Bill of sale, legal ownership of boat, etc

[PEJ]

Can an expert help with this?

Say two partners owned two coded boats for charter and they work together chartering them. They own a 50% share in each boat.

Say they wanted to dissolve the partnership and go their separate ways with one boat each. How would they sort the paperwork to change from 50/50 to 100% ownership?

Is it just a case of drawing up a bill of sale from the partners to the new, single, owner? No money would have to change hands? So there would be no payments, no bank transactions, just paperwork?

Is that right?

 

[PaulGooch]

Pretty sure you sell one boat to one partner, for say £1, then the same for the other boat.

I'm not an expert though, so wait until he comes along to confirm

 

[Tranona]

Really depends on how the title is shown currently. They will be registered boats, so the register will show how the title is divided. If they each own 32/64 then it is simply a Bill of Sale from one to the other of his 32 shares and registering the change. On the other hand the title could be in the name of a company and the ownership determined by the structure of the company.

So, once you know how the title is established you can unravel it. There is a useful guide on the different structures of shared yacht ownership on the RYA site which might help explain the different ways of establishing ownership and title.

 

[jfm]

There was a thread recently. I am assuming part1 reg ie English law. If each boat is owned 32 shares each, as opposed to 64 shares jointly, then ONE partner needs to do a BoS for his 32 shares to the other guy, then repeat (t'other way asround) for the next boat

Money doesn't have to change hands but in English law contracts can be unenforceable if there is no consideration. I suggest you draw up a contract that says something along the lines:
Mr X and Mr Y each transfer their respective property described below for the considerations and mutual considerations specified herein, that is to say Mr X transfers his 32 shares in Boat A and pays £1 to Mr Y, and Mr Y trnasfers his 32 shares in boat B and pays £1 to Mr X.

Then on the BoS just write "£1 and other consideration".

In the unlikely event the boats are held jointly please shout, as the above would not be correct in that scenario. Joint ownership is more suited to husband/wife than to business partners. Equally, if a company is involved (you didn't say it was) then none of the above applies

 

[PEJ]

Thanks for the replies.

It is two individuals and the 32/64 thing.

The worry was that with no money changing hands when either boat comes be sold on the new buyer will see the change of title from joint to single ownership and might think it either dodgy or moreover not legal and that the boat is still legally in joint ownership so one partner could end up in possession of one boat and legally entitled to 50% of the proceeds of the sale of the other.

 

[Wiggo]

No problems here. JFM is correct as usual. MCA Bill of sale available as a download, 32/64ths transferred for £1 and other considerations, signature needs to be witnessed, and that's it. You can apply for a new SSR Cert for a fee (if they're Part 3), not sure on the requirements for Part 1...

 

[BartW]

You can apply for a new SSR Cert for a fee (if they're Part 3), not sure on the requirements for Part 1...

out of interest,
I assume she is Part 1 registered, (coded for charter ?)
I assume you need to change / update your registration when the owners structure changes ?

for the OP,
then your paperwork will be clean for future sale;
one owner, BOS, Part1 registration on the name of the owner.

 

[jfm]

out of interest,
I assume she is Part 1 registered, (coded for charter ?)
I assume you need to change / update your registration when the owners structure changes ?

for the OP,
then your paperwork will be clean for future sale;
one owner, BOS, Part1 registration on the name of the owner.

Yes the coding usually lapses on change of ownership and the new owner needs to renew the coding. Easy enough to do, obviously

And yes, after the two 32/64 transactions the paperwork will be clean. Each person will have a new fresh single part certif showing him as owner of 64/64 of his boat. And the history of BoSs will show how he got there. Nothing at all to worry about imho.

In fact, come to think of it, my first Sq58 was owned 50-25-25, then i bought out the two 25%ers, then sold 100% of the boat. The paperwork history was therefore a bit complex, but complete. Buyer and broker were fine with this and the boat was easily sold