Ship Sale & Purchase Documents

When the time comes for delivery of the ship, this is carried out by the execution and delivery of a Bill of Sale, which (under English Law) must be executed under seal. The Bill of Sale is handed over against a letter releasing the deposit and a Banker’s Draft for the balance of the price. If extra payment for bunkers and stores is provided for, this is dealt with at the same time. As insurance runs from noon to noon this is usually the time selected for delivery. The shipbroker should make sure that the new owner has attached insurance and also ascertain whether the following documents are being handed over either on board or on shore: –

  • Certificate of Registry
  • Load Line Certificate
  • Deratization Certificate
  • Safety Construction Certificate
  • Safety Radio Certificate
  • Safety Equipment Certificate
  • Classification Certificates
  • Plans

Occasionally shipbrokers is asked to register the vessel in the new owner’s name, in which case he has to go to the Registrar with the following documents:

  • Bill of Sale
  • Declaration of Ownership
  • Appointment of Managing Owner or Ship’s Husband

and in addition if the Buyer has not previously owned a ship:

  • Articles of Association
  • Certificates of Incorporation
  • Appointment of Public Officer

In many instances, the Bill of Sale must be signed before a Notary Public and bear the visa of the Buyer’s Consul. Sales for demolition are, of course, much simpler with no problems about dry-docking registration or classification, but may require the arrangement of towage contracts or cargo voyages to the ultimate port of destination.