Short answer. A ship or yacht under the French flag may be encumbered by a ship mortgage, a contractual security which must be in writing on pain of nullity, which follows the vessel into the hands of any purchaser and is not extinguished by the sale. To check that a vessel is free of one, you obtain a statement of registrations from the register of movable security kept by the clerk of the commercial court of the place of registration, where French ship mortgages have been recorded since 7 October 2023, and compare it against the vessel’s record held by the maritime administration. That statement must be dated within a week of signature, because priority runs by date, hour and minute. It says nothing about maritime liens.
The buyer of a second-hand yacht, the lender financing the purchase, the owner taking a vessel on bareboat charter: each needs to know whether the ship is free of security before committing. The question is more delicate than in real estate, because the register changed hands in 2023, because the statutory regime was rewritten with effect from 1 May 2026, and because part of what encumbers a ship is recorded nowhere at all.
What a French ship mortgage is since 1 May 2026
The law on ship mortgages, long housed in the Customs Code, was recodified into articles L. 5114-6-1 to L. 5114-6-10 of the Transport Code by Ordinance No 2026-265 of 8 April 2026, in force since 1 May 2026. Vessels holding French nationality may be mortgaged, except those francised under a bareboat charter; only contractual mortgages are possible, and the mortgage must be created in writing on pain of nullity (article L. 5114-6-1). It may be granted only by the owner or by an agent holding a special power (article L. 5114-6-2), which rules out mortgages signed by the manager of an owning company without express authority. In co-ownership, each co-owner may mortgage his undivided share, and the manager may mortgage the vessel with the agreement of a majority of interests representing three quarters of her value (article L. 5114-6-3).
Unless otherwise agreed, the mortgage extends to the hull and to all accessories, machinery, tackle and apparel, but not to freight (article L. 5114-6-4). It may be granted over a vessel under construction (article L. 5114-6-5), which matters for financing new yachts. Its publication secures, at the same rank as the principal, two years of interest in addition to the current year (article L. 5114-6-8). Between competing mortgages, rank follows the order of dates, hours and minutes of registration (article L. 5114-6-7).
Where the mortgage is recorded: the register of movable security
This is the point that most often catches out practitioners used to the old system. Until 2023, a French ship mortgage was recorded with the customs office of the port of francisation. Since 7 October 2023, under Decree No 2023-921 of 5 October 2023, the initial registration is entered in the register of movable security kept by the clerk of the commercial court for the place where the vessel is registered (article R. 5114-14-1 of the Transport Code). Applications to amend or discharge are made to the clerk who made the initial entry. For vessels on the French international register, the RIF one-stop shop replaces the clerk (article R. 5114-14-2).
The clerk verifies the vessel’s registration and the identity of her owners with the maritime administration (article R. 5114-14-4) and notifies that administration of the entry, which is carried across to the vessel’s record (article R. 5114-14-5). There are therefore two sources to consult, and they must agree: the clerk’s register, which is conclusive as to the entry and its rank, and the vessel’s record kept under article L. 5114-3, showing the particulars identifying the vessel, the name of the owner or owners with their shares, and the rights over the ship. A mortgaged vessel putting to sea must in any event carry on board an extract of the register covering the mortgage entries concerning her (article R. 5114-14-11), which gives a first clue during the inspection.
Obtaining and reading the statement of registrations
The statement is obtained from the clerk of the competent commercial court, identifying the vessel by name, port and registration number. It is delivered within a few days and shows, for each subsisting entry, the creditor, the amount secured, the date and time of registration, and any note of subrogation, assignment of rank or partial discharge. A clear statement means that no mortgage is recorded as at the date of issue, and nothing more: it certifies neither ownership, nor the absence of liens, nor the absence of a later arrest. That is why it should be requested once during the audit and again in the days before signature, and why the sale contract makes payment conditional on delivery of an up-to-date statement.
Three situations recur. The vessel has changed her port of registration, and the former clerk must be asked whether entries were transferred or discharged. The vessel was bought or built abroad: mortgages granted before francisation remain valid and take effect provided they are published in France (article L. 5114-6-10, III), and the former flag register must be searched, since an untransferred mortgage remains enforceable in the State of origin. Or the vessel flies a foreign flag, in which case the search is made with that register, whether Malta, Jersey, the Cayman Islands, the Marshall Islands or the United Kingdom, through a local correspondent, with costs and delays that vary appreciably.
What the statement does not show: maritime liens
The mortgage search is not enough. French law attaches to certain claims a lien over the vessel which ranks ahead of any mortgage, whatever its date of registration (article L. 5114-13), and which follows the ship into whosoever’s hands she passes (article L. 5114-18). Those claims are listed in article L. 5114-8: legal costs incurred to bring about the sale of the vessel, port dues and pilotage and watching charges since entry into the last port, claims arising from the employment contracts of seafarers and of all persons employed on board, salvage and general average contributions, compensation for collision and for damage to port works, and claims arising from contracts made by the master away from the home port for the preservation of the vessel or the continuation of the voyage.
These liens are recorded nowhere. They extinguish after one year, reduced to six months for supplies and repairs ordered by the master (article L. 5114-17), which limits a buyer’s exposure without removing it: a yacht whose crew has not been paid for three months, or which was assisted at sea the previous winter, can be arrested in the hands of her new owner. The only protection is contractual: a seller’s representation that no privileged claim exists, production of payslips and receipts from recent ports and yards, an indemnity, and a retention of part of the price in escrow for six to twelve months where the vessel’s history is incomplete.
Discharge and payment of the price
Where a mortgage is recorded, the sale does not stop, it gets organised. Against repayment of his debt, the registered lender issues a deed of discharge allowing the entry to be removed at the registry. In practice the price is paid into an escrow account, the lender is paid directly by the escrow agent to the extent of outstanding principal, interest and costs, and the balance goes to the seller once discharge has been obtained or, at the very least, the deed of discharge signed. The buyer must never pay the seller before he is certain the lender will be satisfied, since the mortgage would continue to encumber the vessel in his hands.
The timetable needs anticipating: a bank often takes two to four weeks to issue an early redemption statement and a deed of discharge, and the registry a few days to remove the entry. Financing an acquisition follows the same logic in reverse: the new lender requires a first-ranking entry, which means the old mortgage must be discharged before or simultaneously with his own registration. Where the vessel is new, a mortgage may be registered over the ship under construction after a temporary registration in the district of the yard (article R. 5114-14-8), which allows construction instalments to be financed.
Can a mortgaged vessel change flag or be struck off?
Not without the creditor’s consent. A vessel cannot be struck off the French flag of the administration’s own motion while a published mortgage subsists (article L. 5112-1-8), and suspension of francisation for a vessel on bareboat charter, which allows her to sail temporarily under a foreign flag, requires the prior agreement of mortgagees and cannot take place if the foreign flag State would permit the registration of new mortgages (article L. 5112-1-7).
More broadly, any voluntary transaction causing a mortgaged vessel to lose her French nationality is prohibited, and whoever brings it about incurs the penalties for breach of trust where he acts with intent to defeat that prohibition (article L. 5114-6-10). That is a protection for the lender, but also a constraint for a seller transferring his yacht to a foreign buyer: deletion from the French register, which the new registration requires, presupposes prior discharge.
What the firm does
For the buyer of a ship or yacht, the firm runs the title and security audit: verification of the chain of ownership on the vessel’s record, obtaining and analysing the statement of registrations at the registry, searching the register of origin for imported vessels, looking for the signs of maritime liens through crew, yards, ports and salvage, drafting the seller’s representations and warranties, setting up the escrow and coordinating discharge with the seller’s lender.
For a lender, the firm drafts and registers the mortgage, including over a vessel under construction, and follows the formalities that fix its rank. For a seller, it prepares the discharge in advance so that closing is not delayed. The cost of such an audit runs to a few thousand euros; the cost of the yacht being arrested by a creditor of the seller, after the price has been paid, runs into tens of thousands and into months of detention.
Are you buying, selling or financing a ship or a yacht? A title and security audit lets you sign knowing exactly what encumbers the vessel.
Frequently asked questions
Where do you check whether a vessel is mortgaged?
With the register of movable security kept by the clerk of the commercial court for the place of registration, where French ship mortgages have been recorded since 7 October 2023 (article R. 5114-14-1 of the Transport Code), by requesting a statement of registrations and comparing it with the vessel’s record held by the maritime administration (article L. 5114-3).
Does a ship mortgage follow the vessel on a sale?
Yes. It encumbers the vessel in the purchaser’s hands until it is discharged. The buyer must obtain the creditor’s discharge, generally through repayment out of the price, before paying the seller.
Does a clear statement guarantee that the vessel carries no debt?
No. It shows recorded mortgages only. The maritime liens of article L. 5114-8 of the Transport Code, covering crew, salvage, port dues and the master’s supplies, rank ahead of any mortgage, follow the vessel and are recorded nowhere; they extinguish after one year, or six months for supplies (article L. 5114-17).
Can a yacht under construction be mortgaged?
Yes. A mortgage may be granted over a vessel under construction (article L. 5114-6-5), after a temporary registration in the district of the building yard (article R. 5114-14-8).
Can a mortgaged vessel move to a foreign flag?
Not without the creditor’s consent. Any voluntary transaction causing a mortgaged vessel to lose her French nationality is prohibited (article L. 5114-6-10), and she cannot be struck off of the administration’s own motion while a published mortgage subsists (article L. 5112-1-8).
Further reading: ship and yacht purchase due diligence, buying a yacht abroad, ship arrest in France.
Written by Hervé Guyader, avocat at the Paris Bar, doctor of law. This content is general information and is no substitute for advice on your own matter.