MYBA MOA – a must-have for brokers in yacht transactions

MYBA MOA (Memorandum of Agreement) – an agreement which is one of the most essential tools in the yachting industry. It has become the standard for transactions involving the purchase and sale of luxury yachts, thanks to its versatility and transparent clauses. However, as a broker, you must know how to effectively use the agreement and when it’s better to opt for a tailor-made solution.

Why is MYBA MOA useful

MYBA MOA is a standardized contract developed by the Mediterranean Yacht Brokers Association. It enables transactions to be conducted securely, transparently and in accordance with international standards. Its key advantages include: 

  • standardization that simplifies brokers’ work and makes the agreement easy for clients to understand, 
  • detailed clauses covering inspections, sea trials, deposits, and yacht delivery, 
  • KYC procedures that enhance transparency and security in transactions.

Key clauses in MYBA MOA 

  1. Technical inspection and sea trial

This is one of the most critical parts of MYBA MOA. It defines the buyer’s rights to inspect the technical condition of the yacht and conduct a sea trial. As a broker, you should pay attention to: 

  • scope of inspection: does it include only a visual assessment, or does it extend to technical tests and underwater inspections, 
  • deadlines: the clause specifies the date by which the inspection must be completed. Ensuring adherence to these deadlines is essential to avoid disputes. 
  • buyer’s options: if the inspection reveals issues, the buyer may request repairs, a price reduction, or withdraw from the agreement. Your role is to ensure that both parties understand these options. 

Technical inspections and sea trials are often crucial in both new and used yacht purchases. It is vital to establish their scope, the parties’ responsibilities, and available remedies should any issues arise.

  1. Deposit and its security

MYBA MOA establishes that a deposit (typically 10% of the purchase price) is held by a stakeholder. This protects both parties’ interests: 

  • for the seller: it confirms the buyer’s serious intentions, 
  • for the buyer: it ensures that funds will be returned if the agreement is terminated according to its terms.

Brokers often act as stakeholders, requiring professionalism and a deep understanding of regulations related to holding clients’ funds.

Additionally, verifying the origin and intended use of funds may be necessary, especially given varying international sanctions rules, such as those linked to Russian aggression in Ukraine. 

  1. Seller’s guarantees

The seller guarantees that the yacht is free from liens, debts, or encumbrances. As a broker, you should ensure that: 

  • the seller provides the required documents confirming ownership and the absence of encumbrances, such as registration certificates or VAT proof, 
  • this clause is clearly explained to the buyer to avoid misunderstandings. 
  1. KYC – Know Your Customer procedures 

The latest version of MYBA MOA introduces a mandatory KYC process. In practice, this means: 

  • documentation from both parties: buyers and sellers must provide documents confirming their identity, the yacht’s legal status, and compliance with tax regulations. 
  • broker’s role: brokers often coordinate the collection of these documents and work with the stakeholder to verify them. 
  • benefits: KYC enhances transparency and reduces risks related to money laundering and other illegal activities.

When MYBA MOA may not be enough

While MYBA MOA is a highly useful tool, there are situations where a tailored agreement is more suitable. Examples include: 

  • high-value transactions: for yachts worth tens of millions of euros, standard clauses may not sufficiently cover critical issues like hidden defects or payment terms. 
  • legal complexity: when transactions involve parties from different countries with varying tax and registration regulations, it’s better to draft a contract from scratch. 
  • specific requirements: If the yacht requires detailed technical tests or the delivery involves additional obligations, the standard MYBA MOA may be inadequate. 

How to optimize processes with MYBA MOA 

  1. Customize the clauses

Adapt MYBA MOA to the needs of the transaction by addressing: 

  • specific tax and registration requirements, 
  • additional protections for the buyer or seller, 
  • delivery clauses that clarify costs and risks. 
  1. Create step-by-step procedures

Develop checklists for clients, covering: 

  • required documentation at each stage, 
  • deadlines for inspections and sea trials, 
  • finalizing payments and delivering documents. 
  1. Manage client expectations

Maintain regular communication with clients and update them on progress. Explain processes and potential risks, such as delays in document delivery.

Conclusion  

MYBA MOA is a robust tool that supports brokers in yacht transactions. However, to fully leverage its potential, brokers need to understand its key clauses, communicate transparently with clients, and pay attention to details. In some cases—particularly for more complex transactions—a “tailor-made” agreement tailored to individual needs is worth considering.

Compiled by:

Małgorzata Wojtysiak

Małgorzata Wojtysiak

Specializes in serving entities in the maritime economy and yacht industry, both domestically and internationally. Advises on the most advantageous yacht sale agreements.

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