What is yacht escrow?

Escrow is a dedicated, neutral account that holds a buyer's deposit and purchase funds during a yacht transaction, separate from the seller's and the brokerage's operating funds. Funds stay in escrow until every condition of the purchase agreement — survey, sea trial, financing approval, clear title — has been satisfied by both parties.

When does the escrow deposit get released?

Funds are released only when both buyer and seller authorize it in writing, typically at closing once survey, sea trial, and any financing contingencies in the purchase agreement have been satisfied.

Is the escrow deposit refundable?

Whether a deposit is refundable depends on the specific contingencies written into the purchase agreement. If a pre-purchase survey or sea trial reveals a material issue and the contract's contingency terms allow it, the buyer can typically cancel and have the deposit returned. Once contingencies are satisfied or waived, the deposit generally becomes non-refundable.

How long does a yacht closing take once escrow is opened?

A cash transaction can close in as little as 7–14 days once a purchase agreement is signed. Financed purchases typically take 30–45 days to allow time for lender approval, survey, and documentation. Complex transactions involving foreign-flagged vessels or international buyers may take 60–90 days.

Buying Guide

How Yacht Escrow Works in Florida

Escrow holds a buyer's deposit and purchase funds in a dedicated account until every condition of the sale is met.

Escrow in a Florida yacht purchase is a dedicated, neutral account — required under Florida Statutes and IYBA standards for IYBA-member brokerages — that holds the buyer's deposit and purchase funds until every condition of the sale (survey, sea trial, financing, clear title) has been satisfied. Funds release only once both parties authorize it in writing.

In Florida, IYBA-compliant brokerages — including Paramount Yachts — are required to maintain dedicated escrow accounts to protect both buyer and seller funds, in accordance with Florida Statutes and IYBA standards.

Purchase agreement signed — deposit amount and contingencies (survey, sea trial, financing) are set.
Deposit moves into a dedicated escrow account, separate from the seller's or brokerage's operating funds.
Survey, sea trial, and any financing contingency are satisfied or the buyer can renegotiate or cancel.
Funds release at closing once every contingency is satisfied or waived in writing by both parties.

Dan Ribeiro, CPYB · IYBA member

Independent yacht broker serving Miami, Fort Lauderdale, and Palm Beach.

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