A. On voluntary transfer of an ownership interest in a watercraft covered by a certificate of title, the following rules apply:
1. If the certificate is a written certificate of title and the transferor’s interest is noted on the certificate, the transferor promptly shall sign the certificate and deliver it to the transferee. If the transferor does not have possession of the certificate, the person in possession of the certificate has a duty to facilitate the transferor’s compliance with this subdivision. A secured party does not have a duty to facilitate the transferor’s compliance with this subdivision if the proposed transfer is prohibited by the security agreement.
2. If the certificate of title is an electronic certificate of title, the transferor promptly shall sign and deliver to the transferee a record evidencing the transfer of ownership to the transferee.
3. The transferee has a right enforceable by specific performance to require the transferor comply with subdivision 1 or 2.
B. The creation of a certificate of title identifying the transferee as owner of record satisfies subsection A.
C. A failure to comply with subsection A or to apply for a new certificate of title does not render a transfer of ownership of a watercraft ineffective between the parties. Except as otherwise provided in § 29.1-733.18, 29.1-733.19, 29.1-733.23, or 29.1-733.24, a transfer of ownership without compliance with subsection A is not effective against another person claiming an interest in the watercraft.
D. A transferor that complies with subsection A is not liable as owner of the watercraft for an event occurring after the transfer, regardless of whether the transferee applies for a new certificate of title.