Ask a Maritime Attorney: Do You Need to Disclose Collisions and Repairs When Selling a Boat?

Question: Last year I completed a major structural repair to my boat after we ran into a breakwater in thick fog. I am now preparing to sell the boat and I am wondering whether I need to disclose the collision and the repairs to the person who buys the boat. I am familiar with the Transfer Disclosure Statement required in a real estate transaction, but does the seller of a boat have a similar obligation? Answer: The purchase or sale of a yacht is frequently compared to a real estate transaction. It’s a tempting comparison, since the owner may live aboard a yacht, the purchase price may approach (or exceed) the value of a home, and the terms of transaction are typically set out in a complicated contract. The similarities stop, however, when we look at disclosure requirements. California Civil Code section 1102 requires the seller of a home to disclose a wide assortment of features and equipment, and to disclose significant defects or malfunctions, hazards, easements, damage, and a long list of other issues that may affect the value of the home or the decision of the buyer to go forward with the purchase. Civil Code section 1102 does not apply to a...