Facts about the USCG Documented Vessel Transfer Process

A documented vessel transfer is when an individual with a positive reputation with the United States Coast Guard sells, transfers, or gives their USCG-documented vessel to another individual. This can take place either directly or through a third party.

When a vehicle is said to be “documented,” it indicates that it has passed an inspection by the United States Coast Guard (USCG) and has been found to fully conform with all applicable state and federal regulations. To complete the USCG-documented vessel transfer process, the vendor must first ascertain that they do not have any delinquent financial responsibilities associated with the vessel.

Documented sailboat owners must advise the United States Coast Guard of any alterations to their personal information. (For example, if they move). Every boat owner should be aware of the following statement regarding the procedure of transferring registered vessels through the United States Coast Guard:

The USCG Doesn’t Monitor Sales Transactions

If you’ve never bought or sold a yacht, you might assume that the United States Coast Guard (USCG) oversees the process to ensure that all parties involved act ethically and lawfully. However, there is a better situation.

The U.S. Coast Guard has many duties and few personnel to fulfill them. They don’t keep account of purchases themselves, instead relying on the honesty of yacht owners. For first-time watercraft users unfamiliar with the ropes, the USCG-documented vessel transfer can be challenging.

A vendor must sign a Bill of Sale when transferring boat ownership, stating that “the seller certifies that neither the hull identification number nor any other unique identifier assigned by the manufacturer or state has been removed.” If he doesn’t take this precaution and his old yacht is taken out of the country, no one can pin the unlawful sale on him.

The Seller Pays No Fees for USCG Documented Vessel Transfer Until After Closing

Owners of vessels with USCG documentation can sell or trade their ships to new owners without the lengthy process of refitting. However, some transfer costs will be the responsibility of the vendor. Title transfers for recorded vessels are free of USCG paperwork costs if the recipient is a U.S. resident. However, this charge must be paid if the individual is not a U.S. citizen.

The new proprietor is responsible for repaying the transferor for any fees already paid. Only State sales tax and registration expenses will be due at closure. The state, not the USCG, handles title transfers and registrations.

Since sales taxes vary from state to state (and sometimes even within the same state), the sum owed will vary from transaction to transaction. The time it takes to complete the move from one party to another can range from three weeks to several months.

Sellers Can Request a Pre-Inspection

First and foremost, it is essential to remember that pre-inspection is a standard part of virtually every transition. This indicates that a representative from the service evaluating your vessel will pay a visit to your boat. At the same time, it is docked so that they can perform a comprehensive examination. Before taking your sailboat out on the ocean for a thorough inspection, they can examine its outline.

(Which can be both costly and time-intensive). Vendors commonly do not learn about this stage until after they have posted their yacht for sale. As a result, they may find themselves scrambling to repair problems or ensure that everything appears good before their representative arrives onboard.

You should also be conscious that obtaining the highest possible price for your yacht may only sometimes be the most important consideration when selling it.

Buyers Need To Provide Proof of Funds at Closing

Buyers must show evidence of money at closure to initiate the procedure. This is the first stage in determining whether the potential customer can afford the yacht. At this time, purchasers must also supply information for their vessel’s funding institution and insurance provider.

The U.S. Coast Guard requires proof of financial stability and evidence of insurance coverage before approving a watercraft purchase. Buyers of a new vessel must call the U.S. Coast Guard after making full payment to initiate a recorded vessel transition.

They must submit paperwork showing they own the property and pay any costs associated with the application (which vary depending on whether or not your desired vessel has been previously documented). Buyers should clarify at the time of offer acceptance whether or not the sailboat purchase depends on this procedure.

The Commercial Fishing Permits Center is the place to go if you have questions about the USCG-documented vessel transfer or anything related to your commercial fishing permit. We can answer any questions you have about the USCG-documented vessel transfer process and send you an email with a link to the current documentation forms