Form 6 Bill of Sale: Why Do You Need It?

When you buy a boat in Canada, you have to fill out different forms. Fortunately, you can speed up the process if you go through the National Vessel Registry Center to complete registration or licensing. However, if you’re required to register your boat, you need to fill out a form 6 bill of sale first.

When You Need to Fill Out a  Form Bill 6 Bill of Sale

You’ll need to complete a Form 6 Bill of Sale when you sell your boat in Canada. For both the buyer and seller, this form must be filled out during a sales transaction. Otherwise, as noted, a boat cannot be registered.

Registering a pleasure craft is not necessary unless you take out a marine mortgage or you plan to venture into waters outside of Canada. Otherwise, commercial boat owners use Form Bill 6 of Sale so they can register their vessels. 

Therefore, if you need to register your boat, you need to make sure you fill in the Form 6 Bill of Sale first. That way, the details of the registration can proceed without disruption. The National Vessel Registry Center can handle the transfer details after you complete the Form 6 paperwork.

Seemingly, “6” is a magic number when selling a boat that needs to be registered in Canada. Again, the Form 6 document acts as your bill of sale. Therefore, the form includes all the important details of the prior owner and new boat owner. It serves as your entry card for registering your vessel.

form 6 bill of sale

What Transport Canada Does with the Information

Transport Canada receives and processes the details included on a Form 6 Bill of Sale. This information is collected in response to the 2001 Canada Shipping Act, section 43. Unless a non-pleasure craft is registered in a foreign state, the information on the form must be used to support registration. The country’s Privacy Act ensures that the information provided is private and confidential.

What You Need to Include on the Form 6 Document

When filling out the form, make sure you fully complete each section. Otherwise, the document may be returned and you’ll have to refill the paperwork. 

On the bill of sale form you need to add the following information:

  • The official number for the boat
  • The boat’s port of registry
  • The full name(s) and address(es) of the registered owner(s) and sellers

Also note that you will not receive a complete title for your boat until the Form 6 Bill of sale is recorded by a registrar at the Canadian Register of Vessels. 

Are You a Joint Owner?

Your eligibility to own a Canadian-registered vessel has been established in the 2001 Canada Shipping Act. If you jointly own a boat, all participating owners must act and fill out and sign the paperwork. If shares in the vessel are split, each of the sellers or owners must each complete a Bill of Sale form.

Sales Transactions Involving Indian Bands

If the transaction involves an Indian Band, a person approved by a Band Council Resolution must sell the boat or the seal of the Indian Band must be displayed on the Form 6 document. First nation communities in Canada, governed by the country’s Indian Act, are called Bands. The Indian Act is used to manage each Band’s governmental policies, monies, and lands.

Remember to Report Any Changes

Any changes made after the form is completed must be reported, including an owner’s name and address.

Sellers Involved in Form 6 Transactions

Sellers of boats that fill out Form 6 Bills of Sale,may include individuals, corporations, federal or provincial governments, or the aforesaid Indian Bands. The title and name of the person signing on behalf of the Department of Ministry must be added to the form.

The Purpose of the 2001 Shipping Act

Because Canada’s 2001 Shipping Act supports the use of Form 6, it is important to review the purposes of the legislation. According to the Justice Laws website, the act is designed to do the following:

  • Safeguard the well-being of crews and persons who take part in maritime transport and commerce.
  • Promote safety for recreational boating and commercial marine transportation.
  • Protect the waters and the surrounding areas from environmental damage due to shipping and navigation.
  • Ensure that marine transport is efficient
  • Collaborate marine practices 
  • Establish effective inspection and enforcement

As you can see, the government is committed to supporting a boating system that enables boaters to safely and efficiently use the nation’s marine transport system. That is why it is vital that the Bill of Sale, registration or licensing is designed to realize this goal.

As a boat owner, you have the obligation to comply with governmental mandates and follow the rules applied to safe boating. Overlooking some of these crucial steps can lead to high, if not stiff, penalties.

Compile a Checklist

When you sell a boat that you need to register in Canada, make sure you compile a checklist of what you need to do. Taking this measure will allow you to follow all the procedures required for boat ownership and transport.

Know the Steps Needed to Successfully Sell a Boat

You can make a sales transaction easier by using the forms provided on the National Vessel Registry Center for registration or licensing. Know what you need to complete first before you proceed with the paperwork. Whether you need to fill out a Form 6 Bill of Sale or create a Bill of Sale from a template, this information is important to know. 

Complete your Form 6 Bill of Sale and then Register Online on the National Vessel Registry Center

Look at your options for easy registration on the National Vessel Registry Center so you can easily make the transition when you fill out the Form 6 Bill of Sale and register online.