This is for Canadian's and therefore applies to the law in Canada but, who knows, our American C-Brats may have some issues here too.
I will quote from the "Western Mariner"(WM) the magazine of Canada's west coast marine industry which is mainly interested in commercial vessels.
So what is a Zombie vessel? It is a term WM used for a vessel (boat) whose ownership has been terminated (sold) but continues to be active without the control of the apparent (registered or licenced) owner. In other words, Zombie ships or boats (both pleasure and commercial) are bought by the new owner but because they have not registered the Bill of Sale with "Transport Canada, Vessel Registration, in Ottawa, Ontario, the vessel remains in the name of the previous owner! The new buyer may feel that by not registering this Bill of Sale they have got free of the tax owing through this sale. However, the boat now is in a Zombie state, and may have in turn been sold again, and at some point if this boat is in an accident, oil spill, fisheries infraction etc. this will come back to the Registered Owner, maybe years later. Therefore if your selling your boat print off a Transport Canada "Bill of Sale". Get the buyer to sign it along with yourself, just like you would if you were selling a car. Then after keeping a copy, send this off to Small Vessels Registry in Ottawa. Then if the buyer doesn't follow through and submit their copy to Ottawa at some point - at least you "should be cleared from liability" with you paper trail of record.
Now let me say I think I was close to buying a Zombie 19' C-Dory on Vancouver Island. As you know they are hard to find over here and I really wanted it. I asked for the record of ownership and he said "I will give you the bill of sale and the registration papers for transferring the trailer into your name --"O-K"? I was a little concerned and phoned Ottawa's Vessel Registration Office and gave them the vessel registration number and said the owner-- or purported owner, wishes to sell this boat to me - is it registered in his name? I was dumb struck with their answer. They said: "Under the Freedom of Information and Privacy Act we can't give you that information sir". Needless to say as the person selling this Dory could not give me a copy of his registration papers in his name I did not buy it. But I know somebody did and these Zombies move amongst us .
I will quote from the "Western Mariner"(WM) the magazine of Canada's west coast marine industry which is mainly interested in commercial vessels.
So what is a Zombie vessel? It is a term WM used for a vessel (boat) whose ownership has been terminated (sold) but continues to be active without the control of the apparent (registered or licenced) owner. In other words, Zombie ships or boats (both pleasure and commercial) are bought by the new owner but because they have not registered the Bill of Sale with "Transport Canada, Vessel Registration, in Ottawa, Ontario, the vessel remains in the name of the previous owner! The new buyer may feel that by not registering this Bill of Sale they have got free of the tax owing through this sale. However, the boat now is in a Zombie state, and may have in turn been sold again, and at some point if this boat is in an accident, oil spill, fisheries infraction etc. this will come back to the Registered Owner, maybe years later. Therefore if your selling your boat print off a Transport Canada "Bill of Sale". Get the buyer to sign it along with yourself, just like you would if you were selling a car. Then after keeping a copy, send this off to Small Vessels Registry in Ottawa. Then if the buyer doesn't follow through and submit their copy to Ottawa at some point - at least you "should be cleared from liability" with you paper trail of record.
Now let me say I think I was close to buying a Zombie 19' C-Dory on Vancouver Island. As you know they are hard to find over here and I really wanted it. I asked for the record of ownership and he said "I will give you the bill of sale and the registration papers for transferring the trailer into your name --"O-K"? I was a little concerned and phoned Ottawa's Vessel Registration Office and gave them the vessel registration number and said the owner-- or purported owner, wishes to sell this boat to me - is it registered in his name? I was dumb struck with their answer. They said: "Under the Freedom of Information and Privacy Act we can't give you that information sir". Needless to say as the person selling this Dory could not give me a copy of his registration papers in his name I did not buy it. But I know somebody did and these Zombies move amongst us .