THE LEGAL RIDDLE OF THE BLUE WATERS: THE CONCEPT OF YACHTS IN TURKISH MARITIME LAW, THEIR CLASSIFICATION, REGISTRATION, AND TRANSFER OF OWNERSHIP

Entrance

Throughout history, the sea has not only served as a means of transportation between countries and societies, but has also been a vital element of trade, tourism, sports, entertainment, and individual freedom. However, the legal status of vessels used on the sea is far more complex than it appears from the outside. Especially with yachts, many criteria must be considered simultaneously, including the vessel's technical specifications, intended use, passenger capacity, whether it is used for commercial activity, its registration status, and the legal status of its owner

In Turkish law, regulations concerning yachts are not consolidated into a single law. The Turkish Commercial Code, the Tourism Promotion Law, the Turkish International Ship Registry Law, the Law on the Protection of Life and Property at Sea, the Maritime Tourism Regulation, the Technical Regulation for Ships, and secondary regulations related to registry procedures address the legal status of yachts from different perspectives. This situation can lead to the same vessel being classified as a yacht under one regulation, and as a commercial yacht, private yacht, ship, or special purpose vessel under another.

Therefore, when conducting a legal review regarding yachts, the following should be considered: firstly, the yacht's status as a vessel; secondly, its intended private or commercial use; thirdly, the registration regime to which it is subject; and finally, the issues of acquiring, transferring, and losing ownership of the yacht.

I. THE STATUS OF A YACHT AS A "SHIP" IN TURKISH MARITIME LAW

The fundamental concept of Turkish maritime law is the ship. According to the first paragraph of Article 931 of the Turkish Commercial Code No. 6102, any vessel that is designed for a purpose requiring movement in water, possesses the ability to float, and is not excessively small, is considered a ship, even if it does not have the ability to move on its own.

Three fundamental elements are highlighted in this definition for a vessel to be considered a ship. Firstly, the vessel must be intended for movement in water; secondly, it must be buoyant; and finally, according to maritime standards, it must not be considered "too small." It is not necessary for the vessel to have its own engine or to be able to move independently. Vessels towed or pushed by another vessel can also be considered ships if they meet the other requirements.

The concept of a ship is broadly defined in Law No. 4922 on the Protection of Life and Property at Sea, and any type of marine vessel capable of propelling itself by means other than oars is considered within its scope. When these regulations are considered together, it can be concluded that yachts, due to their ability to float, their design for movement in water, and their generally relatively large size, legally qualify as ships.

The use of yachts for cruising, sports, or recreation does not negate their status as vessels. Article 935 of the Turkish Commercial Code explicitly stipulates that certain provisions of the Code relating to maritime trade shall also apply to vessels that are not commercial vessels. In this context, fundamental provisions of maritime commercial law, such as captain's liability, ship claims, collision, salvage, and limitation of liability, are applicable even to yachts used solely for cruising, recreation, or sports.

Therefore, the fact that a yacht is not used for commercial activity does not completely exempt it from maritime law. A yacht used for private purposes may also be subject to the provisions of the Turkish Commercial Code relating to ships in terms of collisions, salvage operations, maritime accidents, or damages caused to third parties.

II. LEGISLATIVE DIFFERENCES IN DEFINING THE CONCEPT OF YACHT

While there is no significant doubt that yachts should be considered ships, there is no complete uniformity in legislation regarding which vessels qualify as yachts and how these yachts should be classified as private or commercial.

Instead of defining the concept of a yacht separately, the Turkish Commercial Code has established a system based on the concepts of ship and merchant ship. According to the law, ships used for or actually operated for the purpose of generating economic benefit on the water are considered merchant ships. Accordingly, yachts that carry passengers for a fee, are chartered, used in tourism activities, or operated for other economic gain are, as a rule, considered merchant ships.

Conversely, yachts that are used by the owner and their relatives for personal travel, sports, or recreation, are not leased to third parties for a fee, and are not intended for generating economic income are considered private yachts.

However, the distinction between private and commercial yachts is not solely based on their registration. How the yacht is actually used must also be considered. If a vessel registered as a private yacht is regularly chartered for a fee, used for passenger transport, or employed in tourism activities, a discrepancy arises between the registration and the actual use. In such a case, administrative penalties, tax liabilities, insurance issues, and legal liability may arise.

1. Yachts in terms of the Tourism Promotion Law

The Tourism Promotion Law No. 2634 addresses yachts based on their intended use, distinguishing between yachts used for private purposes and those authorized for commercial activity. However, the law does not contain an independent and detailed definition encompassing all elements of a yacht.

The fundamental approach in tourism legislation is to consider commercial yachts as falling within the scope of tourism management and to subject these activities to permits, documents, inspections, and operating conditions. Thus, not only the structure of the vessel but also how it is used within the context of tourism activities becomes important.

2. Yachts in Terms of Maritime Tourism Regulations

The Maritime Tourism Regulation defines a yacht as a marine vessel suitable for sightseeing, sports, and recreation, not a cargo or passenger ship or a fishing vessel, and equipped with cabins, toilets, and a kitchen. The regulation also stipulates that a yacht may not carry more than twelve passengers.

This definition requires that a yacht be determined not only by its external appearance or industry designation, but also by its intended use and technical equipment. Accordingly, for a vessel to be considered a yacht, it is not sufficient for it to be suitable for cruising and leisure; it must also be suitable for accommodation and meeting basic living needs.

3. Commercial Yachts in Terms of the Turkish International Ship Registry Law

Turkish International Ship Registry Law No. 4490 regulates the concept of commercial yachts based on a different passenger capacity. According to the law, vessels constructed as yachts, used for recreation and sports purposes, not classified as cargo or passenger ships, carrying a maximum of thirty-six yachtsmen, registered in the inventory of a tourism company, and bearing the designation "commercial yacht" on their tonnage certificate are considered commercial yachts.

In this definition, both the technical appearance and the operational structure of the yacht are important. The vessel must be registered in the inventory of a tourism company and shown as a commercial yacht in its official documents.

4. Yachts in Terms of Ship Technical Regulations

The Ships Technical Regulations govern the technical qualifications, safety requirements, and passenger capacity of commercial yachts. The regulations stipulate that commercial yachts can carry a maximum of thirty-six passengers, and that the number of people allowed outside of port voyages is limited by the yacht's bed capacity.

This regulation demonstrates that passenger capacity is not only a legal classification criterion but also constitutes a technical limit in terms of life and property safety.

5. The Impact of Legislative Differences on Implementation

The fact that one regulation adopts a capacity limit of twelve people while another adopts a limit of thirty-six creates an impression of contradiction at first glance. However, each regulation has a different purpose and scope of application. While the Maritime Tourism Regulation governs the conduct and operating conditions of tourism activities, the Turkish International Ship Registry Law specifies the conditions for the registration of certain ships and yachts in a special registry. The Ship Technical Regulation, on the other hand, focuses on safety and technical competence principles.

Therefore, when determining the legal status of a yacht, it is not sufficient to look at only one legal provision. The yacht's length, gross tonnage, passenger capacity, intended use, mode of operation, registration, place of construction, and the legal status of its owner must all be considered together.

Terms like "motor yacht," "sailing yacht," "superyacht," or "mega yacht" used in the sector are often technical or commercial classifications. These designations do not always have a legal basis. The terms "superyacht" and "mega yacht," in particular, are used to describe the size and luxury level of the yacht, but they do not, by themselves, define its legal status.

III. REGISTRATION OF YACHTS IN THE TURKISH INTERNATIONAL SHIP REGISTER

The Turkish International Ship Registry was established by Law No. 4490 on the Turkish International Ship Registry to increase the international competitiveness of Turkish maritime industry and to encourage the use of the Turkish flag. TUGS is designed as an alternative and incentive-based registry system to the national ship registry.

For yachts to be registered with TUGS, it is not enough for them to simply qualify as ships. They must also meet the technical, economic, and legal requirements stipulated in the law.

1. Elements of a Commercial Yacht from a TUGS Perspective

According to Law No. 4490, for a vessel to be considered a commercial yacht, it must be constructed as a yacht, used solely for recreation and sports purposes, not be a cargo or passenger ship, carry a maximum of thirty-six yachtsmen, be registered in the inventory of a tourism company, and have the term "commercial yacht" included in its tonnage certificate.

These conditions are cumulative. In other words, the presence of only some of these conditions is not sufficient for the vessel to be considered a commercial yacht under the law.

The law reserves the provisions of the Tourism Promotion Law regarding yacht tourism. Therefore, being registered with TUGS does not automatically eliminate the permits and obligations arising from tourism legislation. If commercial yacht operations are to be conducted, compliance with both registration regulations and tourism legislation is required.

2. Authorities Authorized to Register and Persons Who Can Apply for Registration

The Turkish International Ship Registry is established in Istanbul. To ensure faster and more efficient administrative services, it is possible to establish liaison offices in different locations.

The law adopts broad regulations regarding who can apply for registration with TUGS. Turkish citizens residing in Türkiye and foreign individuals residing in Türkiye can apply for registration of yachts they own and that meet the necessary conditions. In addition, companies established under Turkish legislation can also register commercial yachts they own with TUGS.

Yachts acquired through financial leasing from abroad can also be registered in a special column of the registry. Since in a financial leasing relationship, the ownership and the right to operate and use the yacht may be held by different parties, this relationship must be clearly indicated in the registry entry.

3. Yachts that can be registered with TUGS

Yachts registered in the National Ship Registry on the date the law came into effect and meeting the definition of a commercial yacht in the law can be registered with TUGS (Turkish Ship Registry). In addition, commercial yachts built in Türkiye can be registered without length or tonnage limitations, provided they meet the conditions stipulated in the law.

For yachts built abroad and imported into Türkiye, specific tonnage requirements may apply. Considering the law's criteria for ship types and tonnage necessitates a case-by-case examination to determine whether the imported yacht is eligible for registration with the Turkish Shipbuilding Registry (TUGS). In this regard, the yacht's gross tonnage, place of construction, method of import, and intended use are all important factors.

Therefore, especially with high-value yachts purchased from abroad, before signing the purchase agreement, it should be investigated whether the yacht can be registered in a particular registry, whether it meets the requirements for flying the Turkish flag, the import and tax obligations, and the technical compliance criteria.

4. Scope of Registry Records and Reliance on the Registry

TUGS records show the yacht's technical specifications, ownership status, and any real rights established on the yacht. The clear recording of security rights, such as ship mortgages, is of great importance to banks and other creditors providing yacht financing.

Deletion from the registry can directly affect the status of those who have rights over the yacht. Therefore, the deletion of a mortgaged yacht from the registry is subject to the explicit consent of the mortgage creditor. This prevents the creditor's right to security from being extinguished due to transactions between the owner and third parties.

The registry is not merely an administrative record system that keeps a record of a vessel's identity. It is also a means of public disclosure that allows third parties to learn about ownership, ship mortgages, and certain other real rights. Therefore, a person buying a yacht should examine the registry before the sale to investigate whether there are any mortgages, liens, precautionary attachments, usufruct rights, or restrictions on the yacht's use.

5. Right to Fly the Turkish Flag and Cabotage

Yachts registered in the Turkish International Ship Registry acquire the right and obligation to fly the Turkish flag, in accordance with the conditions stipulated by law. Flying the Turkish flag subjects the yacht to the inspection, safety, certification, and operational regulations prescribed by Turkish law.

However, the right to fly the Turkish flag and the right to engage in cabotage are not the same legal concepts. Cabotage is a special privilege granted to Turkish citizens and Turkish vessels to conduct commercial activities between Turkish ports and coasts.

Some yachts that do not meet the conditions for being considered a Turkish vessel under the Turkish Commercial Code, but are registered with TUGS and fly the Turkish flag, may not benefit from cabotage provisions. Therefore, a yacht flying the Turkish flag does not, in every case, mean that it can conduct commercial yacht operations along the Turkish coast. The nationality of the owner and operator, the ownership and management structure of the company, and the actual use of the yacht must be examined separately.

IV. LEGAL NATURE OF YACHT OWNERSHIP

Yachts are considered movable property under property law, regardless of whether they are registered or not. However, due to their high economic value, their usability in international waters, and their registration, they are subject to a different and special legal regime than ordinary movable property.

Within the limits of the legal system, the yacht owner has the right to dispose of the yacht, including using, benefiting from, leasing, operating, transferring, mortgaging, and abandoning it. The owner may file a claim for ownership against anyone who possesses the yacht without a justifiable reason. A lawsuit to prevent unlawful interference with the owner's property rights over the yacht may also be filed.

Although the scope of ownership rights on a yacht is subject to the general provisions of the Turkish Civil Code, the specific provisions of the Turkish Commercial Code relating to ships take precedence with regard to the acquisition, transfer, and loss of ownership.

V. ACQUISITION OF YACHT OWNERSHIP BY TRANSFER

The transfer of a yacht through sale or other contractual means takes place within a two-stage legal framework: a debt-creating transaction and a disposition transaction.

A debt-creating transaction is a legal relationship in which the seller is obligated to transfer ownership of the yacht, and the buyer is obligated to pay the purchase price. The yacht sales contract forms the basis of this stage. The transfer of ownership, on the other hand, is the process by which the parties physically and legally transfer ownership of the yacht to the buyer in order to fulfill their obligations arising from the sales contract.

These two transactions are separate. The mere fact that the parties have entered into a valid sales contract does not, by itself, mean that ownership of the yacht is transferred to the buyer. For ownership to be transferred, the legally prescribed transaction and necessary formal requirements must also be fulfilled.

1. Transfer of Registered Yachts

According to Article 1001 of the Turkish Commercial Code, in order for the ownership of a yacht registered in the registry to be transferred, the parties must agree on the transfer of ownership and the possession of the yacht must be transferred to the buyer.

The agreement regarding the transfer of ownership must be in writing, and the signatures of the parties must be notarized. Alternatively, the transfer can be carried out directly before the ship registry office. The formal requirement here is a condition of validity. Therefore, a simple written contract or an oral agreement between the parties is not sufficient to transfer ownership of a registered yacht.

The physical delivery of the yacht alone does not guarantee the transfer of ownership. Unless there is a notarized real property agreement or a valid transfer agreement made before the registry office, legal ownership may remain with the seller even if the yacht has been delivered to the buyer.

Registering the transfer of ownership in the registry is important for third parties to be informed of the change of ownership of the yacht and for ensuring trust in the registry record. For this reason, the registry record should be updated without delay after the transfer agreement and the actual delivery.

2. Transfer of Yachts Not Registered in the Registry

For yachts not registered in the Turkish Ship Registry, the provisions of the Turkish Civil Code concerning movable property generally apply to real rights. For the transfer of ownership of such yachts, the parties must agree on the transfer and possession must be transferred to the buyer.

However, if the yacht is registered in a different registry or mooring register, this may necessitate changing the administrative records and issuing the relevant documents in the buyer's name. Therefore, even for yachts not registered in any registry, simply relying on physical delivery can lead to significant disputes in practice.

Bank records showing payment of the sale price, the yacht's technical documents, mooring register records, insurance policies, delivery receipt, inventory list, maintenance records, and import documents (if any) must be kept as proof of the transfer transaction.

VI. THE EFFECT OF THE INVALIDITY OF A DEBT-CREATING TRANSACTION ON THE TRANSFER OF OWNERSHIP

One of the fundamental legal issues that can arise in yacht sales is when the sales contract is invalid, but the real transaction regarding the transfer of ownership is formally valid. In this case, it is debatable whether the invalidity of the sales contract also renders the transfer of ownership invalid.

According to the causal principle, the validity of a transaction depends on the validity of the underlying obligating transaction. If the sales contract is invalid due to collusion, incapacity, defect of will, immorality, or any other reason, the transfer of ownership is also invalid. In this case, the buyer cannot acquire ownership, and the seller can claim the return of the yacht through a restitution action.

According to the abstract view, the debt-creating transaction and the dispositive transaction are independent of each other. Even if the sales contract is invalid, if the real contract regarding the transfer of ownership has been made in accordance with the formal requirements of the law and possession has been transferred to the buyer, ownership can pass to the buyer. In this case, instead of a claim for restitution based directly on a claim of ownership, the seller can request restitution based on the provisions of unjust enrichment.

The fact that the provision of the Turkish Commercial Code regarding the transfer of registered vessels does not explicitly link the validity of the transaction to the validity of the debt-creating transaction is considered an element supporting the abstractness view. The protection of registry security and commercial transaction security are also put forward in favor of this view.

However, serious grounds for invalidity, such as collusion or violation of public order or morality, can impair not only the sales contract but also the direct intention to transfer ownership. Therefore, in each specific case, the true intention of the parties, the purpose of the transaction, the transfer documents, whether the price has been paid, the transfer of possession, and the registry record should be evaluated together.

VII. ORIGINAL ACQUISITION OF YACHT OWNERSHIP

Yacht ownership is not acquired solely through sale, donation, or other transfer. Under certain conditions, ownership can also be obtained through original acquisition methods that are not based on the will of the previous owner.

Essentially, ways of acquiring wealth can be divided into two categories: those stemming from public law and those stemming from private law.

1. Original Acquisition According to Public Law Provisions

If a yacht is confiscated under public law, ownership may pass to the state. Yachts used in the commission of a crime, allocated for the commission of a crime, or resulting from a crime may be confiscated within the framework of the provisions of the Turkish Penal Code regarding the confiscation of property.

The provisions of the Anti-Smuggling Law may also be applied to yachts used in smuggling activities. If the yacht is knowingly used, or attempted to be used, for transporting smuggled goods, or if other conditions specified in the law are met, a confiscation order may be issued.

Under specific regulations concerning seizure and confiscation at sea, yacht ownership may be transferred to the state under certain conditions. Additionally, in exceptional circumstances necessitated by public interest, expropriation or similar public law instruments may be employed.

If the yacht is seized and sold through forced execution as part of enforcement proceedings, the winning bidder acquires ownership independently of the previous owner's wishes. Since forced sale may also affect the status of certain real and personal rights on the yacht, the registry records and terms of sale should be carefully examined before the auction.

2. Original Acquisition of Registered Yachts Through Private Law Means

The provisions of the Turkish Commercial Code regarding ownership, ordinary prescription, and extraordinary prescription may be applied to yachts registered in the registry.

An abandoned yacht can be acquired through appropriation if the legal conditions are met. However, the yacht owner's intention to abandon the yacht must be clear and unambiguous. Mere disuse of the yacht for an extended period or leaving it in port is not sufficient, by itself, to classify it as abandoned property.

A person who has been fraudulently registered as the owner in the land registry may acquire ownership through ordinary prescription if they meet the time limits and good faith requirements stipulated by law.

It may be possible for a person who has possessed a yacht that is not registered or has been removed from the registry for a long period of time without interruption and without litigation to acquire ownership through extraordinary prescription. However, in this type of acquisition, the statutory period, the nature of the possession, and the situation of the previous owner must be examined in detail.

3. Original Acquisition of Yachts Not Registered in the Registry

For yachts not registered in the Turkish Ship Registry, the provisions of the Turkish Civil Code regarding movable property apply. Within this framework, the acquisition of ownership through the provisions of found property and acquisitive prescription may come into play.

It is not always possible to directly claim ownership of a yacht that has been abandoned or found at sea. First, it must be determined whether the yacht is truly ownerless, whether it qualifies as lost property, and whether an investigation into its owner is necessary. Failure to report the found yacht to the authorities does not result in the acquisition of ownership and may lead to legal and criminal liability.

Due to the size, economic value, and technical integrity of yachts, other methods of acquiring movable property, such as processing, mixing, or merging, are practically impossible to apply to yachts in most cases.

VIII. LEGAL MATTERS TO CONSIDER WHEN BUYING AND SELLING YACHTS

Yacht sales differ from ordinary movable property sales due to their high economic value and the numerous regulatory aspects involved. Before a sale, the yacht's registration or mooring record should be examined, the seller's ownership should be confirmed, and it should be investigated whether there are any mortgages, liens, precautionary attachments, pledges, usufruct rights, or other restrictions on the yacht.

The yacht's hull number, engine number, flag, and registration information must match the information in the sales contract. Technical documents, classification certificates, seaworthiness certificate, tonnage certificate, licenses, maintenance records, and insurance policies should be examined.

Customs procedures, import duties, value added tax, special consumption tax, and related obligations for yachts imported from abroad, as well as the rules regarding the permanent or temporary use of the yacht in Türkiye, should be evaluated separately.

The sales contract must clearly specify the yacht's current technical condition, any defects, delivery date, delivery location, sale price, payment schedule, taxes, expenses, registration procedures, flag change, insurance, and dispute resolution method.

In yacht sales, especially those involving foreign elements, the applicable law and competent court must be clearly defined. In international sales, the fact that the parties are located in different countries, the yacht flies the flag of another state, and delivery takes place in a third country can give rise to conflicts of law and international jurisdiction issues.

CONCLUSION AND EVALUATION

In Turkish law, the concept of a yacht is not a single, definitively and uniformly defined concept with all its elements in a single regulation. The legal status of yachts can be determined by considering together the provisions of the Turkish Commercial Code, the Tourism Promotion Law, the Turkish International Ship Registry Law, the Maritime Tourism Regulation, the Ship Technical Regulation, and other secondary legislation.

Yachts, as a rule, are considered vessels within the meaning of the Turkish Commercial Code. Therefore, even yachts used for private cruising or sporting purposes may be subject to institutions of maritime commercial law such as collision, salvage, maritime claims, captain's liability, and limitation of liability. Whether a yacht is commercial or private does not affect its status as a vessel; rather, it affects the operating, tax, tourism, insurance, and administrative control regimes to which it is subject.

Although the passenger limits of twelve and thirty-six people stipulated in the legislation may seem contradictory at first glance, these regulations serve different purposes. Therefore, when determining the status of a yacht, one should not rely solely on passenger capacity; the intended use of the vessel, its technical equipment, gross tonnage, bed capacity, operator, and registration should all be considered together.

Registration of yachts in the Turkish International Ship Registry (TUGS) can provide the right to fly the Turkish flag and various economic advantages. However, registration with TUGS does not always grant cabotage rights. For a yacht to be used for commercial activity in Turkish territorial waters, the Cabotage Law, tourism legislation, the legal status of the owner and operator, and the ownership structure of the company must be examined separately.

Although yachts are considered movable property in terms of ownership, the transfer of ownership of registered yachts is subject to specific formal requirements. For a valid transfer of ownership of a registered yacht, the parties must agree on the transfer of ownership, this agreement must be made in writing and notarized or in the presence of the ship registry office, and the possession of the yacht must be transferred to the buyer. Actual delivery or payment of the sale price alone is not sufficient for the transfer of ownership.

In yacht sales, it is particularly important to distinguish between a debt-creating transaction and a disposition transaction. In cases where the sales contract is invalid, there is a debate in legal doctrine regarding the validity of the transfer of ownership, based on the principles of causality and abstractness. Therefore, in case of a dispute, not only the sales contract but also the real contract, formal requirements, actual delivery, registration records, and the true intentions of the parties should be considered.

Yacht ownership can be acquired through transfer methods such as sale and donation, as well as through original acquisition methods such as confiscation, forced sale, appropriation, and acquisitive prescription. However, whether or not the yacht is registered is the fundamental differentiating factor in determining the applicable provisions.

Consequently, the fundamental difficulty in yacht law lies not in whether yachts are ships, but rather in determining their purpose, the registry in which they are registered, and the specific legal regime to which they should be subject. Relying solely on the designation in the registry or contract without determining the technical and commercial characteristics of the yacht can lead to erroneous legal conclusions.

Therefore, a comprehensive legal and technical review should be conducted before any transactions such as buying, selling, importing, commercializing, leasing, or mortgaging a yacht. Registry records, chain of ownership, tax and customs obligations, tourism permits, technical documents, and insurance conditions should be evaluated together. Transactions carried out without this review may lead to ownership disputes, administrative penalties, tax debts, rejection of insurance coverage, and high compensation liabilities.

To make Turkish yacht law more predictable, the definitions of yacht, private yacht, and commercial yacht used in different regulations need to be harmonized; passenger capacity, length, tonnage, and equipment criteria need to be clearly defined; and uniformity in registration procedures needs to be ensured. Such a regulation would both increase the legal security of yacht owners and operators and contribute to the competitiveness of Türkiye's marine tourism and yachting sector.