Do I need a license to buy yachts for sale?

For many first timers in the yachting market, ‘Do I need a licence to buy yachts for sale?’ is one of the most common queries. The answer to this question is very clear: in most countries, individuals do not need a special licence to buy yachts for sale per se. Unlike driving a car or dealing in property, the purchase of a yacht is essentially a private property transaction and does not involve compulsory state approval.

However, this does not mean that the transaction can be taken lightly - the process of purchasing a yacht for sale involves title checks, preparation of documents and adaptation of regulations, etc., and the slightest negligence may lead to subsequent risks. Yachttrading has put together some practical advice for your reference.

Buying yachts for sale requires a calm assessment

Although you do not need a special licence to buy yachts for sale, it is important to make a rational assessment of your actual needs and budget before making a decision. After all, the purchase of a yacht involves a series of ongoing expenses such as future maintenance and operation.

Unlike property, there is no standardised legal process to be followed for yachts for sale, especially for second-hand yachts, which are mostly bought and sold privately between buyers and sellers. If the transaction is done through a professional broker, the broker generally carries out the process on behalf of the seller and also receives a commission, which is subject to Value Added Tax (VAT) on the commission portion.

When purchasing yachts for sale, it is your responsibility to confirm in advance that the seller has full and legal title to the boat and that the boat is free from debt, mortgages or other encumbrances on the title. If the boat is found to be in loan status, it is recommended that the buyer and seller negotiate a liquidation arrangement with the lending institution - in most cases, the buyer will repay the balance directly to the lending institution in order to obtain the title documents in a timely manner.

This is a slightly more complicated procedure, but it avoids the problem of title disputes and is a necessary step to ensure the legality of the transaction of buying a yacht for sale.

Regulatory compliance of the yachts for sale

In addition to verifying the title, it is also important to check that the yachts for sale meets local regulatory requirements. In the UK, this will be the Recreational Craft Regulations (RCR) and in the EU, the Recreational Craft Directive (RCD).

If you plan to export the yacht to other regions, you may also need to supplement this with a post structural assessment to ensure that the yacht also meets regulatory standards in the new region. You should also check the VAT payment or exemption status of the yacht for sale to avoid future legal risks.

Documentation required when selling a yacht

If you are planning to buy yachts for sale, Yachttrading recommends that you ask the seller for the relevant documentation for the yacht for sale. The necessary documents mainly include:

Proof of Value Added Tax (VAT) payment, such as the original invoice for the purchase of the yacht

Proof of registration

Compliance documents to meet sailing standards

Service and maintenance records for major equipment such as engines, generators, etc.

Previous Bills of Sale

Owner's manuals and instructions for the use of all equipment

Formal agreement to purchase the yacht for sale

Although legally, verbal agreements are also valid, in practice, a transaction without a written agreement can easily lead to an impasse in the event of a dispute. Therefore, Yachttrading strongly recommends that both buyers and sellers have a written sale and purchase agreement, which clearly defines the terms and conditions and maximises the protection of their rights and interests.

In the process of buying yachts for sale, in addition to the review of documents, professional survey and sea-trial are also important links that should not be ignored. Especially in the case of second-hand yachts, the survey provides a comprehensive understanding of the condition of the boat, while the sea-trial provides a real feel for the performance of the yacht. These steps help the buyer to make a more informed decision before signing the contract.

A licence is not required to buy yachts for sale, but every step involved in the whole transaction process should not be ignored. By being disciplined and rational, you can make your boat buying experience smoother and more secure. If you are planning to buy a yacht, please contact us at Yachttrading for a professional and comprehensive one-stop service experience!