There are many different forms that vessel owners and prospective vessel owners need to be aware of. This documentation is what allows vessel owners to legally take their boats out onto the water, and to operate any commercial ventures in compliance with all the relevant regulations. It’s also used to establish ownership.
These forms are especially important when ownership of a vessel transfers from one person to another. One such document is the CG-1258 form, also known as the Transfer of Ownership form.
When Is the CG-1258 Form Necessary?
There are many instances in which vessel owners are required to complete and submit the CG-1258 form. Here are some of the most common situations when a Transfer of Ownership form is required:
- When the vessel is transferred, either freely or through purchase, from one owner to another. These situations may require other forms to be completed in addition to the Transfer of Ownership form. For example, if there is an outstanding mortgage then the lender will need to complete and submit a Satisfaction of Mortgage form. Vessels can’t be transferred or have ownership removed if there is an outstanding mortgage or lien.
- When a spouse is added to or removed from the Certificate of Documentation. This would apply after a marriage, divorce, or if the spouse passes away.
- When a vessel is transferred into an entity such as a trust, corporation, or LLC. This is only allowed when other special criteria have been met. For example, corporations need to be registered in a state or in the U.S., and the CEO and chairman of the board of directors must both be U.S. citizens. Further, no more than a minority of the number of directors necessary to constitute a quorum may be non-citizens. Lastly, at least 75% of the stock needs to be vested for a coastwise endorsement in U.S. citizens. If the endorsement is for fisheries, then more than 50% of the stock needs to be versed in U.S. citizens.
- Whenever any changes are made to the endorsement status of the vessel, the home port of the vessel, the name of the vessel, or the name of the current managing owner.
- Whenever any major alterations have been made to the vessel, such as an increase in tonnage or a self-propelling boat becomes a non-propelling boat.
The CG-1258 is also often used when establishing initial documentation, or for replacing a Certification of Documentation. A ‘replacement’ is not the same as a ‘renewal’, which is necessary once every few years as many documents have an expiration date. If the expiration date has passed then you will need to be ‘reinstated’ instead. We know that this can be a bit confusing, which is why we offer auto-renewals through our online document management system.
What Else is Required With A Transfer of Ownership Form?
Any other requirements in addition to the CG-1258 vary by the circumstances under which ownership is being transferred. If your vessel is already documented through the USCG then you only need to include a copy of the Certificate of Documentation. If ownership is transferred through a sale, you will also need a Notarized Bill of Sale, also known as the CG-1340 Coast Bill of Sale.
Further, you will need to include any evidence supporting the changes. For example, if the legal name of the vessel owner has changed then copies of the documents supporting the name change should be included with the CG-1258.
How Can I Expedite the Process of Completing and Submitting My Forms?
There’s a lot of technical jargon involved in vessel ownership. Being able to remember what the different documents are, the forms you need to submit, and when you need to submit them can be a daunting task. However, thanks to our website vessel owners just like you can forgo all of that frustration and enjoy their time out on the water even sooner.
Our website has every single form that vessel owners could need, whether it’s for transferring your vessel or registering it for commercial usage. Not only do we provide you with the forms that you need, but you can also upload your completed forms and submit them directly through our site. We manage the application process for you, so all you have to do is sit back and wait for your documents to arrive.
Are you not sure which forms are right for you, or do you have questions about any of them? That’s not a problem either, because anyone from our team can help you out. All you need to do is call us at 800-340-7580, or email us at submissions@usvesseldocumentation.center.
