Tuesday, July 21, 2015

Buying and selling a used boat in New York State

            This post is in memory of Ms. Julia Blankertz, a wonderful attorney and colleague.

            One of our clients recently approached us and asked us to whether we could assist her with the purchase of a used boat.  Although this wasn't a standard transaction for us, Julia leapt at the opportunity to handle this nautical related transaction.  Unfortunately, Julia never had the opportunity to write a blog post about the transaction.  So, here is a post in her memory.

            As a boat is a vehicle with registration and title paperwork, we started by examining New York State's Department of Motor Vehicles' (DMV) website.  That site helped us identify the three documents our client would need for the sale: (1) the boat's New York State Certificate of Title; (2) a bill of sale; and (3) a New York State, Department of Taxation and Finance form DTF-802, Statement of Transaction – Sale or Gift of Motor Vehicle, Trailer, All-Terrain Vehicle (ATV), Vessel (Boat), or Snowmobile. 

           Fortunately, as this sale transaction was a friendly one, there were no issues with obtaining or preparing these documents.

           Here are four key points to remember:

1.             On the Certificate of Title, it is important that both the seller and buyer complete Section 1 on the reverse of the Certificate.

2.            A bill of sale – a blank version of the bill of sale we prepared is available here (I am hosting this document on Mega.co.nz), needs to contain the following information:
- year and make of the vehicle
- hull identification number (HIN)
- date of the sale
- purchase price
- names and signatures of the buyer and the seller

3.             Form DTF-802 needs to be completed accurately, especially sections 5 and 6.  The purpose of this form is to allow the DMV to collect the sales tax on the sale of the boat.

4.             After the sale is completed, the buyer will need to submit to a DMV office: (1) the completed original Certificate of Title, (2) the original of the signed bill of sale, and (3) a completed form DTF-802.  Then the DMV will calculate and collect the sales tax and issue a sales tax receipt.

- Henry Park

updated on 10/17 to identify where draft document is hosted

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