Reasons Why You Need a Boat Bill of Sale to Own Your Boat

It is essential for everyone who owns a boat in the United States to be aware that to own their vessel legally, they are required to have a boat bill of sale. A bill of sale for a boat is an agreement between the buyer and the seller that details the conditions of the sale and may assist in protecting both parties if a dispute arises over the transaction. Have you ever considered why it is necessary to have a boat bill of sale to legally possess a vessel, regardless of whether or not you buy a boat? If not, then the following is some information that you may find interesting. Ensure never to do so when purchasing or selling a boat without obtaining a bill of sale. Here are some of the reasons why.

It Establishes Proof of Ownership

You will need to fill out a bill of sale for a boat regardless of whether you are selling or buying one. This allows you to transfer ownership while also including information about the boat, such as the year it was constructed, its length, and even whether or not it has had any repairs. Completing a boat bill of sale requires all of this information, which is quite significant since it offers evidence that you are the owner of this boat. Without this, it would be possible for anybody to take your boat and claim it as their own. Why can’t boat owners use a bill of sale as they do with their cars? You could use one of them, although boats are not its intended use.

It Transfers the Title to the New Owner

Although a bill of sale may be used in place of a title, you are strongly recommended to get both. On the bill of sale, information such as the boat’s price, year, manufacturer, and VIN are included (vehicle identification number). A title includes all this information and lists the former owner’s name. When purchasing or selling a boat, you do not need the title to utilize a bill of sale as proof of ownership. If you use one, your state’s legislation will determine how to handle your boat with regard to taxes and insurance based on how it is classified. If the new owner is having difficulties acquiring insurance or registering the boat in their name, they will need the bill of sale and the title to establish that they are the boat’s owner.

It Documents Any Agreed-Upon Modifications or Repairs to The Boat

Any of these scenarios can play out, but resolving them will be much simpler if you have a bill of sale for your yacht. It records any alterations or repairs to the boat previously discussed and agreed upon, relieving the present owner of the need to pay for them if the boat is resold. Additionally, it validates the purchase price to ensure that there are no misunderstandings about it in the future. A bill of sale provides evidence that the buyer was aware of any difficulties with the vessel before acquiring it or renting it, which is important in the event of an accident or a legal claim involving the vessel. When acquiring a boat, it is vital to have a bill of sale in case of any dispute regarding what was agreed upon regarding repairs or changes. In this scenario, the debate might center on whether or not the boat has been properly maintained.

It Can Help Resolve Disputes In The Event Of A Sale Gone Wrong

You should always have a boat bill of sale on hand when purchasing a boat to avoid any confusion down the road. If you are the buyer but cannot provide evidence of purchase, you are still responsible for paying for the boat. Your financial institution or mortgage servicer may cause difficulty if they want documentation of boat ownership and you don’t have a bill of sale. If you ever decide to sell the yacht, you may require documentation showing that you are the rightful owner. If you’re buying a boat, don’t leave the seller’s home or yard without a receipt or some other documentation that you’re the legal owner of the vessel. It might be deemed theft if someone tried to steal your boat without offering anything in exchange. If anything occurs to a boat owner between the time they list it for sale and the time they transfer ownership, they may be entitled to compensation for damages done to their property and lost revenue.

Boat Bill of Sale

A Boat Bill of Sale Acts as a Contract Between Buyer and Seller

Most people believe that a bill of sale is only required when purchasing or selling a motor vehicle; nevertheless, a bill of sale may also be required when selling a boat. The boat bill of sale is a contract between the buyer and seller that outlines how to care for and decide who owns the boat. You may also find that without a bill of sale, your friend who lent you money for the down payment on your new motorboat may not feel as though he has adequate protection if something happens to his investment. If this is the case, you must ensure that you provide him with a copy of the bill of sale.

When buying a yacht, the bill of sale is essential for safeguarding your financial interests. Without the bill of sale, you have no legitimate claim to the boat itself and may have no recourse to recoup your financial losses in the event of an accident. 

Avoid all complications by reaching out to the Maritime Documentation Center at 800-535-8570 or on their website to get all of your forms processed in a streamlined manner.