Our Vessel Transfer of Ownership Form Explained

Vessel Transfer of Ownership

A Vessel Transfer of Ownership form is a document that must be completed and submitted to the US Coast Guard when you sell a vessel.

It will be under the type of Certificate of Documentation, which indicates if that vessel has a Certificate of USCG Documentation or not.

As soon as you begin selling your yacht, all the documentation must be completed in full.

Any certificate of documents issued by the federal government, which must be exchanged to meet all legal requirements, necessitates this step.

A new form and all required papers demonstrating that you are no longer the vessel owner must be completed and submitted to the Coast Guard to ensure that you have successfully conducted Transfer Exchange of USCG documentation.

Vessel Transfer of Ownership

Making a Vessel Available For Transfer or Sale 

When a yacht is transferred to a new owner, the documents transfer does not occur automatically.

In reality, anytime anything occurs that impacts the ownership of the vessel, it is necessary to update the paperwork.

Adding a spouse or removing someone from the list of owners due to death or divorce are all possible in this circumstance.

There will be paperwork to fill out and a transfer of papers to be completed for every sort of modification that you make.

When the paperwork is finished, the transfer will become effective; thus, you must complete this process as soon as possible if you are selling your yacht or transferring ownership.

The Legal Requirement for Documentation Transfer 

In order to comply with the law, you must fill out and submit the paperwork required to transfer documents.

Certificates of documentation must be exchanged under this “Requirement.” In order to trade the certificate, the owner must “Send or deliver the Certificate…and apply.” This must happen at the following times:

  • Ownership of the ship has been transferred to a new party.
  • The partnership that owns the vessel may add or remove partners.
  • A separate company owns the boat and manages the vessel’s operations.
  • There’s a new name for the ship.
  • The ship’s homeport is at a different location.
  • There is a non-US national in charge of the vessel.

There are other circumstances in which a certificate of the documentation might be revoked, such as when the net tonnage of a vessel change, if a person who owns a portion of the vessel passes away, and if self-propelled boats become non-propelled or vice versa.

 If the vessel’s ownership changes or there is a significant mistake in granting the certification, the paperwork may also become invalid.

All of the above situations need a new application for documentation.

Exactly what proof is needed?

When requesting a modification in documentation, you must provide proof of the change. The seller’s signature in front of a public notary will be included in the current certificate of documents.

A bill of sale, either in its original form or a replica, must also be included. The notary must once again verify the authenticity of the signatures.

You and the bank or lender must complete the Satisfaction of Mortgage form if there is a lien on the boat.

The papers will be returned to you if there is an issue with the forms. In addition, you will not be reimbursed for this money, so make sure you fill out all papers accurately the first time.

Factors That Make It Difficult To Process Vessel Transfer of Ownership 

According to the National Archives, the sale of a boat becomes more difficult if additional considerations come into play, as is the case with most federal paperwork.

A Preferred Ship Mortgage lien, which impacts who owns the boat, is the most crucial of these factors. Before you can finalize the transfer and submit the papers, you must pay off your mortgage in full.

Transferring the vessel from a single owner to a company or setting it up in trust is two more options.

Transferring ownership of a vessel involves the same documentation regardless of whether it’s an individual transaction or an estate restructuring.

 It will be more challenging to transfer your vessel if your financial or ownership arrangements are complex, and you may benefit from help in completing the transfer documents.

So there you have it. The Vessel Transfer of Ownership Form is a necessary step in any yacht sale, and the USCG needs to be included as soon as possible in the process.

Failure to do so could result in a severe delay and can put your boat up for sale for far longer than needed. Rather than taking a gamble, we suggest that all sellers fill out their transfer forms when they begin selling a vessel.

That way you will have extra peace of mind, not to mention more time and energy to enjoy the rest of your life!