Buying a second-hand vessel: ownership transfer steps from MOA to delivery
By Pooria Adli, 12 November 2026
Agreeing a price does not complete a vessel purchase. Between signing the MOA and the day the vessel is registered in your name and handed over, there are several technical and legal steps, and any one you skip will either delay the deal or leave you paying for it.
Most buyers spend their energy finding the right vessel and negotiating the price, then treat what follows as paperwork. In practice, a large share of the risk in a ship Sale and Purchase (S&P) sits in exactly that gap: from the moment both sides agree a price to the day the vessel is delivered to the buyer with complete documents. Below I take you through the process in order and tell you where to be strict at each stage.
The MOA: write everything you will need later into it
Once you have chosen a vessel, the Memorandum of Agreement (MOA) is drawn up and its terms are negotiated with the seller. In the international market this document is usually based on the Norwegian Saleform (NSF). Buyers often overlook one point: the final inspection takes place after the MOA is signed, and its benchmark is the international standards for that type of vessel together with the terms of the MOA itself. A condition that is not in the MOA has nothing to back it at the final inspection either.
Before you sign, make sure the text makes at least these points clear:
The scope of the final inspection, including the Sea Trial and the Underwater Inspection, and what effect the result has on the deal.
Your access to a Class Records Inspection, and to the vessel's ownership history and previous activities.
Who deals with defects found after the inspection, such as a need for Dry Docking: who carries out the repair, at what cost, and whether before or after delivery.
The list of items delivered with the vessel, from spare parts to safety and navigation equipment.
The delivery port and time window.
The best moment to consult a maritime lawyer or legal adviser is also before this document is signed. A vessel transaction is complex in terms of ownership, obligations and liabilities, and amending a clause at this stage is far cheaper than a dispute over it after payment.
Final inspection: three possible outcomes, not two
The final inspection differs from the initial one. In the initial inspection you choose between several options; in the final inspection you check whether the vessel you chose is what the MOA describes. I have covered the initial inspection points earlier in the pre-purchase inspection checklist; here the focus is on actual performance. In the Sea Trial, the main engine, propulsion system, controls, navigation, communications and the vessel's speed are tested under way, and every defect is recorded. Certificates and repair records for engines, generators and pumps, and the ballast water, fuel and fresh water systems, should also be reviewed.
The cost of specialist tests, such as diving and hull thickness gauging, is normally calculated separately from the Marine Surveyor's fees and is for the buyer's account. Put this figure in your budget before you agree the price, not after.
The final report declares one of three outcomes: acceptance, conditional acceptance or rejection. Conditional acceptance is an important tool for the buyer and should be used properly. Instead of rejecting the deal outright or accepting it unconditionally, you make specific repairs a condition before delivery. That condition only works when the list of defects is precise, measurable and in writing. The first report goes to you, and once you approve it, your representative notifies the owner.
Legal checks: a vessel with debts or encumbrances is expensive even when it is cheap
The final contract is concluded on the basis of the MOA and with all legal requirements taken into account. Before you pay, you must be sure the vessel has no insurance or tax debts and that no Ship Mortgage or other right is registered against it. The valid document for this is the Certificate of Ownership and Encumbrance, confirming no debts and no mortgage, from the flag registry. You should also check the status of the flag, registration and class, and any legal, contractual or sanctions-related obstacle that could stop the vessel from trading.
The reason for this strictness is plain. In most legal systems, certain claims, such as a Maritime Lien, attach to the vessel itself and do not disappear when ownership changes. If such a claim has been hidden, you may face Ship Arrest after the purchase, for a debt of the previous owner.
Declaring ownership and delivery: take the documents together with the vessel
At the closing stage, the new ownership must be declared to the Flag State, the Classification Society and the port where the vessel is delivered. The order and coordination of these notifications directly affect the delivery date; if any one of them is late, the vessel waits in port and someone has to pay for those days.
On delivery day the vessel must be in the same condition as seen at the purchase inspection and in line with the terms of the contract. The Bill of Sale is signed, and the Protocol of Delivery and Acceptance records the exact time at which ownership and risk pass. Check the life-saving appliances (LSA), firefighting appliances (FFA) and the navigation and communications equipment once more for presence, validity dates and operation. If a shortage of these items is noticed before delivery, it is a basis for a price reduction or for the seller's obligation to supply them; after delivery, the problem is yours.
After the change of ownership, the vessel's certificates and documents must be reviewed or reissued in the new owner's name, and a takeover report prepared for the buyer. This report is the last technical document of the transaction and is the one referred to in later disputes.
Change of flag, class and the delivery voyage
If you plan to register the vessel in Iran or change its flag and class, choose the destination flag and Classification Society before you buy, and ask whether they will accept this vessel at its current age and condition. The process of removal from the previous registry is completed with a Deletion Certificate, and without it a new registration is not possible. You can hand these tasks to a trusted representative, provided the scope of their work is in writing.
Vessels bought abroad have one more stage: the delivery voyage. The route must be chosen with economic efficiency, the safety of the crew and vessel, and sanctions restrictions in mind. Plan in advance the supply of fuel and provisions to the destination, the permits and documents needed along the way, and the ability to track the vessel and receive a daily position report.
The buyer's practical checklist
Manage the path from MOA to delivery like a project: write the conditions down before signing, carry out the final inspection against the criteria of that same document, rule out debts and encumbrances with official documents, and take the documents together with the vessel. Define legal services, experts' travel and specialist tests in writing from the start as well, so the final cost of the purchase does not surprise you.
If you are looking for a vessel to buy, start from the listings page. For support with the inspection, drafting the MOA and following delivery through, contact me and my colleagues at Shipo Market through buying consultancy.
