Registering vessels in Cyprus requires keeping in mind several important considerations. For example, prior to signing a deal involving the sale & purchase of a yacht in the Republic of Cyprus, buyers should perform DD. So, let’s see what this is all about.
Proof of Ownership
After a vessel flying the Cypriot flag is temporarily or permanently registered, a certificate of title is issued by Cyprus’s Register of Vessels. The certificate contains:
- vessel’s info;
- owner’s name;
- owner's address.
In case of a ship mortgage, the following certificates are issued:
- ownership & security certificate ( in the event of temporary registration of a ship in the Republic of Cyprus);
- an extract confirming ownership & containing a mortgage’s details (in the event of a vessels’ permanent registration in the Republic of Cyprus).
Documents listed above contain evidence regarding information specified therein, including a vessel’s ownership. An entry in the Register pertaining to a vessel’s ownership constitutes proof of such ownership.
Individuals claiming to be owners of a vessel are required to provide evidence corroborating their claim & disqualifying the current owner from owning a vessel.
Those planning to conduct DD of a yacht sale & purchase transaction in Cyprus should keep in mind that Cyprus’s Ship Registrar doesn’t keep records of ship liens. Only information about mortgage loans is available.
Another important consideration to be kept in mind is that mortgages issued in relation to a ship financing deal must be registered with the Corporate Register.
Legal DD of deals in the Republic of Cyprus also includes searching for data in the Corporate Register or getting a good standing certificate. The Corporate Register can aslo issue termination certificates.
For more information about DD of deals involving purchase & sale of vessels in the Republic of Cyprus, please sign up for a personal consultation with IQ Decision UK experts.