What should be done if there are liens, mortgages, or precautionary measures on a yacht?

The presence of liens, mortgages, and precautionary measures on a yachtis one of the legal situations that generates the highest risk in the processes of purchase, sale, transfer, financing, and use. Although a yacht may appear to change hands like an ordinary movable asset, if it is registered, the real rights, liens, precautionary liens, and measures on it directly affect both the validity of the transfer and whether the buyer actually acquires clear ownership. The Turkish Commercial Code keeps the ship registry open to the public; it considers the person registered as the owner in the registry as the owner, and also considers the person in whose favor a ship mortgage has been registered as the owner of that right. Therefore, the first legal truth is this: the liabilities on the yacht are determined not by "verbal statements," but through the registration system.

In practice, the problem often arises as follows: the buyer likes the boat, agrees on the price, but at the closing stage, it is discovered that the boat has a lien, enforcement order, provisional attachment, precautionary measure, or a restriction on transfer. Even worse, sometimes this record is only discovered after the sales document has been signed. Therefore, the answer to the question "what should be done if there are liens, mortgages, and precautionary measures on a yacht?" is not simply to file a lawsuit; it is primarily to conduct a thorough examination of the records and then choose the correct solution according to the type of record. In Turkish law, this solution is established by examining the provisions of the ship registry, mooring register, ship mortgage, and provisional attachment of ships together.

First, we need to make this distinction: Which registration system does the yacht belong to?

The first step is to determine which registration system the vessel is registered under. According to the Turkish Commercial Code, a ship registry is maintained for Turkish vessels, and vessels are registered at the registry office to which the port of home is subject. Additionally, the Turkish International Ship Registry exists as a separate registration system, and information regarding rights over ships and yachts is recorded in this registry. In contrast, the mooring register is the primary system used in practice to register vessels, marine and inland waterway craft that are not registered in the national ship registry or the Turkish International Ship Registry. Therefore, the legal review for the same "yacht" will vary depending on whether it is registered in the national ship registry, the Turkish International Ship Registry, or the mooring register.

This distinction is important because while mortgage and lien regulations for vessels registered in the registry operate under the Turkish Commercial Code and the Ship Registry Regulation, the registration and transfer procedures for pledges, liens, provisional liens, and provisional injunctions for vessels registered in the mooring register are governed by the Mooring Register Implementation Regulation. In other words, the answer to the question "Is there any cargo registered on the vessel?" is not sought in the same place for every case. The first legal reflex is to correctly identify the registration regime.

What is a ship mortgage, and why is it of such interest to the buyer?

According to Article 1014 of the Turkish Commercial Code, a mortgage can be established on a ship to secure a debt; a ship mortgage authorizes the creditor to collect their debt from the value of the ship, and contractual pledging of registered ships is only possible through a ship mortgage. This provision clearly shows that the financing burden on a registered yacht is not an ordinary "debt relationship" but a real security. In other words, a ship mortgage established in favor of the bank or creditor does not only bind the debtor owner; it also affects the legal fate of the vessel.

Furthermore, according to Article 974 of the Turkish Commercial Code, a person in whose favor a ship mortgage or a right over a mortgage is registered in the ship registry is considered the owner of that right; if the registered right is removed from the registry, it is presumed to no longer exist. This presumption is very important. Because the buyer cannot disregard the mortgage registered in the registry by saying, "the seller told me the debt was settled." If the mortgage appears in the registry, the legal system assumes the existence of that right; cancellation is generally required for a clean transfer. Therefore, in the purchase of a mortgaged yacht, the main contract clause should not be "the seller delivers the vessel without a mortgage"; it should be "closing is subject to the proper removal and deletion of the mortgage from the registry.".

How to get rid of a ship mortgage?

Article 36 of the Ship Registry Regulation details the methods for canceling a mortgage. According to this, the registration is cancelled if the decision of the competent judicial or administrative authorities regarding the cancellation of the mortgage reaches the registry office. Furthermore, the mortgage can be cancelled if the mortgage creditor and the ship owner agree on the cancellation of the mortgage, complying with the prescribed formal requirements, and if the consent of the persons entitled to rights over the mortgage is obtained. The creditor's waiver can also lead to the cancellation of the mortgage through a notarized declaration or a declaration made at the registry office.

The practical consequence of this arrangement is that mortgages are cleared not through a promise to sell, but through a cancellation process. The seller may say, "the loan will be closed," "we've talked to the bank," or "we'll remove it after the transfer"; however, the safer model for the buyer is a bank payoff letter, a release/waiver document, and simultaneous cancellation from the registry with the closing. Paying the full amount without cancellation creates the risk of the buyer effectively assuming the mortgage burden. In yachts with ship mortgages, the safest approach is to direct a portion of the payment directly to the mortgage creditor and make the deletion from the registry a condition of closing.

Attachment, provisional attachment, and provisional injunction are not the same thing

In practice, these three concepts are often confused. However, the Turkish Commercial Code has established a special regime for ships. Article 1352 of the TCC regulates the concept of "maritime claims" by enumeration; loss and damage caused by the operation of the ship, bodily harm, salvage, environmental damage, port and dock fees, services provided for the operation, management, protection or maintenance of the ship, and many similar claims may fall within this scope. Furthermore, Article 1353 only a provisional attachment order can be issued for securing maritime claims; no provisional measures can be imposed on the ship for these claims, nor can the ship be otherwise prevented from sailing. It also specifies that a provisional attachment order in the sense of the TCC cannot be issued for claims other than maritime claims.

This is a crucial distinction. If the claim is a maritime claim (TTK), the specific means of protection for the vessel is "precautionary attachment." In contrast, in areas such as ownership, possession, registration correction, or prevention of transfer, precautionary measures and related annotations/restrictions may be imposed by court order. Indeed, Articles 977-978 of the TTK regulate the annotation in the ship registry and that this may be based on a precautionary measure decision; Article 38 of the Ship Registry Regulation explicitly states that attachment, precautionary attachment, and precautionary measure decisions will be recorded in the restrictions section. Therefore, the statement "there is no precautionary measure on a ship" is not absolutely true; the correct statement is that the specific means of protection for maritime claims is precautionary attachment, while annotations related to precautionary measures are possible in some other disputes.

From which court is a precautionary attachment order issued for a ship?

Articles 1354 and 1355 of the Turkish Commercial Code establish a clear jurisdictional regime in this regard. For Turkish-flagged vessels, a provisional attachment order may be issued by the court of the place where the vessel is anchored, moored, berthed, or launched; and, in certain cases, by the court of the registry location. For foreign-flagged vessels, a provisional attachment order in Türkiye is issued by the court of the place where the vessel is anchored, berthed, or launched. This is important due to the mobile nature of yachts; because the creditor can obtain rapid protection from the actual location of the vessel.

In practice, this means the following for the buyer: if there is a provisional attachment order on the yacht to be purchased, this record often needs to be considered along with the port where the vessel is located and the enforcement/registration processes. A simple "we'll talk to the court" approach is insufficient. Closing should not be done without clarifying the maritime claim that is the source of the provisional attachment, the case number, the amount of the claim, the possibility of collateral, and the status of the ongoing lawsuit. This is because a vessel under provisional attachment may have its legal circulation severely restricted, even if it appears usable in practice.

Can the yacht, which is under precautionary attachment, be released?

Yes. According to Article 1370 of the Turkish Commercial Code, a vessel subject to precautionary attachment can be released upon deposit of the vessel's value, provision of an acceptable real estate pledge, a ship mortgage, or a guarantee from a reputable bank, or the provision of appropriate security. In other words, precautionary attachment does not always mean the vessel is permanently seized; there is a mechanism for release upon provision of security.

This provision is particularly important for the seller and financier. If the provisional lien on the yacht makes closure impossible, sometimes the solution is not to discuss the source of the debt, but to provide collateral, release the vessel, and pursue the main dispute later. However, a critical caveat for the buyer is this: a vessel released with collateral is not a "resolved issue." The registration in the registry and the fate of the debt must be examined separately. Collateral only removes the physical obstacle to voyage and use; it does not automatically terminate the legal existence of the debt. This is a natural consequence of Article 1370 of the Turkish Commercial Code.

Can the transfer still be made if a precautionary measure is in place?

This question cannot be answered with a single answer in every case; however, Article 977 of the Turkish Commercial Code (TTK) provides a very strict consequence regarding ship registration. According to the article, a lien can be placed on a ship or ship mortgage to secure the right to establish, remove, or modify a right; any transactions made on the ship or mortgage after the lien are invalid to the extent that they infringe upon the right secured by the lien. Moreover, this consequence also applies to transactions made through compulsory execution or provisional attachment. Article 38 of the Ship Registration Regulation also stipulates that the provisional injunction decision shall be recorded in the restrictions section.

This means that a "let's complete the sale first, then we'll see" approach is very risky when there is a precautionary measure or annotation in place. Because even if the transfer appears to have been made, the transaction may become invalid or unprotected for the buyer to the extent that it infringes upon the right protected by the measure. Therefore, the first thing to do in a case with a precautionary measure the subject . Is there a property dispute? A prohibition on partnership/assignment? A measure arising from a divorce, property regime, or inheritance case? Not every measure produces the same result; however, none of them are "negligible restrictions."

How does the situation differ in the ship registry and the mooring register?

The main advantage of the ship registry is its openness. According to Article 973 of the Turkish Commercial Code, anyone can examine and obtain copies of the registry records; Article 974 establishes strong presumptions regarding ownership and mortgage rights. Therefore, a buyer of a yacht registered in the national registry should obtain an up-to-date copy of the registry before closing to check the records of ownership, mortgages, annotations, liens, provisional liens, and precautionary measures.

In the registration of vessels, protection is structured somewhat differently. Article 10 of the Regulation on the Implementation of the Vessel Registration clearly states that liens, precautionary measures, provisional attachments, and attachment orders shall be recorded in the vessel registration. More importantly, according to Article 14/2, in a transfer to be made at a notary public, the transferor must present to the notary a copy of the vessel registration record dated the same day as the sale and showing any encumbrances on the vessel; the transfer document must also include a statement from the transferee confirming that they have seen this copy. Furthermore, ownership transfer transactions conducted outside of the presidency or a notary public are invalid. In other words, for vessels registered in the vessel registration, the law specifically mandates that the buyer be warned with a "copy of the encumbrance record dated the same day.".

What should the buyer do?

If a yacht has a lien, mortgage, or precautionary measure, the buyer's first step is to convert the sales process a conditional closing model. First, the registration system is identified; then, a current and preferably same-dated copy of the registration/registry is obtained. In the national ship registry, this is possible according to Article 973 of the Turkish Commercial Code; in the mooring register, a copy of the registration with the same date is already a mandatory mechanism for notarized transfer. If the registration copy shows a mortgage, pledge, lien, precautionary attachment, measure, transfer prohibition, or other encumbrance, the buyer should not pay the full price directly to the seller.

The second step is to differentiate the solution method according to the nature of the cargo. If there is a ship mortgage, payoff and cancellation are considered; if there is an attachment, the case status and removal are evaluated; if there is a precautionary attachment, the source of the maritime claim and release with collateral are considered; if there is a precautionary measure, the content of the measure decision and the method of removal/adaptation are evaluated. The third step is to include clear conditions in the sales contract: Closing without provisions such as, "The sale is conditional upon the removal and deletion from the registry of all mortgages/attachments/precautions on the registration"; "Otherwise, the buyer has the right to unilaterally withdraw and receive a refund of the deposit"; "The payoff amount will be paid directly to the creditor" is a serious risk. This recommendation is a practical consequence of the above registry and cancellation rules.

What should the seller do?

The biggest mistake a seller can make is concealing encumbrances or delaying transparency by saying, "We'll resolve it during the transfer." A mortgage, lien, or annotation registered in the ship's registry is already visible to third parties; similarly, a copy of the registration record from the mooring register, dated the same day, must be shown to the buyer during the transfer. Therefore, a good seller, for a legally clean delivery, first plans the payoff/waiver/cancellation process with the creditors, and then enters into sales negotiations. Especially with yachts that have bank mortgages, negotiating the price without obtaining a written closing amount and cancellation procedure from the bank will lock up the closing process.

The seller should also be aware that if there is a right protected by an annotation in the ship's registry, any transaction made after the annotation may be invalid to the extent that it infringes upon that right. In other words, the approach of "I'll complete the transfer and then lift the restriction later" will lead not only the buyer but also the seller into new lawsuits. A clean sale is achieved not merely by stating "unrestricted" in the contract, but by the actual removal of the restrictions.

Special attention should be paid to boats registered in the mooring registry

Article 10 of the Vessel Registry Implementation Regulation stipulates the registration of all types of liens and seizures/injunctions. Article 20/4 of the same Regulation states that vessels, marine and inland waterway craft subject to liens or other encumbrances can only be cancelled with the consent of the creditors. This provision shows that the option of "let's close the registration first, then sell" is not always feasible for vessels registered in the vessel registry. The cancellation or transfer process can be blocked without the creditor's consent.

Therefore, the practical roadmap for yachts registered in the registry is even clearer: before the sale, a check for encumbrances is carried out via the Umurbey/registration system; a copy of the registration record dated the same day is obtained for the sale before a notary or the presidency; if applicable, creditor consent and cancellation letters are prepared; fees and transfer documents are completed; only then is the signature affixed. This procedure is derived from reading Article 14 of the Regulation, which mandates a specific form, and Article 20, which concerns the cancellation of encumbrances, together.

Conclusion

What should be done if a yacht has liens, mortgages, or precautionary measures? The most accurate answer to this question is: first, identify the registration system, then determine the type of liability, and finally, choose the path of cancellation/security/court action. For yachts registered in the registry, the ship registry is open; restrictions are also recorded in the mooring register, and a copy of the registration with the same date is shown to the buyer during the transfer. As long as the ship mortgage remains in the registry, the law presumes that right; cancellation requires the creditor's waiver, agreement, or court decision. In maritime claims, a special means of protection is the precautionary attachment of the ship; it is possible to release the ship with security. Precautionary measures and annotations, however, can render subsequent transactions in the ownership/transfer area ineffective.

In short, the main mistake in buying a yacht with encumbrances is the reflex of "we'll sell it anyway." The correct reflex is this: check the registration, identify the creditor, establish a cancellation or security deposit procedure, tie the closing to these conditions, and only pay the full price with a clean registration. In yacht law, a secure transfer is determined not by the paint of the boat, but by the cleanliness of its registration.