If you are just starting out in your journey of being a boat owner, then it might be fair to assume that you are not yet versed in all of the different rules, regulations, and terminology that are used in the world of vessel ownership and boating. Not all of it is necessary to know and you can certainly pick some things up as you go along but some important things you need to be aware of from the beginning. One such term is abstract of title. Naturally, you might ask, ‘What is the abstract of the title’? Here’s what you need to know.
What Is An Abstract Of Title?
Put simply, an Abstract of Title is a summary of the ownership history of a specific boat or watercraft. It includes all the relevant details like the vessel’s registration number, the names and addresses of current and all previous owners, and information on any encumbrances and/or liens that might be attached to the vessel. An Abstract of Title is usually prepared by a dedicated title company or a maritime lawyer, and it is used in order to verify the current ownership of any boat.
Something further that is included in an Abstract of Title is the salvage and accident history of a vessel. This will involve information about any previous accident, damage, or salvage events that the boat in question might have undergone in the past, and it is another important aspect for any potential buyer to be made aware of.
Why Is An Abstract Of Title Important?
For buyers, an Abstract of Title can provide you a great deal of peace of mind in knowing that you are going to purchase a vessel that has a clear and solid history of ownership. It will be able to verify that the boat has been properly maintained and is in the condition that you expect. For sellers, it can be used to prove that you are the rightful and legal owner of the vessel being sold and that there are no outstanding mortgages or liens on it at this current time. It can help to speed a sale up and make the whole process go smoothly.
Making sure that there is a valid and up-to-date Abstract of Title attached to the vessel that you are planning to buy is essential, as having the knowledge that the boat has a clean title will help you to avoid any potential unexpected financial or legal issues later down the line when the transaction has been finalized.
Now that you have a thorough answer to the question of what is abstract of title, a good point of help and information for you may just well be the US Vessel Registrar website. Visit the site and you will discover all of the fact-checking and processing help that you can receive when submitting your various documentation through our process. Our aim is to make the submission of applications and essential documents as simple and stress-free as possible.