As with any major purchase, there are a number of documents you’ll need when buying a boat.
Whether you’re buying a new or used boat, we recommend working with someone who has experience and knows what is involved. A boat broker, marine lawyer, or marine finance provider should help you complete all administration tasks.
This will ensure you get it right, as well as save you time and money. Here are 10 documents you’ll need to buy a new or used boat.
1. Sale and purchase agreement including inventory
A Sales and Purchase Agreement or contract is a vital part of buying a boat. It protects both the buyer and the seller by clearly setting out the terms of the deal in writing, and should include an inventory detailing the boat itself together with what is included in the sale, and highlighting any items that are known to need attention or do not work.
A buyer is usually also required to pay a deposit to hold the boat, and the timeframes for carrying out checks and inspections, and conditions that the deposit may be returned, or forfeited, should all be clearly laid out within the agreement. A professional broker usually acts as an intermediary, drawing up the contract, holding the deposit, and helping to make sure all parties adhere to the terms of the agreement. If buying privately there are a number of brokerages who offer an intermediary service for a fee, and this should be strongly considered depending on the style of purchase (is it ‘as seen’ or subject to any conditions such as survey and sea trial?) and the purchase price. ABYA and BMF are two of the main membership bodies for professional brokers, and both provide professionally written and regularly updated contracts for their broker members to use.
An important element of the contract which is sometimes overlooked is the available Title documentation which should be listed in the agreement. Further information on what to look for is in this checklist, and you should check to ensure it meets the requirements you, or your finance company, may have prior to signing the contract and paying a deposit.
2. Bill of Sale
Drafted by the broker, the Bill of Sale details all key information. It will state the boat’s registration number, model, make, and year. Importantly, it states whether there is finance outstanding on the vessel.
It will also include the price, the contact details and signatures of the buyer and seller, and the conditions of the sale. e-sign Bills of Sale will not be accepted.
3. Builder’s Certificate
When buying a new boat you should be provided with a Builder’s Certificate from the vessel’s manufacturer confirming that you are the vessel’s first owner. It also states the details of the company who built the boat together with identification numbers and other important information such as engine/s and dimensions. Whilst it isn’t always essential for used boats, it helps verify age and other important information including first owners, so should be included if available.
4. CE & UKCA marking
Since June 1998, there have been important construction standards that all leisure boats built after this date should comply with. Prior to BREXIT this was known as CE marking and the Recreational Craft Directive, and the boat you are buying should have a CE plate stating compliance for use in specific conditions and loadings. The UKCA mark came into effect on 1st January 2021 and effectively replaces the CE mark for new boats intended for use in the UK, although CE marking alone may still be acceptable. A CE & RCD or UKCA certificate, and an owner’s manual should also be available.
The marking is very important, as without this it may be that the boat has not been built to the standards required, or has been grey imported from outside of the EU meaning some systems may not work or be serviceable. Retrospective approval (known as a Post Construction Assessment) is usually possible, and is common on inland waterways vessels purchased as ‘sailaway builds’ for owners to fit out themselves. However, depending on the type of vessel and required works this can be very expensive, and even require replacement of major systems such as engines, electrical supplies, and gas installations, so do your research and seek advice prior to purchase if this is likely to be needed.
Further information on CE & UKCA marking is available online, and should also be readily available from the broker or new boat agent you are buying the boat from, or your surveyor.
5. Boat Safety Scheme (BSS) Certification
The Boat Safety Scheme (BSS) is a certification scheme for boats intended for use on the inland waterways in the UK. It checks key safety systems on a boat to help prevent fires, explosion, or pollution. If you want to keep your boat on inland waterways (like canals, rivers, and lakes) managed by the Canal & River Trust or other navigation authorities you will need a current BSS certificate to obtain a licence, unless it is a new build boat with UKCA & RCD approval. These boats are covered by the standards they were built to, and are usually valid for the first four years post completion.
If you need to get a BSS certificate you will need to get a BSS examiner to visit your boat and check the fuel, gas, and electrical systems, ventilation, bilge water containment, and fire extinguishers. If your boat passes, you get a BSS Certificate, valid for 4 years, if not, you will be given a list of items to fix or change and need to get it re-assessed once completed.
When looking to buy a boat for inland waterways use always ask if the boat already has a valid BSS Certificate, and the expiry date so you can plan to renew it if required soon.
6. Boat Registration and Flags (inc. for international waters)
There is currently no requirement to register your boat for use within UK waters, but if you intend on taking your boat abroad, you will need to register it beforehand.
The Maritime and Coastguard Agency (MCA) manages UK Ship registration and offers two relevant types of ship registration for leisure vessels. These are Part 1 and Part 3 (Small Ships Register, or SSR) of the UK Ship Register. Whilst both are commonly used, there are notable differences between them, so checking which suits best is advised. Part 1. has no maximum vessel size, and is the more formal Register as it proves ownership and records the chain of owners, and shows mortgages registered against the vessel, but has higher costs. Part 3. Small Ships Registration is much simpler, with lower costs, but does not prove ownership or record mortgages, and is only available for vessels under 24m in length. Whilst Part 3. is generally recognised throughout Europe, Part 1. is preferred internationally. Which registration is right for you can also be influenced by your intended use, as boats being operated commercially may require specific registration. Once registered you should fly the Red Ensign to prove nationality and ownership, unless otherwise instructed, and flag etiquette should be followed.
For inland waterways you will need to get a license from the navigation authority that manages the waterways you intend to navigate (see 7. Boat Licence for further info).
7. Boat Licence (required for inland waterways only)
Whilst you can buy a boat without a licence, you will need one to use it on inland waterways (unless only visiting for a very short period).
The type of licence you need, the cost, and the authority you purchase your licence from depends on where you plan to go boating, and for how long. Two of the largest authorities are the Canal & River Trust who look after 2000 miles of canals and rivers in England and Wales, and the Broads Authority who look after the Norfolk Broads. It is important to do your research before making the purchase, and make sure that you buy the correct licence to avoid future fines.
Please note: to get a licence, you will also need appropriate insurance, and a current Boat Safety Scheme certificate.
8. Appropriate boat insurance.
While marine insurance is not legally required in the UK, it is highly recommended and is mandatory in several ports, marinas, waterways, and when visiting other countries. It is also a requirement of your marine mortgage if you are financing your boat.
When buying a new or used boat, you should think of it as an investment and the right insurance will help protect this, as well as provide vital cover for yourself and crew.
At Promarine Finance, we always recommend contacting a specialist before choosing your insurance to make sure the policy you purchase suits your needs.
9. VAT documentation
All leisure boats sold in the UK or EU on or after 1st January 1985 are required to have had VAT paid on their purchase price, by the first private owner. Evidence of this having been paid, or from an official body stating it is deemed to have been paid proving VAT status can be important. Unfortunately, many older boats will not have this evidence available, and if that is the case, you will need to make your own enquiries as to whether this may cause you problems in the future.
The location of the boat you are buying, and your intended usage such as cruising ground and duration of visits to EU waters will be important when assessing your risk. If you are looking to buy a boat located outside of the UK and return to UK waters VAT is likely to be due upon arrival.
Detailed advice on VAT and cruising the EU post BREXIT is available online, and further support is available from the RYA and Cruising Association to their members.
10. Maintenance history and manuals
When you purchase a second-hand boat, you should ask to see maintenance records whenever possible to better understand the condition and likely future costs of ownership.
This will give a timestamp of what maintenance tasks have been performed, when they were performed, and who by. It can be particularly important for things like the engine/s and propulsion systems, gas system, and standing rigging on a sailing yacht as there may be requirements detailed in your insurance for scheduled maintenance.
Your survey will give you a working list for future works, and once you become the new owner, you can keep a logbook detailing any maintenance works the boat undergoes, including checks or inspections you carry out yourself. When the time comes to sell, you’ll be able to pass on this logbook to the next owner, increasing buyer confidence and helping you get the best price.
Whilst not compulsory, having a folder full of manuals can be very helpful, as it will help you understand the equipment on board, and identify issues if something isn’t working. More modern boats are likely to come with an owner’s manual from the manufacturer which often details plumbing and electrical systems too. Keeping a file of upgraded items and manuals will also be useful when you come to sell as it further reinforces that the boat has been well maintained
