Everything you need to know about yacht surveys

There are many different yacht surveys each with a different scope of coverage and outcome. The most common type is a pre-purchase and condition survey carried out on behalf of a buyer looking to purchase a secondhand boat. This is a detailed report on the condition of a boat listing defects found and recommendations on how to repair them. In the vast majority of cases a physical sea-trial is included as well.

A valuation survey is required by insurance companies and lenders, or if joint owners are breaking up, or for probate after an owner’s death. Surveys may also be required as part of an insurance claim, to check validity and assess the cost of repairs. If a vessel is used for commercial purposes it needs a coding survey. This can only be carried out by an MCA-approved surveyor.

Are yacht surveys obligatory?

No, most surveys are not obligatory, apart from a commercial survey, which is. However, if you are looking to insure or finance a boat, the provider will almost certainly require proof and sight of an appropriate survey.

This usually takes the form of a tonnage measurement survey. You’ll need one of these before the vessel can be Part One registered on the Small Ships Register, something most lenders insist on as proof of ownership (Part Three SSR is just proof of flag state). This helps establish that the boat actually exists and prevents fraud.

That said, unless you really know what you are doing, we would always advise commissioning a pre-purchase and condition survey before buying a secondhand boat.

Do I need a yacht survey if the boat is less than four years old?

Age is irrelevant. Equipment can fail and boats can run aground within days of being launched. A good surveyor should pick up on any non-disclosed repairs and signs of partial sinkings by looking for tide marks or signs of early rust. Surveys may also be required in the case of warranty disputes with boats that are still relatively new or if an owner and builder/agent have fallen out.

What if the seller already has a survey?

If a buyer trusts a seller’s survey and it has been undertaken by a surveyor of good repute and is considered not too old, then a seller’s existing survey can sometimes be reassigned to a new name, as long as all parties involved are in agreement.

However, most surveyors recommend that interested buyers commission a fresh survey each and every time. Surveys are conducted on a certain date and a conflict of interest can arise if a boat has been used during an in-between period.

At what stage in the sales process should a yacht survey happen?

The normal procedure is that a potential buyer views and inspects a boat. If they like what they see, they decide to make an offer ‘subject to survey’ or ‘subject to sea-trial’ then pay a 10% goodwill/holding deposit. A purchase agreement is drawn up to agree the terms after which the condition and valuation survey takes place.

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Who pays for the survey and lift out?

The buyer normally pays for the lift out and survey but as with many things connected to boating, a fair and reasonable compromise can be found, in particular if the seller needs to do any work on the boat while it’s on dry land or on the slings.

How much does a boat survey cost?

Surveyors have their own methods for working out the cost of a survey and the variation can be quite wide once the boat’s location, size, age and hull material are taken into account.

Some use a cost per ft system, others a length x beam x age/build/complexity etc calculation, and others will price a survey based on previous experience alone.

If you only require a survey for an insurance renewal, for example, you can expect to pay less than if you needed a full pre-purchase valuation survey with sea trial.

Unless you are talking about a very large or specialist yacht such as a superyacht or racing boat, it makes sense to find a surveyor relatively local to where the boat is lying.

Is a yacht survey worth it?

As the saying goes, ‘prevention is better than cure’ and paying for a condition survey allows an expert with an experienced and trained eye to offer a professional opinion on a whole range of material items and fixtures and fittings with a heads-up on impending problems before they occur.

A pre-purchase valuation survey ensures you shouldn’t have to pay over the odds for a boat and, similarly, if there are flaws or omissions in a seller’s description, these should come to light on a sea-trial, when a boat’s true character and performance is laid bare for all to see. From a seaworthiness and safety aspect alone, we believe a survey is well worth the money.

Do boat sellers try to cover things up?

Some sellers certainly do try and hide potential problems and it’s the surveyor’s job to look for those tell-tales signs and make an overall assessment of the situation. Using their skills and experience, a surveyor will often ‘smell a rat’ when inspecting a boat and has a duty of truth to report any findings, suspicious or otherwise, back to the paying client.

What should a survey cover?

It depends on the type and scope of the survey and what has been arranged.

In the case of a pre-purchase or condition survey, just about everything should and will be included and inspected with photographic evidence to support it. Where possible removable covers should be unscrewed and items moved out of the way to get to hard-to-reach areas. Surveyors carry out ‘non-destructive testing’ so if access is unavailable, the final report should list items that could not be properly inspected.

The exception is the removal of small patches of antifouling from the hull, so they can take moisture meter readings to check for signs of osmosis. Surveyors often ask themselves ‘would I take this boat offshore by myself?’ and there can be an element of gut instinct too.

What doesn’t a boat survey cover?

Surveyors are only restricted by items they physically can’t get at or can’t see. For example, fuel tanks, which can corrode and crack, are often encased in insulation and located against the side of hulls, preventing access to both sides. Shower trays are sometimes bonded into the hull, preventing access to important P-bracket bolts that need to be thoroughly inspected.

If specialist material such as carbon-fibre has been used, or there are intricate electronic and navigational systems installed, surveyors will often flag these as items that need a specialist to take a further look. Items such as tenders and toys located in the darkest depths of stern garages are normally included by prior arrangement only.

Does it include the boat’s service records?

Once again this is down to a number of variables, but most surveyors will request sight of the engine’s service history records as part of their final report.

Is a sea trial part of the yacht survey process?

In the vast majority of cases, yes, otherwise there’s too much guesswork involved with costly machinery and equipment installations, and running up the engines while the boat remains tied to the dock is simply not enough.

Some boats have fundamental flaws that go undetected unless the boat is underway, and while most motorboats can look good tied up alongside, there can be handling issues with rudders that are too small, or a top-heavy flybridge, or vague steering or trim issues. Bow thrusters can be too small or cavitate if mounted too high.

A sea trial is very important, but it needs to be agreed in advance with both the surveyor and the seller.

How do I get the engines checked?

Some surveyors are more comfortable with checking engines than others, and some will refuse to survey engines at all. In these cases, an independent marine engineer is often the best person to look over the engines and, preferably, someone familiar with the make or brand.

Try to avoid asking the same engineer who serviced the engine(s) last time around and see if they are willing to participate in the sea trial as well.

In the case of complex and more expensive engines, borescope cameras can see inside the internals and oil samples can be sent off for analysing and testing.

How do I find a good yacht surveyor?

Certifying authorities and professional bodies list members on their websites. Yacht and boat brokers also have lists of local surveyors. However, buyers should be cautious when a broker or vendor strongly suggests using a ‘preferred’ surveyor, just in case there’s a hidden agenda at play.

Word of mouth and a solid recommendation from a trusted friend or fellow boat club member is often a good way of finding a suitable surveyor. Someone with a good ‘bedside manner’, who you naturally gel with and has plenty of previous experience with your intended boat brand, is also helpful.

What qualifications should a yacht surveyor have?

Marine surveying is a profession rather than an occupation and a qualified surveyor will be a member of a certifying authority authorised by the Maritime Coastguard Agency (MCA), but it’s important to check what level of membership the surveyor is currently at.

Certifying authorities include the Society of Consulting Marine Engineers and Surveyors (SCMS), Yacht Designers and Surveyors Association (YDSA) and International Institution of Marine Surveying (IIMS).

Some surveyors will be members of one or more professional bodies including classification societies such as the Royal Institute of Naval Architects, Lloyds Register, Bureau Veritas or DNV, for example, where membership demonstrates a level of competence and understanding of boat building and design.

Surveyors must also undertake continuing professional development and training courses from time to time, with experience and knowledge gained in the field being key.

Asking a surveyor about their level of professional indemnity cover is also a good idea because not all surveyors will have this.

Are they independently regulated?

Yes. Each certifying authority has its own standards committee and code of conduct in place, and surveyors with professional indemnity insurance are regulated to a large extent by the terms of their own insurance.

Are surveyors deliberately pessimistic?

No, not normally! Surveyors will always try to see things from both buyer and seller’s point of view, although their loyalty remains first and foremost with their client.

Sometimes this involves managing expectations of all those involved and the best ones will disclose to their client if they have had issues with a broker or a particular make of boat in the past. Good surveyors will turn down jobs they’re not comfortable with.

Although it’s an important part of the process, a survey is just one aspect of the bigger picture of buying, owning and enjoying having a boat.

How do I know when something is a big problem rather than what’s to be expected?

A good surveyor will list all the defects but differentiate between what is often found on a vessel of a certain age and what is not.

If a serious defect is discovered the surveyor should tell the client immediately, followed by the vendor or broker and the boatyard or marina.

As a boat owner, being armed with the correct information is key and a good surveyor will always carefully consider the options for their client rather than jumping to a hard conclusion straight away.

This might include remedial work, a reduction in the offer price or even a chance to pull the plug on the entire purchase before taking on further expense. It will also enable the owner/broker to take action to ensure the security of the vessel. This might include items like badly corroded seacocks or a defective engine that could lead to greater losses if not rectified swiftly.

Who pays for any remedial work?

The purchase agreement normally sets out the terms of who pays but in some cases this can be negotiated between vendor and buyer, with the broker standing somewhere in-between.

Unless disclosed before the offer to buy was made, the vendor should put right any significant defects that were discovered during the survey but in reality vendors rarely correct everything nor should buyers expect boats of a certain age and price to look and perform like new.

If enough faults are identified, it is often easier to negotiate a reduction in the offer price. This can help speed things along and prevents the risk of a vendor getting the work done cheaply.

Can I pull out of a boat purchase and get my deposit back?

This should be clearly covered in the terms of the sale and purchase agreement that the vendor, broker and purchaser must all sign prior to the survey. Non-disclosed significant defects will allow you to pull out and, in most cases, a purchaser can reject a vessel and get their deposit back without any fuss. However, this may not be the case if the defects are deemed insignificant but you wish to pull out of the purchase regardless.

Is there any comeback if the surveyor misses a fault?

Some, but not all surveyors, have a scope of work and contract with terms and conditions which each client is asked to sign.

If the surveyor fails to notice a fault, the client can ask them to put it right and if concerns still can’t be settled between client and surveyor, the person complaining can contact the certifying authority which the surveyor is a member of and ask them to investigate further.

Should a problem look like it might end up in court, (thankfully most don’t), the surveyor notifies their own insurer, who will look at the case and might appoint their own surveyor for a second opinion.

Thank Omega Yacht Services, Olsen Marine Surveying and Winterbothams Ltd for their considerable help in compiling this report.

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