Vessel Sale Services
We can oversee the entire vessel sale process, from A to Z, or only handle parts of the process that you choose.
Reduced Risk
Reliable techniques to help protect your interests.
Low Fixed Fees
Transparent pricing with fixed fees for most sales.
Global Reach
Worldwide capabilities with local support when needed.
What we offer
Closing Your Commercial Vessel Sale
Here’s some of what we do in each stage of the vessel sale process.
Stage 1 Services:
Assess Needs and Conduct Vessel Search
Find vessels that meet your needs and budget through reputable sale & purchase (S&P) brokers, online platforms and specialized publications
- Introduce you (if needed) to reputable vessel sale and purchase brokers
- Check for conflicts of interests
- Guide brokers on possible impediments to a sale and offer solutions
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If you haven’t already identified a vessel to buy, we can introduce you to well-established and reputable vessel sale and purchase (S&P) brokers to help you find the right vessel. Brokers are a key part of the process, and we work hand-in-hand with them. Good ones should know the current state of the market and can assess market values to help you avoid overpaying. There are also bad brokers with conflicts of interest that you should avoid. We oversee the efforts of brokers and provide guidance when needed. Brokers don’t get paid if a sale doesn’t close so they usually welcome our work to remove potential sale closing obstacles.
Stage 2 Services:
Conduct Preliminary Due Diligence
After you select a vessel you’re interested in buying, we’ll assess whether you could actually use it for your needs (for example, regulatory restrictions could prevent you from buying it) and identify possible obstacles to closing the sale (such as unpaid maritime liens). Here’s some of what we do during this verification stage:
- Assess whether title to the vessel is clean
- Determine if there are recorded liens against the vessel
- Assess any regulatory issues that may impact the sale, including laws preventing certain citizens from owning a particular vessel and preventing certain vessels from being re-flagged in a foreign registry.
- Check vessel ownership and registration history for red flags (including whether the vessel or its owner is on international sanctions blacklists)
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A nightmare scenario for a vessel buyer is to purchase a vessel only to later discover major problems that cost a fortune to fix or prevent it from being used as the buyer intended. To help avoid this, we’ll look for red flags in the vessel’s ownership history and registration status, verify whether title to the vessel is clean, and check whether it has recorded liens or encumbrances that must be removed before closing. We’ll also determine if the buyer is restricted from purchasing the vessel (such as citizenship restrictions) and assess workarounds for such restrictions. Sanctions blacklists and vessel export restrictions will also be checked. Don’t buy before you verify!
Stage 3 Services:
Negotiate Sale Terms and Deposit
Negotiate and draft the purchase agreement, deposit escrow agreement and other closing documents, including protective terms.
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- Negotiate sale terms
- Draft the contract of sale
- Draft the escrow agreement
- Assess applicable international standards
The core service we offer is to help you negotiate sale terms and draft the purchase agreement and related sale documents such as an escrow agreement for holding a deposit. These documents cover key deal points such as price, payment terms and vessel delivery conditions, but also include covenants, representations and warranties clauses to protect your interests. Our sale contracts are designed to be thorough and clear, minimizing the potential for disputes and safeguarding your interests. Our escrow agreements detail how funds are to be held and released – a critical step that protects both buyer and seller.
Maritime law is a specialized field with unique terminology and nuances from centuries-old customary practices that are generally not known by non-maritime lawyers. Negotiating and drafting maritime-related contracts should only be performed by a maritime attorney with commercial transaction experience. Because the maritime industry is global, we advise clients on applicable international standards such as the International Tonnage Convention. However insight into local and flag-state regulations is often needed. In these situations, we draw upon our worldwide network for assistance with specific local of flag-state requirements.
Stage 4: Inspect the Vessel
Conduct a full evaluation of the vessel’s condition to ensure it meets your standards and regulatory requirements. This should be done with the assistance of a qualified marine surveyor, a mechanic with expertise in the vessel’s particular engine and possibly a naval architect and other technical experts.
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- Introduce you (if necessary) to qualified inspection experts (marine surveyors, mechanics, etc.)
- Check for conflicts of interest
- Assess inspection/valuation reports
One of the most important things you should do when buying a vessel is select qualified technical experts to help you evaluate vessels to buy. We regularly work with highly qualified experts and can introduce you to them. Whether you need a marine surveyor, engine specialist, naval architect, or other technical specialist, we’ll guide you in selecting them and we’ll oversee their work. If you already have experts in mind to help you assess a vessel during your pre-purchase inspection, we can help you assess whether they are properly qualified and are looking out for your best interests.
Introduce you (if necessary) to qualified inspection experts (marine surveyors, mechanics, etc.)
- Check for conflicts of interest
- Assess inspection/valuation reports
Stage 5: Fund the Purchase
If not self funding the purchase, secure a loan from a marine financier, which could be a traditional bank or sources of private equity. Some vessel owners may also be willing to owner-finance part of the purchase, with deferred payment secured by a mortgage on the vessel.
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- Introduce (if needed) buyers to marine financiers
- Draft and/or review financing documents (vessel mortgages, promissory notes, etc.)
- We also offer nonstandard financing
Structure non-standard financing such as through bareboat charters with an option to purchase. Some buyers self-fund while others finance their vessel purchase. If financing is needed, we can introduce you to financiers such as banks and private investors who are willing to fund vessel purchases (which most lenders won’t do). We draft or review financing documents and also structure solutions for when a seller is willing to finance part of the sale. This could be done through a loan secured by a vessel mortgage or the use of a bareboat charter with an option to purchase (essentially the maritime equivalent of “lease-to-own” real estate financing).
Stage 6: Form Holding Company (Optional)
We can form a special purpose company (a holding company) that is separate from the operating company, to hold title to the vessel, for asset protection benefits. We also form offshore trusts combined with a holding company for virtually judgment-proof asset protection.
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Coming soon …
Stage 7: Prepare Closing Documents and Close the Sale
Execute the sale documents, exchange funds, transfer possession of the vessel.
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- Hold security deposits in escrow
- Prepare closing documents including the bill of sale
- Confirm that maritime liens have been paid
- And more!
Typically, if we prepare the sale documents, we also hold deposits in escrow and coordinate everything needed to close the sale. This includes signing and exchanging closing documents (in compliance with applicable flag-state requirements), releasing escrowed funds to the seller and transferring physical possession and control of the vessel to the buyer after a Protocol of Delivery and Acceptance is executed by the parties.
Stage 8: Register the Vessel
Transfer the vessel’s registration, which may involve re-flagging the vessel.
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- Assist buyers in selecting a vessel registry and, if applicable, a classification society
- Obtain technical and other information needed to re-register and re-class a vessel
- Prepare and submit applications and supporting documents
- Coordinate registry and class inspections of the vessel
- Assess vessel inspection reports
- Guide owners in satisfying the requirements of the registry and classification society (including mandated repairs)
Buyers often need assistance in re-registering a newly purchased vessel and possibly changing the vessel’s flag. We facilitate the transfer of ownership and registration changes. We encourage buyers, well in advance of the closing, to pre-clear registration changes with the registry they choose to avoid expensive surprises and minimize delays. Registries have many requirements that usually require a lot of back-and-forth exchanges between our team and the registry to meet those requirements. Registries and classification societies will typically require the owner to make repairs/upgrades to the vessel following their inspection and we oversee this process to help ensure that such requirements are satisfied.
Stage 9: Export / Deliver the Vessel
Comply with laws that control when a vessel may sail to a foreign port, negotiate with Coast Guard personnel to allow the vessel to sail, and obtain a Customs Clearance to sail the vessel to a foreign destination. Once cleared to sail, either sail the vessel with the new owner’s crew or hire a competent delivery crew to do so.
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- Advise owners on compliance with regulations to sail to a foreign destination
- Negotiate with the Coast Guard and other authorities to remove obstacles to sail foreign waters
- Work with customs officials to obtain clearances to depart port
- Introduce owners, if necessary, to delivery crew services
- Draft vessel delivery contracts
New vessel owners sometimes find it difficult to obtain required approvals for their vessel to clear out of one country and sail to another. These authorities frequently encounter owners (usually with sub-standard vessels) who try to conceal problems and skirt regulations. Such authorities are always on alert to stop such efforts and often take a hard, unyielding stance when dealing directly with certain owners. As a result, such owners are sometimes required to do things like make costly and time-consuming repairs. But we find that when our team gets involved, these previously hardline authorities are more cooperative and are open to considering sensible, practical and cost-effective alternatives. After authorities allow a vessel to sail, sometimes owners must hire a delivery crew to sail the vessel to the buyer’s chosen destination. We can introduce owners to competent delivery crews if needed.
Other Services - Asset Protection
* Form a special purpose company (holding company) that is separate from the operating company, to hold title to the vessel
* Form offshore trusts combined with a holding company for virtually judgment-proof asset protection
Other Commercial Maritime Services
* Charter Agreements (Charter Parties)
* Vessel Management Agreements
* Towing Agreements
* Manning Agreements and Crew Contracts
* Any other type of maritime-related contract
Third-Party Support Services
* Vessel Surveyors and Valuation Experts
* Naval Architects
* Specialized Mechanics
* Manning Agencies
* Sale and Purchase Brokers
* Vessel Delivery Services
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Contact Us
Call us, email us, or schedule a free 15-minute evaluation of your sale
Learning Center
Learn more about the full process of commercial vessel sales, from finding a vessel to its delivery to the new owner.
![Lessons Learned Never finalize a vessel purchase without a clear understanding of the costs to make it operational. Repair costs can significantly impact the overall investment. [Learn More] Background A client, intent on quickly purchasing a tugboat, was prepared to proceed without obtaining cost estimates for necessary repairs. The tugboat had been out of service for years, and while the purchase price seemed reasonable, the cost of making it operational was unknown. The Challenge Proceeding without a clear understanding of repair costs risked turning what seemed like a good deal into a financial quagmire. Action Taken We insisted that the client obtain detailed repair estimates before finalizing the purchase, highlighting the financial risks of proceeding blindly. Outcome The repair estimates revealed that the costs to make the tug operational were nearly as high as the purchase price itself, leading the client to reconsider the purchase. Conclusion The client's decision to seek detailed repair estimates averted a potentially ruinous investment, underscoring the importance of thorough financial planning in vessel acquisition.](https://vesselsales.law/wp-content/uploads/2024/02/P0P9WD-scaled.jpg)
