The Step-by-Step Process of Buying or Selling a Boat
Boats in harbour
When using a title transfer service company like MTT (MTT Marine Title and Transfers Inc.), the process of completing a boat purchase and transferring the title and licence or registration can be made much easier and more efficient. MTT is a private company that specializes in handling boat title transfers and licence applications or the registration of the vessel. They work with both buyers and sellers to ensure a smooth and hassle-free transaction.
Commonly asked Question. “What is the difference between a PLEASURE CRAFT LICENCE (PCL) and a VESSEL REGISTRATION?
- PLEASURE CRAFT LICENCE (PCL): A PCL is a provincial licence and is required for all Pleasure Craft with 10hp motor or more, operating in local waters (in the case of BC, a PCL vessel can travel into Washington State and Alaska waters if you apply for a cruising permit – CPB ROAM app)
- REGISTRATION CERTIFICATE: A Registration Certificate is required if the vessel is going to travel abroad and be recognized internationally as a flagged and registered vessel, with a unique registered name as well as the Port of Registry.
A vessel requiring a marine mortgage will also have to be registered with Transport Canada. (Banks who finance a vessel will require that the vessel be registered with a registered marine mortgage)
The process of working with MTT typically involves the following steps:
- Initial consultation: The seller or buyer contacts MTT to discuss the details of the boat sale or purchase and transfer of ownership. The information required will be the year, make and model of the boat, the current licence or registration status, and all details of the Seller and the Buyer.
- Yacht Purchase and Sale Agreement: When making the offer to purchase, the Yacht Purchase and Sale Agreement will be prepared. This document provides a written record of the transaction between the buyer and the seller, including the price and any conditions of the sale. It also includes all the vessel detail such as the year, make, model and Hull Identification Number (HIN) of the vessel, as well as all accessories and equipment agreed to in the Purchase transaction. A suitable time period will be included in the agreement to allow for all due diligence, such as a mechanical inspection, a haul out to inspect the hull and a sea trial. The seller must provide proof of ownership, such as a registration certificate, Pleasure Craft Licence or the original Bill of Sale (the title document). The buyer must ensure that the seller is the legal owner and has the right to sell the boat. Once the Buyer is satisfied, the balance of the documentation preparation will commence.
- Acceptance of Vessel Document: This document provides a written record that the Buyer is 100% satisfied with the purchase and that all subjects have been removed. From here on the vessel is sold as is and where is unless the parties agree to a counteroffer. At this point, MTT will perform a title search to ensure that there are no outstanding liens or other encumbrances on the vessel.
- Other Documentation preparation*: MTT will prepare all necessary documents for the transfer of ownership, including a Bill of Sale, Transfer of Ownership documentation, Disbursement of funds Statements, Tax forms and any other required paperwork..
- Bill of Sale: This document is the TITLE document, recognized by Transport Canada, the Insurance companies and the Marine Industry as proof of ownership. This document should be kept on the vessel at all times for Coast Guard inspection purposes.
- Buyer’s Statement: This document for the Buyer shows the total amount outstanding less any deposits and plus any extra invoices agreed to in the Purchase Agreement.
- Seller’s Statement: This document for the Seller shows the total amount the seller will receive less any invoices agreed to in the Purchase Agreement.
- Coordination of payment and funds transfer: MTT will work with both the buyer and seller to coordinate the transfer of funds for the purchase of the boat and will prepare the Statement of Disbursements confirming how funds have been disbursed.
- Submission of paperwork and Licencing or Registration: MTT will submit all necessary paperwork to Transport Canada for either the Pleasure Craft Licence or the Federal Registration of the boat in the buyer’s name. Transport Canada will send the Pleasure Craft Licence or Registration Certificate directly to the new owner.
- The Pleasure Craft Licence (PCL) or Registration Certificate: This form, once received by Transport Canada by the new owner, is confirmation that the vessel is now compliant with Transport Canada and Canada Customs. This document MUST be kept on the vessel together with the Bill of Sale at all times for Coast Guard inspections.
- PCL: The Pleasure Craft Licence includes information about the vessel, such as its Hull Identification Number, Licence number, and current owner’s name. The Pleasure Craft Licence is valid for 10 years.
- The Registration Certificate with an Official Number (O.N.) and Registered Name of the Vessel and Registered Port of Registry includes information about the vessel, Current Owner(s) and the details of the Authorized Representative.
- Confirmation and follow-up: MTT will confirm that the transfer of ownership has been completed and provide the buyer and seller with copies of all relevant documents. They may also follow up to ensure that the registration process has been completed successfully.
Working with a title transfer company like MTT can streamline the boat sale and transfer of ownership process, saving both buyers and sellers time and hassle. By taking care of all the necessary paperwork and documentation, MTT can help ensure a smooth and efficient transaction, with all parties involved having peace of mind knowing that the transfer of ownership has been handled correctly and efficiently.
Additionally, MTT can assist with helping boat owners stay compliant with Canadian laws and regulations.
