Bill of Sale or Simple Sale Declaration

When selling a used boat, there are several types of sales contracts to choose from: a formal Bill of Sale, a bilateral or unilateral deed of sale, or a simple sale declaration. These documents differ in complexity and formality. On this page, we examine the differences between the various options and guide you in choosing the solution that best suits your selling needs.

A Bill of Sale is an official document that acts as a detailed receipt of the sale and transfer of ownership of the boat. It is the preferred method in many transactions, especially when financial institutions or international maritime registries are involved, due to its ability to provide a clear and legally recognised account of the sale. The main features of the Bill of Sale include:

• Specific Details: Includes complete details about both parties, the boat, and the terms of the sale.
• Legal Requirements: Often required for boat registration and tax matters.
• International Recognition: Generally recognised and accepted internationally.

The deed of sale is also an official document that demonstrates the sale and transfer of ownership of the boat. This deed can be unilateral, signed only by the seller, or bilateral, signed by both the seller and the buyer. For the deed of sale to be valid, the signature must be authenticated and the deed must be registered with the relevant registry. The main features of the deed of sale include:

• Completeness: Like the Bill of Sale, it contains all the necessary information about the seller, buyer, and vessel involved in the transaction.
• Acceptance: It is the most commonly used document, for example, to register the boat in Italy or to effect a change of ownership on an Italian licence.
• International Validity: Not all foreign maritime registries accept a deed of sale, but those that do always require a bilingual and bilateral version.

A simple sale declaration may be suitable for less formal transactions, particularly when the sale occurs between private individuals and no modifications or registrations with the maritime registry are necessary, as is the case with pleasure craft in Italy. Elements of a simple sale declaration include:

• Simplicity and Convenience: Less formal than a Bill of Sale, often quicker to complete and does not require notarisation.
• Essential Information: Must include vital information identifying the parties involved, the details of the boat, and the sale price.
• Legal Validity: While it is legally valid, it may not be accepted by all financial institutions or authorities.

The choice depends on various factors:

• Complexity of the Transaction: More complex transactions, especially international ones, may require a Bill of Sale.
• Maritime Registry Requirements: Check if the maritime registry specifically requires a Bill of Sale or an authenticated deed of sale for the transfer of ownership.
• Buyer or Seller Preferences: Some may prefer or require one form or the other for personal or legal reasons.