If you are in the process of purchasing a boat, you might want to find out what an Abstract of Title is. What details can you find in this document? The pieces of information in this document are vital for your lender if you need one. Your loan may only be approved until the lender has reviewed it.
What is an Abstract of Title Exactly?
This is a type of document that contains a record of all the documents submitted to the USCG for a certain boat. The Coast Guard will accept it for recording. This is available for every Coast Guard-documented boat. Even though many people think of it as a vessel title history, it is not exactly correct. First, this document only includes details that the Coast Guard recorded while the boat was documented with the USCG. In that case, there can be periods that the boat was not documented. Thus, these details are missing from the Abstract.
Overview of AOT
It is a comprehensive document associated with any transaction related to the boat. Its goal is to provide a condensed history of the boat’s ownership. It highlights legal events, transactions, and encumbrances that may affect its title. Typically, it is a valuable resource for potential buyers, lenders, and legal professionals involved in the transactions.
What are Its Components?
Chain of Title
It outlines the chronological sequence of ownership transfers. This section also details every transaction. It also ensures that the current owner has a legitimate claim to the boat.
Liens and Encumbrances
An AOT includes information about outstanding liens, mortgages, and legal encumbrances that may affect the boat. This can assist both buyers and lenders in assessing potential risks associated with the purchase.
Accurate legal descriptions of the property, including boundaries and relevant easements, are vital components of the AOT. It ensures clarity about the exact location and dimensions of the boat.
Any legal actions involving the property, such as disputes or judgments, are documented in the AOT. It is vital for assessing the boat’s legal standing.
A Distinct Perspective
In a way, AOT does not provide a comprehensive vessel title history. However, it does include records of its ownership, transactions, and recording incidents throughout its existence. Even though it is similar in concept, the vessel title history focuses exclusively on the history of a boat, ship, or watercraft.
What Details are Included?
A vessel title history details the succession of ownership for a watercraft. It includes information about previous owners, dates of transfer, and relevant documentation.
Liens and Mortgages
Outstanding liens, mortgages, or other encumbrances on the vessel are essential components of its title history. These details provide insights into any financial obligations associated with the watercraft.
Accidents and Incidents
Records of accidents, damages, or any incidents involving the vessel are crucial in its title history. This information may influence a buyer’s decision and impact the vessel’s insurability.
In other words, they are nearly the same. But they are distinct documents with some differences. If you need to request an Abstract of Title for your boat, please check out the form on the left side of this page. Or call us if you need further assistance.