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Who is responsible for the boat after the sale and sinking?

Who is responsible for the boat after the sale and sinking?

Q: Is a contract of sale enough to transfer ownership of a boat?

Yes, a signed contract of sale typically serves as proof of ownership transfer for a boat. However, for full legal protection, the new owner should also register the boat in their name. Without registration, there may be complications regarding liability and ownership, especially if issues arise after the sale.

Full question:

I sold my boat on 8/20/07 on 8/21/07 the new owners had a exhust hose break and the boat sank. They didn't register or insure the boat. Now they are telling me that because they didn't register it that I still own the boat and that I am responsible for all costs and that they want their money back. I signed over the title and I have a contract of sale. They had a licenced surveyor inspect the boat before they bought it. Can you please tell me who owns this boat?

Category: Civil Actions
Date: 04/07/2025
State: New Jersey

Answer:

Even if you signed over the title and have a contract of sale, the new owners may still hold you liable for costs associated with the boat, as they did not register or insure it. In some cases, the registered operator can be responsible for issues that arise after the sale, even if ownership has transferred. For more information, you can refer to the New Jersey Motor Vehicle Commission's resources on transferring vehicle ownership and boat registration. Users can search for state-specific legal templates at .

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What happens if I sell my boat but the buyer doesn't register it?

If you sell your boat and the buyer fails to register it, ownership typically still transfers to them upon the sale. However, you may still face liability for certain issues, especially if the boat is involved in an incident after the sale. It's important to ensure that the buyer registers the boat to avoid potential complications regarding ownership and responsibility for costs.

Can I be held liable for a boat after selling it?

Yes, even after selling a boat, you might be held liable for certain costs if the new owner does not register or insure it. In some cases, the previous owner can still be responsible for damages or issues that arise, particularly if the boat is not properly documented. Always consult local laws to understand your potential liabilities.

What should I do if the buyer wants their money back after the sale?

If the buyer requests a refund after the sale, you should refer to the terms of your sales contract. If you have fulfilled your obligations and the buyer has not registered or insured the boat, you may not be legally required to refund their money. However, it may be beneficial to seek legal advice to navigate the situation effectively.