Notarized bill of sale for boat1/8/2024 Similar to the DMV process, this will not automatically result in the issuance of a new Coast Guard Certificate of Documentation in the name of the buyer, since the buyer needs to file a separate form to apply for the new certificate. In our reader’s case, he may want to prepare a new bill of sale form and file it himself. The Coast Guard will not record a transfer of ownership until it receives a notarized bill of sale. This form does not transfer title automatically, but it puts the world on notice that the ownership of the boat is in transition. So, how can our reader protect himself? The answer is fairly simple for boats that are registered through the California Department of Motor Vehicles (DMV), but it’s a little more complicated for Coast Guard-documented vessels.įor California DMV-registered boats, sellers should prepare and file a “Notice of Transfer and Release of Liability” with the DMV immediately upon the sale of the boat. But, in the case of a sale, the previous owner has no right to designate the operator after ownership is transferred to the buyer. If, for example, the boat had not been sold but instead had been simply loaned to the person who was operating the boat, the owner may be held liable if a prudent boat owner would not have allowed that particular person to operate the boat. We should note that the analysis of this hypothetical accident is not based solely on the fact that the registered owner was not aboard at the time of the accident. The person named on the boat’s title will almost certainly be drawn into this kind of lawsuit - and it may cost thousands of dollars in legal fees to get out of the case, even if that person cannot ultimately be held liable. However, that does not mean our reader is off the hook. When we apply the negligence standard to the scenario described by our reader, it’s hard to see how an injured party could link his or her injuries to the failure to properly record a transfer of ownership. A lawsuit under these circumstances will allege that the defendant was negligent, so we first need to understand what that means.Ī lawsuit for negligence will evaluate whether a person had a duty to act in a particular way toward the injured party, whether a reasonably qualified person in the same situation would have conducted himself or herself in the same manner, and whether a failure to comply with that standard somehow injured or damaged the plaintiff. Our reader is concerned that the boat’s new owner will be involved in an accident with the boat and that the injured party will pursue our reader, rather than the new owner. However, broadly speaking, we can say that the mere fact a person remains on a vessel’s title or registration does not by itself make him or her liable for the acts of the new buyer. Like so many other legal questions, the potential lingering liability faced by a seller who remains on the title after the transaction has been completed will depend on the facts of each particular deal. This may occur by design if, for example, the buyer is trying to cheat his way out of paying use tax relating to the purchase. Problems arise when the buyer fails to follow through. In a private party deal that is handled without a broker, the buyer is often given the job of recording the title and registration paperwork.
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