Buying and selling a boat

Once financing is in place, you can look for the perfect boat for you. In brief, you should do the following before the purchase contract is signed:

• Check ownership details — is the seller the rightful owner? Ask for documentation.
• Check that the boat is in the agreed condition — is it CE-marked?
• Has a lien been registered on the boat? Check the Norwegian Ship Register (NOR) and the Brønnøysund Register Centre.
• Ask for clear documentation of what you have agreed in the purchase contract.
• Ensure that insurance and re-registration are in order upon handover.

You can read more about each point further down the page.

Trust is always important when a transaction must be made, and you will get furthest with honesty. In brief, you should do the following when selling a boat:

• Present documentation on ownership and maintenance carried out.
• Disclose everything that is not in order, or that can be expected to need replacing.
• Check the buyer's financing
• Remember to cancel your own insurance, berth and other arrangements
• Ensure a good boat contract with specific descriptions and terms.

You can read more about the individual points further down the page.

How to assess the condition of the boat

When you need to buy or sell a boat, there is a significant difference between buying privately or through a dealer. If you buy through a dealer, you are protected by the Consumer Purchase Act, with five years' right to complain. If you buy privately, you must carry out your own examinations to avoid buying a pig in a poke.

• You should ask the seller about the following:
• When was the boat manufactured? Type, model and amount.
• Are there any known defects? Check it carefully and ask for a test drive.
• Are there any encumbrances on the boat? Check the Ship Register and the Brønnøysund Register Centre.
• What is the fuel consumption?
• What does it cost to insure?
• Is the boat CE-marked and registered in the small boat register? It is prohibited to buy and use leisure boats that are not CE-marked in Norway.
• Do you need a certificate to operate the boat?

Trust is a major part of buying and selling, and it is important that the information provided is as honest and accurate as possible. If you as a buyer feel that something is unclear, ask, and request that it be included in the contract before signing.

A good boat contract protects both parties

A boat contract is a DNB Legal agreement between buyer and seller. All details about the boat must be described here, in addition to the terms of the purchase. Ensure that all important elements are included, such as when payment must be made, the date of transfer and any warranties. A good boat contract helps to prevent disputes in the future

Which boat insurance do you need?

Boat insurance is an important factor to consider as a boat owner. Boat insurance is not legally required, but if you own a boat you should assess your need for insurance. Should damage occur to the hull, engine, equipment, persons or property, it can become very expensive if you are not insured.

As a seller, it is useful to be aware that you usually have one month's notice on the insurance for the boat you intend to sell. If you are the buyer, you should arrange insurance before taking over the boat so that you are covered if anything should happen.

There are several types of boat insurance to choose from, where the most common are:

• Liability insurance,
• Semi-comprehensive insurance
• Hull insurance.

Choose the right insurance based on the boat's value and how it will be used. Hull insurance at sea may be advisable.

Do you need a boat loan or do you need to pay down after the sale?

Most of us need a loan to buy a boat, and if you are selling, you may have an existing loan on the boat. If you have a loan on the boat, you must ensure that it is paid off or that part of the sale proceeds will go towards repaying the loan.

If you wish to buy a new boat, you can transfer the boat loan or apply for a higher loan. It is important to check with the bank or lender to get an overview of the different options for taking out a new loan, transferring or refinancing the boat loan.

Re-registration of the boat to the correct owner

When you buy or sell a boat, you must not forget to re-register the boat to the correct owner. The new owner must have the boat registered in their name. This includes ensuring that all paperwork is in order, such as the sales contract and receipt for payment. If you do not ensure that the re-registration is done correctly, this could in the worst case lead to problems and unwanted costs in the future. You can re-register or report a change of ownership for the boat with The Small Boat Register.