A vessel is a valuable and complicated asset, but above all, a vessel is an asset that can accumulate considerable liabilities. Peculiarly, many of these liabilities can survive a change of ownership and ultimately come to burden the new owner.

Accordingly, the sale or purchase of second-hand tonnage can be a complex undertaking, and it is crucial to understand the individual steps involved in the process of the transfer of title.

From the negotiation of the purchase price (typically the beginning of an S&P transaction) to the registration of the vessel in the name of the new buyer (typically the end of the transaction), careful attention should be paid to each step in between.

Over time, standard form agreements have been developed to ensure that all the important elements of an S&P transaction are addressed and to an extent, standardised. The most widely used agreement today is the 2012 edition of the Norwegian Sale Form (“NSF 2012” or Saleform 2012).

In this Practice Note we will evaluate the crucial steps of an S&P transaction, as well as how to navigate the key clauses of the NSF 2012.