Buying a boat, like any other important purchase, requires the preparation of many documents. It is advisable to work with experienced professionals such as brokers, maritime attorneys, or maritime finance providers when purchasing a new or used boat, who can assist you with the various administrative tasks, saving you both time and money. In this article, we detail the 10-point document required to purchase a boat, which can be very helpful in making your boat purchase go smoothly.
Bill of Sale
The bill of sale is usually drafted by the broker and it will list all the key information about the new or used boat in detail. Specifics include the boat's registration number, model, make and year of manufacture. Most importantly, the bill of sale will clearly state whether or not the boat has any outstanding financing. In addition, the bill of sale should contain the price of the boat, contact information for the buyer and seller, signatures of both parties and the terms of the sale. It is important to note that electronically signed bills of sale are not recognized.
Maintenance Record
When buying a used boat, the seller is obligated to provide a maintenance record. This maintenance record details the condition of the boat and clearly indicates the maintenance tasks carried out, when they were carried out and by whom, especially important for the maintenance of critical parts such as the engine, the gas system and the rigging of the boat.
When you become a boat owner, it is advisable to keep a logbook detailing all subsequent maintenance work carried out on the boat, including inspections carried out by yourself. If you plan to sell the boat later on, you can hand over this logbook to the next owner.
Boat Insurance
Although marine insurance is not mandatory by law, it is a very wise choice to have it. In fact, in some harbors, marinas and other countries, purchasing marine insurance is mandatory. And, if you want to apply for a marine mortgage, having insurance is also a requirement. When you buy a new or used boat, think of it as an investment, and a proper insurance policy can protect your investment.
Vessel Safety Program Certificate
The Vessel Safety Program sets national minimum standards for statutory safety requirements, and a certificate of accreditation is issued after passing the relevant tests; this certificate is valid for four years. You may need to obtain a Vessel Safety Scheme Certificate before registering a vessel, or purchasing a license for use on inland waterways such as rivers and canals. The exception to this, however, is for vessels without gas, electrical, heating and fuel systems.
Inventories and manuals
Although not a mandatory requirement, preparing a complete inventory of the boat's contents and a manual can be of great use to boat owners. This inventory will help the owner understand the various items on board, and it is an important transferable document when you sell your boat in the future. It is necessary to keep track of the backlog of items on board and their status to form a practical and continuously updated document. You can do this seasonally or at a fixed time each year to keep up-to-date with the status of items on board.
Builder's Certificate (required for new boats)
If you are planning to buy a brand-new boat, the boat builder will provide you with a builder's certificate, which will detail specific information about the boat, the builder's contact information, and also certify that you are the first owner of the boat. For those buying a used boat, it is helpful if the seller can provide you with the original builder's certificate.
Boat License (required for inland waters only)
In some areas, you can buy a boat even without a license, but if you want to drive a boat in inland waters, you have to get a license to do so. The type of license required, the corresponding fee and the agency responsible for issuing the license are all related to the area and duration of the voyage you plan to visit. Therefore, do your research before purchasing a boat. Special attention should be paid to the fact that in order to successfully obtain a permit, you must first purchase boat insurance and hold a Vessel Safety Program certificate.
UKCA Mark
In the UK, as a result of Brexit, UK vessels no longer follow the CE standards of the EU, but instead have to comply with the UK's Leisure Vessel Regulations and carry the UKCA mark. The UKCA mark comes into effect on January 1, 2021, and is divided into four categories: marine, inshore, inland and estuarine, and sheltered waters.
Proof of VAT
Vessels built in the EU or imported into the EU on or after January 1, 1985, must be able to prove that VAT has been paid. The proof is usually in the form of an invoice with the amount of VAT and the VAT number. Some EU countries require the original invoice, but a certified copy will normally suffice. It is important to note that older vessels may not have proof of VAT payment and this risk needs to be considered when purchasing such vessels.
Flag and registration documents
In the UK, all vessel registrations are administered by the British Register of Shipping. Your registration determines the use and size of the boat, and the boat's use may be for business and pleasure, fishing, dinghy use or bareboat charter. If you plan to take your boat abroad, smaller boats need to be registered with the Small Ships Register and larger boats will have to complete their registration with the Part 1 Register.
And if you're navigating inland waterways, you'll have to obtain a license from the waterway authority responsible for managing the appropriate waterway. Upon completion of the registration, your vessel will be flagged with a red flag as proof of nationality and ownership, which is regulated by the UK government's Maritime and Coastguard Agency.
