A Canadian Jet Ski Bill of Sale (also known as a Personal Watercraft Bill of Sale) is a legal document that records the transfer of ownership of a personal watercraft from a seller to a buyer under Canadian federal maritime law and provincial property law. Personal watercraft, commonly known by the brand names Sea-Doo, WaveRunner, and Jet Ski, are classified as pleasure craft under the Canada Shipping Act, 2001 (S.C. 2001, c. 26) and are subject to the Small Vessel Regulations (SOR/2010-91) administered by Transport Canada.

All personal watercraft powered by an engine of 10 horsepower (7.5 kW) or more must hold a Pleasure Craft Licence (PCL) issued by Transport Canada. Since virtually all personal watercraft exceed this power threshold, a PCL is required for every jet ski operated on Canadian waters. The bill of sale is the foundational document needed to transfer the existing PCL to the new owner or to apply for a new licence. Transport Canada requires proof of ownership to process licence transfers.

Every personal watercraft manufactured after 1981 must bear a Hull Identification Number (HIN), a 12-character alphanumeric code permanently affixed to the starboard side of the transom or near the engine compartment. The HIN functions as the watercraft’s unique serial number for identification, theft recovery, insurance claims, and manufacturer recall purposes. The bill of sale documents the HIN alongside other specifications including the make, model, year of manufacture, engine type and horsepower, engine serial number, current engine hours, hull colour, and overall condition.

The purchase price in Canadian dollars, the payment method, and whether a trailer is included in the sale must be clearly documented. Personal watercraft are often sold with trailers, and since the trailer has its own separate Vehicle Identification Number (VIN), it must be separately identified in the bill of sale. Provincial sales taxes (PST, HST, or RST) may apply to the transaction depending on the province, and the bill of sale establishes the declared value for tax assessment purposes.

The bill of sale provides both parties with legal protection by documenting the essential terms of the sale, including warranty status, lien declarations, and the transfer date when risk of loss passes from the seller to the buyer.

A Canadian Jet Ski Bill of Sale is needed whenever a personal watercraft changes hands through a private sale in Canada. Transport Canada requires the bill of sale to process the transfer of the Pleasure Craft Licence (PCL) to the new owner, and without it, the buyer cannot obtain a PCL number for the watercraft. Marina slip agreements, storage facility contracts, and watercraft insurance policies all require proof of ownership that only a bill of sale or PCL can provide.

This document is essential when purchasing a personal watercraft with a trailer, as the watercraft and trailer are separate assets with distinct identification numbers. The watercraft has a HIN while the trailer has a VIN, and each requires its own documentation in the bill of sale. Failing to document the trailer separately can create ownership disputes and complications with provincial vehicle registration, as trailers used on public roads must be registered with the provincial motor vehicle authority.

Insurance companies offering watercraft coverage, whether as a standalone policy or as an endorsement to a homeowner’s policy, require a bill of sale to verify the insured value, confirm ownership, and process claims. Many insurers will not bind coverage without documented proof of purchase including the purchase price and HIN.

Seasonal boat shows and dealer consignment arrangements also generate bill of sale requirements. When a dealer sells a consigned personal watercraft on behalf of a private owner, the bill of sale documents the final sale to the end buyer and the relationship between the consignor and the dealer.

Estate settlements involving personal watercraft require a bill of sale or transfer document to move ownership from the deceased’s estate to a beneficiary. Divorce proceedings and business partnership dissolutions involving recreational assets also require bills of sale to document transfers and establish fair market values for property division.

Business purchasers who acquire personal watercraft for commercial purposes, such as rental operations, tour companies, or water sports schools, need the bill of sale to establish the cost basis for capital cost allowance (CCA) under the Income Tax Act (R.S.C. 1985, c. 1, 5th Supp.) and to document GST/HST input tax credits.

A legally sound Canadian Jet Ski Bill of Sale must include the full legal names and addresses of both the seller and buyer, including the province of residence. The identities should match government-issued identification to prevent fraud and ensure enforceability.

The watercraft description is the core of the document and should include the manufacturer (make), model, year of manufacture, Hull Identification Number (HIN), overall length, hull colour, engine make and model, engine serial number, horsepower, fuel type, and the current engine hours. Engine hours on a personal watercraft serve the same function as an odometer reading on a motor vehicle, providing a measure of usage and helping to establish value.

The existing Pleasure Craft Licence (PCL) number issued by Transport Canada must be documented. The buyer will need this information, along with the bill of sale, to apply for the transfer of the PCL to their name. Transport Canada processes PCL transfers online through the Vessel Registration Query System.

If a trailer is included in the sale, its make, model, year, VIN, axle configuration, and weight capacity must be separately documented. The trailer is a distinct asset from the watercraft and may need to be separately registered with the provincial motor vehicle authority if it will be towed on public roads.

The purchase price must be stated in Canadian dollars (CAD), and the payment method should be specified. Common payment methods include cash, certified cheque, bank draft, Interac e-Transfer, and wire transfer. The declared purchase price determines the provincial sales tax owing.

A lien declaration is essential. The seller should warrant that the watercraft is free of liens, security interests, and encumbrances registered under the provincial Personal Property Security Act (PPSA), and that no marine mortgage exists under the Canada Shipping Act, 2001. A PPSA search before purchase provides additional assurance.

Safety equipment included in the sale should be listed, as the Small Vessel Regulations require specific safety items on board every personal watercraft, including a personal flotation device for each person, a sound signalling device, a waterproof flashlight, and navigation lights if operated after sunset. The governing law clause should reference the applicable Canadian province, and both parties must sign and date the document.