A boat slip is prime real estate in California. In San Diego, the waitlist for a boat slip extends for years. Capitalizing on the demand, many marinas prohibit the transfer or assignment of a boat slip – even if you sell your vessel. But is that legal?
Many boat owners would be surprised to learn that California law actually treats a boat slip as real estate – akin to a commercial lease agreement. You are indeed a tenant at the marina. With that, you are afforded a host of tenant-friendly protections. For example, a marina would have to go through the unlawful detainer and eviction process to legally remove a vessel.
Similarly, California law disfavors anti-assignment provisions concerning commercial real estate interests – which would include a boat slip agreement. A complete ban on the assignment or transfer of the slip agreement is likely unenforceable.
At minimum, California law requires a good faith, reasonable objection to the assignment or transfer of the boat slip agreement – despite the slip agreement’s contractual language. Such an objection would relate to the assignee’s inability to fulfill the terms of the slip agreement, such as financial irresponsibility or an intended unlawful use of the slip. An objection based solely on economic consideration, such as the ability re-lease the slip for an increased sum, would be insufficient.
Yet, many boat owners are unaware of their right to assign or transfer their boat slip agreement. And many marinas would prefer to keep it that way. Despite the law, many marinas completely ban any assignment or transfer of the slip agreement without cause or reason. For example, the current slip agreement at Seaforth Marina in San Diego, California reads:
“The Agreement and Owner’s rights hereunder cannot be assigned or subleased by Owner without the advanced written approval of the Marina. Owner understands that Owner maintains no ownership interests of any kind in the Marina and that he/she is not permitted to represent or imply to any prospective buyer of his/her Vessel or to anyone else that the sale of the Vessel includes a right to occupy a slip at the Marina. In the event Owner elects to sell his/her Vessel, Owner agrees to inform all prospective buyers and involved brokers that this Agreement terminates automatically upon the transfer of any ownership interest in the Vessel [ . . .] and that the Vessel must [ . . .] vacate the Marina prior to or simultaneous with the new owner assuming ownership rights.”
Such a clause is likely unenforceable. Despite the contractual language, California law would require the marina to articulate a good faith, reasonable objection to the assignment or transfer.
If you have questions concerning the ability to transfer or assign your slip agreement or your rights as a tenant at a marina, contact Halimi Law Firm for a free consultation.
