Bill of Sale
BoatWiki - Definitions
Definition
A bill of sale can be defined as an instrument or document that transfers ownership of goods or property from one party to another. It identifies the considerations to be exchanged, the parties involved, and any other relevant terms of the transaction.
Meaning
Although used in many different circumstances, a bill of sale is technically designed to consummate a purchase and sale arrangement. It is given as part of the settlements made when finalizing or closing the transaction
Context
Bills of sale are commonly used in the marine industry to transfer a party's ownership interest in a boat. In doing so the format and citations must conform in such a manner as to satisfy any state or Coast Guard requirements for recordation. Although not always the case, it must typically be executed in the presence of a notary public. State requirements for bills of sale may vary by jurisdiction, but the Coast Guard is quite stringent in their requirements for vessel documentation purposes.
Conclusion
Buyers or transferees who must utilize a bill of sale for recording or taxation purposes should become familiar with any such requirements. There are also legal ramifications as to the respective citations and methods of stating ownership interests. Those who are unsure of such issues should seek the assistance of an attorney, tax professional, or boat titling specialist. More information about the use of bills of sale can be fount throughout the pages of BoatWiki.
Credits and References
4/18/2022 - Page initiated by Team BoatWiki.
