How to Properly Document Your USCG Bill of Sale

Do you own a vessel that is registered with the United States Coast Guard? Or have you recently purchased a boat used by them? Anytime you buy or sell a boat, it must be properly documented using a USCG bill of sale. This form transfers ownership from the current owner to the buyer. It’s a legal document that must be part of your documentation regarding your boat. The form is sometimes referred to as the CG 1340 bill of sale. Here’s what you need to know about documenting your vessel. 

Keep Track of Every Detail

Because a bill of sale is considered a legal document, it’s imperative that all of the details are correct and up to date. The document proves the sale and purchase of the vessel. It must include signatures of both, the seller and the buyer, to be valid and legally binding. You can use the bill of sale to outline the details of the sale, even in the absence of any other documentation. 

If the boat in question has a title that has already been transferred, but the boat is subject to outstanding obligations, the form CG 1340 bill of sale comes into action. This is where you can include all these details. This way the buyer is aware of anything extra they may be responsible for if they make the purchase. 

List Everything on the Bill of Sale

Listing should be in alphabetical order, with the buyer and seller’s names at the top of the document, followed by the purchase location and date, along with any additional relevant data, such as the agent’s contact information. All terms and conditions should also be part of the completed bill of sale. That includes financial information (including any necessary disclosures), details about the boat itself, warranties, extra papers, title history report, and survey. 

All of these details should be in sequential order, from newest to oldest. This makes it easier to navigate the bill of sale but also helps keep everything in the right order so that it’s simple to reference back to if that becomes necessary during the course of the sale. 

Both Parties Should Understand Before Signing

Neither the buyer nor seller of a boat wants the other to take advantage of. This means that both parties should have a good understanding of the bill of sale document, as well as the process to complete it correctly. The document should list who is responsible for which aspect of the boat and having a third party look over the boat before buying is always a good idea. As the buyer, you should also have the boat inspected before deciding to buy. Take photos if you feel that will help you. Once both parties understand what’s happening, they will each need to sign the bill of sale in the appropriate location. 

USCG Bill of Sale

Fill out Your USCG Bill of Sale Online

Do you need more information about filing your USCG bill of sale document? You are in the right place. Contact the Vessel Registrar Center today and we can help you get it done correctly, every step of the way.