Checking Boat Ownership
When buying a boat, it is crucial to verify that the seller legally owns the boat and has the right to sell it. Checking Boat Ownership is one of the first things that should be carried out.
It’s also important to ensure that the boat is free of any charges and liens, such as mortgages, loans or interests from 3rd parties (e.g. outstanding marina fees).
A good starting point for investigating title is to check the vessel’s ship register.
Below are some of our top tips. Contact our experienced, professional team to conduct all necessary investigations and searches on your behalf, ensuring your purchase is protected.
Checks and Documentation
If the vessel is registered or flagged, it is possible to carry out searches on the vessel’s ship registry which will vary depending on the jurisdiction.
We can carry out these searches for you and apply for a ‘Transcript of Registry’ on your behalf.
If the vessel is unregistered, this makes investigating title more difficult. Having a bespoke legal contract to govern the sale will be vital.
Contact us to find out more.
Ask the seller to produce documents of title showing the chain of ownership from when the boat was built to present time (paperwork should include Builder’s Certificate and signed Bill of Sales).
Ask for evidence of mooring fees paid and insurance documents and/or sailing club membership, boat yard invoices for any repairs.
Check with the main marine finance institutions to see whether they have an interest in the intended boat you wish to purchase, speak to us about carrying out this search for you.
In the absence of any paperwork or proof of ownership proceed with caution and contact us to see how we can help.
If you are buying a new build vessel you should receive either Builder’s Certificate (if buying direct from the boat manufacturer) or Bill of Sale (if buying through a distributor / agent).
With second-hand boat sales you will receive a Bill of Sale to evidence the legal transfer of ownership from Seller to Buyer, and having a sale & purchase contract will be vital.
Our legal team can prepare a bespoke sale & purchase contract specifically tailored to your transaction. We can draft the Bill of Sale and advise on completion documents to expect with vessel purchases. Get in touch to find out more information about how we can help you.
1. Proves ownership and title.
2. Makes selling the boat much simpler as the seller can use registration to satisfy the buyer that they are the registered owner.
3. Can be used as evidence to show the vessel is not encumbered and mortgage free.
4. Confirms nationality of your vessel which is an international law requirement when travelling in international waters.
5. Helps raise finance on your vessel as lenders can register their interest as security for any loan or mortgage on against the certificate of title.
Do you want free legal updates?
Our Approach
Our aim is to promote business activity within the yachting industry, while ensuring our clients are legally and commercially protected.
