Marina due diligence

A marina under a signed letter of intent turns on documents most buyers have never had to read before — a Crown or provincial lease, an environmental compliance file, and a set of seasonal contracts — and the findings inside them matter more than anything visible on a walk-through of the docks. Working through the lease, the environmental record, the seasonal contracts and the infrastructure history as separate exercises, rather than folding everything into one financial review, is what actually protects a buyer here.

The lease file

Read the complete water-lot lease for its remaining term, its assignment conditions, any permitted-use restrictions, and how rent is reviewed or reset over the life of the tenure. Confirm the lessor’s assignment process directly and in writing rather than relying on the seller’s summary of how it works — the difference between what a seller believes the process involves and what the lessor actually requires is a common source of closing delay.

The environmental file

Request the fuel storage tank registration and inspection history for the fuel dock — in Ontario, fuel storage tank systems regulated by the Technical Standards and Safety Authority carry their own change-of-ownership requirement, separate from anything happening on the real estate side. Ask for any prior spill incident reports, and confirm with the relevant provincial environmental authority that no open contaminated-sites file exists for the property, rather than relying solely on the seller’s representation that the site is clean.

Seasonal slip-rental contracts and deposits

Review each slip-rental contract for its term, whether tenants carry any informal expectation of automatic renewal, and any deposits already held for the coming season, since those deposits become a liability the buyer inherits at closing. Verify that reported occupancy reflects contracts actually in writing rather than informal arrangements that may not survive a change of ownership, and check whether any contracts contain assignment or transfer restrictions of their own that could complicate the handover.

Equipment, dredging and infrastructure records

Request maintenance and inspection records for haul-out equipment and travel lifts, along with any past dredging permits and whether a further dredging need has actually been documented or is merely anticipated. An execution and judgment search against the selling entity confirms no liens attach to equipment being purchased — a quick check relative to the rest of marina diligence, but one that can surface a problem late if skipped.

Fuel tank registration and removal-cost liability

Where the fuel dock includes underground storage tanks, request the tank registration and installation records specifically, not just the general spill-prevention compliance file, and confirm in writing whether responsibility for eventual removal or replacement cost has ever been addressed between the current owner and any prior owner or the lessor. This is a distinct question from whether the system is currently compliant — a tank can pass every current inspection and still carry an open question about who pays if it is ever decommissioned. Getting a direct answer before closing, rather than assuming the purchase price already accounts for it, avoids a dispute surfacing only when the tank eventually needs to come out.

The staff and technician file

Request the current staff list distinguishing year-round technicians from seasonal dockhands, along with confirmation of what each is owed in accrued vacation and other entitlements a buyer inherits as successor employer under provincial employment standards legislation. Where any staff member has been with the marina long enough to hold institutional knowledge of slip-tenant relationships or equipment quirks, ask directly whether they are expected to stay through the coming season. A clearance certificate from the relevant provincial workplace safety authority, the same step worth confirming for a hotel purchase, applies equally here and should be requested directly from the authority rather than taken on the seller’s word.

GST/HST and closing adjustments

Confirm early whether the transaction is structured as an asset or share purchase, since that choice changes how GST/HST applies to the real property and equipment being purchased, and get the answer from an accountant rather than assuming the structure the seller proposes is the only option available. Slip-rental deposits already collected for the coming season also need a clear tax and accounting treatment at closing, distinct from the purchase price itself, so that neither side is surprised by how those funds are reported after the sale closes.

What specific findings actually kill a marina deal

Certain findings during marina due diligence are more likely than others to end a deal outright:

• The lessor declines or delays consent to assign the water-lot lease to the buyer
• An environmental assessment finds fuel-storage or historical spill contamination that was not previously disclosed
• Seasonal slip tenants signal they will not renew once the marina changes hands
• Dredging is needed to maintain navigable depth and neither the approval nor the cost was priced into the deal