THE EYB COUNTRY GUIDES · France
Check the holder, legal arrangement and agreed release conditions before paying a French yacht sale deposit.
Yacht sale escrow France needs precise terms because the Civil Code's conventional séquestre concerns a disputed asset held by a third party. That definition should not be applied automatically to every ordinary yacht sale deposit described as escrow in an advertisement. The sources opened here explain that legal arrangement, relevant mandate accounting duties and official business identity checks. They do not establish a compulsory protected yacht escrow service, universal deposit percentage or standard release timetable.
This guide helps identify what the proposed holder is actually agreeing to do. As practical advice, obtain a written holding agreement and qualified review of the payment, release and refund conditions before transferring funds. Review the seller's and intermediary's roles separately from any claims about the safety of the arrangement. For anything this guide does not cover, email us at info@europeanyachtbrokers.com for the latest information.
Key facts at a glance
Civil Code Article 1956 defines conventional sequestration in relation to a disputed asset.
Légifrance – Civil Code conventional sequestration of a di, updated 21 Mar 1804 ·Civil Code Article 1959 permits sequestration of movable assets as well as immovable assets.
Légifrance – Civil Code conventional sequestration of a di, updated 21 Mar 1804 ·Civil Code Article 1960 limits discharge of the conventional holder before the dispute ends.
Légifrance – Civil Code conventional sequestration of a di, updated 21 Mar 1804 ·Civil Code Article 1996 addresses interest on money used for the representative's own purposes and balances due after formal notice.
Légifrance – Civil Code mandate rules on authority, fees, , updated 21 Mar 1804 ·The directory can be searched using SIREN or SIRET identifiers and other details.
Service Public, updated 10 Oct 2025 ·Section 1
Civil Code Article 1956 defines conventional sequestration by reference to a disputed asset placed with a third party. This is a specific legal starting point, not a universal description of every deposit used in yacht transactions. As practical advice, ask the proposed holder to identify the legal arrangement it is offering and the agreement governing your payment. If a deposit is being collected before any dispute exists, obtain qualified advice about its classification rather than assuming that the Code provision applies because the word escrow appears.
The definition identifies a third-party holder. Practical review should establish exactly who that holder is and in what capacity it accepts the asset or money. Ask whether the intermediary negotiating the yacht sale is also the proposed holder and what agreement explains that role. The statutory definition should not be treated as proof of independence, insurance or a segregated account in a particular transaction. Ask for documentary evidence of any such advertised features and obtain advice where the holder's explanation leaves the actual arrangement unclear.
The Code permits conventional sequestration to be remunerated and says it can concern movable assets as well as immovable assets. For a yacht transaction, that movable-asset scope is relevant to understanding the provision, but does not decide whether your proposed payment falls within it. As practical drafting advice, identify what is to be held and any holding fee in the agreement. Keep the holder's remuneration separate from brokerage commission so the accepted documents explain each role and charge without implying an official tariff.
Broker tip: Ask which legal arrangement governs the payment and obtain the accepted holding terms. Identify the holder, asset and fee, and seek evidence for any advertised segregation, insurance or independent status. See also our guide on what goes in a boat sale contract in France.
Signing a boat purchase agreement.
Disputed asset
Section 2
Article 1956 describes return after the dispute ends to the party recognised as entitled to the asset. That legal description should not be rewritten as an automatic yacht closing process. As practical advice, distinguish the proposed sale completion conditions from any instructions applying if the parties disagree. The holding agreement should explain the documents and approvals it requires. Obtain qualified review where a survey rejection, failed condition or disagreement could affect who is entitled to the deposit and how the holder establishes that entitlement.
Article 1960 says the conventional holder cannot be discharged before the dispute ends except in the cases it identifies. The provision includes discharge with the consent of all interested parties. As practical drafting advice, clarify how any joint instruction will be authenticated and who is entitled to give it. Do not assume one negotiating party can override the other merely by sending a release request. The actual agreement and legal classification require review, especially where the money was originally collected as an ordinary conditional sale deposit.
The same provision also identifies a legitimate cause as a basis for discharge before the dispute ends. This guide does not define every circumstance that qualifies or decide a particular holder's rights. As practical advice, ask how the agreement addresses a contested instruction and what process is proposed for resolving it. Preserve the payment record and correspondence if disagreement occurs. Do not rely on an invented fixed statutory yacht release period; the opened provisions establish these legal conditions rather than a universal number of working days.
Broker tip: Agree how disputed instructions will be handled before paying. Keep condition, approval and payment records together, and obtain legal advice if the holder or either party contests release or refund entitlement. Readers often go on to our guide on how to transfer boat ownership in France.
Boat sale contract with a legal stamp.
Return after the dispute
Buying or selling a boat in France and want a second opinion? Speak to one of our brokers.
Section 3
Where the actual relationship is a mandate, the Civil Code requires the representative to account for management and everything received under its authority. That matters if a yacht intermediary receives transaction money while representing a principal. As practical advice, request a written account identifying receipts, deductions and the balance due. The accounting duty is not proof of a protected escrow product. Review any separate holding agreement and evidence of advertised safeguards rather than treating a general representative appointment as a complete explanation of deposit handling.
The Code makes interest due on money the representative uses for itself from the date of that use, and on money remaining due from formal notice. These provisions concern the specified mandate relationship; they do not guarantee recovery if a holder becomes insolvent. As practical advice, obtain a statement identifying any retained amount and the basis for its retention. Keep the agreed commission and holding fee visible in the same transaction file so a disputed deduction can be compared with the accepted authorisation and account.
The mandate rules prohibit acting beyond granted authority and require performance while the representative remains charged with the work. Practical drafting should identify which money-handling tasks have actually been accepted and what approvals are required. Ask a qualified adviser to examine an arrangement that combines negotiations, representation and deposit holding. This guide does not assume every holder is a mandatary, or that every receipt is governed by the same rules. The actual contract and capacity determine how these provisions relate to the proposed yacht transaction. No compulsory yacht escrow scheme, statutory deposit percentage or standard yacht-release timetable verified. The Civil Code séquestre provisions concern disputed assets; ordinary sale deposit classification requires separate review. For these, email us at info@europeanyachtbrokers.com for the latest information.
Broker tip: Require a written account of receipts and authorised deductions. Confirm the actual capacity in which money is held, and review holding safeguards separately from the representative's general accounting and performance duties. Our guide on what a yacht broker agreement in France should say covers a related point.
Boat insurance and tax paperwork on a desk.
Mandate accounting
Civil Code Article 1993 requires accounting for management and everything received under the representative's authority.
Source: Légifrance – Civil Code mandate rules on authority, fees, , updated 21 Mar 1804Civil Code Article 1996 addresses interest on money used for the representative's own purposes and balances due after formal notice.
Source: Légifrance – Civil Code mandate rules on authority, fees, , updated 21 Mar 1804Civil Code Article 1989 prohibits acting beyond the mandate.
Source: Légifrance – Civil Code mandate rules on authority, fees, , updated 21 Mar 1804Civil Code Article 1991 requires performance while charged with the mandate and addresses non-performance damage.
Source: Légifrance – Civil Code mandate rules on authority, fees, , updated 21 Mar 1804Section 4
Service Public describes the official business directory as a source of public legal information. It permits searches by SIREN or SIRET identifiers and other business details. As practical payment advice, obtain the holder's full legal name and business identifier before reviewing the account instructions. Compare the directory result with the party named in the holding agreement. This establishes an identity check, not proof that the account itself has a particular legal protection or that the business is authorised for every service it advertises.
The official directory also allows downloadable RNE registration evidence. Service Public explains that K or Kbis extracts prove commercial-register registration. As practical record keeping, retain the appropriate evidence with the accepted holding terms and payment instruction. If a different business appears as the proposed account beneficiary, ask for a documented explanation before relying on it. The sources here do not establish a universal rule about who may provide yacht escrow, so a disputed holder qualification should be checked against the actual activity by a qualified adviser.
The commercial-register guidance distinguishes K evidence for individual commercial businesses from Kbis evidence for commercial companies. Use the document appropriate to the holder's entity type rather than treating a missing Kbis as proof that every alternative arrangement is invalid. As practical advice, ask separately about claimed insurance, account segregation and refund protection. Verify those claims using the actual policy or agreement. Business registration and a polished payment instruction should not be presented as documentary evidence of protections that the opened register guidance does not provide.
Broker tip: Compare the holder's legal record with its agreement and payment instructions. Obtain separate documents supporting any promised fund protection and seek qualified review where the holder's identity or capacity remains unclear. A related question is answered in our guide on whether you pay VAT on a boat in France.
Boat keys and documents handed over on a chart table.
Public identity information
Practical support
Peter Mattey is a yacht broker at European Yacht Brokers with a BA in Law. He is not a French lawyer: for French law and tax we refer you to a locally qualified adviser. What we can do is help you plan the transaction, put the right questions to the other side and spot gaps in the paperwork before you commit.
If you are buying or selling a boat in France, tell us about the boat and the area through the enquiry form on this page and a broker will reply. For anything this guide does not cover, email us at info@europeanyachtbrokers.com for the latest information.
The handover of a boat at the dock.
Your questions
No, the Civil Code definition of conventional sequestration concerns a disputed asset entrusted to a third party. An ordinary conditional sale deposit should not automatically be given that classification simply because an advertisement uses the word escrow. Obtain the accepted holding terms and qualified advice about the actual arrangement, release conditions and holder's role before transferring money. [Légifrance]
Yes, Civil Code Article 1957 permits conventional sequestration to be remunerated. It does not set a yacht-specific holding percentage or standard fee. As practical advice, identify the accepted holding charge separately from brokerage commission and sale expenses, and ask how it is calculated and when it is payable under the actual arrangement. [Légifrance]
Article 1960 permits earlier discharge with the consent of all interested parties or for a legitimate cause. The guide does not decide what qualifies in an individual dispute or treat those rules as an ordinary yacht closing timetable. Preserve the agreement and instructions and obtain qualified advice where entitlement to release or refund is contested. [Légifrance]
No such insurance conclusion follows from the mandate accounting provision. Article 1993 requires a representative to account for management and receipts under its authority, but the actual holding safeguards need separate evidence. Ask for the holding agreement and documents supporting any advertised protection, and verify which capacity the intermediary accepts when it receives the money. [Légifrance]
The official directory offers public legal information, searches using SIREN or SIRET and downloadable RNE registration evidence. Compare the holder's legal identity with the accepted agreement and payment instruction. Those records help identify the business; they do not prove that the proposed account is segregated, insured or protected under a particular yacht escrow scheme. [Service Public]
This guide only includes facts checked against official sources. For anything it does not cover, email us at info@europeanyachtbrokers.com for the latest information, and ask a locally qualified adviser to confirm the position for your own boat.
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Civil Code mandate rules on authority, fees, duties, accounting and ending.
Civil Code conventional sequestration of a disputed asset; not a universal yacht deposit scheme.
Official directory searches and downloadable national-register evidence.
Commercial-register K/Kbis evidence and RNE registration evidence.
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