SHIP SALES AND DISPUTES
Ships sales
Ship sales, new ships: Legal title in a newly-built ship is usually transferred from the shipbuilder to the first owner by a document termed a “builder’s certificate”. The document may also be termed a “bill of sale”. The builder’s certificate is as it says, a certificate; it is not a deed. The formalities required when executing a builder’s certificate will depend on the requirements of the flag state where the buyer wishes to register the ship and sometimes on the financing bank.
Typically, an English notary will be attesting the due execution of the builder’s certificate by an English shipyard.
A notary will likely need to see the following to be able to prepare a notarial certificate confirming due execution of a builder’s certificate: a copy of the shipbuilding contract and all addenda, novations and assignments to establish a) that the company defined as the seller in the contract is the same company that is executing the builder’s certificate and b) the buyer to whom the builder’s certificate is addressed is the party named in the contract (as novated or assigned).
Ship sales, second-hand ships: Under English law, the ownership of a ship is divided into 64 shares. It is not uncommon for a ship to have a number of owners. On the sale of such shares, each of the share owners will need to execute a “bill of sale” for the sale for the shares it is selling. Legal title to a second-hand ship passes by way of a bill of sale executed by the seller(s).
Unlike a builder’s certificate, the bill of sale is traditionally in the form of a deed. The MCA form (used when the ship is to remain or become registered on the UK Registry and which is also accepted by some other overseas registries) is drafted as a deed. However, the form and formalities are usually those required by the flag state where the buyer intends to register the ship on delivery.
You usually need to register or licence your boat if you want to keep or use it on inland waterways. You need to register your boat with the UK Ship Register to use it at sea, however, whether you can use the register depends on your citizenship status.
There are four different parts of the register. Which part you use depends on what you’re using your boat for:
- Part 1 – commercial or pleasure boats.
- Part 2 – fishing boats.
- Part 3 – small boats.
- Part 4 – charter boats.
You must renew each year for the waterway you want to keep or use your boat on, and may be prosecuted and fined or have your boat removed if you do not have an up-to-date licence or registration.
A notary is able to assist to attest to and verify the execution of the bill of sale by or on behalf of the seller. The bill of sale should be dated with the date of execution. Typically, this will be in advance of delivery as the notarised document will probably need to be legalised and couriered to be available at the buyer’s chosen registry for delivery, which can pose a problem if the buyer requires the bill of sale to state that the ship is free from encumbrances and mortgages and the seller’s mortgage is still to be discharged, and may only be discharged during the completion and delivery process.
Ship mortgages: ship mortgages may require notarial attestation both when executed by the mortgagor and on being transferred or discharged by the mortgagee. UK ship mortgages are on a standard form issued by the MCA and are execute as a deed. However, the precise requirements will depend on the registry in question.
How John can help
If you require assistance with the authentication or verification of shipping matters, our expert Notary Public, John Olatunji can help you.
Your notary appointment can be arranged to be at one of our offices in Surrey, Richmond upon Thames, Kent or Essex. Alternatively, you can use our mobile notary service to arrange an appointment at a suitable time and place, such as your home or office.
Get in touch with John today to discuss your needs and see how he can help you.
Ship protests
The assistance of a notary to prepare a note of a shipping protest may be required to preserve and record evidence of an event or a series of events, such as where the master of a ship may wish to rely to show that some actual or feared loss or damage to his or her ship or cargo has been caused by maritime peril, and not through his or her default.
The purpose of the note of protest is to record precisely the time, the place and the nature of the event which the master knows, or fears, has caused damage to his or her ship or cargo. It will usually be signed by the master. If the master is not available, then it could be signed by the chief officer or senior officer on board.
A notary will likely need to see the a) relevant pages of the deck and or b) the ship / engine logbooks which will assist in preparing the note of protest.
Where the master has already prepared a draft of the note of protest, the notary is able to add a notarial certificate recording the facts of the signing by the master.
How John can help
If you require assistance with the authentication or verification of shipping matters, our expert Notary Public, John Olatunji can help you.
Your notary appointment can be arranged to be at one of our offices in Surrey, Richmond upon Thames, Kent or Essex. Alternatively, you can use our mobile notary service to arrange an appointment at a suitable time and place, such as your home or office.
Get in touch with John today to discuss your needs and see how he can help you.