Anytime you engage in a buying or selling transaction that involves a watercraft, the Boat Bill of Sale becomes a very important piece of paperwork that goes with the process. It exists to outline the terms and conditions of the sale and is a legally binding document. With that in mind, it’s important to be sure the document is accurate and up to date. Use this guide to help you check for common mistakes so that you can do your best to avoid them while preparing your bill of sale.
Errors and Incomplete Information
Incomplete or incorrect information is the most common mistake to be on the lookout for when you fill out and file your boat bill of sale. This includes important details about the vessel, including information about the buyer and the seller, a description of the boat, price of purchase, payment agreements and warranties. These must all be accurately documented on the bill of sale so be sure everything is correctly recorded before you file the finished paperwork.
Unclear Payment Terms
If the payment terms aren’t very clear and specific, it sets the stage for conflict and disputes later. Your bill of sale should include very precise details about the price of the boat, the currency being accepted and the agreed upon payment schedule. Additional charges, such as taxes, should be outlined and specified if they are part of the sale or must be paid separately.
Forgetting Warranties and Disclosures
When you prepare your bill of sale, you must make sure to include warranties or disclosures having to do with the boat’s title, condition or defects that are known about the vessel. This is information that both the buyer and the seller should be aware of. This helps prevent the risk of future conflicts and disputes.
Lack of Signatures and Important Dates
Any legally binding document is that way because both parties sign and date the paperwork. Both the buyer and the seller need to sign the bill of sale, as well as include the date on which the paper is signed. This acknowledges the agreement between both people and notifies both (as well any other involved parties) when the sale occurred. A bill of sale is considered incomplete until it is signed and dated by both people, so make sure you don’t neglect this important step.
Not Paying Attention to Legal Requirements
Because a boat bill of sale is a legal document, it makes sense that there is a set of legal guidelines that go along with filling it out. Be sure that you know what these regulations are so that you can adhere to them as you are preparing your bill of sale for filing. This helps save time and money because you won’t be spending energy fixing mistakes and paying fines to correct incorrect documentation.
There’s no shame in realizing that you need professional assistance with filling out your boat bill of sale. And that’s why we’re here to help. Contact the US Vessel Documentation Center today and we will help you every step of the way.
