When buying on the water you want to know whether the property is zoned to allow for jetties and boat mooring and then what type of arrangements NSW Transport (Maritime Services) is willing to offer in the form of a Sub-Lease, Lease or Licence for those mooring facilities.
Other issues to consider will be;
a. The Berthing Plan – where and what type of boat can be moored (in particular the maximum length of the vessel)
b. The Term – normally 20years for a Lease and triannually for a licence
c. The Area – which will dictate the annual rent costs
d. The Rent and how it is calculated (depending on the location of the property)
e. Whether there are any Outgoings payable (eg. for services, etc)
f. What are the Improvements (eg. Boathouse, Jetty, Pontoon, Slipway, Ramp, Mooring Piles, etc),
g. The Use – either Permanent Mooring, or Casual Mooring, or for Repairs and Maintenance only, or Vessels for Sale/Marina? Are there subsisting User Rights? Or have these been lost for failure to moor a vessel using the Improvements?
h. The amount and type of Security required; either a Bank Guarantee, or a Security Deposit;
i. The Insurance required to be in place prior to the use of the Improvements,
j. Whether the Rights under the Lease, or Licence ,can be assigned or sublet (ie. is it permitted with consent, or prohibited)
k. Maintenance and Repairs of the Improvements, which must be kept in good order, repair and condition that is safe and physically suitable for the permitted use. The premises must be kept clean and rubbish removed at all times. Signs and lighting must be erected on the facilities in accordance with the lease, dangerous goods must be safely contained and stored and used with safe working practices and procedures to protect persons and the Environment. Please note… maintaining and repairing improvements on the water can be costly because of access and materials required.
l. Removal of Improvements & Lessees Property. Please note that upon termination of a maritime lease, for whatever reason, the Improvements (defined as the Lessees Property) must be removed in accordance with any notice issued by the Lessor, a failure to do so will permit the Lessor to remove and dispose of the improvements as notified. The costs of removal of jetties and mooring pens can be significant, in addition to the NSW Maritime’s costs of removal, for which you indemnify the Lessor.
Often the Lease, or Licence, will have a Dictionary for terms such as “Contamination”, “damage”, “environment”, “hazardous material”, “improvements”, “lessees property”, “loss”, “maintenance plan”, “material event”, “NSW Maritime guidelines”, “outgoings”, “permitted use”, “pollution”, “mediation”, “remove”, “serious property damage”, “services”, “vessels”, “work”, The definitions of these terms are important in relation to the scope of the lease/licence terms and should be carefully investigated.