Buying a Used Boat

[auguste]

I assume that therre are differences in the laws between states, and I know that they will be different between Canada and the USA

I am talking about New Jersey, Virginia and Maine

Next week I am looking at 4 boats, all of them in these states (Henriques and Bertrams . . . I know someone is going to ask )

Two are being sold by brokers and two are private sales

How do you know that a boat is free and clear of any loans and liens?

[CJS]

I'd ask first. If they say it's clear, ask to see the title.

I believe that liens needs to be filed within the county

where the owner resides.

Can you do a title search on a boat like you do when

purchasing a home??? I'd call a local Title Search Company

to find out.

[Mr. Paul]

two ways to know if it is free and clear. 1st depending on the state the title will have a lien release stamped on the title by a lending institution with a "release" date. This should be on the front of the title. The 2nd way is to have a lien release attached to the title. This will be on a bank letterhead and stating the lien is satisfied. I would add a third but this varies huge from state to state. Go to the license office with the hull id and have them run it and see if there are any outstanding liens on the vessel. All liens must be registered to the state. If you follow these procedure no mater what you will own the vessel.

[phoenix 34]

I would have the boat documented with the coast guard included in the document search is a complete lean check on the vessel it costs a few bucks but it is worth it

two ways to know if it is free and clear. 1st depending on the state the title will have a lien release stamped on the title by a lending institution with a "release" date. This should be on the front of the title. The 2nd way is to have a lien release attached to the title. This will be on a bank letterhead and stating the lien is satisfied. I would add a third but this varies huge from state to state. Go to the license office with the hull id and have them run it and see if there are any outstanding liens on the vessel. All liens must be registered to the state. If you follow these procedure no mater what you will own the vessel.
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[cataholic]

Many (but not all) states requre a certificate of title for a boat just like an automobile. Those states also usually require that a lien must be shown on the title certificate itself to be "perfected" (ie, good against a bona fide purchaser -- you).

If there is a lien, that is not necessarily a problem. Just make sure you get a payoff in writing from the lienholder, and make sure they are paid at closing and the lien released. Just like a real estate closing.

In states that do not have a title law for boats (eg, Tn) it will require a UCC check, which will be done either centrally through the Secretary of State (usually can be done online) or locally, depending on the state.

Good Luck!

[auguste]

Thanks for the help guys

[Erie Skipper]

Brokers are governed by laws to provide you with free and clear titles; but make sure they escrow the dollars pending producing said clear title--or better yet maybe you should escrow the dollars at a bank of the sellers choice; might work with a private sale as well. Arrange so the dollars are only released once a clear title has been provided and signed off lien free.