Sale and Purchase of Ship - Completion

Completion

The final stage of sale and purchase is known as completion stage. It involves pre-delivery matter including inspection of underwater parts by the classification society, delivery of documents and the physical delivery of the ship upon payment of the balance of the contract price.also this under water inspections can be done at the buyers request in which case if it is not required by the Classification Society's surveyor the due charges will be on buyers account.

For the Documents and Physical delivery, it usually occurs at different places which depending on the location of the ship. The final inspection of underwater parts is located in drydock of the port of delivery. To obtain the certificate of class in regards of the safety, a survey of the ship's bottom and underwater part is conducted by the surveyor of the classification society. It may be some recommendations for the repairing of ship which affect the expense of the seller before delivery. Sometime, the buyer may appoint his own surveyor who approved by the classification society to carry out the underwater inspection while the ship is a float.

For the final closing of transaction, the MOA specifies some necessary procedures. Some documents are required which include the closing memo, minutes of meeting of the seller's directors and shareholders, a certificate of good standing, power of attorney, the bill of sale, certificate of class, any consents or licenses required by the government authority, a certificate by the registrar of the ship's registry permitting the sale.

Furthermore, the seller should arrange the deletion of his name from the registry and deletion of the existing flag, if the buyer wants to change the flag. Also, cancellation of the insurance cover, settlement of mortgage and repatriation of crew should also be ready by the seller. When the seller is ready, an advance notice of delivery-Notice of Readiness will be serviced to the buyer and the buyer will arrange the payment of bunkers and stores on board and instruct his bank to make the payment on the actual delivery date.