Bill Of Sale advice

[oGaryo]

Hi, I'll be parting with my hard earned on Monday hopefully to take ownership of what will become my 3rd boat in as many seasons.. value is circa £25K

The seller has drafted the following wording as the receipt... should I use this in your opinion or go with an MCA/RYA form instead or indeed, accept the sellers receipt, possibly tweaking the wording, and still fill out one of the Bill Of Sale forms below?

With this receipt I confirm that I have no finance, loans or mortgage on this craft which would effect the transfer of ownership to Mr Pearson.

I confirm that I am the sole owner of the craft and she is in my own name, with no company ties. Ownership of the craft will transfer to Mr Pearson on completion of a final inspection and following confirmation of electronic transfer of funds to my bank account.

On completion of transfer Mr Pearson will become the legal owner and
responsibility for insurance will transfer from myself to Mr Pearson. I will continue
to insure the craft up to this point.

On completion of transfer all documents relating to the import, registration, VAT
status and all change of ownership documents will be passed to Mr Pearson.

The craft is being sold as a private transaction, and whilst I am not aware of any
major or serious faults, "name of boat" is being sold as seen with no warranty
given or implied.

Link to MCA form: www.mcga.gov.uk/c4mca/rss-cd-form-msf4705.pdf

Link to RYA form: www.anchormarinesurveys.co.uk/Downloads/RYABILLOF%20SALE.pdf

Many Thanks Gary

 

[Imperial One]

Gary,

By all means go with this but get him to sign an MCA Bill of Sale as well and then it will be easier for you when you come to sell it and you will have his word (still need to check though!) that it has no loans on it and that way you are both happy - I hope!

Enjoy the new boat.

Mike.

 

[jfm]

Gary
If the transaction goes smoothly it doesn't matter what it says. But if he is dishonest or it doesn't go smoothly, yhen that wording is anbsolutely awful.

"With this receipt I confirm that I have no finance, loans or mortgage on this craft which would effect the transfer of ownership to Mr Pearson"

That's dreadful. Mortgages NEVER affect the transfer of ownership. That, in part, is the whole point of them. You want confirmation there is no mortgage FULL STOP, not that there is no mortgage "which would effect the transfer of ownership". What he has written (no doubt unintentionally) is, in effect, "There could be a mortgage and I'm not saying there isn't, but it definitely won't affect the transfer of ownership to Mr Pearson. Mr Pearson might still have the boat rep-ed by the bank though". So delete the last 10 words. And it's "affect" not "effect"

"I confirm that I am the sole owner of the craft and she is in my own name, with no company ties. Ownership of the craft will transfer to Mr Pearson on completion of a final inspection and following confirmation of electronic transfer of funds to my bank account."

Fine, except delete "confirmation" and say "receipt" instead. What if the money lands in his account but he just chooses never to give confirmation?

"On completion of transfer Mr Pearson will become the legal owner and
responsibility for insurance will transfer from myself to Mr Pearson. I will continue
to insure the craft up to this point."

Very amateur, but harmless so leave as is

"On completion of transfer all documents relating to the import, registration, VAT
status and all change of ownership documents will be passed to Mr Pearson.2

Good enough. Interesting he mentions "import". Is there a story there?

"The craft is being sold as a private transaction, and whilst I am not aware of any
major or serious faults, "name of boat" is being sold as seen with no warranty
given or implied. "

Fine

Sorry to be picky, and as i say it's all academic if nothing goes wrong, but I guess the whole point of this paperwork is to set out the rules if things do go wrong. Do an MCA bill of sale as well, download from mcga.gov.uk. When you come to sell the boat, the next person will want a complete chain of BoS, so if you don't get it now you've missed your chance

Best of luck

 

[nyx2k]

sounds like a good receipt to me.

but being pedantic

"With this receipt I confirm that I have no finance, loans or mortgage on this craft which would effect the transfer of ownership to Mr Pearson"

what does "would effect" mean. it has finance or it doesnt

 

[nyx2k]

oops be me to it

 

[oGaryo]

thanks guys, I'll wordsmith it accordingly and ping it back to him

 

[andy59]

Sorry to drift but that is a top quality surname you have used

 

[oGaryo]

Certainly is

 

[fergie_mac66]

free from encumbrances

is important you dont want any unpaid mooring fees to end up in your post