How do I ensure I am buying a boat that is not encumbered by finance or another owner. Is there a system similar to car sales?
Select to expand quoteTrek said..
How do I ensure I am buying a boat that is not encumbered by finance or another owner. Is there a system similar to car sales?
Do a search on the Personal Property Security Register. Cost $2 for peace of mind.
www.ppsr.gov.au/searching/do-boat-search
Select to expand quoteTrek said..
Thanks. Do boat brokers offer any kind of security?
When I made a purchase the broker did the ppsr searches at time of signing the contract and also at settlement. Also checked no outstanding tax liability such as import duties.
They issued a bill of sale that specified the amount of shares in the boat being transferred. The ownership of a vessel is made up of 64 shares from memory. The bill of sale had to be signed and witnessed by both seller and buyer.
They held the monies, deposit and payment, in trust until the day of settlement and ensured all the conditions of the contract were met before settlement
Also state registration transferred. My boat had British ships registration, that took more time to change from British to Australian registration.
If your seeking Australian registration you need to look into all the requirements because it includes other documents that would not normally be required from change of ownership. I had no problems because the previous owner, who built the boat, assisted me to do it after the sale. We maintain contact as he still loves the boat he built and is interested in its welfare. Anyway point being if you are seeking Australian registration make the required documents a condition of the contract.
Select to expand quoteTrek said..
Thanks all. A friend is buying a big boat and needed to know.
Due diligence is the buyers responsibility, not the sellers or the brokers even if they assist with searches or surveys etc.
I think going with an established broker with a good reputation does reduce the risk but at the end of the day its buyer beware.
I was offered a boat that had had its name showily changed, and the rego papers said it was an unknown make, even though it was a popular design. The length was also listed as shorter than the actual. Maybe the idea was to pay less for the rego. It had no mooring and was sitting on a third party's private jetty. The vendor rode there on a motor bike.
When I told the vendor that I would just like to sight the boatcode before handing over the cash, he became aggressive. Gave me a bad feeling so I withdrew, even though it was a nice boat at a "bargain" price. I discussed with the local Boating Services Officer, but there was no interest in following up.
Someone else bought it, and then on-sold it some time later at a normal price. So I guess there are a few boats out there with doubtful provenance.
Australian vessels that have sailed overseas will also be registered with the Shipping Registration Office (SRO) and will have a certificate with a unique Official Number.
