
• Value added tax and customs, including temporary admission
• Choice of flag and register with regard to technical rules, crew and commercial use
• Change of flag and the transfer of existing mortgages
• The companies and their officers are handled by our practice area Corporate Law

Chartering is a trade. Recovery of input tax, the technical requirements for the vessel and the duties owed to the crew under the Maritime Labour Convention all follow from that.

• Structuring commercial charter arrangements and the evidence needed to recover input tax
• Charter agreements on MYBA forms, including cancellation and liability
• Employment agreements for master and crew under the Maritime Labour Convention
• Drawing the line against the contracts of external yacht managers
• The employment law review is carried out by our practice area Employment Law

A full refit is no easier to manage than a new build. What else is needed often only emerges once work is under way, which is why the procedure for additional orders and their pricing has to be in the contract beforehand.

• Works and modification contracts with yards and suppliers
• Scope of work, guarantees for newly installed components and caps on liability
• Liquidated damages and compensation for late completion, including lost charter income
• Procedure and pricing for additional orders
• Damage during the yard period is handled by our practice area Insurance Law