To prove legal ownership of a boat has been legitimately transferred from the seller to the buyer, a Transport Canada Bill of Sale is mandatory. Even though not all vessels are required to have it, having it will make registration easier. It is always a good idea to have all of the essential paperwork in order before engaging in any kind of transaction, whether that transaction involves the purchase of a larger boat or the pursuit of other kinds of leisure activities. Continue reading if you are interested in learning about the importance of a Transport Canada Vessel Bill of Sale and some of the services we offer in connection with it.
The Bill of Sale Is An Extremely Important Document For Anyone Selling A Boat In Canada.
Both the buyer and the seller are required to have a bill of sale that has been issued by Transport Canada in order to conduct a legal and safe sale of a boat in Canada. This title deed is a legal document that is used to transfer ownership of a boat from one person to another. It provides information about the boat’s past owners as well as the relationships between those owners.
Transport Canada is tasked with the responsibility of safeguarding the safety of all Canadians in addition to facilitating the movement of people and products across the country.
Every vessel that is used for fishing in Canada, regardless of whether it is for commercial, recreational, or personal purposes, is required to have a bill of sale that was issued by Transport Canada. In addition, Transport Canada is able to issue bills of sale for boats that are purchased in Canada and put into service in either freshwater or coastal waters. If your boat is longer than 7 meters, you are required to have a bill of sale in order to sell it. Also, Transport Canada will maintain a record of the sales and changes of ownership.
How Do I Complete a Bill of Sale?
This form can be completed in a few different ways, but it is imperative that you have all of the relevant information in order for the process to go smoothly. At the Canadian Vessel Registry, we provide easy-to-use and secure online registration forms that are more convenient than traditional paper forms. In order to finish this paper in an appropriate manner, you need to double-check the following items:
You need to have all of the relevant information for both parties participating in the transaction (you and your buyer). Details such as names, postal addresses, and email addresses are a must. If one of the parties to the sale does not provide all of the relevant information when applying for the document, Transport Canada may not be able to process it correctly. Also, always be clear on the amount of money that will be set aside for the sale or purchase of the boat in order to make the deal official.
The Difference Between Licensed and Registered Vessels
How you decide to proceed with selling your vessel and creating a bill of sale will depend on how Transport Canada has documented it. Numerous boaters possess a Pleasure Craft License (PCL), which, as its name suggests, is for recreational watercraft. Any vessel with a motor exceeding 10 horsepower is required to have a PCL. To transfer ownership of such a vessel, you must sign over the PCL and write your own bill of sale, which should include basic information about the buyer and seller as well as the agreed-upon selling price.
The procedure for registering vessels is slightly more complex. Any vessels utilized for business purposes or funded with a marine mortgage are required to be registered with the Small Vessel Registry. Also, when buying or selling a boat that is 20 feet or longer (7 meters) and has an engine with 40 horsepower (hp) or more, you are obliged to have an official bill of sale from Transport Canada. This also applies to vessels flying the Canadian flag abroad. You must file a “Form 6—Bill of Sale” with Transport Canada when you sell a registered vessel.
Why Is It Important?
By obtaining a Transport Canada Bill of Sale, sellers can demonstrate that their transactions are conducted in accordance with the law. Buyers can use the form to demonstrate that they are the legal owners of the yacht after making the purchase. If a person claims ownership of more than one boat, that person is required to present separate bills of sale for each vessel.
Get Help From The Experts
We have high hopes that this article has helped shed some light on the nature and operation of a Transport Canada Bill of Sale. Whether you require a bill of sale, an application for vessel registration, or a PCL, we can assist you. Explore our website’s offerings for a minute for any other additional information you may need.