Who Keeps Your Money? Understanding MYBA vs. IYBA Yacht Contracts

The Yacht Law Podcast

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Yacht deposit disputes are heating up in an industry already feeling the pressure of tariff uncertainties. Michael Moore and Diane Byrne dive into the complex world of deposit recovery, exploring why more buyers are suddenly concerned about getting their money back when yacht deals fall through.

The conversation reveals a stark contrast between two industry-standard contracts: the Mediterranean Yacht Brokers Association (MYBA) and International Yacht Brokers Association (IYBA). While IYBA offers what Moore calls an "easy in, easy out" approach, allowing buyers to reclaim deposits relatively painlessly, the MYBA contract creates significant hurdles through ambiguous terminology like "operational integrity" – a phrase that has launched expensive legal battles, with no clear definition in maritime law.

Perhaps most eyebrow-raising is the standard practice of having selling brokers hold substantial deposits while maintaining a direct financial interest in the transaction's outcome. Unlike other industries that employ neutral third-party escrow agents, yacht brokers face inherent conflicts when disputes arise. As Moore warns: "You're sending a million dollars to someone that you've never met, that are in another country... and you're playing with fire if you don't really have an understanding of who's going to be holding these soft and substantial funds."

For anyone considering a yacht purchase, especially during uncertain economic times, understanding these contract nuances becomes essential protection. Whether dealing with a $200,000 boat or a $20-million superyacht, the fundamental principles remain the same: The devil truly is in the details, and those details can either safeguard or jeopardize your deposit when yacht dreams hit rough waters.

Have a yacht law question? Email it to [email protected] or [email protected] for your chance to have it answered on our podcast. All requests for confidentiality and/or anonymity are respected.
Hiring a lawyer is a big decision. Visit Moore & Company for the legal team's qualifications and experience. And, to learn the latest about superyacht launches, shipyards, designs, and destinations, visit Megayacht News.

Chapters

1. Who Keeps Your Money? Understanding MYBA vs. IYBA Yacht Contracts (00:00:00)

2. Tariff Concerns Affecting Yacht Buyers (00:01:24)

3. Money Matters: Rich People Problems (00:04:38)

4. Industry Standard Contracts: MEBA vs. EBA (00:06:57)

5. Easy In, Easy Out: Understanding Contract Terms (00:09:05)

6. Contract Interpretation and Operational Integrity (00:15:31)

7. Broker Conflicts and Deposit Handling (00:22:25)

8. Contract Negotiations and Closing Thoughts (00:27:20)