CPS QuickCheck

Found the yacht? Check the deal before you commit.

An attractive listing, an experienced broker and an established MYBA contract can give the impression that the purchase process is largely standardised and therefore legally well-regulated.

This is precisely where, from the buyer’s perspective, the crucial scrutiny begins.

After all, buying a yacht is not the same as purchasing a standardised commodity. The yacht itself, its condition, history, ownership structure, VAT status, registration, intended use, survey results and the financial interests of the parties involved vary from deal to deal. That is why even an internationally recognised model contract can only be convincing if its specific terms are tailored precisely to this particular transaction.

The CPS Listing QuickCheck comes into play before any binding commitment is made. We examine not only individual clauses, but the structure of the proposed deal: Is the contractual logic transparent? Does the allocation of risk suit the buyer? Are the survey, warranty and acceptance sensibly interlinked? Is the choice of law appropriate? Are the VAT and ownership statuses sound? How do the deposit, stakeholder arrangements and completion work? And what are the consequences if the transaction does not proceed as planned?

“Industry Standard” is no substitute for independent testing

In the international yacht market, the transaction process is often organised largely by brokers. They bring the parties together, coordinate negotiations, provide draft contracts and oversee the deal right through to closing.

That is their role.

However, the broker also has a financial interest in the successful completion of the deal. Their role must therefore not be confused with that of an independent oversight function from the buyer’s perspective.

This overlap in roles becomes particularly apparent where, within the framework of the contractual structure, a broker is additionally appointed as a stakeholder for substantial sums of the buyer’s money. Terms such as ‘stakeholder account’, ‘client account’ or ‘escrow account’ do not, in themselves, reveal anything about the actual level of legal protection that exists.

What is decisive is not the name of an account, but its specific legal structure.

An account managed by a broker does not, by virtue of its name alone, become a solicitor’s or notary’s escrow account, nor does it automatically constitute a neutral custodian protected against insolvency and creditor risks. This is precisely why payment and stakeholder structures must be included in the overall review of the transaction – not only once substantial sums have already been transferred.

The contract must fit the deal – not the other way round

The key question is therefore not:

“Is this a MYBA contract?”

But rather:

“Why is this particular contract, in this exact form, the right one for my purchase?”

This goes far beyond the deposit. It concerns the choice of law, the mechanics of the survey and acceptance, warranty and liability, ownership and any third-party rights, VAT and customs duties, registration, terms of payment, completion, and the planned ownership and usage structure.

A yacht is not an isolated purchase. It becomes part of the owner’s overall economic and legal structure. This is precisely why the transaction structure must fit within this overall framework. This also reflects the fundamental principle of our advisory approach: it is not just the vessel itself, but its place within the owner’s economic structure that is crucial.

Who can provide you with independent advice…

For us, that is the crucial test.

An independent buyer’s solicitor does not have to work towards ensuring that the deal goes ahead at all costs. They must be able to recommend amending a contractual clause, requesting additional evidence, opting for a different payment structure, renegotiating the purchase price or putting the transaction on hold for the time being.

And if the risks are unmanageable, they must also be able to say:

Under these conditions, you should not buy this yacht.

This is precisely the difference between acting as a transaction broker and acting as an independent representative.

What the CPS Listing QuickCheck should provide

Before the buyer makes their next binding decision, QuickCheck provides an initial, reliable answer to three questions:

Is the proposed contract and transaction structure suitable for my specific deal?

Which points need to be amended or clarified before signing, paying a deposit or completion?

And where are there risks that mean I should not simply follow the standard process?

In doing so, we examine the available contractual and transactional documents in context – in particular, the contractual structure and choice of law, risk allocation, survey and warranty, ownership and VAT status, as well as the payment and completion structure.

CPS Schließmann does not act as a yacht broker and does not receive any sales or completion commission.

We represent the interests of buyers and owners exclusively.

Don’t just inspect the yacht. Check the terms of the deal you’re buying it on.

First the concept. Then the yacht.