Will you purchase a brand-new ship, or do you want to look at some pre-owned options? Before making any commitments, you should learn everything you can about a vessel bill of sale. We’ll explain who has to sign this bill of sale and their roles. To start things off, you’ll need a bill of sale to buy a yacht through a dealer or broker. You, as the buyer, and the seller, as the seller, should both be familiar with the terms of the bill of sale before signing it. Every boat owner should read this page since it contains essential information concerning bills of sale. Whether you’re a seasoned buyer or just starting, the following advice will come in handy. Here’s what you need to know to make sense of this paper:
What is a Vessel Bill of Sale?
A bill of sale is required for the formal transfer of ownership of a boat. It transfers ownership from one person to another according to the law and must be prepared by an authorized representative of the state or country where the boat is registered. Both typed and handwritten bills of sale for vessels are legal documents. Handwritten bills of sale are typically only used when selling to a member of the seller’s immediate family because they lack the safeguards provided by the standard form, which is designed to ensure that all information necessary to transfer ownership is included and filled out correctly.
If you’re purchasing a boat, you’ll need to sign a bill of sale before taking it out on the water. A hard copy for the buyer of your yacht should already be in your possession. Having both copies signed simultaneously in front of two witnesses is standard practice if the buyer has had their copy prepared by an authorized representative.
What Does a Vessel Bill of Sale Include?
When one person sells their boat to another, they must use a bill of sale. Since boats are often seen as a significant investment, it’s prudent to document the sale and transfer of ownership in writing to avoid future misunderstandings. Both parties must sign the vessel bill of sale to be enforceable in a court of law. Bills of sale may be filled out in a variety of ways, but they often include the following details:
- Details about the buyer and the seller, including their names and addresses.
- A description of the boat, including the manufacturer, model, and length of the vessel, as well as the year it was first produced.
- The date when ownership transfers from one party to another.
- The price at which the boat was sold (or, in some cases, given).
- Regarding the purchase, transfer, or sale of this vessel, the parties involved may have entered into any further special agreements.
What Is The Purpose of a Vessel Bill Of Sale?
A bill of sale for a boat is a legal document used to document the transfer of a boat from the owner to the purchaser. The document serves as a legally binding record of the boat’s condition and purchase price. The boat’s price and the requisite insurance coverage are specified in a written contract between the buyer and seller. You acknowledge in this document that you have been provided with a copy of the boat’s title report and have had an opportunity to review its contents.
Each party to the boat sale signs a bill of sale to record the transaction legally. The seller signs to indicate their willingness to sell you the boat, and the buyer signs to demonstrate their willingness to purchase it. According to the title report, both sides have signed this agreement. Having proof of insurance for the newly acquired property before leaving the seller’s premises can be advantageous to both parties.
How Can I Protect Myself When Buying or Selling a Vessel?
A written agreement should be the first step. Though it’s possible to acquire or sell a boat without ever seeing the paperwork associated with the vessel’s previous owners, doing so is only recommended in some cases. Among them is the bill of sale, a must-have when purchasing or selling a yacht.
Bills of sale are contracts between two or more parties that spell out the specifics of a transaction. Therefore it’s crucial that all parties thoroughly review the document before signing. By understanding what information will be included in the bill of sale, who will be involved in the transaction, how much you will pay for the new vessel, and how long you are permitted to use it? You can easily protect yourself legally and financially when purchasing or selling a boat.
For more information about acquiring a Vessel Bill of Sale, contact the Maritime Documentation Center today through our site and chat with us online. We have many years of experience in the field and can answer all your questions.