A bill of sale is a crucial piece of legal documentation for every boat owner in the United States. Bills of sale are legal documents between a buyer and seller that specify the conditions of the transaction. You may be sure that all parties are on the same page regarding the transaction and that fraud will be avoided. Keep reading if you’re curious about how a bill of sale might serve to your advantage. The purchasing of a yacht involves a substantial amount of documentation. The bill of sale is one example of such documentation. The parties to a bill of sale have entered into a binding agreement that specifies the conditions of the transaction. A bill of sale may protect both the buyer and the seller in case of a dispute over the sale, even if such a document is not required in all jurisdictions. Among the many ways in which a bill of sale might serve as a safeguard are the following:
It Establishes Proof of Ownership
A bill of sale serves as proof of purchase in the event of future theft or loss and establishes the relationship between the buyer and seller. Assume, for the sake of argument, that you purchase a car from a private party who does not provide you with the vehicle’s title. Getting a bill of sale signed and dated by the seller is a simple way to establish vehicle ownership. The bill of sale is evidence that you paid for the car and are now the legal owner if someone else claims possession. They would have no legal right to your automobile; therefore, you could keep it. In addition to being valuable in potential theft or loss, bills of sale may also serve as evidence of ownership. Documentation of the vehicle’s legitimate purchase will be required in the event of a theft claim. By accurately filling out the bill of sale with details like the selling price and the date of purchase, law enforcement will be better equipped to assist you in retrieving your possession.
It Documents Any Warranties or Guarantees Offered by The Seller
A bill of sale may assist you in the protection of your legal rights in a variety of different ways. In the first place, it records any warranties or guarantees provided by the seller but not included in the warranty provided by the manufacturer. A written warranty may cover a prolonged amount of time or guarantee to replace components that fail within a particular time frame. Alternatively, the warranty may give both of these options. If anything breaks down after the fact, be careful to verify the date shown on the bill of sale, as it will also reveal when those terms expire. The same is true for guarantees: often, they will provide you with free or reduced services if anything goes wrong after a certain length of time. Permanently save the bill of sale so that you may collect on your promises.
It Lists Any Modifications Made To the Boat Since It Was Last Sold
When purchasing a secondhand boat, it is usual for the buyer to adjust to suit the buyer’s needs better. This might include installing cabins, stereos, and other amenities. Essentially, the buyer agrees to take full responsibility for the ship’s condition by allowing any alterations to be made. To the extent that a flaw in the boat was brought on by one of these alterations after the sale, the burden of proof will be on the buyer. The answer to this question often depends on two variables: when the change was made and who made it.
Any alterations made to your boat between the time when you bought it and the time when you sold it must be noted on the bill of sale. Particularly helpful if you’ve gone through more than one captain, it specifies when and who made each adjustment. Even if you haven’t had many captains, a bill of sale is still helpful since it will help you track who made what changes and when. This makes it much simpler to assign blame if a problem ever arises.
It Shows When and Where the Boat Was Purchased
When attempting to resolve a dispute about who owns an item, having a bill of sale on file might be helpful. Specifying the date and place of purchase might help settle potential ownership disputes. This is crucial because there are various scenarios in which a person believes they possess something while they do not. One such example is when someone discovers something of value and retains it without asking who the rightful owner is or making any effort to do so. A bill of sale is an excellent method to avoid legal difficulties. Time and place of purchase are recorded, proving that the item was acquired by its rightful owner. There will be no doubt about the right over the object, regardless of how long ago somebody discovered it or how long the rightful owner has gone without it.
Bill of Sale Helps Ensure That Both Parties Have Complied with State Laws Governing Boat Sales
It helps ensure that both parties have followed the state regulations on the sale of boats. You are selling your boat to another individual, and there is no cause to believe that either party is not who they claim to be or that they cannot pay for the boat they are purchasing. Despite this, you don’t want to put yourself in danger by breaking the law, so having a bill of sale on hand whenever you sell a piece of property is a recommended best practice. It does this by substituting the manufacturer’s title certificate and other papers that may be used to transfer ownership of the vehicle fraudulently in the absence of this measure. This safeguards against theft and fraud.
Remember that although a bill of sale may provide some legal insurance in a dispute, it is not a guarantee. It’s essential to avoid difficulty whenever possible while dealing with a ship, whether commercial or private. A bill of sale and other forms of the same can be processed via the Maritime Documentation Center. Contact 800-535-8570 right now to receive guidance and proper assistance.