Yacht Deposit in Hong Kong: Escrow and Payment Steps

Money in a second-hand yacht purchase normally moves in three stages: a deposit to secure the boat, a survey and sea trial (continue only if the result is good), then the balance and transfer of ownership on handover day. The deposit is whatever buyer and seller agree in the contract; overseas broker guides such as Ocean Independence commonly cite about 10% of the purchase price. Three habits keep you safer: don't pay the deposit straight into the seller's personal account, write into the contract what happens to the deposit if the survey fails, and don't release the balance until the title documents are complete.

> This article is general information, not legal advice. Whether a deposit is refundable and what happens on breach depend on your sale contract. For a transaction this size, take advice from a lawyer and have them read the contract before you sign.

This order is not set by law. It is common industry practice, and the actual terms of each deal are whatever the sale contract says.

There is no universal figure. Buyer and seller agree it in the contract. Overseas broker guides commonly describe about 10% of the price, held in escrow or a client account (Ocean Independence). That is overseas practice, so in Hong Kong each deal turns on its own contract. Too low and the seller doubts you are serious; too high and a failed survey leaves a lot of your money tied up.

What moves the number:

• Price of the boat. The dearer the boat, the bigger the absolute sum, so buyers tend to push for a lower percentage.
• Competing buyers. A popular boat with several viewers lets the seller ask for more.
• Private seller or broker. Brokers usually have a standard reservation procedure. Ask to see it. The two routes are compared in broker vs private sale.
• How clear the survey condition is. The clearer the condition, the more comfortable a buyer is paying a smaller deposit.

These use Sun Yachts stock as of 27 Oct 2026. The 5% / 10% / 20% figures are illustrations only. They are not Sun Yachts' or any seller's actual requirement.

Two things to notice:

1. The same percentage gives very different sums. A 10% deposit is HK$398,000 on the Prestige 450 and HK$780,000 on the Navetta 52. The bigger the deposit, the more it matters whether you can get it back if the survey fails.
2. Asking price is not the sale price. The table uses asking prices. After negotiation, both deposit and balance follow the agreed price.

To see what else fits your budget, browse stock at HK$3m to 6m and stock above HK$6m.

This is the decision that most affects how safe your money is. Holding a deposit in escrow, or in a lawyer's or broker's client account, is common overseas industry practice (Ocean Independence). The three usual options:

How to choose:

• For a smaller sum (say a few hundred thousand dollars or less) and a broker with a clear track record, a broker client account is generally enough.
• For a larger sum, a private seller, or a buyer based overseas, third-party escrow or a lawyer holding the money is the steadier route.
• Whichever you use, the account name must match the payee named in the contract. Before transferring, phone the company on a number you already know to confirm the account details. Do not rely only on account details sent over WhatsApp: fake payee details are a common fraud.

Settle this before you pay the deposit, in the contract, not after the survey. For how the survey itself works and how to choose a surveyor, see the pre-purchase yacht survey guide. Sensible terms usually cover:

1. Survey as a condition of sale. The contract says the sale is subject to a satisfactory survey and sea trial. Overseas broker guidance notes that a deposit can be refunded where the survey shows serious defects, but is not refundable if the buyer withdraws without a valid reason (Ocean Independence); the same guide adds that once the buyer confirms acceptance of the boat's condition in writing, the deposit normally becomes non-refundable. This matches the full buying guide.
2. Deadline for the survey. State how many days after the deposit the survey must happen and what follows if that date passes. There is no standard number of days. Ocean Independence describes the whole process as roughly 6 to 8 weeks, with the sea trial and survey in weeks 3 to 4. That is an overseas reference only; in Hong Kong the contract governs.
3. What counts as a fail. Any defect, or only a "major defect"? Best to say it is defined by the independent surveyor's report, or to list what counts as major, so there is nothing to argue about later.
4. Three outcomes. The buyer may (a) require the seller to repair, (b) negotiate a price reduction based on the report, or (c) cancel and have the deposit returned. The contract should say who chooses and how many days they have to reply.
5. Refund timing and method. How many days to refund, whether the survey fee is deducted, and which account it goes back to.

Whether a deposit can be fully refunded depends on the contract terms and the facts, and cannot be answered in general. If the survey fails and the contract is silent, the dispute may have to be settled through legal channels. When a deposit is withheld or returned is a matter for a lawyer's advice on your actual contract.

The reverse also applies: if the buyer backs out for no valid reason (say the survey is clean but they simply don't proceed), the seller may keep the deposit. That is the other side of the survey condition.

The balance is normally paid once the survey and any repairs are done and the title documents are complete, on or around handover day.

Check these before releasing it:

• Title. The seller's name matches the owner on the Marine Department's Certificate of Ownership record. If a mortgage is noted, you have seen the original discharge documents, or whatever consent arrangement the Marine Department accepts (go by its latest requirements). For the search and transfer steps, see the full buying guide; the related terms are explained under ownership transfer in the glossary.
• Equipment. The contract attaches an inventory; tick off each item at handover.
• Berth or club membership. The contract should say whether the berth or membership goes with the boat and whether it needs a separate transfer. For the berthing picture, see the Sai Kung berthing article.
• Payment and papers together. Complete "pay the balance, sign the transfer documents, hand over the boat" on the same day in the same setting, ideally coordinated by the broker, lawyer or escrow agent, so you never pay before the documents arrive.

If the buyer is using a loan, the bank or lender usually has its own release sequence, and the balance often goes straight to paying off the seller's mortgage. For loans, see yacht financing in Hong Kong; this article doesn't repeat that.

Practical suggestion: pay the deposit by bank transfer for a clear record. Arrange the balance as the contract says, confirming arrival of the transfer on handover day, or exchanging a cashier's order on the spot. Either way, check the payee name and account.