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Inheritance and Estate Law

Transfer of an Inherited Boat or Yacht: Registry, Flag and Foreign Heir Procedures

Registry file, compass and marina view representing the inheritance of a boat and yacht
Author: Published: About 14 min read

Institutional legal review and control: Güneş & Güneş Law Firm

Published by: Güneş & Güneş Law Firm

Summary

Transfer of an inherited boat or yacht: the mooring register, foreign heirs, the Turkish flag, mortgages and registry procedures, with Court of Cassation decisions.

In the transfer of an inherited boat or yacht, it must first be determined in which registry it is recorded and which flag it flies. The mooring register (bağlama kütüğü), the national ship registry and the Turkish International Ship Registry are not the same registration system. The presence of a foreign-flagged boat in Türkiye also does not by itself make it a vessel subject to the Turkish registry. [1]

Registry, owner and nature of use

The registration certificate, the ship's certificate, the tonnage and the current registry extract are obtained. It is checked whether the boat is registered in the name of an individual or of a company. If a partner who used the company's boat dies, what is at issue may be, first of all, the inheritance of the company share rather than the boat directly.

Private use, commercial yacht operation and fishing are subject to different permits. The passing of ownership does not automatically satisfy all the conditions of commercial operation or of the authority to make voyages. Insurance, the mooring agreement, the crew and technical documents are examined separately.

Succession application in the mooring register

The succession lists published by port authorities include records such as a petition, the mooring certificate, information on the right holders, the certificate of inheritance or court decision, the tax letter and the relevant fee receipts. For a commercial or fishing vessel, tonnage and operating documents may also be requested. The list should be confirmed according to the registry and the type of transaction. [3]

Although the application may be started through an electronic portal, the original documents, signatures and requirements of representation continue to apply. For a foreign heir, the passport and the other identity/residence documents required by the authority are checked. Follow-up by a suitable power of attorney is possible, and the powers for sale, change of registry and collection of the price are assessed separately.

Documents and risks

ReviewMain document
OwnershipCurrent registry or mooring record
HeirshipCertificate of inheritance and death record
Debt and restrictionsMortgage, attachment and precautionary attachment records
UseRegistration certificate, insurance and technical documents
Port expensesMarina/mooring agreement and account
Foreign connectionFlag, customs and representation documents

Maritime lien rights and security specific to maritime law should not be treated like an ordinary vehicle debt. Apart from a mortgage visible in the registry, there may also be a risk of special claims. Maintenance and port expenses may continue to accumulate after death; a temporary management plan is needed to protect the boat. [1]

Partition or sale

If there are several heirs, it may be decided that the boat will be kept jointly, left to one heir or sold. In the valuation, the age of the boat and engine, maintenance, equipment, debts and insurance damage are taken into account. The price of a similar boat in an advertisement alone is not regarded as a definitive value.

The form of the sale and the registration requirements are determined by the relevant registry regime. The notary sale template used for a land vehicle cannot be applied as is to every ship or boat. The price, the discharge of debts, the deregistration and the order of delivery must be written clearly. In a move to a foreign registry, the deregistration and new registration documents are linked to each other. [1]

How are the boat's identity and registration regime verified?

A boat's name may have changed; research should therefore not be done by name alone. The registry or mooring number, the hull and engine information, the tonnage and the registered owner are checked together. The fact that the boat is physically at a marina does not show that the person paying the marina is the owner. If there is a lease, company ownership or co-ownership, the scope of the right that enters the estate is determined separately. [1]

The distinction between the mooring register and the ship registry affects the authority to apply to and the transaction documents. For a boat registered in a foreign registry, applying to a port authority in Türkiye does not in every case change the ownership record. Transactions in the country of registry and the customs and use status in Türkiye should be planned together. Article 22 of the Law on International Private and Procedural Law (MÖHUK) also takes into account the connection of the place of registration for rights in rem over means of transport. [2]

Protecting the boat after death

Marina, maintenance, insurance and security expenses do not stop with death. A person to be jointly designated by the heirs may be authorized only for protection. However, acts such as replacing the engine, chartering the boat or concluding a sale agreement may not be considered to fall within the same scope. The limit of the authority, the spending ceiling and the obligation to present documents must be written clearly. [5, 6]

The condition of the boat can be recorded by photographs, an equipment list and a technical inspection. This record reduces disputes over missing equipment or damage during the transfer. If there is a need to put to sea, the captain's qualification, technical competence, insurance and administrative permits are checked separately. Obtaining the certificate of inheritance does not prove that these operational conditions are met.

Why are debts specific to maritime law investigated separately?

A ship mortgage, a precautionary attachment and a maritime lien are not the same type of security. Some maritime claims may have special priority. For this reason, the boat should not be accepted as debt-free merely because no mortgage appears in the registry. The legal nature of crew, salvage, port or other operational claims is examined in the specific case. [1]

A debt letter obtained from the marina does not show that there are no maritime claims anywhere in the world. Earlier voyages, accidents, insurance damage and contracts are investigated. If debts are to be paid from the sale price, it is planned to which creditor payment will be made in which order and how the deregistration document will be obtained. An agreement among the heirs does not by itself remove third-party security.

Flag and sale plan with regard to a foreign heir

When a foreign person acquires a share by inheritance, it is investigated whether the existing flag conditions continue. If the ownership structure has changed, notification to the registry may be required. If a change of flag is contemplated, the order of the deregistration from the old registry and registration in the new one is important. With what documents the boat will be used in the interim must also be determined separately. [1]

The customs status of a yacht in Türkiye flying a foreign flag is a matter separate from the passing of ownership by inheritance. How the conditions of temporary entry or use will apply after death is assessed with the competent administration on the specific document. A port authority's list of succession documents cannot be used as a universal list for all foreign-flag and customs transactions. [3]

Valuation and actual delivery

In valuation, the condition of the hull and engine, maintenance history, equipment, insurance damage and operating permits are taken into account. A marine survey and a legal registry search do not replace each other. A boat in good condition may carry a heavy debt; a boat whose registry appears clean may have a significant technical defect. The price to be paid to the heirs should be discussed on the basis of the net asset value.

The delivery record contains the place, date, keys, registration certificates, electronic devices and the equipment list. From what date fuel, mooring and continuing maintenance expenses will be borne by the new owner is determined. After the new registry or mooring record is obtained, the insurance and the marina agreement are also updated. In this way, not merely the transfer on paper but the handover of the boat for safe and lawful use is completed.

Tax, fees and final check

Inheritance tax and the registration certificate, registry and transaction fees are calculated separately. The amount of the fee may vary with the length of the boat, the type of use and the year of the transaction; an amount on an old port page should not be mistaken for the current tariff. The customs status is examined separately. [4]

At the end of the transaction, the new owner record, flag status, registration certificate and insurance are updated. The marina debt, the equipment list and the keys are tied to the delivery record. The heirs' equalization amounts and the continuing operating permits are checked. Even if the registry record has been completed, the seaworthiness of the boat is a separate matter.

For the Turkish flag, a majority of shares and a majority of persons are different

Article 940 of the Turkish Commercial Code (TTK) uses different criteria for a ship belonging to more than one person according to the type of ownership. In co-ownership in shares, a majority of the shares must belong to Turkish citizens; in joint ownership, a majority of the owners must be Turkish citizens. For this reason, adding up the proportions in the certificate of inheritance is not sufficient in every case. An undivided inheritance community subject to Turkish law and an ownership structure later converted into co-ownership in shares are not examined in the same way. For ships owned by a company there are also separate conditions on the management and partnership structure. TTK, Article 940

Suppose, for example, that there are two Turkish heirs and one foreign heir in the same ship. Under a joint ownership regime, the majority of persons and the economic majority of shares after partition may give different results. This example is not an automatic flag permission that can be applied to all types of registry. The special provisions of the Turkish International Ship Registry and the mooring register must be examined separately. The foreign heir's right of ownership and the condition for continuing to fly the Turkish flag are determined separately.

How is a general document list made concrete in an official application?

The procedural channel for the mooring register

In the İzmir Regional Port Authority's explanation, the application is to be started through the Umurbey Maritime Citizen Portal, and an appointment is to be made after review and approval. The document list published for succession is also directed, besides identity and the certificate of inheritance, at the boat's registry, tax and transaction documents. This list is useful for preparing an application at the relevant port; it does not by itself cover the procedures of all foreign-flagged yachts. Port authority application steps Succession document list

The heirs should first obtain an extract of the existing record and determine the ship or mooring number, the owner information and the encumbrances. Opening an application on the portal does not mean that the ownership record has changed or that the documents have been accepted. At the final stage of the transaction, the new record and registration certificate should be obtained and matched with the physical details of the boat.

Foreign documents and power of attorney

Whether death, heirship and representation documents issued abroad can be used in Türkiye is researched separately. That the documents carry an apostille does not remove the review of the law to be applied to the substance of the inheritance. If the boat is registered in a foreign registry, whether the same documents can be used in the state of registry is also planned separately. A port or marina transaction in Türkiye and a change of owner in a foreign registry are different stages. MÖHUK, Articles 20 and 22

It should be clear whether the power of attorney is only for obtaining information and succession transactions, or also for sale, deregistration, registration in a foreign registry and collection of the price. If the same representative is used as the person who will buy the boat, a conflict of interest is assessed. Instead of keeping the sale price in the agent's account without documentation, entitlement and the payment account should be determined in advance.

A real Court of Cassation decision: dissolving co-ownership of a ship does not by itself remove the mortgage

In the decision of the 14th Civil Chamber of the Court of Cassation dated 03.06.2013, E.2013/6372, K.2013/8473, the dissolution of co-ownership of a ship by sale was examined. The Chamber, stating that in the specific file the ship would be sold together with the mortgage encumbrance in the registry, upheld the judgment granting the claim. Full text of the decision — De Jure; account access

The text of the decision is short and does not explain that the co-ownership necessarily arose from inheritance. For this reason, the decision should not be presented directly as an "inherited yacht decision". Its connection to the article is the need to examine separately the mortgage and the conditions of sale in the process of dissolving co-ownership among heirs. Without evaluating the type of sale, the security of the claim and the rules of compulsory enforcement, no generalization can be made that the mortgage is lifted in all sales or remains as is in all sales.

In particular, the heirs' saying among themselves "one of us will pay the debt" does not extinguish the right of the mortgagee. If the debt is to be paid from the sale price, the agreement with the creditor and the order of payment and deregistration must be set out clearly. The value of the ship and the net amount remaining for the heirs are different; the mortgage amount, other claims and sale expenses are shown separately in the calculation.

The second decision: actual delivery does not cure the seller's lack of ownership

In the decision of the 11th Civil Chamber of the Court of Cassation dated 24.10.2011, E.2010/3035, K.2011/14333, a protocol for the sale of a 25 percent share of a ship and the price paid were discussed. The judgment ordering refund of the price, because the contractual obligation to transfer could not be performed as the ship was owned by a third party, was upheld. Full text of the decision — De Jure; account access

This too is not directly an inheritance-transfer decision; it is a helpful example for investigating the registered owner and the power of disposal. The decision belongs to the period of the old commercial code; today's formal requirements must be determined from the current registry regime. The practical result in inheritance is this: that the decedent operated the boat, paid its expenses or held its keys does not show that the boat was necessarily in the decedent's ownership. If the decedent had only a claim arising from a purchase agreement, the scope of the right that enters the estate is determined accordingly.

If the heirs cannot agree, which lawsuit and which protection are considered?

The partition of the boat or the dissolution of co-ownership, the determination of who owns the ship, and a dispute over a mortgage or a maritime claim are separate matters. The competent court and the provisions specific to maritime commerce are determined according to the nature of the claim. In an application for dissolution of co-ownership, the scope of mediation as a condition precedent to litigation is assessed separately. If a foreign-flagged boat is in Türkiye, jurisdiction, the registry transaction and the applicable law should be investigated together. Law No. 6325, Article 18/B TTK

In a dispute over a precautionary attachment and over ownership, interim protection is not the same instrument. It cannot be said that a precautionary attachment can be placed on a ship in every case merely because one is an heir. The legal source of the claim, its nature as a maritime claim, prima facie proof and the conditions of security are made concrete. If there is a risk that the boat will be removed or damaged through lack of maintenance, records showing this danger are submitted.

Economic closing after transfer and authority to use

If the price of a boat left to one heir is to be paid to the other heirs, the valuation date, the date up to which debts are included in the calculation and the equipment list are determined. The marina agreement, insurance and maintenance arrangement are aligned with the new ownership. Permission for commercial use, the captain's qualification and technical suitability are not considered acquired merely by the inheritance transfer document.

The closing file contains the current owner record, flag status, any deregistration documents, taxes and fees, debt-discharge records, insurance and the delivery record. If the boat is to be taken to a foreign country, customs and new registry formalities are completed with separate result documents. In this way, what is handed to the heir is not merely a registration certificate but an asset whose rights and continuing obligations have been determined.

Conclusion

In a boat inheritance, the right starting point is the determination of the registry and flag regime. If heirship, debts, operating permits and actual delivery are followed together, the transfer of ownership reaches a usable result.

Related articles: Transfer of a Yacht or Boat by Inheritance: Foreign Heirs and Registry Procedures; Yacht Law in Türkiye: Flag, Taxes and Import Procedures; Yacht Financing and Ship Mortgages: Loans, Security and Registry Procedures; Joint Yacht Ownership: Use, Expenses, Share Transfer and Termination of Co-ownership

Frequently Asked Questions

Is the inheritance procedure the same for every boat?

No. The registry, flag and type of use give rise to different procedures.

Can a foreign heir keep the Turkish flag?

The ownership structure and the conditions of the relevant legislation are examined separately.

Does a boat in a company's name enter a partner's estate directly?

The property of the company as a legal entity and the partner's share are separate.

Can one go to sea immediately after the transfer?

Technical, insurance, registration certificate and use conditions must also be completed.

Sources

[1] Turkish Commercial Code No. 6102

[2] Law No. 5718 on International Private and Procedural Law

[3] İzmir Regional Port Authority, Mooring Register Succession Transfer Document List

[4] Inheritance and Transfer Tax Law No. 7338

[5] Turkish Civil Code No. 4721

[6] Turkish Code of Obligations No. 6098

[7] Port authority application steps

[8] Full text of the decision — De Jure; account access

[9] Full text of the decision — De Jure; account access

[10] Law No. 6325, Article 18/B

AUTHOR

Av. Umut Güneş

Güneş & Güneş Law Firm

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