The yachting glossary, in plain words.

The words you will read in a contract, a listing or a quote. Where useful, each term links to the page of this site that covers it.

This glossary covers the terms used on this site and in the documents you will sign. It gives bearings, not legal advice: every project deserves its own reading.

Temporary admission

Customs procedure allowing a yacht owned by a non-EU resident to cruise in European Union waters without paying VAT, for up to 18 months, subject to conditions of use and flag. See also selling a yacht on the high seas.

APA (Advance Provisioning Allowance)

A provision paid before a charter, on top of the charter fee, to cover the expenses of the cruise: fuel, food, drinks, port fees. In the Mediterranean it is usually 30 to 35% of the fee. The captain keeps the accounts; the unspent balance is refunded at disembarkation.

Bill of Sale

The deed of sale of a vessel, signed by the seller at closing. It is the document that transfers ownership of the yacht and allows her to be registered in the new owner's name. It is often drawn up on the flag registry's own form.

Broker (yacht broker)

A professional intermediary who represents the seller or the buyer of a yacht, or who arranges her charter. On a purchase mandate, the broker defends the buyer's interests: search, viewings, negotiation, contracts. As a rule, the broker's fee is a commission paid by the seller and shared between the brokers involved.

Central agency

A sale mandate entrusted to a single broker, who keeps the yacht's file, sets the pricing strategy and circulates the yacht to all other brokers. Other brokers introduce their buyers through co-brokerage. The alternative is an open listing, where several brokers market the same yacht separately.

Charter

The hire of a yacht for a set period, usually with her crew. The reference contract is the MYBA Charter Agreement. The charter fee covers the yacht, her crew and her insurance; cruising expenses go through the APA, and VAT is added according to the country of embarkation. See yacht charter.

Classification

Technical oversight of a yacht by a classification society (Lloyd's Register, RINA, Bureau Veritas, ABS, DNV), which verifies construction and then maintenance against its rules. A maintained class is a mark of seriousness and a frequent requirement for insurance and for the commercial use of large yachts.

Closing

The final step of a sale: payment of the balance, signature of the Bill of Sale and of the protocol of delivery, handover of the ship's documents, deletion from the previous registry and registration in the buyer's name. The yacht changes hands at that moment.

Co-brokerage

Cooperation between two brokers on one transaction: one represents the seller, the other introduces the buyer. The commission is shared. The system gives access to the whole market, including yachts that are not publicly listed.

Sea trial

A trial run organised after the MOA is signed, allowing the buyer and the surveyor to check the yacht's behaviour, machinery and equipment in real conditions. Together with the survey, it is one of the usual conditions of a sale.

Survey

Inspection of the yacht by an independent marine surveyor chosen by the buyer: hull, structure, machinery, systems, safety equipment, often out of the water. The report is used to accept the yacht, renegotiate the price or withdraw from the purchase under the terms of the MOA.

Full custom, semi-custom, series

Three ways of building a yacht. In series production, the model is defined by the yard and the client's choices are limited to finishes. In semi-custom, the platform is shared but layout and styling are personalised. In full custom, the yacht is designed and built for one owner, which takes several years. See new or pre-owned.

GT (gross tonnage)

A measure of a vessel's internal volume, unrelated to her weight. Gross tonnage drives many regulatory obligations: crew numbers, certificates, applicable codes. Two yachts of the same length can have very different tonnages.

Ship mortgage

A security registered against a vessel on her registry to guarantee a loan. Before a purchase, the registry is checked to confirm that no mortgage encumbers the yacht, or that it will be discharged at closing.

KYC / AML

Know Your Customer and Anti-Money Laundering: identity and source-of-funds checks required of professionals in any significant transaction. A broker must carry them out for both parties before signature.

LOA (length overall)

The total length of the yacht from the tip of the bow to the tip of the stern, appendages included. It is the length that determines berthing and most regulatory thresholds. Listings sometimes quote hull length, which is slightly shorter.

MOA (Memorandum of Agreement)

The sale contract for a yacht. The most widely used form in the Mediterranean is the MYBA one. It sets the price, the deposit (generally 10%, held in escrow), the conditions (sea trial, survey), the timetable and the terms of closing. See yacht purchase and yacht sale.

MYBA

The Mediterranean Yacht Brokers Association, now The Worldwide Yachting Association: the professional body of yacht brokers. Its standard contracts, the MOA for sales and the Charter Agreement for charters, serve as the reference across the Mediterranean.

Flag state

The state in which a yacht is registered and whose flag she flies. The flag sets the safety, crewing and certification rules that apply to the vessel. On its own, it does not determine the owner's tax position. See flag, registration and tax.

Port of registry

The port entered on the registry and painted on the yacht's transom beneath her name: George Town, Valletta, London, Ajaccio. It indicates the registry, not where the yacht actually cruises.

Protocol of Delivery and Acceptance

A document signed at closing by seller and buyer recording the handover of the yacht, with the date, time and place of delivery. It fixes the precise moment at which risk passes and serves as evidence, for instance for a delivery outside territorial waters.

Refit

A programme of major works carried out on a yacht in a shipyard: paint, machinery, electronics, interiors, compliance upgrades. A refit is planned months ahead, with a precise specification and on-site supervision. See management and refit.

Superyacht

There is no official definition. Usage reserves the term for yachts over 24 m, the regulatory threshold above which many rules change, and market statistics generally use 24 m or 30 m. See the market in figures.

VAT paid

The status of a yacht on which VAT has been paid in the European Union and for which proof can be produced. A VAT-paid yacht can cruise freely in EU waters and be resold to a European buyer without further VAT. The evidence forms part of the sale file.

Commercial yacht, private yacht

A private yacht is used only by her owner and guests. A commercial yacht is registered to be operated, notably for charter: she meets stricter safety and crewing rules and falls under a specific VAT regime. The status is chosen before purchase, according to the intended use.