You must have a solid understanding of the procedure for the transfer of vessel ownership if you are currently the vessel owner. This paper details the procedures that must be carried out to successfully execute a transfer and offers some advice that may be useful along the route. You can secure a seamless transition for yourself and the new business owner if you follow these tips.
When transferring ownership of a vessel, it is essential to ensure that the procedure goes off without a hitch at all times. You will have to go through many hoops, and if any of those hoops are skipped or handled incorrectly, you might get into severe legal problems. The following are some suggestions on how to carry out a change of ownership in an appropriate manner.
Make Sure That Both the Seller and The Buyer Have Their Copies Of CG-1258 Completed and Signed
A “Transfer of vessel ownership” form, CG-1258, must be filed with the Coast Guard whenever ownership of a vessel is being transferred to a new owner or owners. This document has several purposes, including releasing the buyer, seller, and Coast Guard from any responsibility for the vessel’s sinking or abandonment. Ensure that both the seller and the purchaser have completed and signed a CG-1258.
Remember that the form cannot be altered after the Coast Guard has validated the signatures. Your local Coast Guard station needs to see the original. If everything seems good to go, your local office will forward the paperwork to the capital for final clearance. If you need your boat right soon, this might be a procedure that takes many weeks. Don’t forget that the sale is finalized after the CG-1258 form has been filed. Be sure to thoroughly read it before sending it to the Coast Guard.
Double Check All Information Listed on The Forms for A Transfer of Vessel Ownership
After concluding that you do not want to continue to be a boat owner, you will be required to complete some paperwork and hand them to the Coast Guard. You must provide all of the requested information on the forms accurately to ensure smooth processing of your transfer of vessel ownership.
Two separate forms need to be completed by you, and they are the CG-1258 and the CG-1259. The first form is used when the ownership of the vessel is being transferred from one individual to another, while the second form is utilized when there is no change in ownership but rather a change in the location or name of the vessel. To transfer ownership of your vessel to another person, you must fill out both of these forms. Verify that all of the information stated on the forms is correct, paying particular attention to the hull identification and registration numbers.
Both Parties Must Be Present When Submitting the Forms to The Coast Guard
When the forms are turned in to the Coast Guard, both parties are required to be present. Following this, the Coast Guard will issue a new Certificate of Documentation (COD). Your new owner will be equipped with everything they need to make the appropriate adjustments as soon as the previous documentation has been handed in.
Everything, from insurance cards to vehicle registration numbers, should have its new information updated as soon as possible. If either party currently has a loan on their boat, the conditions of that loan will also need to be revised. If you are changing your name in addition to changing the owner of the social security number, it is quite probable that you will need to alter your name with other organizations. These companies use your social security number as a reference point for collecting payments and records.
Allow At Least Four Weeks for Processing Time. Once the Forms Have Been Submitted
There are times when a boat’s owner chooses to sell the vessel. This may be the case if you want to sell the item, give it away, or give it as a gift. According to govinfo.gov, the transfer of vessel ownership (CG-1258) form must be completed by the current registered owner of a vessel to transfer ownership of that vessel. Owners who want to transfer the registration of their vessels to another person must have the new owner complete this form.
Any documents you need to establish your identity must also be provided in duplicate, with two copies submitted with your application. After submitting the paperwork, you should wait at least four weeks for a response. Please allow extra time if mailing your paperwork to the Coast Guard in case it gets lost in transit or if the paperwork from the previous owner takes longer to arrive.
The easiest way to change ownership of a vessel is to submit a document called the transfer of vessel ownership (CG-1258). Should you need to do a transfer of vessel ownership, fill out the form, sign it and return it to the U.S. Vessel Documentation Center at (800) 340-7580. The staff members will guide you through all of the paperwork and fees.