If you’re reading this article, you’re likely in the middle of transferring your boat ownership in Canada from one person to another. You have already gone through the procedure of selling the boat and purchasing a new one; nevertheless, it is now time for you to remove the title of the previous ship from your possession.
It would help if you understood that transferring ownership and title are different. Since you will make one person the owner, you may be under the impression that she should be able to handle the transfer of the title on her own.
However, most states demand that you hand over both of these items to another individual; having just one of them might lead to complications further down the line. What information do you need to know about the procedure?
Know Your Rights and Responsibilities as a Buyer or Seller
You have certain rights and obligations as the buyer and some rights and responsibilities as a product or service seller. You have the legal right to be notified by the seller of any flaws or problems in the vessel. You have a right to be informed by the seller of any defects that they are aware of in the item.
That does not imply that they have to notify you about every single ding or scrape on the boat, but they are required to do so if there are significant issues with the ship that might influence your choice to buy it, such as rust or water damage caused by a leaking vessel. If you end up purchasing a yacht with difficulties, any party may claim any insurance policies to protect themselves against financial loss.
Get Proper Paperwork from the Seller
Many enjoy spending time on their boats for a quick weekend trip or a longer excursion during which they may sleep in luxury and bring along their families. When they no longer have the time to utilize their boat, many individuals choose to sell it. The next thing to do is have the vendor provide the necessary documentation. In this case, the bill of sale is required.
Please provide the full purchase amount, including applicable taxes and other fees (such as registration fees). You should also find out whether the vessel is subject to any liens (i.e., a loan taken out against the boat). Make sure all of this information is included in the bill of sale.
Make Sure Everything Is Recorded Properly With the Relevant Authorities
Take the necessary steps to have everything correctly documented with the appropriate authorities. Even if you’re only buying a used boat, you must check the title certificate to ensure all the prior owners are listed. Before making any transactions, you should do a comprehensive title check to reduce the likelihood of unwittingly acquiring someone else’s property. Before starting any modifications or alterations, find out who owns what on the yacht. For instance, the first buyer of a boat is probably still the legal owner of the boat’s original propeller if it has been there for a long period (or whoever sold it to the current owner). If there was no prior written agreement about the ownership of certain pieces, this might cause a problem if another party wishes to install their propeller.
Update Your Insurance Policy on Time before Transferring Your Boat Ownership to Canada
Leaving your boat’s insurance policy unaltered after selling it might leave the new owner financially responsible for any damages, whether they occur during transportation or while the yacht is docked due to an electrical fire. It would be best to inform your insurance provider that a new owner has purchased your boat. Even if they don’t specifically ask for this information, you should give it to them in case they need help identifying the new owner.
To keep your policy in effect, they’ll need to update their files. You may submit a document or letter to your insurance company verifying the transfer of ownership. As long as you renew your policy before it expires, your insurance company is obligated to keep you covered after they’ve updated their records.
Keep Your Records in Order
Before transferring your boat ownership to Canada, you must take care of all the relevant documentation. Some jurisdictions make it easy to change your name on the title and the registration by calling or going online. In most other Canadian provinces, including Nova Scotia and Quebec, transferring your character requires a personal visit to the relevant register office. You must have the original registration and insurance documents accompanying the purchase of your license plates (such as proof of sales tax paid). If you need to modify your registration, you may have to fill out paperwork and pay a cost.
The National Vessel Registry Center is here to help you transfer boat ownership in Canada. We’re familiar with all the regulations in this area and ready to share our knowledge with you. If you have questions about the transfer of boat ownership, contact us today.