Is a Vessel Abstract of Title the Best Option For You?

If you own a boat in the United States, you have most likely heard of the notion of a vessel abstract of title at some point in your life. However, are you sure that this solution will work in your favor? In this article, we’ll look at what a vessel abstract of title is and how having one as a boat owner may benefit you in the long run. In this section, we will not only go over some of the benefits of utilizing this sort of document, but we will also go over some of the downsides and provide some advice on picking the document best suited for your requirements. Do you believe that you will be able to afford a boat? The number of choices open to you may surprise you. An abstract title for a vessel is one possibility, although a less well-known one. The following are some of the many reasons why you may want to consider selecting this alternative:

You’ll Save Money on Registration and Taxes

Purchasing a boat entails more than simply paying for the vessel; you must also get it titled and registered. To purchase a pre-owned boat in the United States, you must get a vessel abstract of title from the previous owner, even though there are provisions in the law that inexperienced boaters aid. This contract limits your liability to the specific terms set out below. If your boat suddenly went down or disappeared for some other reason, the state would not hold you responsible for any expenses that weren’t included in the abstract. Hence the name “abstract of the title.” Instead of an abstract of the title, you might choose a complete title, increasing your registration and tax costs. If you’re starting or purchasing a used boat from someone with a complete title, it’s usually advisable to get an abstract instead of a full title since they’re cheaper and quicker.

Your Boat Will Be Eligible For Most Maritime Insurance Policies

Having enough boat insurance is a must when you own a boat. The policy’s coverage will be determined by location and the kind of boating you perform. A vessel abstract of title might be helpful if you’re short on time but still, need to get insurance (VAT). This document expands the insurance options available for boats named under it. Many policies require that you put your name on your boat’s title. Therefore, in certain instances, possession of a VAT may serve as proof of ownership. 

While not the same as standard property or vehicle insurance, this coverage may be just as important. Most boat owners have marine insurance, so if you’ve ever had a boat, you probably have it even if you don’t realize it. However, just because marine insurance is widespread does not imply that it is identical across the board.

You’ll have an Easier Time Selling or Transferring Ownership of Your Boat.

Going with the quickest and easiest option while shopping for a boat title or registration is tempting. That’s what your folks have on their yacht, and it seems OK for them. Registering your boat under a distinct vessel abstract of title may seem unnecessary. Still, the advantages become clear once you go into what it means to be a title-holder and what you can do with it. The following is a brief explanation for people unfamiliar with this kind of property ownership: Rather than only monitoring the title and registration procedure, the state where your yacht is registered will also provide it with a virtual address. Thanks to this, your ownership of the boat is protected even if it changes hands. You may sell or transfer ownership with far less hassle than with a standard title since it functions similarly to a corporate name.

Vessel Abstract of Title

Buying a Boat with a Vessel Abstract of Title Can Help Protect You from Fraud or Theft

Having an abstract title in your possession when purchasing a boat might assist in safeguarding you from potential theft or fraud. There is no way to verify the seller’s claims regarding the vessel’s past if you don’t have access to relevant documents. A straightforward technique to verify the seller’s legal authority to sell and transfer boat ownership is to get an abstract of the title. 

A yacht may be advertised as being in excellent condition when, in reality, it requires extensive maintenance that would drive the price much over the seller’s asking price. If the yacht you want to buy has an abstract title, you know that the current owner is legally permitted to sell and transfer ownership to you. Buying a boat with an abstract title from a reliable source can alleviate your concerns about being scammed.

Determining the best legal path for your vessel’s title can be a real challenge. The Maritime Documentation Center provides resources and guidance to make the process easier. We have the latest maritime laws in our library, which we constantly update with new information. Don’t hesitate to contact us today at (800)-535-8570 to learn more.