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Yacht and Boat Law

Legal Due Diligence Guide for Buying a Yacht or Boat

Closing sequence for a yacht purchase. Identity; Registry; Survey; Payment; Delivery.
Author: Published: About 10 min read

Institutional legal review and control: Güneş & Güneş Law Firm

Published by: Güneş & Güneş Law Firm

Summary

How should ownership, debts, survey and the sale agreement be reviewed when buying a yacht or boat? A legal checklist for payment, delivery and registration procedures.

The physical delivery of a yacht does not by itself show that ownership has been validly acquired and is free of debts. A safe purchase requires that, within the same transaction file, the seller's authority, the registration status, the technical specifications, the customs status and the payment terms are all checked. A registry defect that is planned to be fixed after the sale may prevent the boat from being used or resold.

This guide explains the separate roles of buyer, seller and broker when buying a new or second-hand yacht for use in Türkiye. The legal consequences of a private sale differ from those of a purchase as a consumer from a professional seller.

Verify the Seller's and the Boat's Identity First

The first step is to determine whether the person being dealt with is the actual owner or an authorized representative. Identity, company registry, signing authority and power of attorney are reviewed together. A broker's authority to publish listings does not by itself include authority to sign the sale agreement on the owner's behalf or to collect the price. Whether the account receiving payment belongs to the party to the agreement should be compared. For the broker's role and commission structure, see the article brokerage, commission and earnest money in yacht sales.

A vessel's name can change, so the review is not limited to the name. The registration or mooring register number, hull identification number, engine serial numbers and IMO number, if any, are matched. Equipment attached to the boat that is financed or belongs to a third party is identified separately. Preparing a handover inventory for the generator, tender, electronic devices and anchoring equipment reduces later disputes over whether an item was "not included in the sale."

Form of Transfer in the Ship Registry and Mooring Register

For a vessel registered in the Turkish ship registry (gemi sicili), a transfer by contract is assessed with reference to the written agreement under Article 1001 of the Turkish Commercial Code (TTK), signature certification or a transaction at the ship registry office, and the conditions for transferring possession. A promise to sell, payment and transfer of ownership should not be treated as one and the same legal act. For vessels on foreign registries, the applicable law and the deletion procedure (terkin) are assessed separately.

For a boat registered in the mooring register (bağlama kütüğü), Article 14 of the Regulation sets a special form: transfer documents that require a transfer of ownership must be prepared before the Presidency (Başkanlık) or a notary. An ownership transfer carried out outside these authorities does not replace a valid change in the registration. In a notarized transaction, a copy of the mooring register entry dated the same day, showing the encumbrances, is presented to the acquirer for review, and a declaration is drawn up confirming that the acquirer has seen it.

Accordingly, the parties' signing of a contract downloaded from the internet and transfer of the price do not by themselves satisfy all form and registration requirements. Even at the preliminary contract and deposit stage, it must be determined where and with which documents the closing will take place. For details, see the section on marina berthing agreements.

Mortgages, Attachments and Third-Party Rights

The current register extract is reviewed for mortgages, attachments, precautionary attachment (ihtiyati haciz) and transfer restrictions. The review should not be limited to the day the contract is signed; it should be updated immediately before the price is released. A bank's "debt closed" letter and the deletion of the mortgage from the register are different stages. For details, see the article yacht financing and ship mortgages.

Some maritime creditor rights can arise from law without appearing in the registry. Crew wages, salvage and other statutory claims are assessed under Article 1320 et seq. of the TTK. Therefore, although a clean registry entry is important, it is not an absolute guarantee that no maritime claims exist. The seller's declaration, supporting documents and, where necessary, written confirmations from creditors are used together.

Marina, maintenance and fuel debts are also investigated in the transaction file. It cannot be said that every debt passes automatically to the new owner; however, the actual keeping of the boat, a seizure request or a delivery dispute may affect the purchase timetable. The legal debtor for each debt and the basis of any right that may be asserted over the boat should be examined separately.

The Technical Survey Completes the Legal Review

An independent survey should cover the inspection of the boat on land and on water by suitable methods. The hull, osmosis or corrosion, engine, electrical system, safety equipment, water ingress and past repairs are assessed according to the boat's characteristics. For the sea trial, weather, load, fuel, speed and engine RPM conditions should be recorded. The seller's statement that the boat "works without problems" does not replace a measurable acceptance condition.

The survey agreement should state the scope of the inspection and the areas that could not be inspected. If a closed compartment is not opened or an engine oil analysis is not carried out, the limits of the report must be understood. The buyer must carry risks falling outside the survey scope into the price and warranty negotiations separately. The professional liability and independence of the person performing the technical inspection also matter.

The sale agreement should state what happens based on the survey result: on which findings the buyer may withdraw, which repairs the seller will carry out, how the price reduction will be determined, and what will happen to the deposit if no agreement is reached. The phrase "subject to survey" alone does not answer these questions.

For details, see the section on yacht construction and refit contracts, and maintenance and repair processes.

Deposit Payment and a Secure Closing

The bağlanma parası (binding earnest money) under Article 177 of the Turkish Code of Obligations (TBK) is different from the cayma parası (withdrawal money) under Article 178. Use of the word "kapora" (earnest money) cannot be taken to give each party an automatic and unlimited right of withdrawal. The purpose of the payment, refund conditions, deductions and the consequences of default must be stated clearly.

If an escrow account or secure payment model is used, the following must be specified: the institution where the money will be held, the release documents, the blocking arrangement in the event of a dispute, and the costs. Merely writing the word "escrow" in the agreement is not enough for money paid into the broker's own account to be treated, in the technical sense, as protected escrow. The legal and operational structure of the service used must be examined.

Closing checkDocument to look forRecommended link to the price
Sale authorityOwnership and representation documentsNo release of the price until authority is fully established
EncumbrancesCurrent register extract and deletion documentsMatching the mortgage closure with the deletion from the register
Technical acceptanceSurvey and sea trial reportRemedy of the agreed defects
Customs statusImport or temporary entry fileSecuring a customs regime suited to the intended use
DeliveryInventory, keys and documentsDetermining the start of possession, risk and insurance

Which Remedies Arise If a Defect Emerges

Under Article 219 et seq. of the TBK, the seller's liability for defects is regulated together with the provisions on defects known to the buyer, inspection and notice, and the seller's gross fault. In a sale from a professional seller for purposes that are neither commercial nor professional, the provisions on defective goods of Law No. 6502 on Consumer Protection (TKHK) may apply. In a commercial sale between two merchants, the inspection and notice rules under Article 23 of the TTK are also important.

The special two-day and eight-day periods in commercial sales matter for defects that are expressly apparent or can be understood through an ordinary inspection; a latent defect discovered later is not assessed in the same way. This calendar, which applies between merchants, does not automatically apply to consumer transactions. When a defect is discovered, photographs, the service report, removed parts and correspondence should be preserved, and proper notice must not be delayed.

The scope of rescission, price reduction, repair or replacement depends on the applicable law and the circumstances. Not every used yacht is expected to meet new-boat standards; however, concealed serious damage or the absence of a promised quality cannot be presented as wear appropriate to its age. An "as seen" (görüldüğü gibi) clause does not in advance provide protection against gross fault or fraud.

Competent Court and Preservation of Evidence

Whether the dispute is a consumer transaction, a commercial action or a general private law dispute affects the competent court. For claims for refund of the price or for damages, the mandatory mediation requirement as a condition precedent to litigation and any limit of the Consumer Arbitration Committee are checked as of the transaction date. For a high-value yacht sale, naming the same court in every case is not correct.

Preservation of evidence (delil tespiti) may be required before the boat is repaired. Under Article 400 et seq. of the Code of Civil Procedure (HMK), the court may be asked to determine the technical condition under the required conditions. Where urgent safety repairs cannot be delayed, dismantling records, samples, part identification and cost documents should be carefully preserved. If there is a foreign element, the choice-of-law and jurisdiction clauses are also examined from the outset.

For details, see the section on stay and use conditions for foreign-flagged yachts in Türkiye.

Conclusion

Buying a yacht is a closing process that is broader than a single sales document. Ownership, technical acceptance, settlement of debts and payment should be aligned on the same timetable. The release of the price, a step that cannot easily be reversed, should be tied to the legal and practical conditions for delivering the boat.

Frequently Asked Questions

Is a private agreement made outside a notary sufficient for transferring a mooring register entry?

The condition under Article 14 of the Regulation, that the transaction be prepared before the Presidency (Başkanlık) or a notary, must be met. A private agreement alone does not replace this transaction.

Does a survey report also show all debts?

No. The survey is a technical inspection. Searches of the registry, mortgages, attachments and claims are carried out separately.

Is paying into the broker's account considered safe escrow?

Not automatically. The authority, the model for holding the money and the release conditions should be examined.

Can a buyer who has paid earnest money withdraw at any time?

The label "kapora" alone is not enough. The binding earnest money, the withdrawal money and the refund conditions in the agreement must be distinguished.

Does every fault that appears later on an old boat count as a latent defect?

No. The condition at delivery, the promised quality, normal wear, use and the cause of the fault are determined through technical evidence.

Does the presence of a foreign-flagged yacht in Türkiye show that it was definitively imported?

No. A temporary entry or another customs status may apply. Whether its use after the sale is compatible with that status is examined.

Sources and legal bases

  1. Turkish Commercial Code No. 6102. Articles 931, 935, 940, 1001, 1320, 1352–1376, 1420–1446; the linked pages differ by article. Link
  2. Mooring Register Implementing Regulation (Bağlama Kütüğü Uygulama Yönetmeliği). In particular Article 14 on the form of transfer; amendment of December 30, 2023. Link
  3. Law No. 6098, Turkish Code of Obligations. General terms and conditions, exclusion of liability, sale, binding earnest money, lease and contract for work. Link
  4. Law No. 6502 on Consumer Protection. Consumer transactions, defects, unfair terms and jurisdiction. Link
  5. Law No. 6100, Code of Civil Procedure. Jurisdiction, evidence and preservation of evidence. Link
  6. Ministry of Trade — Customs Enforcement (Gümrük Muhafaza) frequently asked questions. Procedures for the entry, navigation, release and use of yachts; outdated monetary amounts and institution names on the page were not carried over. Link

AUTHOR

Av. Umut Güneş

Güneş & Güneş Law Firm

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