Maritime law is one of the key areas of our practice. We are experiencing developments in the manner in which we interact with our clients who are in the process of purchasing yachts. The construction of a yacht, particularly of custom- built yachts is a long process, usually spanning a number of months. Between the early stages of ordering the yacht and completion, the role of the legal advisor is ongoing. Like the yacht, the legal advice has to be custom-adjusted to many factors. The relationship with the client transcends the purely legal and the lawyer shares the enthusiasm of the client over those months. The legal advisor also establishes a relationship with the yacht-builder and helps in the smoothness of the process.


The input of the lawyer is essential in the preliminary stages. It commences with the negotiation of the contract with the yacht-builder. This involves not just putting in place the legal framework but also the working out of the details and specifications to suit the client, taking into account technical difficulties which the yacht-builder may encounter in providing the client’s requirements.. The lawyer is here required to be aware of technical issues and is expected to liaise with the technical professionals. The negotiation and finalization of the contract takes into account a precise definition of what the owner requires and the commitment of the builder to provide such items. It is vital to control substantial variations that may creep in throughout the building process, variations which push up the final cost to the client and in may cases create a delay in delivery. At the same time room needs to be allowed for any change in the owner’s wishes which will need to be incorporated into the relevant addenda to the main contract.


The legal advisor is constantly engaged with evaluating the fiscal structure for registration of the yacht, flag of origin and for the best insurance-cover. We have also helped clients with the financing of the yacht and its attendant matters of interest, repayments and mortgage.


We find that the legal advisor is being increasingly required to assess and help with technical, financial and accounting aspects of the transaction. He discusses and agrees on the payment schedule which is tied to the various stages of completion of the yacht. We interact with the designers of the yacht to establish prices and deadlines and assess design and materials against the latest international standards. Design takes into account the place where the yacht is to be kept as well as standards relating to the requirements of the yacht’s flag. Construction standards are discussed with professional surveyors as the project moves through the production phase. Additionally, standards relating to safety are today very topical and they determine the nature of the finished yacht.

Please contact Dr. Adrian Muscat Azzopardi for more information.

adrianma@ma-advocates.com