Ownership and transfer of a river boat

At first glance, the purchase or sale of an inland waterway vessel, whether a houseboat, a converted former motor vessel or a goods transport unit, may seem to fall under the classic rules for the sale of movable property. However, the legal reality is more nuanced. Although the Civil Code classifies boats as movable property, those that are registered because of their size benefit from a specific regime, which borrows certain characteristics from that of immovable property. This has important consequences for the way in which ownership is established and passed on.

Forget the adage "in the case of movable property, possession is equivalent to title". In the case of a registered river boat, mere physical possession is not enough to prove that you are the rightful owner. It is the entry in the official registers that takes precedence. Similarly, the transfer of ownership, whether by sale, gift or inheritance, must comply with specific formalities, including a written document and compulsory publicity. To ensure that your purchase is legally secure, it is essential to be familiar with the rules of French river law. Failure to follow these rules can lead to unexpected and costly complications for both buyer and seller. This article explains the rules governing the ownership of registered riverboats and the steps you need to take to secure their transfer.

Registered boats: a piece of furniture like no other

The main specificity of registered boats lies in the inapplicability of the fundamental rule of article 2276 of the Civil Code, according to which "in the case of movable property, possession is equivalent to title". For ordinary tangible movables (a car, a piece of furniture, etc.), the simple fact of possessing the property in good faith creates a strong presumption of ownership. It is very difficult for a former owner to claim the property if it has been voluntarily relinquished and is in the hands of a bona fide possessor.

Why is this rule waived for registered boats (those with a deadweight of 20 tonnes or a displacement of 10 m³ or more)? Because registration, as we saw in our previous article on identification of the inland waterway vesselThis creates a real "civil status" for the boat. Entry in the national register and the issue of a certificate of registration constitute an official title of ownership. As a result, proof of ownership is no longer based on mere physical possession, but on the entries made on this administrative title and in the public registers. A long line of case law had already confirmed this approach for registered boats in the 1930s (T. civ. Angers, 11 Jan. 1933, S. 1933. 2. 161). It is therefore essential to recognise the importance of registering inland waterway vessels in protecting the rights of owners. For a complete overview of legal status of inland waterway vesselsSee our dedicated article. By establishing clear traceability of floating assets, this process helps to reduce ownership disputes. Registering inland waterways vessels also facilitates access to certain insurance and financing arrangements, giving owners greater legal certainty.

This difference is fundamental. It offers greater security to the duly registered owner. Even if they entrust the operation of their boat to a third party, or are dispossessed of it, they will still be able to prove their right of ownership by producing the certificate of registration and extracts from the register. Conversely, if you buy a boat, you can be sure (provided you comply with the publication formalities, see below) that the seller listed in the registers is the rightful owner.

Selling or buying a boat: the rules to follow

The transfer of ownership of a registered boat is governed by strict formalities designed to ensure the legal certainty and transparency of transactions.

The requirement for a written contract

For boats reaching the tonnage or displacement thresholds that make them subject to registration, article L. 4121-1 of the French Transport Code requires any sale to be the subject of a written contract. A simple verbal agreement, even valid for the sale of many other movable goods, is insufficient in this case.

This requirement for a written document is not simply a question of proof. It is the primary condition for being able to carry out the publicity formalities that are essential if the sale is to be effective against third parties. Without a written deed recording the sale, it is impossible to register the change of ownership. This deed may be a private deed (drawn up and signed directly by the parties) or a notarial deed (drawn up by a notary).

Advertising the sale: an essential step

This is undoubtedly the most important point, and one that is sometimes overlooked. Article L. 4121-2 of the French Transport Code states that any deed or judgment transferring, constituting or declaring a right of ownership or other real right (such as usufruct) over a registered vessel must be made public. How is this done? By making a specific entry at the registry of the commercial court within whose jurisdiction the boat is registered. This publication is essential to guarantee the transparency of transactions and protect the rights of owners and creditors. Clarity about the legal status of inland waterway vessels helps to avoid disputes and establish legal certainty in the maritime sector. In addition, this registration requirement also enables potential buyers to check the history and rights associated with a boat before making a purchase.

This registration is carried out at the request of the purchaser or the beneficiary of the right (for example, the creditor who obtains a mortgage). The procedure involves filing a request with the registry, accompanied by the deed concerned (the deed of sale, for example) and an extract from the register of registrations or the certificate of registration. The request must specify the essential elements of the deed and the identity of the parties. The registry keeps a special register for these registrations relating to rights in rem in respect of boats.

The main consequence of this rule is clearly set out in the same article L. 4121-2: the deed in question "has no effect vis-à-vis third parties until it is registered". In other words, as long as the sale has not been published at the commercial court registry, it cannot be enforced against third parties. The purchaser is indeed the owner between the parties as soon as the deed is signed, but vis-à-vis the rest of the world, it is as if the sale had not taken place.

Which acts are covered by advertising?

The obligation to advertise is not limited to sales. It applies to "any deed or judgment transferring, constituting or declaring ownership or rights in rem". This therefore includes :

• Sales.
• Donations.
• Inheritances (the judgment of delivery or the deed of notoriety must be published).
• The creation of a usufruct on the boat.
• Creation of a river mortgage (which is registered separately but is subject to the same principle of publicity).
• Judgements recognising property rights (for example, following litigation).

Failure to advertise: what are the risks for buyers and sellers?

Failure to register the sale with the commercial court clerk's office, although it does not affect the validity of the sale between the buyer and seller, can have very damaging consequences because the deed cannot be enforced against third parties.

Unenforceability against third parties: what does this mean in practice?

To say that an act cannot be set up against third parties means that third parties (i.e. all persons other than the parties to the act) are entitled to ignore this act, as if it did not exist. They may continue to consider the legal situation as it existed before the unpublished act.

For the buyer of a boat that has not published its title :

• If the (dishonest) seller resells the same boat to another person who publishes his purchase, it is this second buyer who will be considered the rightful owner vis-à-vis third parties. The first buyer risks losing his property.
• The seller's creditors may still consider the boat to be part of their debtor's estate and therefore seize it, even if the sale has taken place. The buyer will not be able to oppose the seizure by invoking his unpublished title of ownership.

For sellers who have sold but whose sale has not been published by the buyer:

• He may continue to be considered the owner in the eyes of third parties. This can have serious consequences. For example, if the boat causes damage (collision, pollution) or is involved in an offence (prolonged illegal parking on public waterways), it is the former registered owner who risks being prosecuted and held liable, even if he or she has not been in control of the boat for a long time.

Who are the "third parties" protected by the failure to advertise?

The concept of "third party" is interpreted very broadly by case law in this context. It does not only refer to persons who have acquired competing rights to the boat (other buyers, mortgagees). Third parties also include

• The seller's unsecured creditors (those who do not have a specific guarantee) who may seize the boat. The Court of Cassation has confirmed that failure to advertise renders the deed unenforceable against all third parties, including these creditors (Civ. 1ère, 14 Oct. 2015, no. 14-19.909).
• Victims of damage caused by the boat. A case in point illustrates this risk: the victims of a collision were able to sue the former owner of the boat at fault, because the sale had not been published at the time of the accident (Bordeaux, 9 Nov. 1971, DMF 1972. 94).
• The administration, in particular Voies Navigables de France (VNF). Several decisions by administrative courts of appeal have confirmed that VNF can claim illegal parking fees from the former registered owner if the sale was not published (CAA Paris, 12 Nov. 1999, Voies navigables de France; CAA Paris, 25 Apr. 1995, Robert). Imagine the headache if you discovered, years after selling your barge, that you owed substantial sums for parking it!

The importance for the purchaser of checking and completing the advertisement

These examples underline the vital importance, for the purchaser, not only of ensuring that the seller is indeed the registered owner, but also and above all of proceeding without delay to publicise his own deed of acquisition at the registry of the relevant commercial court. This is the only way to make your ownership rights fully enforceable against everyone, and to protect yourself against the risks associated with the deeds or debts of the former owner, or against a possible second sale by an unscrupulous seller.

For the seller, it is equally important to ensure that the buyer has carried out this formality, in order to definitively free himself from any future liability relating to the boat. It may be a good idea to include a contractual obligation for the buyer to carry out the advertising within a certain period, and to provide proof of this to the seller.

In short, transferring ownership of a registered river boat is a process that requires rigour and vigilance. Writing and publication are not mere administrative formalities, but essential conditions for the legal certainty of the transaction for all parties involved and for third parties.

The transfer of ownership of a river boat is governed by precise rules to protect all parties. To help you secure your transaction and avoid any unpleasant surprises, whether you are buying or selling, our team is on hand to advise and support you throughout the process. It is essential to check the security interests in river vessels to ensure that the boat is not encumbered by debts or hidden commitments. In addition, a good legal framework can prevent potential disputes between the parties involved in the transaction. By complying with these rules, the transfer of ownership can take place smoothly and securely. For more in-depth assistance with all your management, financing and litigation issues relating to shipping and river transport, please do not hesitate to contact us at our full range of legal services in commercial law.

It is also necessary to take account of river ownership regulations, which may impose further restrictions on the ownership and management of inland vessels. These regulations influence not only the rights of owners, but also the way in which creditors can exercise their rights. For a full understanding of enforcement procedures applicable to inland waterway vessels, such as sequestration and seizure for saleIt's essential to consult the relevant texts to find out more about the company's activities and legal protections.

Sources

• Transport Code (articles L. 4121-1, L. 4121-2)
• Civil Code (articles 531, 2276)
• Case law cited (T. civ. Angers, 11 Jan. 1933; Civ. 1ère, 14 Oct. 2015, no. 14-19.909; Bordeaux, 9 Nov. 1971; CAA Paris, 12 Nov. 1999; CAA Paris, 25 Apr. 1995)