BOAT SALES - Liens against Vessels

Questions and Answers

• How can we check there are no outstanding finance on Boats?
  • If the boat is Part 1 registered you can check the transcript of registry. 
  • https://www.gov.uk/register-a-boat/the-uk-ship-register
  • If not then local due diligence of checking with the marinas/ boatyard and relying on the owner to be honest.
• Is there anything the purchaser can do if they buy a boat with a debt?
  
  • The Boatshed standard Sale and Purchase Agreement contains a warranty given by the seller to the buyer that the vessel is sold unencumbered (i.e. free of charges or liens) unless notified.
    If that turns out not to be the case and the vessel is in fact encumbered in some way to the detriment of the buyer, that is a breach of contract by the seller. Usually that breach is compensated in damages; i.e. the buyer has a claim against the seller for the amount that is required to discharge the lien or charge.
    That claim would have to be pursued as any claim for breach of contract is pursued.