Who needs a CG-1340 form?
The CG-340 form, the Bill of Sale, is used when you buy or sell a vessel. This form legalizes the transaction.
What is the purpose of the Bill of sale?
This document certifies the purchase of the vessel and the transfer of interests to the Buyer. The information in the form is important in case any disputes arise. Moreover, the Buyer and the Seller may need to include the figures from the Bill of sale in the tax return forms. The U.S. Coast Guard will use the information in the form to make changes in the vessel’s ownership documentation.
What documents must accompany the Bill of sale?
The Seller may be asked to provide the vessel’s documentation or identification number.
How long does it take to fill the Bill with sale out?
The estimated time for completing the form is 20 minutes. The CG-1340 form is filled out when the vessel’s sale contract is signed by the parties. The expiration date of this form is 06/30/2016.
What information should be provided in the CG-1340 form?
The Seller and the Buyer must add the following information:
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Vessel’s name
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Official number or ID number
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Name and address of the Seller and the Buyer
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Total interest sold
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Total interest transferred
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Manner of ownership (Joint tenancy, tenancy by the entire ties, community property)
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Consideration received
The Bill of sale must be signed by the Seller and the Buyer as well.
It should also be certified and dated by the notary public or other authorized official.
The second page is the Vessel’s data, and it should be completed only if the hull has never been documented and doesn’t have identification number. This part needs the name of the builder; builder’s hull number; former names; former motorboat number; former alien registrations; dimensions; person from which seller obtained vessel; signature of the seller.
If needed, the section of warranties/exceptions must also be completed.
What do I do with the form after its completion?
The Buyer sends the Bill of sale to the U.S. Coast Guard Office of Documentation. One copy of the CG-1340 must be kept by the Buyer and the Seller for personal records.