Vessel Bill of Sale

Ways On How a Vessel Bill of Sale Can Help When Selling Your Boat

The process of selling a yacht may be difficult and time-consuming at times. On the other hand, if you have a vessel bill of sale in place, you can make the process far less complicated and more streamlined for both the buyer and yourself. When selling your yacht, utilizing a bill of sale is highly recommended, and in this piece on the blog, we will go over some of the most important advantages of doing so. If you are considering putting your vessel up for sale, the following are some of how a bill of sale may be of assistance to sellers:

It documents the condition of the boat at the time of sale.

For various reasons, a vessel bill of sale might be helpful. A bill of sale is strongly recommended when selling a boat or ship to safeguard the seller and the buyer. If the yacht was sold in perfect condition, the bill of sale is proof of that fact. Both parties will be protected in the event of future disputes. The primary function of the bill of sale is to provide the buyer with proof of the boat’s current condition. If there are any issues in the future, this will come in useful. It is possible to show that you were unaware of any problems with the vehicle’s engine or missing components when you owned it. Additionally, the bill of sale will show whether any repairs were made throughout your ownership period.

Vessel Bill Of Sale Provides a Record of The Purchase Price

It’s easy to become mired in the paperwork required to sell a yacht, which may slow down the process. The bill of sale you must fill out is necessary by law, even though the boat is your responsibility, and the buyer will be responsible for dealing with the registration with both of you. A bill of sale is a legal document that explains crucial information about the boat and its purchase price. This document also includes the name of the person who purchased the boat. 

If the buyer does not have this information, they may have difficulty transferring ownership of the boat and registering it with the Department of Motor Vehicles (DMV). You are still required to have a bill of sale, which is an exciting requirement given that you do not need to sell via a dealership or a person with company documents. One is necessary for the Department of Motor Vehicles so that they may access your taxable income to compute the appropriate amount of sales tax for your state.

It Establishes Who Is Responsible for Any Outstanding Debts on The Boat

A bill of sale may specify who will be accountable for any outstanding debts or other financial responsibilities associated with the boat, regardless of whether the previous owner is responsible for them or whether you are responsible for them (and how they will be resolved). For illustration’s sake, let’s say there’s a debt still open that must be paid back. You will need to negotiate with the lender so that you may take over responsibility for payments if the lender considers the boat to be collateral for the loan and wants the boat returned if payments aren’t made. If this is the case, you must take responsibility for the payments. On the other hand, if you do not have an official bill of sale, you could not have that power over the yacht.

It Confirms That the Seller Has Transferred All Title and Interest in The Boat to The Buyer

After all, you don’t want to be held liable for the buyer of your boat’s behavior because you didn’t have documentation of what transpired during the sale. Having a bill of sale in place may aid both parties engaged in a transaction. The purpose of a bill of sale isn’t merely to defend you in court: It’s also evidence that you’ve handed over ownership of the boat to the buyer, which may come in handy if anything happens to it after the sale. 

The fact that they no longer own the vessel will be evidence that they had no part in any accident or damage to it if your buyer is sued (or is currently being sued). If you sign a bill of sale, you’re transferring ownership of the boat to your buyer and allowing them to register it in their name. In other words, it’s evidence that the sale has been completed and that both sides are happy with the outcome. In addition to safeguarding the buyer, signing a bill of sale is also a good idea for the seller.

Vessel Bill of Sale

It Serves as Proof of Ownership

Establishing ownership through documentary evidence is one of these challenges. If you own a boat and want to sell it, you will need to be able to provide evidence of your ownership to do so. For instance, if the existing owner of the yacht passed away and left it to someone else who is now selling it, that person will be required to present evidence of ownership for the transaction to be finalized. When financing the purchase of a boat, financial institutions will often insist on seeing an official document known as a vessel bill of sale. If the buyer and the seller can’t agree on whether or not the transaction was completed, a bill of sale might assist both parties.

The Maritime Documentation Center is a state agency that provides a range of services to boaters. There are multiple ways they can be of assistance when the time comes to sell your boat—they can help you run a background check on the buyer, provide you with a vessel bill of sale, or even help you arrange to have the boat shipped. You can contact them at 800-535-8570.