Private Party Yacht Sales – How to Do Them Safely (and Save Thousands)

Buying or selling a yacht privately — without a broker — seems simple. No commission, no middleman. Just a handshake and a bill of sale.

But here’s the catch: yachts carry more than memories. They can carry liens, mortgages, tax obligations, and title defects that travel with the boat. If you don’t clear these at closing, they become your problem.

The Risks of Going It Alone

• Maritime Liens: Crew wages, marina fees, repair bills, and mechanic’s liens can attach to the vessel itself. They don’t disappear when ownership changes — they follow the yacht.
• Mortgages: Many yachts are financed with a Preferred Ship Mortgage recorded at the U.S. Coast Guard. If not properly released, it clouds title and could allow a lender to arrest the boat later.
• Paperwork Mistakes: A sloppy bill of sale or misfiled CG-1258 application can invalidate the transfer or delay Coast Guard documentation.
• Tax Liability: In California, CDTFA requires buyers in private transactions to self-report use tax. Other states (like Ohio or Florida) have their own rules. Miss a filing, and you risk penalties or audits.
• Entity/Trust Transfers: If the yacht is in an LLC or trust, the buyer may inherit hidden obligations unless the documents are reviewed and drafted correctly.

How an Attorney Makes a Private Sale Safe

As both a licensed yacht broker and an attorney, I handle private transactions differently:

• Title Clearance: Verify, enforce, and clear liens and mortgages before closing.
• Correct Paperwork: Prepare the CG-1340 Bill of Sale, CG-1258 Application, lien releases, and entity/trust documents.
• Tax Compliance: Advise on CDTFA reporting and exemptions so the deal is audit-proof.
• Custom Agreements: Draft purchase agreements that protect both buyer and seller.
• Cost Savings: Deliver the same protections you’d expect in a brokered sale — at about half the cost of a traditional broker commission.

Final Word

Private yacht sales don’t have to be risky — or expensive. With the right legal guidance, you can transfer ownership safely, clear title properly, and save thousands compared to a traditional broker fee.

If you’re considering buying or selling a yacht privately, let me show you how to do it the right way and for less.

Contact

Christopher M. Brainard, Esq.
Attorney & Licensed Yacht Broker
651 N. Sepulveda Blvd., #2010, Bel Air, CA 90049
Tel: (310) 266-4115
Email: christopherbrainard@gmail.com
🌐 www.LawBrainard.com

Consultations are available by appointment.

Disclaimer

This article/blog is provided for informational and educational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship between you and Christopher Brainard, Esq. An attorney-client relationship can only be formed through a written and signed agreement with Christopher Brainard. If you need legal advice about your specific situation contact us for a consultation.