So you want to sell your boat? Perhaps you don’t use it anymore, need the money, or are preparing to buy a different vessel. No matter the reason you’re selling, you will need a vessel bill of sale to legally sell your watercraft to a new owner. This is a legal contract that includes important data about the boat, as well as the parties involved in its sale. For the bill of sale to be binding, it must include certain specific details. Keep reading to find out what they are.
Boat Identification Details
Some of the most important data that must appear on a bill of sale involves details that are specific and unique to the boat. That includes all identifying information – the make and model of the boat, as well as the hull identification number. This ensures that the boat being sold is the same one described in any of the related documentation.
Price of the Boat
The bill of sale must also clearly state the price that the boat is being sold for. The price must also take into account the fair market value of the vessel. This ensures that the boat is being sold with depreciation figured into the cost. If you’re unsure what this number is, consider having an appraisal conducted that will help you determine what the boat’s value is. With this in mind, you can price your boat at a fair price for the buyer, but also for yourself.
Terms of Payment
Whether the boat is being bought outright or there will be payments made on it, these terms must be outlined on the bill of sale. The method of payment should also be included and options are check, cash, credit, or wire transfer. Be sure to also include the date and location where the payment is made.
The bill of sale must also inform the buyer that the seller has the legal right to sell the boat and that there are no liens claimed on it. It should also inform the buyer that there are no barriers to the transfer of ownership.
In addition, the buyer must sign to accept the boat and to ensure that he or she agrees to the terms laid out in the bill of sale.
Signatures of Both Parties
Both the buyer and the seller must sign the bill of sale. This must be done in the presence of a notary or other witness to be considered legally binding. You can find appropriate notaries and witnesses in the boating community or your local notary agency. The date must also appear on the bill of sale when it is signed and filed.
A vessel bill of sale is mandatory and is created for the protection of both the buyer and the seller. It ensures that both parties know the terms of the sale and agree to them, which helps either one should the other back out or fail to comply with the terms. Do you need help creating a bill of sale? Do you have more questions about doing so correctly? You’re in the right place. Contact the Vessel Registrar Center today for all of the help you need.