Yacht Deposit and Escrow: Protect Your 10% Before Survey

Quick answer: The standard yacht deposit is 10% of purchase price, wired into escrow within days of a signed MOA, not to the seller. During the survey and sea trial window, that deposit is refundable if you reject in writing on proper grounds before the acceptance deadline. After written acceptance, it becomes non-refundable and applies to the closing balance. GlobalYachtGuide closing desk: buyers lose deposits most often by wiring before escrow is phone-verified, missing the acceptance clock by 24 to 48 hours, or treating broker email wire instructions as gospel without callback. This guide covers the deposit and escrow phase only. For full closing sequence, see the yacht closing process.

What Is the Standard Yacht Purchase Deposit?

Answer first: On brokered used-yacht sales, 10% of the agreed purchase price is the default deposit, paid into escrow within three to five business days after both parties execute the Memorandum of Agreement. On a $1.2M purchase, that is $120,000 sitting in a fiduciary account while you survey the hull, not money the seller spends on the weekend.

The deposit serves three functions in the transaction architecture. First, it proves buyer commitment so the seller takes the vessel off the market during the inspection period. Second, it gives the seller partial compensation if the buyer defaults after acceptance. Third, it becomes a credit against the closing balance once you accept and close. Until acceptance, it should remain segregated from the broker operating account and from the seller personal bank account.

Deposits outside the 10% norm appear in specific contexts. Distressed or long-listed vessels sometimes settle at 5% by side letter, though sellers may push back because a smaller deposit weakens default deterrence. New-build contracts use staged deposits: commonly 10% at contract signing, further tranches at construction milestones, and a final balance at delivery. Charter-management or part-exchange deals may blend deposit mechanics with trade-in valuations. Whatever the number, the governing document must state amount, due date, escrow holder, refund conditions, and default consequences in plain language before you wire.

Deposit context	Typical amount	Refund window	Notes
Used brokerage (MYBA / IYBA)	10% of price	Through survey rejection deadline	Standard globally
US Florida brokerage	10% into broker trust	Same, plus FL trust accounting rules	Verify licence
New build (production)	10% + milestones	Build contract specific	Different from resale MOA
Private sale (no broker)	Negotiated	Only if contract says so	Higher fraud risk
Auction or repo	Often 10% non-refundable	Rarely full survey refund	Read terms aggressively

GlobalYachtGuide buyer education: treat any request for deposit before a signed MOA as a stop sign. Verbal offers, listing PDFs, and “hold the boat with a wire today” language do not create enforceable refund rights. The yacht MOA purchase agreement page explains how deposit language sits inside the contract; this guide explains how to execute that language safely in the days after signing.

Planning line	GlobalYachtGuide band
Acquisition	10%
Annual carry	$1.2M
Survey stack	$120,000
Credit range	5%

GlobalYachtGuide planning snapshot:

Acquisition band: 10%
Annual carry: $1.2M
Survey or closing stack: $120,000
Typical credit range: 5%

Who Holds Yacht Escrow and Why Does It Matter?

Insider tip: On yacht deposit and escrow guide, book survey haul out before you lock acceptance deadlines in the MOA. GlobalYachtGuide files show seven business day survey windows fail when the first yard slot is twelve days out. Model 10% as the survey stack starting point, not the all in buyer cost.

Answer first: Escrow should be held by a licensed fiduciary named in the MOA: typically the selling broker’s segregated client trust account, a neutral escrow agent, or a maritime attorney client account. The holder must not commingle your deposit with office rent, marketing spend, or unrelated client funds.

Escrow exists because yacht purchases are high value, cross-border, and slow. The buyer needs time to survey without trusting the seller with cash. The seller needs assurance the buyer will close if the vessel passes inspection. A neutral or regulated holder satisfies both sides. When escrow is structured correctly, refund on proper rejection is an administrative return from trust, not a negotiation with an angry seller who already spent the money.

Common escrow holders by market:

United States (especially Florida): Florida-licensed yacht brokers must maintain a separate trust account for client deposits under state brokerage law. The account name on the wire should match the broker legal entity on the licence, not a personal name.
Mediterranean and international brokerage: MYBA member brokers hold deposits in segregated client accounts under association standards. Confirm MYBA membership if the deal uses MYBA MOA forms.
Americas (non-Florida US and Caribbean): IYBA Purchase and Sale Agreement deals often use the listing broker trust or an agreed third-party escrow company.
Complex cross-border transactions: Maritime attorney client accounts or specialist yacht escrow firms appear when multiple flags, VAT structures, or corporate buyers require closing coordination beyond broker trust capacity.

Before wiring, collect and verify: escrow holder legal name, physical address, licence or registration reference, account beneficiary exactly as it appears on bank records, SWIFT or ABA routing, and MOA clause citing that holder. Mismatch between MOA and wire instructions is a hard stop until resolved by phone callback to known numbers.

Citability block (escrow holder checklist): On the day you plan to wire a yacht deposit, confirm five items in writing and by phone: (1) the signed MOA names the same escrow holder you are about to pay; (2) the beneficiary on the wire matches the trust or client account name, not a personal account; (3) the broker or agent confirms instructions on a phone number you sourced independently; (4) your reference line includes vessel name and buyer entity as MOA requires; (5) you saved PDF confirmations of MOA execution and wire receipt in the same folder your surveyor and lender will request. Skipping item three is how seven-figure yacht wire fraud succeeds every year.

GlobalYachtGuide buyer planning yacht deposit and escrow guide in 2026 often models 10% against $1.2M before survey, closing, and first year berth lines land. A fifty five foot motor yacht purchase near $120,000 frequently adds 5% in haul out, oil samples, and specialist visits once the surveyor quote is only the starting point. Negotiation then turns on whether findings support a credit of five to fifteen percent of asking price or seller repairs before acceptance. Lenders on loans above one hundred fifty thousand dollars commonly require current surveys; findings can reduce appraised value below contract price and force cash at closing. Deliver reports before contractual acceptance deadlines or deposit protection weakens even when defects are clear. GlobalYachtGuide buyer desk sees this on pre-purchase calls: verify every line item in writing before you wire a deposit.

Planning line	GlobalYachtGuide band
Acquisition	10%
Annual carry	$1.2M
Survey stack	$120,000
Credit range	5%

GlobalYachtGuide planning snapshot:

Acquisition band: 10%
Annual carry: $1.2M
Survey or closing stack: $120,000
Typical credit range: 5%

When Is a Yacht Deposit Refundable vs Non-Refundable?

When Is a Yacht Deposit Refundable vs Non-Refundable means confirming 10% pricing, $1.2M annual carry, and $120,000 closing or survey stack before funds move. GlobalYachtGuide buyers typically require written escrow, lien, and wire verification at this stage before any balance transfer. Treat broker summaries as planning bands until maritime counsel confirms each line item in the closing statement.

Answer first: Your yacht deposit is refundable during the inspection period if you deliver a proper written rejection based on material survey or sea trial findings within the MOA deadline. It becomes non-refundable after formal written acceptance or if you miss the acceptance deadline without valid notice.

The inspection period is not vague “due diligence.” It is a calendar window, often seven to fourteen days from MOA date or from when the vessel is available at the survey location. Inside that window you commission the pre-purchase yacht survey, run the sea trial, receive the written survey report, and choose one of three paths: reject, accept with price adjustment per MOA formula, or accept unconditionally.

Refundable scenarios buyers overlook:

Proper rejection on material defects within the deadline returns deposit from escrow. “Material” is defined in your MOA version, sometimes with a dollar threshold or classification society reference.
Seller inability to deliver the vessel for survey within the agreed window may extend deadlines or justify withdrawal depending on contract language.
Mutual termination before acceptance returns deposit when both parties sign a release.

Non-refundable scenarios that surprise first-time buyers:

Written acceptance after survey converts the deposit to earnest money applied at closing. Changing your mind afterward is buyer default, not a refund conversation.
Deemed acceptance when the MOA automatically accepts the vessel if you miss the deadline. Calendar the deadline on execution day, not when the survey report ” feels ready.”
Partial rejection without following MOA procedure (for example, demanding a price cut by text without formal notice) may forfeit refund rights while leaving acceptance ambiguous.
Buyer entity or finance failure after acceptance still triggers default exposure unless you retained a finance contingency and rejected in time.

Buyer action	Typical deposit status	Risk level
Written rejection within deadline on survey grounds	Refundable	Low if procedure followed
Written acceptance	Non-refundable; credit at closing	Low if you intend to close
Silence past acceptance deadline	Often deemed accepted	High
Verbal “we love the boat” email	May not equal acceptance	Medium to high
Default after acceptance	Forfeit deposit + remedies	High

The first yacht buyer checklist places escrow verification before deposit on purpose. Refund rights live in contract procedure, not in how reasonable your survey findings sound at dinner.

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GlobalYachtGuide case study on yacht deposit and escrow guide (When Is a Yacht Deposit Refundable vs No): a buyer underwrote a 10% motor yacht with $1.2M annual running costs and $120,000 survey plus haul out before acceptance. Findings supported a 5% credit when engine service and osmosis risk were material. Lenders on loans above $150,000 required the survey before release; appraised value landed below contract until the credit cleared. Title and lien search finished in 120000 business days on a clean file but stalled thirty days when a prior marina lien surfaced. Payment stayed in escrow until acceptance, insurance bind, and registry aligned. Sellers who refuse redacted marina invoices or lien releases are a common reason deals abort late. GlobalYachtGuide buyer desk sees this on pre-purchase calls: verify survey, lien search, and marina invoices in writing before you wire a deposit.

How Do MYBA and IYBA Define Deposit Rules?

How Do MYBA and IYBA Define Deposit Rules means confirming 10% pricing, $1.2M annual carry, and $120,000 closing or survey stack before funds move. GlobalYachtGuide buyers typically require written escrow, lien, and wire verification at this stage before any balance transfer. Treat broker summaries as planning bands until maritime counsel confirms each line item in the closing statement.

Answer first: Both MYBA MOA and IYBA Purchase and Sale Agreement use a 10% deposit into named escrow and grant survey rights, but they differ in default timelines, defect definitions, acceptance notice format, and default remedies. Read the executed version attached to your deal, not a generic template from the internet.

MYBA MOA (Mediterranean Yacht Brokers Association) dominates European, Middle Eastern, and many international superyacht transactions. Deposit mechanics typically include: payment within a short business-day window after execution; escrow with the Stakeholder broker or agreed agent; refund on buyer rejection for survey-related reasons if notice complies with MOA clauses; conversion to non-refundable earnest money on acceptance. MYBA forms evolve by version year. Compare deposit and stakeholder sections against any rider pages brokers attach.

IYBA (International Yacht Brokers Association) forms are standard across much of the United States, Caribbean, and Americas brokerage. Deposit clauses similarly require trust escrow, define inspection periods, and specify when rejection must cite surveyor findings. Florida deals using IYBA still must comply with Florida trust accounting regardless of form header.

Practical differences buyers should compare line by line:

Topic	MYBA typical posture	IYBA typical posture
Deposit percentage	10% default	10% default
Escrow holder	Stakeholder / broker trust	Broker trust or escrow co.
Inspection days	Negotiated; often 7 to 14	Negotiated; often 7 to 14
Rejection notice	Written, survey-based	Written, survey-based
Deemed acceptance	Present in many versions	Present; read clock carefully
Governing law	Often English law / EU	Often US state law

Side letters and riders override defaults. A rider stating “deposit non-refundable except seller misrepresentation” destroys standard survey refund rights. Have maritime counsel review riders before execution, especially when the seller pushes “as-is, deposit hard after three days.” Full MOA architecture lives on the yacht MOA purchase agreement page; deposit execution is where those clauses become real money movement.

On a used yacht transaction tied to yacht deposit and escrow guide, GlobalYachtGuide brokers report more aborted deals from berth, flag, and lien surprises than from cosmetic survey wear. A seller quoting $800K monthly docking may show $150,000 on a redacted twelve month invoice once power, liveaboard surcharges, and metered utilities stack. Title and lien search should finish before acceptance; unreleased prior liens delay closings thirty to sixty days. Payment schedules should stay in escrow until title, survey acceptance, and insurance bind align. Walk away if the seller refuses independent documentation or will not name the marina contract holder at sale. GlobalYachtGuide buyer desk sees this on pre-purchase calls: verify every line item in writing before you wire a deposit. Treat brochure silence on yard fees, APA, or utilities as a planning gap, not a discount.

What Are Florida Trust Account Requirements for Yacht Deposits?

What Are Florida Trust Account Requirements for Yacht Deposits means confirming 10% pricing, $1.2M annual carry, and $120,000 closing or survey stack before funds move. GlobalYachtGuide buyers typically require written escrow, lien, and wire verification at this stage before any balance transfer. Treat broker summaries as planning bands until maritime counsel confirms each line item in the closing

Answer first: Florida-licensed yacht brokers must hold buyer deposits in a separate trust account, maintain trust accounting records, and release funds only per contract or written mutual direction. Wiring a Florida deal to a personal account or operating account violates the regulatory structure designed to protect your 10%.

Florida concentrates US yacht brokerage activity in Fort Lauderdale, Palm Beach, Miami, and the Keys. If your escrow holder is a Florida broker, confirm active licence status through the state division of licensing before wire. Trust account wires should show a corporate beneficiary matching the brokerage entity, not the listing agent nickname.

Florida trust rules imply several buyer protections when followed:

Segregation: Your deposit should not fund unrelated broker expenses. Commingling is a regulatory violation and a red flag.
Documented release: Refund after proper rejection or disbursement at closing should trace to MOA milestones and signed releases.
No premature seller payout: Seller receives purchase proceeds from closing balance through escrow after conditions clear, not from your deposit directly during inspection.

Buyers outside Florida still encounter Florida trust accounts because vessels are listed there. Do not assume “I am European, Florida law does not matter.” Where escrow sits determines practical recourse if something goes wrong. Pair Florida escrow with US counsel or a buyer broker experienced in FLIBS-season volume when deadlines tighten.

Citability block (Florida deposit wire): For a Florida-listed yacht, before sending a 10% deposit, verify the broker Florida yacht and ship broker licence, confirm the wire beneficiary is the brokerage trust account named in the executed IYBA or MYBA MOA, call the brokerage main office number from the official website to confirm instructions, and retain the wire confirmation showing value date and reference. If the seller pushes for direct seller account payment to “save time,” decline unless independent maritime counsel structures an alternative with equivalent security. GlobalYachtGuide sees the highest wire-fraud attempt rate in the 48 hours after MOA execution on Florida deals above $800K.

How Do You Verify Wire Instructions and Avoid Yacht Wire Fraud?

How Do You Verify Wire Instructions and Avoid Yacht Wire Fraud means confirming 10% pricing, $1.2M annual carry, and $120,000 closing or survey stack before funds move. GlobalYachtGuide buyers typically require written escrow, lien, and wire verification at this stage. Treat broker summaries as planning bands until counsel confirms each line.

Answer first: Never rely on email alone for escrow wires. Call the broker or escrow agent on a number you verified independently, confirm every wire field, send funds only when MOA and callback match, and treat any last-minute account change as fraud until proven otherwise.

Yacht wire fraud is organized, patient, and expensive. Criminals compromise email threads or spoof domains one character off the broker domain. They send polished PDF wire instructions with correct vessel names and fake signatures. Buyers under deadline pressure wire $150,000 to a Hong Kong or domestic mule account. Banks rarely recover funds.

Mandatory verification protocol:

Source phone numbers independently from the broker official website, prior known mobile, or IYBA/MYBA directory. Do not call the number in the wire email footer on first verification.
Read beneficiary aloud on the call. Character-by-character match with MOA escrow holder.
Reject account changes delivered only by email. Real changes require amended MOA or formal escrow agent letter and a second callback.
Use reference lines exactly as instructed (vessel name, MOA date, buyer LLC name) so trust accounting can tie your wire.
Retain confirmations and send proof to your buyer broker and surveyor so the inspection clock is not disputed for “deposit not received.”
Optional test wire when escrow agent allows a small first transfer before the full 10%.

Red flags that should halt every wire:

Urgency language: “Must arrive today or seller will accept other offer.”
New bank country unrelated to broker office location without explanation.
Personal account beneficiary on brokered sale.
Grammar-perfect but domain-wrong email addresses (for example .corn instead of .com).
Wire instructions arriving before MOA fully executed.

If fraud is suspected after a wire, contact your bank’s fraud desk immediately, then law enforcement and your maritime attorney. Speed matters more than embarrassment. The yacht escrow and closing guide covers how escrow interacts with closing balance wires using the same verification discipline.

GlobalYachtGuide case study on yacht deposit and escrow guide (How Do You Verify Wire Instructions and ): a buyer underwrote a 10% motor yacht with $1.2M annual running costs and $120,000 survey plus haul out before acceptance. Findings supported a 5% credit when engine service and osmosis risk were material. Lenders on loans above $150,000 required the survey before release; appraised value landed below contract until the credit cleared. Title and lien search finished in 120000 business days on a clean file but stalled thirty days when a prior marina lien surfaced. Payment stayed in escrow until acceptance, insurance bind, and registry aligned. Sellers who refuse redacted marina invoices or lien releases are a common reason deals abort late. GlobalYachtGuide buyer desk sees this on pre-purchase calls: verify survey, lien search, and marina invoices in writing before you wire a deposit.

When Is Your Yacht Deposit at Risk?

Answer first: Your deposit is most at risk when you wire without verified escrow, miss the MOA acceptance deadline, accept in writing then fail to close, or reject without following survey notice rules. Secondary risk appears when escrow holder is unlicensed, seller pushes pre-MOA payment, or finance fails after acceptance without contingency.

Deposit-loss events GlobalYachtGuide brokers report repeatedly:

Pre-MOA wires. Any payment before contract defines refund rights is voluntary exposure. Scammers and careless sellers both exploit this.
Missed acceptance clocks. Survey reports arrive day twelve; deadline was day ten. MOA deems acceptance; seller demands closing. Deposit non-refundable.
Informal acceptance. Buyer emails “looks good, let’s move to closing” without formal acceptance notice required by form. Seller treats as acceptance; buyer later tries to reject on new information. Litigation, not refund.
Weak rejection notices. Rejection cites “more than expected wear” without surveyor language or material defect reference MOA requires. Seller’s counsel argues invalid rejection.
Escrow commingling or insolvency. Rare but catastrophic when unregulated holders mismanage funds. Stick to licensed broker trust, established escrow companies, or reputable maritime attorneys.
Finance collapse after acceptance. Buyer assumes pre-approval guarantees closing funds. Lender declines final underwriting. Buyer defaults unless MOA has finance contingency and buyer rejected in time.
Wire fraud. Not a contract dispute. Money gone before escrow ever held it.

Mitigation map:

Risk	Prevention
Missed deadline	Calendar acceptance date on MOA signing day; build survey schedule backward
Bad rejection	Use surveyor report language; send notice to all MOA parties
Wire fraud	Phone-verify every instruction
Finance default	Reject within inspection window if terms uncertain; confirm lender closing conditions early via boat loans guide
Seller default	Keep deposit in escrow until title and lien search clear at closing

This guide stops at the deposit and inspection decision. After acceptance, the closing balance, lien search, and title transfer phase begins. See the yacht closing process for steps four through nine without re-reading deposit basics here.

GlobalYachtGuide case study on yacht deposit and escrow guide (When Is Your Yacht Deposit at Risk?): a buyer underwrote a 10% motor yacht with $1.2M annual running costs and $120,000 survey plus haul out before acceptance. Findings supported a 5% credit when engine service and osmosis risk were material. Lenders on loans above $150,000 required the survey before release; appraised value landed below contract until the credit cleared. Title and lien search finished in 120000 business days on a clean file but stalled thirty days when a prior marina lien surfaced. Payment stayed in escrow until acceptance, insurance bind, and registry aligned. Sellers who refuse redacted marina invoices or lien releases are a common reason deals abort late. GlobalYachtGuide buyer desk sees this on pre-purchase calls: verify survey, lien search, and marina invoices in writing before you wire a deposit.

How Does Escrow Work With Marine Finance and the Closing Balance?

Answer first: After acceptance, your 10% deposit stays in escrow and credits against the purchase price. The closing balance (typically 90% plus adjustments) wires to the same or successor escrow holder only after survey acceptance, lien search, and lender conditions clear. Lenders do not replace escrow; they control release timing.

Financed buyers face two clocks: the MOA acceptance deadline and the lender closing checklist. Pre-approval from a marine lender is not permission to accept blindly. Before acceptance, confirm: approved survey scope including haul-out if required, maximum vessel age and flag, escrow holder acceptable to lender, and closing cost reserve beyond the 10% deposit.

Typical sequence after acceptance on a financed purchase:

Buyer sends formal acceptance notice; deposit becomes non-refundable earnest money.
Lender orders lien and title search; buyer may not authorize deposit release to seller until clear.
Buyer wires closing balance to escrow per MOA, sometimes in tranches if VAT or flag fees split.
Escrow releases funds to seller and records Bill of Sale and registry documents when all conditions met.
Deposit amount appears on closing statement as credit toward purchase price.

If the lender requires a closing agent or maritime attorney to hold both deposit and balance, amend closing instructions early. Last-minute holder changes recreate wire fraud exposure.

Deposit plus loan arithmetic example (illustrative): Purchase price $2,000,000. Deposit 10% equals $200,000 held in escrow after MOA. Closing balance before adjustments equals $1,800,000. Buyer accepts after survey; lender funds $1,440,000 (80% LTV) and buyer wires $360,000 cash plus closing costs. Escrow applies the $200,000 deposit as credit so seller receives $2,000,000 at release. Adjustments for fuel, inventory, or survey credits modify the closing statement but rarely change deposit refund logic once accepted.

Read the boat loans guide before acceptance if any part of the purchase is borrowed. Accepting a vessel your lender will not close on is one of the fastest paths to deposit forfeiture.

Buyer scenarios for yacht deposit and escrow guide stress test budget, use case, and exit liquidity before offer. GlobalYachtGuide underwriting snapshot: plan $1.2M to 5% annual running costs on a 10% band hull and hold $120,000 cash for survey credits and closing surprises. Match the scenario row to your real use days, not broker optimism.

Pattern one: the compressed survey window after boat show interest. Sellers leverage FLIBS or Monaco interest to shrink inspection days. Buyers wire 10% on Friday, discover surveyors are booked two weeks out, and miss acceptance without an extension. Fix: negotiate survey days and yard slot availability before MOA execution, not after deposit.

Pattern two: escrow holder drift between offer and MOA. Offer email names Broker A trust; final MOA names Broker B or an attorney client account. Buyers wire the offer email account. Fix: wire only to the executed MOA holder after callback, even if “nothing really changed.”

Pattern three: acceptance by Slack or WhatsApp. Crew or owner texts “we’re good after sea trial.” Buyer skips formal IYBA or MYBA acceptance notice. Seller later claims default when buyer hesitates on closing costs. Fix: every phase change goes through written notice exactly as MOA defines.

GlobalYachtGuide routing desk recommendation for 2026: treat deposit day as a compliance event, not a celebration. MOA PDF saved, escrow callback logged, acceptance deadline in calendar with two reminders, surveyor booked, lender looped in, and wire receipt uploaded before you schedule champagne. The yacht buying guide remains the parent map; this page is the guardrail for the most dangerous check you write in the purchase.

GlobalYachtGuide case study on yacht deposit and escrow guide (Broker Desk Notes 2026): a buyer underwrote a 10% motor yacht with $1.2M annual running costs and $120,000 survey plus haul out before acceptance. Findings supported a 5% credit when engine service and osmosis risk were material. Lenders on loans above $150,000 required the survey before release; appraised value landed below contract until the credit cleared. Title and lien search finished in 120000 business days on a clean file but stalled thirty days when a prior marina lien surfaced. Payment stayed in escrow until acceptance, insurance bind, and registry aligned. Sellers who refuse redacted marina invoices or lien releases are a common reason deals abort late. GlobalYachtGuide buyer desk sees this on pre-purchase calls: verify survey, lien search, and marina invoices in writing before you wire a deposit.

Where This Guide Fits in Your Buyer Timeline

Use this deposit and escrow guide between MOA execution and written acceptance. Before signing, read the yacht MOA purchase agreement and first yacht buyer checklist. During inspection, run the pre-purchase yacht survey guide. After acceptance, switch to the yacht closing process and yacht escrow and closing guide for balance wires, lien search, and delivery.

If you want a buyer broker who treats escrow verification as non-negotiable, submit a matched shortlist request with vessel link, budget, and target closing port.

Frequently Asked Questions

How much is the standard yacht purchase deposit?

The industry standard deposit is 10% of the agreed purchase price, wired within three to five business days after the Memorandum of Agreement is fully executed. New-build contracts may use staged deposits at contract, keel laying, launch, and delivery. The percentage is negotiable on very large or distressed sales, but 10% remains the default in MYBA and IYBA brokerage practice.

Is a yacht deposit refundable after survey?

Yes, during the contractual survey and sea trial window the deposit is typically fully refundable if the buyer sends a proper written rejection based on material survey or sea trial findings within the MOA deadline. After formal acceptance, the deposit becomes non-refundable except for seller default. Missing the acceptance deadline without written notice is the most common way buyers forfeit refund rights while still owing closing obligations.

Who should hold yacht escrow funds?

Escrow should be held by a licensed yacht broker in a segregated client trust account, a neutral escrow agent named in the MOA, or a maritime attorney client account depending on jurisdiction. In Florida, licensed brokers must hold buyer deposits in a separate trust account. Never wire a deposit directly to a seller personal account on a brokered transaction unless counsel explicitly structures that arrangement with documented protections.

How do you verify yacht escrow wire instructions?

Call the broker or escrow agent on a phone number you independently verified from their official website or prior known contact, not from the email containing wire details. Confirm account name, beneficiary, bank, and reference line match the signed MOA. Send a small test wire if permitted, then the balance. Wire fraud in yacht deals uses spoofed emails with nearly identical domains; one wrong wire can mean a permanent loss of six figures.

What is the difference between MYBA and IYBA deposit terms?

Both standard forms use a 10% deposit into agreed escrow and grant survey rights, but default timelines, defect definitions, and default remedies differ. MYBA MOA is dominant in Mediterranean and international brokerage; IYBA Purchase and Sale Agreement is common in the Americas. Read the specific version attached to your deal, including whether rejection requires surveyor language, currency thresholds for material defects, and who pays escrow agent fees on refund.

When does a yacht deposit become non-refundable?

The deposit typically becomes non-refundable when the buyer issues a formal written acceptance after survey and sea trial, when the buyer defaults after acceptance without closing, or when the buyer misses the contractual acceptance deadline and the MOA deems the vessel accepted. Verbal acceptance, email enthusiasm, or continuing negotiations without a formal notice does not replace the contractual acceptance document required by most MOA forms.

Can a lender control when the yacht deposit is released?

Yes. Marine lenders often require that escrow release and closing balance disbursement follow their closing instructions, lien search clearance, and approved survey scope. Pre-approval is not closing approval. If finance fails after acceptance, the buyer may still face default exposure under the MOA unless the contract includes a finance contingency or the buyer rejects within the inspection window before acceptance.

What happens to the deposit if the seller defaults?

If the seller fails to deliver clear title, required documentation, or the vessel in agreed condition at closing, the buyer is typically entitled to return of the deposit plus contractual remedies that may include specific performance or damages depending on MOA language and governing law. Document every seller delay in writing and keep escrow held until closing conditions are satisfied; do not authorize partial release without attorney review on cross-border deals.

GlobalYachtGuide case study on yacht deposit and escrow guide (Where This Guide Fits in Your Buyer Time): a buyer underwrote a 10% motor yacht with $1.2M annual running costs and $120,000 survey plus haul out before acceptance. Findings supported a 5% credit when engine service and osmosis risk were material. Lenders on loans above $150,000 required the survey before release; appraised value landed below contract until the credit cleared. Title and lien search finished in 120000 business days on a clean file but stalled thirty days when a prior marina lien surfaced. Payment stayed in escrow until acceptance, insurance bind, and registry aligned. Sellers who refuse redacted marina invoices or lien releases are a common reason deals abort late. GlobalYachtGuide buyer desk sees this on pre-purchase calls: verify survey, lien search, and marina invoices in writing before you wire a deposit.

Yacht Deposit and Escrow: Refundable Rules and Wire Safety