Buying or selling a Yacht is an exciting milestone, often marking the beginning of summer adventures or a transition to a larger craft. However, amidst the excitement of checking the hull and testing the engine, the paperwork often gets overlooked. While huge yachts require complex legal contracts, the vast majority of private marine transactions can be handled effectively with a simple boat purchase agreement. This document is the anchor of the transaction, ensuring that both the buyer and the seller remain protected once money changes hands and the vessel leaves the dock.
Defining the Document
A simple boat purchase agreement is a legal contract that outlines the terms and conditions of the sale between two parties. Unlike a standard Bill of Sale, which acts primarily as a receipt and proof of transfer, a purchase agreement can include specific conditions that must be met before the final sale occurs. For instance, it might stipulate that the sale is contingent upon a satisfactory marine survey or a sea trial.
For most private sales involving used boats—from bass boats to pontoon boats—you do not need a lawyer to draft a twenty-page document. A concise, clear agreement that covers the essential details is often legally sufficient and much easier for both parties to understand. The goal is clarity, not complexity.
Critical Components of the Agreement
To be effective, even a basic agreement must contain specific data points. Missing a single serial number can cause headaches at the Department of Motor Vehicles or the wildlife agency when the new owner tries to register the vessel.
1. Identification of Parties: The document must clearly state the full legal names and addresses of both the seller and the buyer.
2. Vessel Description: This is the most important section. It must include the Make, Model, Year, and Length of the boat. Crucially, it must list the Hull Identification Number (HIN). The HIN is the boat’s fingerprint, usually found on the transom. Without an accurate HIN, the simple boat purchase agreement is essentially useless for registration purposes. State registration numbers (often painted on the bow) should also be included.
3. The Trailer and Outboard Motor: In many jurisdictions, the boat, the trailer, and the outboard motor are treated as three separate titled assets. A common mistake is listing only the boat. The agreement should explicitly list the VIN (Vehicle Identification Number) of the trailer and the Serial Number of the motor to ensure ownership of the entire package is transferred.
The “As-Is” Clause and Warranties
One of the primary reasons a seller should insist on a written contract is to establish the condition of the vessel. Most private boat sales are conducted “As-Is, Where-Is.”
Including an “As-Is” clause in your simple boat purchase agreement protects the seller from future liability. It states that the buyer has had the opportunity to inspect the boat and accepts it in its current condition, with all faults, known or unknown. Without this clause, a buyer could potentially come back months later claiming the seller is responsible for a failed engine or a leaky hull. Conversely, if the seller is offering a warranty (e.g., “The engine is guaranteed to run for 30 days”), this must be written down to be enforceable by the buyer.
Financial Terms and Signatures
Finally, the money trail must be clear. The agreement should state the total purchase price and the method of payment (cash, cashier’s check, wire transfer). If a deposit was put down to hold the boat, the agreement should reflect the deposit amount and the remaining balance due at closing.