Selling a Documented Vessel? How To Be Prepared and Avoid Scams

Some background knowledge is required before selling a legally documented vessel. Putting a “For Sale” sign in your yard and waiting for a customer to come along is all there is if you don’t know any better. On the other hand, you might save time and money if you pay attention to detail or take certain measures. The most crucial step is gaining knowledge to choose your next action wisely.

Unlike selling an undocumented vehicle, motorbike, or boat, selling a watercraft requires a few extra steps. You’ll need a lot of signatures and permission from multiple people before you can move forward with this, and if you need more preparation, it could end up being more bother than it’s worth. Here are tips on how to be ready and avoid scams when selling a documented vessel:

Don’t Rush Into a Sale

The assistance of a trustworthy vendor who is well-versed in the field and can give you sound counsel and direction is essential. Finding the right market for your documented vessel is the most time-consuming part of selling a recorded craft. Refrain from letting the thrill of a deal lead you to make a hasty choice about your boat’s future destination.

Certain legal steps must be taken with a recognized watercraft to guarantee clear ownership. This necessitates going through the appropriate channels and getting approval from the relevant officials before releasing the product to the public. It will take some time for everyone to finish their required tasks so that you can move on as soon as possible, but it is doable.

When you hire a trader, they will look out for your needs and objectives from start to finish. When selling a boat, many factors exist, including insurance and tax deductions.

Get Your Paperwork in Order

Although you can get by without the necessary documents, doing so is not recommended. You need the appropriate documentation to ensure you get all the potential purchasers and the possibilities to sell your yacht for the highest possible price.

Regarding vessel documentation, two different approaches can be taken: first, if you own your vessel entirely, all you need to do to sell it is provide evidence that you are the proprietor of the vessel. If, on the other hand, you used your vessel as collateral for a loan or had a claim placed on it, you will need the proper documentation from your backer stating that the charge has been fulfilled before you can sell it.

Don’t Accept Cashier’s Checks or Money Orders for More Than $10,000

Verify the buyer’s name, location, phone number, email address, and broker’s or bank’s contact information if you receive an offer over the phone. Please inquire about the broker’s or bank’s reputation from other vendors they’ve worked with. You could also request records from their financial institution or trading firm. Request additional time to consider the response or consult a trusted friend or family member before acting on any information you receive that leaves you unsatisfied. If the customer seems overly eager to complete the transaction, that should raise red flags.

Cashier’s checks and money orders should only be accepted for amounts up to $10,000. Refrain from giving in to the temptation to alter your terms and conditions if the other party is unwilling to accept them. You should retain a duplicate of all communication about the selling dealer and document the rationale behind any modifications you make.

Verify Whether the Buyer for Your Documented Vessel Has Good Credit

Before you commit to anything regarding the purchase of a sailboat, you should first ensure that the financials appear okay on paper. Make sure your potential buyer can pay for the documented vessel with cash or a bank transfer if you offer it. If they want to use a loan or credit card, you should inquire for recommendations and investigate independently; you should only accept checks or credit cards as payment if you know their bank personally.

Make a straight call to the buyer’s bank and ask them whether or not the buyer is current with their payment obligations. They will be able to inform you whether or not there has been a problem with the payments or if there has been a delinquency.

The Maritime Documentation Center is your best resource for navigating the complexities of documenting vessels. We can help you through the process and answer any questions. Contact us today to get started!