A Brief Introduction About a Boat Bill of Sale
A dealership or private entity may have to sell a boat to another entity. The agreement signed between both parties, and it is also known as Boat Bill of Sale or Bill of Sale for Boat. It contains all the necessary information relating to the sale or resale of a boat. The two parties are the seller (or co-seller) and buyer (or purchaser).
This form can work as proof of payment, proof of ownership, or by the state government for registration of the boat or vessel. The boat may be motorboat, sailboat, yacht, jet ski, watercraft, or any other recreational water vehicle. It can also be old, new, or second-hand.
The form comes very handily in scenarios such as theft of the said boat, insurance requirements, registration requirements, requiring warranty services, etc. As a receiver, you must make sure that you get a form drafted even when the boat is a gift to you. The form is also a legally binding document.
Another name for a Boat Bill of Sale is Vessel Bill of Sale or Proof of Purchase or Bill of Sale for Boat.
Who Takes a Boat Bill of Sale? – People Involved
Like any other sale form or sale agreement, this one also has one seller and one purchaser or buyer. The seller can be a co-seller. In simple words, the form is signed between any two entities who are doing a transaction for a boat. When one party buys something from the other, the relationship should be treated as a business deal that requires proper documentation and proof.
It may involve friends, boat dealers, businesses, organizations, etc. It may include a new or old boat.
Purpose of a Boat Bill of Sale – Why Do You Need It?
Every time a person buys something, he or she gets a receipt. The receipt works as proof of the purchase.
Similarly, when a boat gets bought, the buyer needs proof of the purchase. The most important utility of a Bill of Sale for Boat is precisely that! The transfer of ownership indeed needs legal representation.
However, there are many other primary reasons why you might need this form. In many future proceedings such as insurance, warranty, resale, transport, etc., a from may come handy. It is always better to draft it than to regret later. In most cases, it is an absolute necessity to have it.
Here are some more reasons why one needs this form –
- To produce a proof of the purchase
- To outline the details of boat purchase
- To show that the boat belongs to the buyer now
- To transfer the ownership of a boat from the seller to the buyer
- To list out warranty details
- To confirm that a business transition has taken place
- To show to the state for the registration
- To list down all the necessary information on the boat. Such as model number, year manufactured and serial number, etc.
- To protect both parties from any future dispute, confusion or misunderstanding
- To make the business transaction legally binding
- To use it for insurance
Contents of the Boat Bill of Sale – Inclusions
A Boat Bill of Sale must include the basic details of both the purchaser (buyer) and the seller. Basic details include names, addresses, phone numbers, photographs, etc. It should be made sure that all these details are legal details.
Further, the form must add the date of the sale and price at which the deal has happened. It should also describe all the details related to the boat or the vessel, such as model number, year of manufacture, type of boat, the material used, etc. Other information about the boat may be its size, length, registration number, color, etc.
If the boat has been registered before, the form must have details of it in addition to the previous registration number. It should also have a hull identification number. The form should also add information regarding the motor of the boat. Such data can be motor manufacturer’s name, horsepower, serial number, model name, etc.
Further, the form must add any conditions or warranty information. A clause named “as in” is also added in the form. The purpose of the “as in” clause is to tell that the buyer accepts the boat in its current condition and all the details related to it. Such a clause makes sure that the buyer doesn’t turn hostile later on and start complaining of any fault. By signing this form, the buyer agrees to accept the boat in its current form, whatever that may be. This also protects the seller from any dispute, refund, etc.
How to Draft the Boat Bill of Sale?
Before drafting a Boat Bill of Sale, both parties need to do individual work and research. The buyer has to either hire a broker or look for a boat selling dealer or person online. The seller has to prepare his boat for a sell. To prepare the boat for sale, the seller may have to get it painted and get it repaired. The seller may also have to find all the old documents to fill the right information in the form.
Negotiations are another essential aspect of this whole process. The buyer can either hire a broker or search for a seller himself or herself. Either way, the buyer’s party needs to make many negotiations regarding the price of the boat. It should be noted that the negotiations can also be made to decide what all must be added to the agreement.
The buyer must pick a seller after proper research and after knowing the state laws. The buyer must also know about the details of all the inclusions of a Boat Bill of Sale. This form is very straightforward and easy to draft; however, the proceedings should be followed religiously.
Like any other agreement, a Boat Bill of Sale also includes many negotiations. Since the form documents the relationship between a buyer and a seller, it needs a little more sophisticated negotiations that any other generic kind of agreement. Both parties must prepare themselves for a session of negotiations. In case a broker is involved, he will be making negotiations on behalf of his client.
Benefits & Drawbacks of the Boat Bill of Sale
A Boat Bill of Sale, like any other Bill of Sale, makes the whole process of buying and selling official and well-documented. There are multiple benefits of signing such a form or agreement and making sure it is legally binding. There are also many drawbacks of not signing one. However, there are no drawbacks to signing a form. It is only beneficial to document the form. In some cases, it is almost a necessity to sign such an agreement. As mentioned above, it comes handy in many difficult situations.
Here are some more advantages of the form –
- Works as a proof of the sale of a boat and purchase of it
- Outlines all the necessary details about the boat and its purchase
- It can be used in the future for any other documentation work, such as registering the boat, etc.
- Can be used by the buyer in the future as proof of the ownership of the boat
- Protects both parties from any fight, misunderstanding, dispute or confusion
- Uses to make the business deal a legally binding process
- Works as a proof of ownership for any warranty related issue
- Works as a proof for the insurance of the boat
[Also Read: Trailer Bill of Sale]
What Happens in Case of Violation?
All agreements have a dispute resolution clause in addition to governing law details.
Similarly, a Bill of Sale for Boat also has these additions. With the help of these, both the parties are legally protected. However, some things must be taken care of while drafting the form to make it legally binding(1). The boat must be registered again by the new buyer. Depending on the state you live in and its laws related to the selling of a boat, you must get all the formalities done to benefit from the legal remedies.
Apart from violation, frauds are also a pretty common concern when it comes to boats and boat purchasing. The buyer must be extremely cautious and vigilant while buying the boat and doing all the necessary documentation.
Any sell or buy a significant type of transaction for the buyer and the seller, however, the selling and buying of a boat can be an extremely tiring task. It requires a lot of research work, paperwork, and abilities to be smart. It needs proper time and attention. Depending on the state you live in, rules and regulations are applied. It would help if you did proper research before starting the process of drafting the form. For instance, the state of Tennessee will have a Tennessee Boat Bill of Sale for the buying happening in the state. Similarly, there are many examples of Boat Bill of Sale Examples, depending on the state you live in.
The buyer must devote much time to researching, testing the boat, and understanding legalities before signing the form and transferring the money to the seller. Testing of the boat is another critical task involved. The seller must advertise and market the boat properly after devoting some time to coloring it and making it look good.