Sale And Purchase Of Ship Agreement

After the MoA is signed, a 10% down payment or other agreed percentage of the purchase price of the vessel will be deposited into a fiduciary account within three days of the agreed date. If the surety is not paid, the seller has the right to terminate the contract and is entitled to demand reimbursement of losses and interest incurred under NSF 2012. It is common practice to pay a down payment by the buyer worth 10% of the purchase price. The 2012 NSF grants the purchaser three days of banking to make such a payment to a third party holder after signing and confirming that the deposit holder has opened the corresponding account. All things in the same way, the deposit will finally be transferred to the seller when the ship is delivered. It is an important document that legally records the sale between the parties, usually in legal or official form, dictated by the flag state. In accordance with the 2012 NSF, it should be in a demonstrable form in the state of the buyer`s designated flag, with the vessel`s title transferred and indicated that the vessel is exempt from all mortgages, charges and maritime pawns. It should also be certified notarized, legalized orposted (if necessary). Parties should save sufficient time to complete this process and consider costs. The negotiation phase and the contract phase are the first two stages of the sale of a ship. They are usually carried out by brokers, who are ordered by both the buyer and the seller.

Initially, the buyer`s broker will exchange telex with the seller`s brokers to make an invitation to make an offer. The main concerns of both parties at this stage are the pricing, details of the vessel and the purpose of the transaction. Ships are one of the largest and most expensive mobile structures in man. The sale and purchase process reflects this fact; there is a particular need for commercial precision. The terms of the sale are based on the moA agreed as soon as it is signed. Since NSF is the most common form in ship sales and purchase practices, the next steps must be noted in accordance with the 2012 NSF conditions. Potential buyers usually turn to a ship broker (S-P) to find a ship to meet their needs. Similarly, a seller may appoint a broker for the transaction or promote the ship in the market and decide not to depend on an exclusive broker. In addition, the parties may decide to complete the entire transaction themselves. The sale and purchase of ships is one of the most complex procedures in the shipping industry – much more complicated compared to a new shipbuilding contract, for example. The S-P contract includes different types of expertise and strong negotiating capabilities. In addition, due to the legal effect of marine rights on the used vessel, the purchaser should check the history and all court letters in order to reduce any future losses of the purchased vessel.

As far as the complex issues of this market are concerned, a professional ship broker plays an important role in the transaction. To complete the transaction, the MOA defines certain necessary procedures. Certain documents are required, containing the final note, the minutes of the seller`s directors` and shareholders` meeting, a reputable certificate, a power of attorney, the sales invoice, the class, all consents or licenses required by the government authority, a certificate from the Registrar of the Ship Registry authorizing the sale.