The importance of using a super yacht broker to purchase a mega yacht by Titan Broker

CANNES, France - Sept. 22, 2016 - PRLog -- From the survey to the yacht registration or the valuation at the correct asking price, it can be a complicated process with prices rising into the millions. For these reasons, alone Titan Broker advises enlisting the expertise of a superyacht broker, ideally consider a broker that offers many amenities under one roof, such as, management and charter. These are a few of the services we provide, therefore this enables us to look after many of our client's requirements. When choosing a yacht broker look at the quality of the boats they are selling and have under management, this will tell you a lot about the company, a good broker will have a large network and a deep foundation in the industry. They will pride themselves on providing exceptional customer service and building long-term customer relationships that span for years. At Titan Broker, we can assist clients in all stages of purchase and sale, either in-house or through our comprehensive network.

If you are contemplating joining the elite lifestyle of a superyacht owner, this guide will assist you in the procedure of buying and selling.

If you are buying

The main things a broker will do, access your purchase needs, including budget design and numerous other details. When the specification has been established your broker will consort their network and propose yachts both on and off the market that are in line with your requirements.  It is their job to help you make well-informed decisions and negotiate a fair purchase price.

Agreed sale

Once the price has been agreed, if you are buying a brokerage yacht, it is recommended to commence with a survey and sea trials, at this point, you will be able to place a 10 % deposit which should be held in the escrow account of your broker. Normally a Memorandum of Agreement will be drawn up, under this contract you should have time to conduct a survey and to arrange any finance. If the surveyor finds a reason not to purchase or you cannot place the finance in time, your deposit should be returned. The MOA will be signed by both buyer and seller, it should detail both parties' rights, and furthermore, all equipment on the yacht included in the sale must be listed, such as interior items, navigation, tenders, and toys.  The MOA must include that the vessel's legal title is debt free.  It is the broker's job to ensure all the above is correct.

Upon completion of the sale, there are a few other crucial points to consider before you take delivery of your yacht such as registration, insurance, mooring and the crew.

Yacht registration

Yacht registration is a legal obligation and a highly important decision for tax and the jurisdiction the ship will fall under, all yachts must be registered to a specific country, and the vessel must show the flag of the state it is registered to. Many common flag states offer simple procedures to set up offshore structures that propose good liability protection, in a secure fiscal system with low taxation. Owners who wish to charter their boat in the EU should consider countries which have a better and more favorable tax structure, confidentiality and protection laws. Those who use their yacht solely for private use may  consider registration in their home country  or the UK Commonwealth countries, such as Bermuda , the BVI's, Cayman Islands, Isle of Man, Gibraltar, Jersey and Guernsey, some of these states offer low duty, plus good liability and privacy regimes. The red ensign is typically the flag of these regions, it is recognized as an indication of high safety standards and prestige.

Delivery

Prior to taking delivery, it is vital to verify the legalities relating to the title are checked and presented before payment is made. If this is not the case the yacht will not be able to be registered or to lawfully leave the port. The place of delivery must also be agreed, as different locations can mean different tax repercussions.

Insurance

In any high-value purchase and where there are staff living and working on the vessel, a good insurance policy is of the utmost importance, to protect against any liability issues or damage.  It is imperative to make sure you have the correct cover. There are a few yacht insurance companies which have developed a bespoke superyacht policy, these types of comprehensive policies are tailored specifically to the yacht. Check where the policy is underwritten, some countries are not strict in the regulation of their finances, this could mean an unexpected liquidation of the company.

Mooring

Choosing a mooring location is no easy task, especially in the summer season. 60-70 % of the world's super yachts are based in the Mediterranean, this means berthing space can be limited and in the high season costs can soar well over 3,000 euros a night for a 50 meter. Purchasing a mooring can be beneficial, but each country has its own tax implications and each marina has different charges, we recommended to check these points prior to purchase.

The Crew

If you have brought a brokerage vessel, it is worthwhile to keep the existing crew on board, they will have a good familiarity of the boat, be correctly trained and be an excellent source of information, regarding the cruising locations. We advise to include the crew within the acquisition of your yacht.

Please see enclosed link for further details on superyachts, that Titan Broker have for sale http://titanbroker.com/brokerage/ .