In addition to our better interest rates on boat loans, one of the other great benefits of having Jade Boat Loans handle your marine finance is that we handle much of the paperwork around the loan process for you. We save you time and hassle BUT there are some paperwork aspects of both buying and selling boats that you may have to handle yourself. Of course our Jade consultants are marine lending experts and will share their knowledge to guide and advise you where possible. But all parties involved in the boat sale process should be across the procedures.
So in this article we’re adding to your knowledge bank with information on the paperwork and processes involved in buying and selling boats, somewhat outside the actual loan details. If you follow the correct procedures and have your paperwork all sorted, it may prevent problems down the track.
If you own a boat you need to register the vessel with your state marine authority. The rates, terms and conditions may vary from state to state but you can easily check the requirements for your boat in your state at your state government website.
If you are trading your existing boat on your new boat or you are selling privately prior to the new purchase, you will need to deal with the change of boat registration. The registration is for the vessel but it is in the name of the owner and needs to be transferred when the boat ownership changes.
Have your registration papers and boat rego certificate ready and refer to your state government marine authority for the correct procedure for transferring rego in your state. This usually entails a boat transfer form which you will need to complete to give to the buyer. If you’re buying a second hand boat from a private seller, then you too should refer to the marine authority so you know what to request from the seller during the transaction.
A transfer of rego form includes details of the boat registration, the serial number, the hull identification number (HIN) and other details. For NSW buyers and sellers, we can advise that a HIN certificate must be obtained if it is not recorded on the rego documents.
When completing these official forms, check you have filled out all details correctly and especially, make sure the documents are signed by both buyer and seller where indicated. When official documentation is not completely correctly it may invalidate the form and aspects of the transaction causing potential problems with both parties. Pay special attention to the transfer of ownership/registration forms!
If you are buying/selling in a private transaction as opposed to through a marine dealer, having some form of invoice or receipt as proof of the transaction can be important. If arranging a loan through Jade, the lender will need some form of documentation in order to finalise settlement. But it may also be important when the buyer comes to insuring the boat and transferring the rego.
While having hard copies of documents is great for your own record keeping, some state government authorities will provide and online process for the transfer of boat registration.
If you are trading a boat for a new boat through a dealer, they will no doubt assist with the process and advise what you need to do yourself.
HINT: DON’T FORGET THE TRAILER! If you’re buying/selling a boat and trailer together, the trailer registration transfer will also need to be handled.
When you’re selling or trading you’ll want to present the great condition or true condition of the boat to your buyer. Keeping good records in regard to maintenance and other work done on the boat can be very helpful for this purpose. The extent of service records you have will depend on the type and size of the boat.
PPSR – Personal Property Security Register
When you purchase a boat with finance, the lender will register their interest in the boat on the PPSR. This is a register of security over property. When a loan is finalised, the lender releases the security over the boat and the listing on the PPSR.
If buying a second hand boat, prospective buyers can check the PPSR for any existing encumbrances on the boat. If selling a boat while money is still owed on the loan, the seller will need to finalise the loan to finalise the sale. Refer to our article on selling a boat under finance.
After or in conjunction with selling your boat, don’t forget:-
- Advise your insurance company that you have sold the boat.
- Address changes to your mooring, storage or marina berthing arrangements.
- Address any changes to individual items on the boat which may have been purchased separately and have you as the contact/owner. Some safety or security items such as alarms may come under this category. If you have a back to base alarm, advise the buyer to register themselves as the contact should the alarm be activated.
But when it comes to the finance side of buying and selling – just call us and your Jade consultant will assist you with boat loan paperwork.
For a quote on a new boat loan, simply contact Jade Boat Loans 1300 000 003
DISCLAIMER: INFORMATION, CONTENT, DATA, REFERENCES AND HINTS CONTAINED IN THIS ARTICLE ARE INTENDED PURELY FOR GENERAL INFORMATION AND NO LIABIILTY FOR ERRORS OR SIMILAR IS ACCEPTED. THE INFORMATION IS NOT INTENDED TO FORM THE SOLE BASIS FOR FINANCIAL DECISIONS. ANY READER CONSIDERS THAT MAY REQUIRE ADVICE ON THEIR PERSONAL OR BUSINESS FINANCIAL SITUATION, THEY ARE ADVISED TO SEEK THE PROFESSIONAL ASSISTANCE OF A FINANCIAL ADVISOR.