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Bill of Sale - Definition



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Marshal's Bill of Sale


BoatWiki - Definitions


A marshal's bill of sale can be defined in boating terms as an instrument issued by a state or federal marshal on a boat sold at auction. The marshal's bill of sale is often equated to a sheriff's bill of sale.


This type of sale typically results from a government seizure, court authorization or statutory cause of action. In these cases, a marshal will take possession of the boat and arrange for its liquidation at public auction. The purchaser will then receive what is known as a marshal's bill of sale.


A marshal's bill of sale is usually accepted for documentation or registration purposes with no further evidence of ownership. However, this can vary by jurisdiction. Although such action will usually extinguish any other outstanding liens or encumbrances, this should be verified. The holder of a preferred vessel mortgage in default will have an option of having the boat arrested and sold at auction by a U.S. Marshal.


The purchaser of a boat sold through a marshal's sale should establish that it does in fact extinguish any other liens, claims, or encumbrances. It is also advisable to check with the subsequent registration agency to make sure such bill of sale is acceptable at face value.

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5/7/2022 - Page initiated by Team BoatWiki.

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