Information on How to Purchase a Vessel with an Abstract of Title

If you are in the market for a new vessel, you must do your homework and become knowledgeable about all available possibilities for making a purchase. Buying a vessel that already has an abstract of title attached to it is a possibility that you have at your disposal. This article will give information on what an abstract of title is and how to acquire a vessel with one. Additionally, we will discuss the steps involved in the process. Before you go ahead and buy a vessel that has an abstract of ownership, there are a few things you need to be aware of first. The following are some helpful hints for you to consider:

Make Sure the Vessel Is Titled And Registered In Your State Or Country Of Residence

Get the title or registration, or nothing at all! Make sure the boat you want to purchase is properly titled and registered in your nation or state. Before purchasing any boat, you must ensure that you have a clear title in your name. Without one, the authorities might confiscate the boat as abandoned property. To legally own a boat, you must first purchase the title. If you don’t want to end up in the water because your boat wasn’t correctly titled, you should check to ensure it is. Consider the boat’s intended use in addition to your budget. 

The boating world is teeming with options, from inexpensive inflatables to extravagant yachts. Getting license plates for a newly purchased boat requires one crucial step: ensuring the buyer’s home state or nation is included in the abstract of title. For instance, you should inquire about the vessel’s title history before making a purchase if you’re in the market for a car. For insurance purposes, it’s important to ensure that the car is in excellent operational condition.

Check for Liens against The Boat

You’re getting more than simply a boat when you buy a yacht. You are investing in a whole set of potential outcomes, with all their upsides and downsides, peculiarities, and unforeseen expenses. Do your homework on the options before making a purchase. There may be liens against a vessel that you discover throughout your search. This indicates that the vendor of the vessel has not completed all the formalities with the relevant authorities. The Department of Transportation may not let your yacht out of port; if they do, they may penalize you up to $1,000. 

This might be a major issue if you decide to go through with the purchase. Make sure it’s a good investment. A lien created by a previous owner to guarantee payment of a car after it was transferred rather frequently. Fill out the necessary paperwork, have the prior owner sign it, and then pay the boat’s taxes, and the problem is solved. If you do so, you will be free to go. A well-known local elder recently remarked, “You can’t take a boat home until you get it condemned.”

Get a Copy of The Abstract of the Title From The Seller To Review

An abstract of the title is useful to have before closing the sale of a vessel, although it is not needed. Do not be alarmed if you have never seen this form before; you will find that it is rather simple to comprehend. An abstract of title is a simple listing of all the registered ship’s owners and lien holders. Liens, obligations owed by the owner to another party other than taxes, may also be included in this documentation. If there has been no change in ownership or lien holder since the vessel was first registered with the state, then the title does not need to be renewed or amended. 

This implies that the registration of a vessel in your name is permanent until you remove it or renegotiate the loan terms before selling or refinancing the vessel. Having your copy of the paperwork to study before making such a significant purchase is useful since this isn’t something most of us think about when we shop. Negotiating a shortened title with a dealer throughout the purchase procedure is possible.

Abstract of Title

Make Sure There Are No Outstanding Mortgages or Loans on The Vessel

If there is still debt on the vessel, the outstanding sum will need to be paid off before you can take control of it. There is a good chance that the lender will want a lien release that the seller must sign. It certainly won’t hurt to have the owner’s signature up there. If more than one lender has a lien on the boat, you may be required to negotiate with each of them separately to acquire their consent before you can take ownership of the vessel. 

Request receipts for any recent boat maintenance, including oil changes and paint jobs, that have been performed on the vessel. Stickers with information on when necessary maintenance should be performed are often attached to new boats. These receipts may also be useful for determining how long the boat has been in use by providing evidence of when it was first purchased.

The Maritime Documentation Center is an organization that provides those services and more. We’ll help you find the boat of your dreams and make sure that it’s free and clear so that you don’t have to worry about hidden costs or surprise expenses down the road. Call us today at 800-535-8570 to learn more about their services.