Ülken Yacht Law Experts are proud to have represented owners and shipyards in the construction of some of the world’s most prestigious superyachts. We are ready to provide you with legal support at every phase of the yacht building process and refit projects. There is no standard ‘form’ superyacht construction contract.

Some of the tmportant matters for build&refit process includes:

Specification clarity: ensuring that the specifications for the yacht are clear, complete, and unambiguous to avoid misunderstandings during the building process.

Delivery time frame: establishing a realistic delivery date for the completion of the yacht, taking into account factors such as design, material procurement, and construction time.

Payment terms: determining the payment schedule and conditions, including any progress payments, final payment, and retention.

Warranty and guarantees: defining the warranties and guarantees offered by the builder, including defects and malfunctions that may occur after delivery.

Performance and sea trials: setting out the requirements and procedures for sea trials, including testing of the yacht’s performance, systems, and equipment.

Intellectual property rights: clarifying ownership of any intellectual property rights arising from the design and construction of the yacht.

Confidentiality: ensuring the confidentiality of any sensitive information shared between the parties.

Termination clauses: outlining the conditions under which the contract may be terminated, including breach of contract and non-performance.

Limitation of liability: limiting the liability of the parties in case of damages or loss during the building process or after delivery.

Dispute resolution: determining the mechanism for resolving disputes, such as arbitration or mediation, to avoid costly and time-consuming court proceedings.

Owners go to a designer for their style, which is their signature. When we think for designers, it is very important to understand what rights they have in any designs and to surround their self with an experienced law experts to assist with the build process.

It is important to pay attention to many legal regulations regarding design.

Safety and compliance with maritime regulations: Yachts must comply with safety regulations set by international and national authorities, such as the International Maritime Organization (IMO) and the U.S. Coast Guard. This includes regulations related to construction, stability, and fire protection, as well as regulations related to crew and passenger safety.

Intellectual property rights: Yacht designers must ensure that they are not infringing on any existing patents, trademarks, or copyrights when creating a new yacht design. This includes protecting their own designs by registering patents or trademarks.

Contractual agreements: Yacht designers and builders should have clear and comprehensive agreements in place to protect their rights and interests. This includes agreements related to the design, construction, and delivery of the yacht, as well as agreements related to warranties, maintenance, and operation.

Environmental regulations: Yacht design must comply with environmental regulations and standards, such as the International Convention for the Prevention of Pollution from Ships (MARPOL) and the Ballast Water Management Convention (BWMC). This includes regulations related to emissions and discharge of pollutants, as well as regulations related to the disposal of waste and sewage.

Liabilities: Yacht designers and builders should be aware of potential liabilities that may arise from the design and construction of a yacht, such as product liability or negligence. They should have measures in place to minimize these risks, including insurance and indemnification agreements.

Classifications and certifications: Yachts must comply with the standards and regulations of classification societies such as American Bureau of Shipping (ABS), Bureau Veritas (BV) and Lloyd’s Register (LR) to ensure the safety and performance of the yacht.

Import/Export regulations: Yacht designers and builders should be aware of the laws and regulations related to the import and export of yachts, and comply with the regulations of different countries and regions.

Superyacht Management

Ülken Yacht Law Experts provides services from full commercial, administrative and technical services such as: crewing, arranging superyacht and crew insurance, general administration, accounts, technical and ISM/ ISPS services. A lot of legal issues should be taken into consideration when it comes to yacht management.

Compliance with maritime regulations: Yacht operations must comply with international and national maritime regulations, such as those set by the International Maritime Organization (IMO) and the U.S. Coast Guard. This includes regulations related to safety, navigation, and environmental protection.

Insurance and liability: Yacht operators must ensure that they have adequate insurance coverage in place to protect against potential liabilities, such as accidents or environmental incidents. They should also be aware of potential liabilities that may arise from the operation of the yacht, such as product liability or negligence.

Crew and employment laws: Yacht operators must comply with laws and regulations related to the employment of crew members, including those governed by the International Labour Organization (ILO) conventions. This includes laws related to working conditions, wages, and safety.

Customs, immigration and tax laws: Yacht operators should be aware of laws and regulations related to the movement of people and goods across borders, such as customs, immigration, and tax laws.

Chartering and leasing: Yacht operators should be aware of laws and regulations related to the chartering and leasing of yachts, including those related to taxes and registration.

Environmental regulations: Yacht operations must comply with environmental regulations and standards, such as the International Convention for the Prevention of Pollution from Ships (MARPOL) and the Ballast Water Management Convention (BWMC). This includes regulations related to emissions and discharge of pollutants, as well as regulations related to the disposal of waste and sewage.

Maritime security: Yacht operators should be aware of laws and regulations related to maritime security, such as the International Ship and Port Facility Security (ISPS) code, and take measures to ensure the safety and security of the yacht, crew and passengers.

Operators must carry on board the following: Maritime Labour Certificate, Declaration of Maritime Compliance, two copies of the most recent inspection, medical certificates for crew, employment contracts, records of hours of work and rest, complaints procedure.

It’s important to note that yacht insurance can be complex and it’s important to work with a specialist who can help you navigate the different options and tailor an insurance plan that meets your specific needs.

Coverage: Yacht owners should ensure that their insurance policy covers a wide range of potential risks, such as damage to the yacht, liability for accidents, and loss of use. They should also be aware of any exclusions or limits in the policy.

Yacht location and use: Yacht owners should inform their insurer of the location and intended use of the yacht, as this can impact the level and type of coverage required.

Compliance with maritime regulations: Yacht owners must ensure that their insurance policy complies with international and national maritime regulations, such as those set by the International Maritime Organization (IMO) and the U.S. Coast Guard. This includes regulations related to safety, navigation, and environmental protection.

Risk assessment: Yacht owners should assess the risks associated with their yacht, such as the type of yacht, the intended use, and the location of operation. This will help determine the appropriate coverage and limits needed for the yacht.

War and terrorism risks: Yacht owners should be aware of potential risks related to war and terrorism and ensure that their insurance policy covers these risks.

Policy terms and conditions: Yacht owners should carefully review the terms and conditions of their insurance policy, including the coverage limits, exclusions, and conditions for making a claim.

Certificate of insurance: It’s important for yacht owners to have a valid certificate of insurance that can be presented to authorities, marinas, and other parties as proof of coverage.

Certifications and classifications: Yacht owners should ensure that their insurance policy covers the certifications and classifications required by the yacht, such as those issued by American Bureau of Shipping (ABS), Bureau Veritas (BV) and Lloyd’s Register (LR).

Pollution and environmental risks: Yacht owners should be aware of potential risks related to pollution and environmental damage and ensure that their insurance policy covers these risks.

Insurance broker or underwriter: When obtaining yacht insurance, it’s important to work with an insurance law expert or underwriter who has experience and knowledge in marine insurance, and can provide expert advice and guidance.

Reviewing and updating the policy: It’s important for yacht owners to review and update their insurance policy on a regular basis, to ensure that it continues to meet their needs and provide adequate coverage.

There are many reasons that you can choose to use finance, including funding either the purchase price of a pre-owned superyacht, the refinancing of a superyacht you already own, the purchase price of a new build superyacht, the construction price of a new build superyacht or the cost of refit works.

Understand the market: Before entering into a yacht finance agreement, it is important to have a clear understanding of the current market conditions, including the demand for the type of yacht you are interested in purchasing, as well as the availability of financing options.

Research financing options: There are various financing options available for yacht purchases, such as traditional bank loans, marine mortgages, and private financing. It is important to research and compare the terms and conditions of different options to find the one that best suits your needs.

Get a pre-approval: Before making an offer on a yacht, it is a good idea to obtain pre-approval for financing. This will provide you with a clear idea of the maximum amount you can borrow, as well as the terms and conditions of the loan.

Consider the running costs: Yachts require a significant investment in terms of running costs, such as fuel, maintenance, and insurance. Make sure to factor in these costs into your budget before making a purchase.

Compliance with maritime regulations: Yacht finance agreements must comply with international and national maritime regulations, such as those set by the International Maritime Organization (IMO) and the U.S. Coast Guard. This includes regulations related to safety, navigation, and environmental protection.

Security interests: Yacht finance agreements typically involve the creation of security interests in the yacht, such as a mortgage or a pledge of the yacht as collateral. It is important to ensure that these security interests are properly recorded and registered in accordance with the laws of the jurisdiction in which the yacht is registered.

Insolvency and bankruptcy laws: Yacht finance agreements should take into account the potential impact of insolvency or bankruptcy laws on the lender’s rights and remedies. This includes laws related to the priority of claims in the event of a debtor’s insolvency or bankruptcy.

Choice of law and jurisdiction: Yacht finance agreements should specify the choice of law and jurisdiction that will govern the agreement and any disputes that may arise.

Registration and documentation: Yacht finance agreements must comply with the laws and regulations related to the registration and documentation of yachts, such as those related to the registration of mortgages and other security interests.

Tax implications: Yacht finance agreements should consider the tax implications for the lender and the borrower, such as the tax treatment of interest payments and the impact of any tax laws related to the sale or transfer of the yacht.

Maritime brokerage typically involves the buying and selling of ships, boats, and other vessels, such as yachts, commercial vessels, and oil rigs. This can include new builds as well as second-hand ships. A maritime broker acts as an intermediary between buyers and sellers, and facilitates the negotiation and closing of deals.

Legal services we provide in yacht brokerage includes:

• Advising yacht brokers on compliance with laws and regulations related to maritime safety, environmental protection, and registration
• Reviewing and drafting purchase and sale agreements, charter agreements, and other contracts related to yachts
• Conducting legal due diligence on the yacht, including title and encumbrance searches
• Assisting with the registration and documentation of the yacht
• Representing yacht brokers in disputes or legal proceedings related to the yacht, such as those arising from purchase or sale agreements or charter agreements
• Advising yacht brokers on compliance with laws and regulations related to the sale, purchase, and charter of yachts, such as sales and use taxes, consumer protection, and contract laws
• Coordinating with surveyors, and other experts to identify and mitigate potential risks
• Keeping accurate records and financial transactions

There are several disputes that can arise in the yachting sector, including disputes over ownership, breach of contract, and disputes between crew members and ship owners or operators. Additionally, there may be disputes related to the operation and maintenance of the yacht, such as issues with the propulsion system or other equipment. Environmental disputes may also arise, such as disputes over the discharge of pollutants or the impact of yachts on marine ecosystems. Finally, disputes may also arise in the context of yacht racing, such as disputes over rules and regulations or issues related to the safety of the race.

In the yacht industry, legal services related to disputes can include:

• Disputes over the purchase or sale of superyachts
• Disputes over maritime contracts, such as charters, shipbuilding agreements, and management agreements
• Representation in maritime personal injury or property damage cases
• Disputes over maritime liens and claims
• Representation in admiralty and maritime arbitration or mediation proceedings
• Disputes over superyacht design, construction, and maintenance
• Disputes over superyacht ownership and title
• Disputes over the registration and documentation of superyachts
• Disputes over the financing, insurance, and taxation of superyachts
• Disputes over the crew and employment matters on superyachts