Boat Lease Agreement Template

Boat Lease Agreement Template

This Boat Lease Agreement (“Agreement”) is made as of [Date] between:

Lessor (Boat Owner)
Name or Legal Entity: [Lessor Name]
Address: [Lessor Street Address]
City, State/Province, ZIP/Postal Code, Country: [Lessor City, State/Province, ZIP/Postal Code, Country]
Phone: [Lessor Phone Number]
Email: [Lessor Email Address]

(“Lessor”)

and

Lessee
Name or Legal Entity: [Lessee Name]
Address: [Lessee Street Address]
City, State/Province, ZIP/Postal Code, Country: [Lessee City, State/Province, ZIP/Postal Code, Country]
Phone: [Lessee Phone Number]
Email: [Lessee Email Address]

(“Lessee”).

Lessor and Lessee may be referred to individually as a “Party” and together as the “Parties”.

1. Boat and Lease Overview

1.1 Leased Boat. Lessor leases to Lessee the following boat (“Boat”):

• Boat Type: [Sailboat / Motorboat / Catamaran / Yacht / Other]

• Make / Manufacturer: [Make]

• Model: [Model]

• Year: [Year]

• Length Overall (LOA): [Length]

• Hull Identification Number (HIN): [HIN]

• Registration Number and Jurisdiction: [Registration Details]

• Home Port / Marina: [Port or Marina Name]

1.2 Included Equipment. The Boat includes the following major equipment and accessories, if applicable:

• Engine(s): [Engine Make / Model / HP]

• Sails and Rigging (if sailboat): [Description]

• Electronics: [GPS / Chartplotter / VHF / Radar / Autopilot]

• Safety Gear: [Life Jackets / Flares / Fire Extinguishers / Throwable Devices]

• Other Equipment: [Dinghy / Outboard / Anchors / Dock Lines / Fenders]

1.3 Intended Use. The Boat is leased for [recreational / commercial / instructional] use in connection with [Brief Description of Use]. Lessee shall not use the Boat for any other purpose without Lessor’s prior written consent.

1.4 No Transfer of Ownership. This Agreement is a lease only. Lessee acquires the right to use the Boat during the Lease Term but no ownership interest, unless a purchase option in Section 13 is exercised according to its terms.

2. Lease Term, Delivery, and Return Location

2.1 Lease Term. The lease term begins on:

• Lease Start Date: [Start Date]

and ends on:

• Lease End Date: [End Date]

unless earlier terminated as provided in this Agreement (the “Lease Term”).

2.2 Delivery. Unless otherwise agreed:

• Delivery Date and Time: [Date and Time]

• Delivery Location: [Marina / Port Address]

At delivery, the Parties may complete and sign a condition checklist and take photographs to document the Boat’s condition and inventory.

2.3 Return Location. Unless written consent is given to return the Boat elsewhere:

• Return Location: [Same as Delivery Location / Other Location]

Lessee shall return the Boat to the Return Location on or before the Lease End Date in accordance with Section 13.

2.4 Holdover. If Lessee retains the Boat after the Lease End Date without a signed extension, Lessor may charge a holdover fee of [Currency and Amount] per day (or part thereof), in addition to any other amounts due.

3. Lease Payments and Amount Due at Signing

3.1 Periodic Lease Payments. Lessee shall pay Lessor:

• Lease Payment Amount: [Currency and Amount] per [month / week / other period]

Lease Payments are due on the [Day] of each [month / period] during the Lease Term.

3.2 Amount Due at Signing. On or before the Lease Start Date, Lessee shall pay:

• First Lease Payment: [Currency and Amount]

• Security Deposit (Section 4): [Currency and Amount]

• Any agreed administrative or documentation fee: [Currency and Amount]

Total due at signing: [Currency and Amount].

3.3 Taxes and Fees. Lessee is responsible for any applicable sales, use, or similar taxes and government fees relating to this lease and use of the Boat, except where Lessor is required by law to pay them.

3.4 Late Payments. Any Lease Payment not received within [Number] days after its due date may incur:

• A late fee of [Currency and Amount] or [Percentage]% of the overdue amount; and

• Interest on the overdue balance at [Percentage]% per year, or the maximum allowed by law, calculated from the day after the due date until paid.

4. Security Deposit

4.1 Deposit Amount. Lessee shall pay a refundable security deposit of [Currency and Amount] (the “Security Deposit”).

4.2 Use of Deposit. Lessor may apply the Security Deposit to unpaid Lease Payments, fuel or marina charges paid on Lessee’s behalf, repair of damage beyond normal wear and tear, cleaning fees, loss of equipment, and any other amounts owed under this Agreement.

4.3 Return of Deposit. Within [Number] days after the Boat is returned, inspected, and all charges are calculated, Lessor shall return any remaining Security Deposit balance to Lessee together with an itemized statement of any deductions.

5. Navigation Limits, Permitted Use, and Restrictions

5.1 Area of Navigation. Lessee may operate the Boat only within the following area, unless Lessor gives prior written consent:

• Permitted Waters / Area: [Harbor / Inland Lake / Coastal Area / Distance from Shore]

Lessee shall not take the Boat outside this area or beyond any distance offshore specified by Lessor.

5.2 Permitted Use. The Boat may be used only:

• For lawful recreational or commercial purposes as stated in Section 1.3;

• In accordance with all applicable maritime, navigation, and safety laws;

• With reasonable care, seamanship, and respect for weather and sea conditions.

5.3 Prohibited Use. Lessee shall not:

• Use the Boat for illegal activities or to transport illegal substances or persons;

• Participate in races, regattas, or similar events without Lessor’s written consent;

• Operate the Boat in severe weather or unsafe conditions where a prudent boater would not sail;

• Allow more than [Number] persons onboard or exceed the Boat’s rated capacity;

• Tow other vessels, except in emergencies.

6. Operators, Licensing, and Safety

6.1 Authorized Operators. Only the following individuals may act as captain or primary operator of the Boat:

• [Operator Name 1]

• [Operator Name 2]

• [Additional Authorized Operators]

Any operator must:

• Be at least [Minimum Age] years old;

• Hold any required boating license or certification for the jurisdiction;

• Have sufficient experience with similar boats and conditions.

6.2 Alcohol and Drugs. The Boat must not be operated under the influence of alcohol, drugs, or any substance that impairs judgment or coordination, in violation of law or this Agreement.

6.3 Safety Rules. Lessee shall:

• Ensure that enough approved life jackets or personal flotation devices are onboard for all passengers;

• Comply with all coast guard or maritime safety equipment rules;

• Use navigation lights, sound signals, and other safety equipment as required;

• Follow local speed limits, no-wake zones, and harbor rules.

7. Fuel, Mooring, and Operating Costs

7.1 Fuel. Unless otherwise agreed in writing:

• The Boat is delivered with fuel level at: [Fuel Level];

• Lessee shall return the Boat with [Same Fuel Level / Full Tanks]; or

• Lessee shall pay for fuel used during the Lease Term at [Currency and Amount] per [unit] or actual cost.

7.2 Mooring and Marina Fees. Lessee is responsible for mooring, dockage, slip fees, and transient marina fees incurred during the Lease Term, except for fees at the home marina that Lessor has expressly agreed to cover.

7.3 Operating Costs. Lessee is responsible for ordinary operating expenses such as ice, water, shore power, pump-out, minor supplies, and similar items arising from Lessee’s use of the Boat.

8. Condition, Maintenance, and Repairs

8.1 Condition at Delivery. The Boat shall be delivered in seaworthy condition with essential systems in working order, subject to any issues noted on the condition checklist.

8.2 Lessee’s Duty of Care. Lessee shall:

• Use the Boat in a careful and prudent manner;

• Keep the Boat reasonably clean;

• Timely clear trash and avoid spills or stains;

• Not make structural or mechanical modifications without Lessor’s written consent.

8.3 Routine Maintenance. Unless otherwise agreed:

• Lessor is responsible for major and scheduled maintenance not caused by Lessee;

• Lessee is responsible for basic care such as rinsing saltwater from deck and gear, checking lines and fenders, and reporting any problems promptly.

8.4 Repairs. Lessee shall not authorize major repairs or haul-outs without Lessor’s consent, except when immediate action is needed for safety and Lessor cannot reasonably be reached. In such a case, Lessee shall minimize cost and inform Lessor as soon as possible.

8.5 Damage Due to Misuse or Negligence. Repairs required due to Lessee’s or passengers’ misuse, negligence, or violation of this Agreement (including groundings, collisions, or improper handling) are Lessee’s responsibility and may be charged against the Security Deposit.

9. Insurance and Risk of Loss

9.1 Lessor’s Insurance. Lessor maintains the following insurance coverage on the Boat, if applicable:

• Hull and machinery coverage limit: [Currency and Amount];

• Protection and indemnity (liability) coverage limit: [Currency and Amount];

• Deductibles: [Deductible Amounts].

9.2 Lessee’s Insurance Obligations. Lessor may require Lessee to:

• Obtain liability insurance naming Lessor as an additional insured;

• Obtain separate charter or hire insurance; or

• Pay an agreed share of premiums for broader coverage.

Details (if applicable): [Insurance Requirements Description].

9.3 Risk of Loss. Except to the extent caused by Lessor, Lessee bears the risk of loss, theft, or damage to the Boat and its equipment while in Lessee’s possession or control during the Lease Term, subject to applicable insurance and law. Insurance proceeds, if any, shall be applied to repairs or, in the case of total loss, to obligations under this Agreement.

10. Accidents, Damage, Groundings, and Theft

10.1 Incident Reporting. In the event of any accident, collision, grounding, serious damage, personal injury, or theft involving the Boat, Lessee shall:

• Ensure safety of persons onboard and call emergency services if needed;

• Notify coast guard or local authorities where required by law;

• Notify Lessor as soon as reasonably possible;

• Provide Lessor with a written description of the incident and copies of any reports, citations, or correspondence.

10.2 Salvage and Towing. If the Boat requires salvage or towing, Lessee shall, where practicable, consult with Lessor before authorizing services. Lessee may be responsible for reasonable salvage, towing, storage, and related costs caused by Lessee’s fault or negligence.

10.3 Cooperation with Claims. Lessee shall cooperate with Lessor and insurers in investigating incidents, providing information, and assisting with any necessary documentation.

11. Indemnification and Limitation of Liability

11.1 Lessee’s Indemnity. To the extent permitted by law, Lessee shall indemnify and hold Lessor harmless from third-party claims, damages, fines, or expenses arising from Lessee’s or any passenger’s use or operation of the Boat in violation of this Agreement or applicable law, except to the extent caused by Lessor’s own negligence or wrongful acts.

11.2 Lessor’s Liability. To the extent permitted by law, Lessor is not liable for:

• Loss or damage to Lessee’s personal property brought onto the Boat;

• Loss of profits, business interruption, or other indirect or consequential damages;

• Conditions or events beyond Lessor’s reasonable control, such as weather or navigation restrictions.

12. Default and Early Termination

12.1 Events of Default. Lessee is in default if:

• Lessee fails to pay any Lease Payment or other amount when due and such failure continues for [Number] days after any required notice;

• Lessee materially breaches this Agreement, including serious safety violations, unauthorized navigation, or prohibited use;

• Lessee fails to maintain required insurance (if applicable).

12.2 Lessor’s Remedies. Upon default and subject to applicable law, Lessor may:

• Terminate this Agreement by written notice;

• Demand immediate return of the Boat;

• Recover possession of the Boat in a peaceful and lawful manner;

• Apply the Security Deposit to amounts owed;

• Seek additional damages and reasonable enforcement costs.

12.3 Early Termination by Agreement. The Parties may at any time agree in writing to end the lease early on mutually acceptable terms, including payment of any agreed early termination amount and return of the Boat.

13. End-of-Lease Return and Optional Purchase

13.1 Return of Boat. At the end of the Lease Term or upon earlier termination, Lessee shall:

• Return the Boat to the Return Location by [Time] on the Lease End Date;

• Remove all personal property and trash;

• Refill fuel and, if applicable, water tanks as agreed;

• Return all keys, documents, and accessories.

13.2 Condition at Return. The Boat shall be returned in substantially the same condition as at delivery, normal wear and tear excepted. Lessor may inspect the Boat as soon as reasonably practicable and document any new damage or missing items.

13.3 Cleaning and Restoration. If the Boat is returned excessively dirty or with stains, odors, or damage requiring extra cleaning or detailing, Lessor may charge a cleaning fee of [Currency and Amount] or the actual cost of professional cleaning.

13.4 Purchase Option (if applicable).

☐ Lessee has an option to purchase the Boat at the end of the Lease Term for:

• Purchase Price: [Currency and Amount]

To exercise this option, Lessee shall:

• Give written notice of intent to purchase at least [Number] days before the Lease End Date;

• Pay the Purchase Price plus applicable taxes and fees on the agreed closing date;

• Sign any documents required to transfer title.

☐ No purchase option is granted under this Agreement.

14. Governing Law and Dispute Resolution

14.1 Governing Law. This Agreement is governed by the laws of [State/Province, Country], including applicable maritime or navigation rules, without regard to conflict-of-law principles.

14.2 Dispute Resolution. The Parties shall first attempt to resolve any dispute through good-faith discussions. If not resolved, disputes may be brought before the courts of [City, State/Province, Country] or resolved by [mediation / arbitration] if the Parties sign a separate written agreement providing for that process.

15. Miscellaneous

15.1 Entire Agreement. This Agreement contains the entire understanding between the Parties regarding the lease of the Boat and supersedes all prior oral or written agreements on this subject.

15.2 Amendments. Any amendment or modification must be in writing and signed or clearly agreed by both Parties.

15.3 Assignment. Lessee may not assign this Agreement or sub-lease the Boat without Lessor’s prior written consent. Lessor may assign this Agreement or its interest in the Boat, subject to applicable law.

15.4 Notices. Formal notices under this Agreement shall be in writing and delivered personally, by certified or registered mail, by recognized courier, or by email (with confirmation if required by law) to the contact details listed at the beginning of this Agreement or to updated details provided in writing.

15.5 Severability. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.

15.6 Counterparts and Electronic Signatures. This Agreement may be signed in counterparts and by electronic signatures. Each counterpart is deemed an original, and together they form one instrument.

16. Signatures

By signing below, the Parties confirm that they have read, understood, and agree to be bound by this Boat Lease Agreement.

Lessor (Boat Owner)

Signature: _______________________________
Name: [Lessor Name]
Title (if entity): [Title]
Date: [Date]

Lessee

Signature: _______________________________
Name: [Lessee Name]
Title (if entity): [Title]
Date: [Date]