Selling a Used Boat in Canada: Our Guide

Vessel Official Number

Selling a used boat in Canada involves more than just finding a buyer and exchanging payment. Whether the boat is registered with Transport Canada or operates with only a pleasure craft licence, proper documentation protects both the seller and buyer while ensuring compliance with Canadian regulations. We offer many resources to simplify this process, including official transfer forms for registered boats and guidance for creating a valid bill of sale for unregistered watercraft.

Selling a Used Boat in Canada

Documentation Requirements Explained for Selling a Used Boat in Canada 

The paperwork needed when selling a used boat in Canada depends largely on its current documentation status. In Canada, boats fall into one of three categories:

  1. Registered boats – These have formal documentation with Transport Canada and an official number.
  2. Licenced pleasure craft – Smaller boats that only require a pleasure craft licence (with numbers displayed on the hull).
  3. Unregistered/unlicenced boats – Typically very small watercraft not requiring formal documentation.

Each category has different transfer requirements that sellers must follow to properly complete the sale.

Transferring Ownership of a Registered Boat

For boats with full Transport Canada registration, the ownership transfer process is more formalized. The Canadian Vessel Registry Center Corp. portal provides access to the necessary forms and step-by-step guidance to ensure a smooth transition.

Complete the Transfer Form

The key document is the Transfer of Ownership form. Our portal provides the current version of this Transport Canada form and instructions for proper completion.

Notify Relevant Parties

For boats with marine mortgages or liens, the seller must ensure these are properly discharged before transfer. The portal provides guidance on obtaining and submitting lien release documents.

Prepare Supporting Documents

Along with the transfer form, sellers may be required to gather:

  • A copy of the current Certificate of Registry
  • Proof of ownership (original bill of sale from when they acquired the boat)
  • Any outstanding mortgage clearance documents

Submit to Our Portal

The completed package can be submitted electronically through the portal, eliminating the need for mailed paperwork and speeding up processing times.

More About Notifying Relevant Parties 

Before selling a boat, owners should confirm that all outstanding debts, liens, or mortgages have been resolved. For registered boats, any existing marine mortgage must be officially discharged. Otherwise, the new owner may not be able to complete the transfer of registration.

For unregistered boats, any verbal agreements or informal debts associated with the boat should be resolved and disclosed before completing the sale. While there may not be a public registry for these boats, failure to disclose financial encumbrances can lead to disputes and even legal action.

We make available the forms required to discharge a registered mortgage, helping sellers ensure a clean and legitimate transfer of ownership.

Creating a Bill of Sale for Unregistered Boats

For boats that don’t require full registration – including those only holding a pleasure craft licence or no documentation at all – a properly drafted bill of sale serves as the primary transfer document. 

While Transport Canada. doesn’t provide a standardized bill of sale form, the portal offers comprehensive guidelines for creating a legally sound document.

Essential Elements of a Boat Bill of Sale

A valid bill of sale should include:

  1. Seller and Buyer Information
    • Full legal names
    • Current addresses
    • Contact information
  2. Boat Details
    • Make, model, and year
    • Hull Identification Number (HIN)
    • Length and boat type
    • Engine specifications (if applicable)
    • Pleasure craft licence number (if one exists)
  3. Sale Terms
    • Purchase price in Canadian dollars
    • Payment method and terms
    • Date and location of sale
  4. Representations and Warranties
    • “As-is” clause (unless specific warranties are provided)
    • Statement about liens or encumbrances
  5. Signatures
    • Both parties should sign and date
    • Witness or notary signatures add legal weight (optional)

That may seem like a lot of information, but, you’re better off having more information than less. 

Common Pitfalls to Avoid

Several mistakes can complicate or invalidate a boat sale:

  • Incomplete paperwork – Missing signatures or information can delay transfers
  • Undisclosed liens – Selling a boat with outstanding loans can lead to legal issues
  • Improper documentation – Using outdated forms or incorrect processes
  • Misrepresented condition – Failing to properly disclose known issues

The portal helps sellers avoid these issues with up-to-date forms, clear instructions, and reminders about disclosure requirements.

Why Proper Documentation Matters for Selling a Used Boat in Canada

Taking the time to complete all paperwork correctly protects both parties in several ways:

  • Proof of ownership transfer – Prevents disputes about when responsibility changed hands
  • Legal protection – Properly documents any “as-is” clauses or warranties
  • Future transactions – Gives the buyer clean documentation for their eventual resale
  • Regulatory compliance – Ensures records remain accurate

For registered boats, our portal makes this process significantly faster and more reliable than traditional paper submissions.

An Easier Way to Go About Selling a Used Boat in Canada

Selling a used boat in Canada involves multiple steps, but proper preparation and documentation can make the process straightforward. By providing the necessary forms for registered boat transfers and comprehensive guidance for creating bills of sale, our portal serves as a valuable resource for Canadian boat owners navigating a sale.

From initial preparation to final transfer, having the right tools and information ensures a smooth transaction that protects both buyer and seller. Whether dealing with a fully documented fishing boat or a small pleasure craft, proper attention to documentation requirements makes the sales process more efficient and secure for all parties involved.