What Do You Need To Do For A Vessel Transfer Of Ownership?

transfer of ownership

When you want to sell a boat, you need to be fully prepared to submit lots of paperwork to make certain that the vessel is no longer in your name. Whether you are trading your boat for another, larger one, or want to move on to a completely different commercial interest, you will have to obtain the necessary forms from Transport Canada. Understanding why you need those forms, and what you have to do to complete a vessel transfer of ownership, will allow you to complete the transaction comfortably and means that you will avoid the other problems associated with selling a boat.

Completing The Sale

The first stage in the process is to complete the sale of the vessel. This can be complicated by the commercial nature of your boat. Not all vessel owners are permitted to trade boats onto the Canadian market, and in some cases only a licensed broker may be allowed to do so. Typically, when a vessel has been registered in Canada, the ownership will be divided into a number of shares. You will remain as though shares for as long as the vessel is listed under your name in the registry. Therefore, it is necessary for a transfer of ownership within the registry to take place after you sell your vessel. Without this documentation, you will be unable to take your name off of the vessel registry.

Completing The Bill Of Sale

In order to transfer the ownership of the boat, you must complete a form known as a bill of sale. This form confirms the ID number of the vessel, it’s official name and its current port, listed in the registry. The form will also include the details of your name and address, as well as the name and address of the buyer or buyers. You must complete this form before you fill in any other type of paperwork, in order to establish the transaction in a document.

transfer of ownership

Completing The Statement Of Qualification

Alongside the bill of sale, you must also submit a document known as the statement of qualification. This is a document which establishes the citizenship or residency of the buyer. You must submit this form with the bill of sale, and if there is more than one buyer, each new owner must complete and submit this form. If the documentation is not completed satisfactorily, the sale may not be held in the registry. This could be bad news for you in the future.

What Happens When Transfer Of Ownership Isn’t Acknowledged

Although it might seem as though the paperwork in your ownership transfer is easy to complete, there is a significantly large portion of vessel owners who find that their sale is not finalized successfully. There are a number of reasons for this, and these vessels are travelling without the necessary registration or vessel licensing. Even something as simple as the forms being rejected and the buyer failing to follow up can mean that the ownership transfer is not completed. The seller doesn’t worry about what happens to the boat after the sale, but in some cases your name may remain on government records, even when you no longer have insurance for the vessel in question. What this means is that you no longer have control of a boat which carries your name, and if anything should occur with that vessel, you may still be liable for fines and legal problems. This is because you are liable for any costs occurring with the vessel if it is held by customs or the police.

Record Your Sale With Transport Canada

If you are working with a third-party broker, then you are unlikely to suffer the mishap of being involved with a problem ship. You can do all of the paperwork yourself, including filling in the transfer of ownership for the registry yourself. You may also choose to follow up with the buyer, so that you are satisfied that they are able to successfully complete the transaction. The worst thing that you can do in this situation is to just assume that your buyer will complete the transfer in the registry, and that the sale has gone to successfully. We always recommend that sellers of vessels in Canada take steps to complete this transaction by themselves. Whatever else you do, it is important that you get help with ensuring that every step of the process is completed. To do this, you can contact the Canadian Vessel Registry online, or call us at (800) 419-9569 now