Paperwork advice

[Guest]

Looking to sell privately - I have the RYA sale agreement forms and the MCA Bill of Sale form (Part 1 registered), but does anyone happen to know what the score is with regard to the sequence of events and paperwork to pay off a marine mortgage?

TIA

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[Observer]

Purchaser will expect to receive clear title when he has paid the agreed price. As the boat is encumbered by the mortgage, paying you doesn't do that. So you should provide a verifiable statement of the loan redemption value (with a daily interest adjustment value) to the purchaser and, assuming that is less that the purchase price, have him transfer the required amount directly to your lender/mortgagee and the balance to you. Once the loan is redeemed, the lender should certify (on the original mortgage document) that the mortgage is discharged and send it to you.

As soon as you know the price has been paid in full to you/your lender, you should execute and deliver the bill of sale.

If needed, you can use a solicitor to hold the executed Bill of Sale in escrow until the funds have been transferred.





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