Boat purchase agreements

Why do you need a boat purchase agreement?

Buying a boat often involves a significant investment, technical equipment, and information that may be difficult to verify later. A written agreement records what the buyer and seller have agreed and can also serve as evidence of the transfer of ownership.

The agreement should describe the boat, the purchase price, payment, delivery, and the condition accepted by the buyer. It should also identify the equipment included in the sale and disclose any known defects or damage.

Oral agreements may be binding, but their terms are usually harder to prove. A written agreement gives both parties a clearer basis if questions or disputes arise after the purchase.

What should a boat purchase agreement include?

The agreement should be tailored to the boat and the way the transaction will be completed. It should normally include:

• the buyer’s and seller’s names and contact information
• the boat’s make, model, model year, and identification number
• information about the engine, engine number, and operating hours when relevant
• the purchase price, payment terms, and any deposit
• the date and place of delivery
• the boat’s condition and any known defects, damage, or repairs
• a list of the equipment and accessories included
• information about registration, insurance, and available documents
• any warranties or other special terms
• the parties’ signatures and the date of signing.

The information in the agreement should match the parties’ actual understanding. Appendices, photographs, and equipment lists can provide a more detailed record of the boat and its condition.

Checks to complete before buying a boat

The buyer should inspect both the boat and its documentation before completing the purchase. For a boat that is not listed in a public ownership register, previous purchase documents and receipts may be important when verifying the seller’s ownership.

Before signing, the buyer should:

• verify the boat’s and engine’s identification details
• request previous purchase documents and relevant receipts
• review the service history, repairs, and known damage
• confirm that the required CE marking documents are available
• investigate whether the boat is subject to financing, a retention of title clause, or other claims
• arrange a professional survey when justified by the boat’s value or condition
• document the condition of the boat and its equipment before delivery.

The purchase agreement does not replace a technical survey. Instead, it should record the results of the checks and state how any identified issues will be handled.

Buying from a private seller or a boat dealer

The applicable rules depend on who is selling the boat. A transaction between private individuals is primarily governed by the agreement and the Swedish Sale of Goods Act. Many provisions of that Act can be changed by agreement, making clear contractual terms especially valuable.

When an individual buys a boat from a business, the Swedish Consumer Sales Act applies. It gives the buyer mandatory consumer protections that the seller cannot restrict through less favorable contract terms.

The agreement should clearly state whether the seller is acting as a private individual or as part of a business.

The boat’s condition and liability for defects

The agreement should describe the boat’s condition as precisely as possible. A provision stating that the boat is sold “as is” does not automatically release the seller from all liability.

The boat may still be considered defective if it does not match the seller’s statements, the seller withheld material information, or the boat is in substantially worse condition than the buyer could reasonably expect under the circumstances.

Known defects should therefore be expressly listed in the agreement. The parties should also state whether the seller must complete any repairs before delivery and what will happen if a defect is discovered after the purchase.

CE marking and registration

Recreational boats manufactured in or imported into the European Economic Area after 1998 generally need to carry CE marking. Buyers should check the builder’s plate, watercraft identification number, declaration of conformity, and owner’s manual.

Some recreational boats must be registered in the Swedish Register of Shipping. The acquisition of a boat that is subject to registration must be reported to the Swedish Transport Agency within the prescribed period. Other recreational boats may qualify for voluntary registration.

If the boat is registered, the agreement should contain the information needed to record the change of ownership.

Payment and delivery

The agreement should state when and how payment will be made and whether the buyer must pay a deposit. It should also specify when the boat will be delivered and when responsibility for the boat passes to the buyer.

Any condition relating to a survey, sea trial, financing, or required repairs should be written into the agreement. The buyer should also make sure that insurance coverage begins no later than the date on which responsibility for the boat transfers.