What is an Abstract of Title, and What Does it Pertain To?

An abstract of title is a legal document that provides a concise account of the succession of owners for a specific parcel of land or property. This document can potentially be of great assistance to owners of vessels since it can offer specific information on any encumbrances (such as liens or mortgages) that may exist on the property in question. In addition to this, an Abstract of the Title may assist in determining whether or not there will be title issues in the foreseeable future. 

You must have a solid understanding of what an Abstract of Title is and how it might influence the ownership status of your boat if you are the owner of a USCG vessel. As the owner of a USCG vessel, you know that keeping track of your title is important. But did you know that an Abstract of a Title can help you in many ways? Here are ways an Abstract of Title can help you keep your boat legal and running smoothly.

An Abstract of Title Proves Ownership of a Vessel and Shows All Liens against It

The ownership history of a ship, together with any encumbrances, may be traced back via an Abstract of Title. A good abstract is an evidence that the bearer is the rightful owner of the property. In certain jurisdictions, it is referred to as a “certificate of title.” A vessel may be any watercraft that floats or travels across water, such as a boat, ship, or barge (though not a submarine). The beneficial owner of a vessel is not the same as the registered owner, who must pay numerous types of taxes and fees to the state government. 

Whoever has owned the boat continuously since it was built may usually be shown with an Abstract of Title. Some states, including New York and Virginia, limit the length of time an Abstract of Title may go back to when state records were created. An Abstract of Title in states like Florida and Texas may go back farther than only the time when records were first kept.

An Abstract of Title Lists Any Mortgages or Security Agreements on the Vessel

While an abstract of title may seem like a dull subject, it is really necessary to keep your boat in good standing with the law. An abstract of title will comprise all of the public records important to your ship’s ownership. Your boat’s mortgages, security agreements, and liens (legal claims) will all be detailed in this document. Since the specifics of your boat’s ownership are subject to change over time, having access to an abstract title is useful. 

For instance, whether someone files a claim against your boat, you’ll want to know about it so you can check your insurance policy to see if you’re covered. Also, an abstract may help you track when renewing your registration and double-check that you have everything you need. If there has been a substantial change in your ownership status, an abstract will alert you to this so you may take the necessary steps to rectify the situation promptly.

An Abstract of Title Shows Any Bills Of Sale or Transfers Made On the Boat

An Abstract of Title may prove ownership of a boat in court. It provides information on the yacht’s history and prior owners, including any bills of sale or transfers made on the boat. Not only does it prove your ownership, but it also lists any encumbrances. Unpaid taxes, outstanding debts, or legal disputes may all lead to a lien being placed on a yacht. If you ever need to sell your yacht, having access to an Abstract of the Title will be invaluable. 

An Abstract of Title may verify that the person selling you the secondhand boat owns it (and not someone else) and that there are no liens on it. Remember that a bill of sale is only as good as the information it contains, so if you’re purchasing a used boat, insist on a current title or an Abstract of the Title. Obtaining a current title will reveal any recent changes in ownership; if none have happened since the last time a title was granted, you may proceed with only an Abstract of Title to verify the acquisition.

Abstract of Title

It Can Also Detail Any Repairs or Modifications Made To the Boat

An Abstract of Title is a legal document that provides information on the boat’s current owner, its previous owners, the location and year of its construction, the kind of hull it possesses, and so on. This may be of great assistance in a variety of settings. If you wish to sell the boat, you will need to demonstrate to prospective purchasers that it has not been harmed in any manner and that it has not been stolen. When you apply for a loan to pay for repairs, the lending institution will often ask for an Abstract of Title. Before you acquire the boat, you must determine whether or not there are any liens placed against it, as well as whether or not there is any damage that must be revealed.

The Abstract of Title is a document that the Maritime Documentation Center will create for you. It is a summary of the contents of your title package. The Abstract of Title will list all entities and persons in your title history. If you are interested in having an Abstract of Title created for you, please contact the Maritime Documentation Center at 800-535-8570.