How to Buy a Boat with a CG 1340 Bill of Sale

Whether you’re buying your first boat or are looking to upgrade the one you have, it’s exciting to look at vessels as you decide which is best for you. When you buy a boat, you will notice that there is a wide range of boat types, qualities, and selling circumstances. It’s always best to only buy a boat that comes with a bill of sale issued by the US Coast Guard. With that in mind, here’s what you need to know about buying a boat with the CG1340 bill of sale

Have Everything in Writing

Everything regarding your boat sale should be documented, either on physical paper or using digital paperwork. That includes the actual data about the boat – size, weight, features, etc., you should also get information regarding what equipment is part of the sale and what condition all aspects of the boat are in. A statement of sale should detail all of this pertinent information. Other important items to include are the make and model, year of manufacture, and a complete history of ownership. 

Insurance and Registration

A bill of sale guarantees the transfer of ownership, as well as the transfer of the boat’s title. It’s a legally binding document between the buyer and the seller. If you are the buyer, it’s imperative to check the bill of sale for accuracy and to determine if any important information is missing and needs to be amended. A bill of sale is separate from insurance, so make sure your new boat is properly and adequately insured, just in case of an accident, theft, or loss. 

Don’t Buy Abandoned and Stolen Boats

When you file your bill of sale, it’s vital to make sure that it hasn’t been listed as abandoned or stolen. If you buy the boat, you will be held liable should the authorities arrive to take possession of the boat. This is a problem you definitely don’t want to deal with, so it’s better to ensure the boat’s origins before you make the purchase. Correct details on the bill of sale are a good indicator of authenticity. 

CG 1340 Bill of Sale

Filling out the CG 1340 Bill of Sale

Fortunately, in today’s online world, it’s pretty easy to fill out and submit your bill of sale on your phone or laptop. Not only does this reduce the time it takes to get the process completed, but it’s easier and allows you to pay the fees at the same time. No more printing, filling out, and mailing the form. However, while it’s certainly easier to do so online, it’s important to make sure you are submitting a correct and accurate document. Double-check all of the information to ensure that you haven’t made any mistakes, which can result in longer wait times and higher fees. 

Buying a boat is exciting but does require you to follow the steps to get through the process. If you need assistance navigating the CG 1340 bill of sale form, or you have any questions about buying a boat, we’re here to help. Contact the Vessel Registrar Center today.