arina slip leases can appear in short, medium and long versions. What they all have in common are terms and provisions setting out the rights and obligations of the marina or yacht club operator and very importantly the boater leasing the slip.

After the parties are named, the length of time of the agreement will be recited, with a description of the boat. Then the fee amount and payment time—annually, semi-annually or monthly—and the due date. Any modifications or waivers (as some marinas did during the COVID-19 lockdowns) should be in writing and signed by both parties to be legally enforceable. It can be a risky business to rely on verbal representations, at least as far as the courts are concerned, should it come to that unpleasant situation.

Full Compliance

Slip renters are required to be in compliance with the rental agreement. And that means along with proof of insurance (with normally the marina listed as an additional insured), all rules, regulations (including environmental) and restrictions, and penalties for violations. Terminations, cancellations, unpaid fees, removals and other unpleasantness allow certain remedies to the marina. If the various marina remedies are not spelled out in the agreement to your satisfaction, such as a marina’s right to place a lien, ask.

If a short form lease states they are attached and incorporated by reference, read them, as you will be bound by each one. It may say your boat is in keeping with the “standards of the marina” or similar language. Noise levels unacceptable from engine exhaust may be specified too. If there is any need for clarification, now is the time before you sign your initial agreement. For renewals you can inquire if there have been any changes, but you should still read the entire contract carefully particularly the policy of use for business purposes versus guests visiting for personal business purposes, as well as access by contractors you may hire for making vessel repairs, and the procedure to gain access.

Access To The Slip

The marina or yacht club will retain the overall right of access to the entire premises of course for maintaining, so pay careful attention to rules prohibiting the renter from new modifications and boarding devices such as steps and ladders, again unless approved in writing. Anything already existing will be used at your own risk and either included in the lease or by signage.

Exculpatory Clauses

The “Hold Harmless” provision is a really, really important one, about which entire books have been written. The basic legal definition is where one party to a contract agrees to hold the other without responsibility for damage or liability in the event of certain circumstances. In plain English, this means the slip holder (Lessee) agrees to not hold the marina responsible for virtually any mishap that causes damage at any time—not even for its own “ordinary” negligence. It is not responsible for loose lines, a vessel’s equipment or contents, checking of bilge water levels, or moving a boat to safety in emergencies to name a few examples. And if a slip holder discovers a dangerous condition (such as loose or rotten dock boards), the marina is given a “reasonable” time to repair properly. Until then navigate at your own risk.

Special Wording

Look for the wording, “RELEASES AND DISCHARGES… FROM ANY AND ALL LIABILITY” and so on. Basically that’s true, but there are exceptions, no matter the contract language, such as “gross negligence,” which is a higher level of negligent conduct.

Case In Point

A new boater was cautiously approaching the entrance to a marina to enter his recently leased berth. A young (and as it turned out later very inexperienced) marina employee who happened to be at the main dock’s far end, hollered to the boat owner to see if he needed assistance in navigating his large cruiser through the marina and into his slip. When the boat owner gratefully acknowledged the offer, the employee managed to jump aboard, taking the helm. Suffice it to say, chaos quickly reigned supreme with significant damage done to the new vessel, docks and other boats.

To make a long story short, the whole thing ended up in court, mainly a battle royal of the party’s insurance companies. The hold harmless provision was held to be unenforceable. The court found the marina facility guilty of “gross negligence” in utilizing incompetent personnel to offer piloting and docking assistance, and the marina was left on the hook for the damages. Why is this important personally to the boater? Because a claims record can be a factor in a policy’s renewal approval.

In another actual case, a marina service manager recommended a fellow employee of another department install a new fuel pump on a slip renter’s craft. That individual was untrained in this type of repair and the improper installation had near catastrophic consequences! In both of these legal actions the court struck the hold harmless clauses and held the marinas liable for the damages. But the decisions could have gone the other way with the facilities’ conduct found not rising to gross negligence and allowing them to sidestep liability. Note the marina’s security rules on outside contractors you hire also.

This is a “red letter” clause, one that regulates business as a whole and which can hold harmless, or fully absolve a party from liability for its own negligence, but as you can see it does not always completely clear a contracting party who claims it and is not without some limitation.

BoatUS continues to offer “contract liability” coverage as an added policy endorsement to its marine insurance policies, so slip renters may want to check that out. Basically it covers an insured’s legal liability for bodily injury or property damage assumed under a slip (or storage) agreement should the renter unfortunately incur such.

More Fine Print

Many agreements provide for automatic extension of yearly periods, or month-to-month or six-month terms automatically converted to annual ones. Watch for this provision. Always read and understand all provisions before signing. According to one maritime law scholar, it should be remembered the law gives the marina operator “a sword as well as a shield.” Again, the marina can potentially write just about any term it wants into the slip agreement and the slip renter will in most cases be held to it!

Lastly, Great Lakes boaters should be aware many Canadian marinas and yacht clubs display signs putting transient visitors on notice they are subject to all of the facility’s policies.

A clear understanding of your agreement keeps everyone happy. And especially if you like the spot, know the waters well, and enjoy your slipmates.