Small Vessel Transfer of Ownership

Small Vessel Transfer Of Ownership

You should be familiar with the small vessel transfer of ownership procedure in Canada if you own a small vessel. For starters, small vessels are defined as ships that are 15 meters or shorter and have a gross tonnage of 500 tons or less. By completing the Small vessel transfer of ownership form with Transport Canada, you may update the boat’s ownership record to reflect your new name.

You should know that this transfer may only be made once every two years and that certain conditions must be met. If you live in Canada and possess a small boat, you may be curious about the procedure for transferring ownership in the country. Some important details are as follows:

Small Vessel Transfer Of Ownership

You’ll need to complete a Vessel Registration Application Form

Registration as a small vessel is required for any watercraft smaller than 15 meters in length. Compared to registering a vehicle in Canada, registering a yacht with the Coast Guard is a little more involved but still manageable. Submit an Application for Registration of a Vessel.

A Certificate of Registry (COR) transfer application must be submitted electronically if the new owner already has a COR. The Certificate of Compliance (COR) should be stored securely on land, away from the ship. You must pay all necessary fees and taxes if relocating to another province.

Within 30 days after the sale, you may transfer the registration if you take the boat out of the province or give it away. Nonetheless, this may only be done if the seller and the buyer both fill out a VMS2 Statutory Declaration of Transfer. Along with the other required paperwork, this is what Transport Canada needs to know that you legally own the vehicle.

The Buyer Will Have to Apply For a Boat License

If the seller has a valid Boat License in their name and the boat is less than 24 meters long, the buyer must apply for and get one. The Canadian Coast Guard is in charge of administering this procedure and issuing the license when an application has been approved.

You are responsible for verifying with the Canadian Coast Guard if the vendor is authorized to sell you a boat if you want to import it from outside of Canada. The buyer must provide evidence of citizenship and residence to get a Boat License for this change of ownership.

Once the application is received, there will be a check on their criminal background and enquiries into their financial past. They will also need to provide details about the yacht they want to register and present two forms of identification.

You’ll need to Provide Evidence of Insurance.

Insurance documentation is required. This is a prerequisite for a small craft license transfer in Canada. Marine liability insurance protects third parties if your vessel is at fault in an accident and causes them financial loss or physical harm. While certain boats are exempt from this requirement, the vast majority will need to carry it.

In some areas, obtaining this type of insurance may be challenging. Many marine insurers, for instance, won’t cover watercraft used on lakes and ponds, won’t cover boats with motors producing less than 25 horsepower, and won’t cover you if you have a DUI conviction within the last five years. Before transferring ownership and taking the boat out for the first time, it’s essential to do some research to be ready for anything.

The Buyer Will Have to Pay Duty on the Vessel for a Small Vessel Transfer of Ownership

Before beginning negotiations with possible buyers or sellers of your boat, you must be aware of the process of transferring ownership to ensure a smooth transaction when selling or trading your vessel. The buyer and seller need to be informed of the part that Transport Canada (TC) will play in the process so they can be prepared to pay any additional fees incurred to finalize the small transfer boat license.

The first step is to complete all of the appropriate documentation with TC, which includes filling out an application for “transfer of ownership,” paying a charge, and presenting confirmation that both parties have secured an insurance policy. This is the first stage. When all this documentation has been finalized, each party will be responsible for paying any relevant duty on the vessel.

Transferring a boat to another person can be pretty involved, depending on the province and country. The Small vessel transfer of ownership Process in Canada is one of the most straightforward and least expensive ways to do it. Contact the National Vessel Registry Center today at +1 (800) 419-9569 (Canada) to learn more about how the process works.