Sample Purchase Agreement printable pdf download

Buying a Used Boat? Avoid the Paperwork Pitfalls

It’s hard to walk away from a boat that pulls at your heartstrings, but be sure

there aren’t any skeletons hiding in the closet, such as a cloudy title or other

issues. Transactions between private buyers and seller are where Consumer

Protection sees the majority of potentially costly paperwork issues.

The Seven Paperwork Pitfalls to Avoid:

1. Registration: It should be current. Be aware that a boat that is not located in the

state it is registered is one indicator that it may have tax issues that could haunt a

new owner.

2. Title: The information on the title should match the registration. A title will also

usually list any liens on the vessel, such as a bank loan that will need to be paid off

in order to transfer the title. It’s important to include a statement in the purchase

agreement that requires the seller to pay off the loan within a specified amount of

time after the sale. Best is if you can meet at the bank that has the lien and have it

released on the spot. Consider using a respected escrow company to transfer funds

and title. The seller should clear up any other liens, before any sale occurs. Note

that not all states assign titles to boats. Check here for state rules on titling and

registration:

3. Hull Trace the HIN: Take a pencil and paper to get a rubbing of the boat’s 12-

character serial number known as the Hull Identification Number (HIN), which is

located on the upper side of the starboard part of the transom, and ensure it matches

registration and title. If it does not, there could be issues retitling the boat so the

seller should correct the problem before a sale takes place.

4. Taxes: It’s advisable to get a statement from the buyer stating that any state or local

taxes on the vessel have been paid. This can be easily included in the purchase

agreement.

5. Purchase Agreement: It’s smart—and a widely accepted practice—to include

contingencies for the buyer such as securing financing, insurance, and receiving an

acceptable survey and sea trial.

6. Bill of Sale: Prepare this document with the Seller’s name as it appears exactly on

the title and registration.

7. Payment: A cashier’s check or bank draft is often used to consummate the deal, but

the name on the check must match the name on the title and registration. Also these

documents can be forged, so make a call to the bank to verify the validity of the

check.

For more information, go to the BoatUS Guide, Buying & Selling a Boat:

Sample Purchase Agreement