How does one confirm clear title in US

[Montanan]

If a vessel owner fails to pay a supplier, the asset owner may file a USCG Notice of Claim of lien. This document must be filed within 90 days of the date that payment was due, and it will remain on file until either the lien is released or it is removed by judicial action.

NOTICE OF CLAIM OF LIEN

https://www.dco.uscg.mil/Portals/9/D...jMvJcD2A%3d%3d

These are general instructions highlighting the minimum filing and recording requirements.
There is no OMB approved Notice of Claim of Lien form. Guidance on the elements and validity of a maritime lien should be obtained through private legal counsel in accordance with 46 CFR Part 67.250.

DISCLAIMER: NEITHER THE FILING OF A NOTICE OF CLAIM OF LIEN NOR
THE ACCEPTANCE BY THE COAST GUARD OF SUCH A NOTICE IS A
GUARANTEE THAT THE CLAIM IS VALID OR ENFORCEABLE.

To be Filed and Recorded a Notice of Claim of Lien must:
 Recite:

Name and official number of vessel
Name and address of each claimant
Nature of lien claimed
Date on which the lien was established and
The total amount of lien claimed
 Be signed by or on behalf of each claimant and include a date of execution.
 Contain an acknowledgement/notarization.
 Contain a declaration stating that:
(a) The information in the notice is true and correct to the best of the
knowledge, information, and belief of the individual who signed it.
(b) A copy of the notice, as presented for recordation, has been sent to each of
the following:
(i) The owner of the vessel;
(ii)Each person that recorded under subsection (a) of 46 USC §31343,
an unexpired notice of a claim of an undischarged lien on the vessel;
(iii) The mortgagee of each mortgage filed or recorded under section
§31321 of this title that is an undischarged mortgage on the vessel.

A declaration filed by a person that is not an individual must be signed by the president, member, partner, trustee, or other individual authorized to execute the declaration on behalf of the person.



REQUIREMENTS FOR INSTRUMENTS EVIDENCING
SATISFACTION OR RELEASE
https://www.dco.uscg.mil/Portals/9/D...M5-PlZMA%3d%3d

To be filed and recorded in accordance with 46 CFR Part 67 a Satisfaction/Release must:

1. Recite the:
Name and official number of the vessel;
Name of each mortgagor, if any;
Name of each mortgagee or claimant; and
Total amount of the mortgage or claim of lien.

2. Include information which clearly identifies the mortgage or claim of lien being released; such information normally consists of the Book and Page or Batch and Doc ID, where mortgage or claim was recorded.

Failure to provide the Coast Guard with an acknowledged certificate of
discharge of the indebtedness on full and final discharge of the indebtedness
under a recorded mortgage may subject the mortgagee [the lender] to civil penalty of not more than $10,000 (46 U.S.C. 31309/31321(f)).

3. Be signed by or on behalf of each mortgagee, if a mortgage, or each claimant, if a notice of claim of lien, and include legal capacity in which signed, if any (e.g. Corporate Officer, Trustee, Executor).

NOTE: If the mortgagee has changed names OR been taken over OR merged into or with another bank, include the information on the instrument. Phrases such as “formerly known as”, “now known as”, or “successor in interest” may be suitable.

4. Bear a date of execution

5. Contain an acknowledgement by a notary public



PREFERRED SHIP MORTGAGES AND
RELATED INSTRUMENTS INFORMATION
https://www.dco.uscg.mil/Portals/9/D...327IZZbw%3D%3D


SATISFACTION OR RELEASE OF MORTGAGE, CLAIM OF
LIEN OR PREFERRED MORTAGE
https://www.dco.uscg.mil/Portals/9/D...-01-144715-483



EXCHANGE, REINSTATEMENT OR
RETURN TO DOCUMENTATION

https://www.dco.uscg.mil/Portals/9/D...dgxia6sw%3D%3D

These are general instructions which may not cover all requirements needed to document your vessel. Please see 46 CFR Part 67.

APPLICATION FOR INITIAL, EXCHANGE OR REPLACEMENT OF
CERTIFICATE OF DOCUMENTATION; REDOCUMENTATION: Completed by
new OWNER(s); submit an original OR copy of Form CG-1258.
CG-1340 BILL OF SALE: Submit one original OR one copy of the bill of sale or CG 1340, signed by or on behalf of all persons, transferring an interest in the vessel.
Signature(s) of seller(s) must be acknowledged by a notary public. Altered bills of sale may be rejected. A copy of the bill of sale or related instrument will be returned.

CG-1270 CERTIFICATE OF DOCUMENTATION: Interest in a vessel may be
transferred by the last documented owner(s) on the reverse of the original OR copy of the Certificate of Documentation. Signature(s) of seller(s) must be acknowledged before a notary public. Altered documents may be rejected.

SATISFACTION OF MORTGAGE OR FORM CG-4593 APPLICATION,
CONSENT AND APPROVAL FOR EXCHANGE: If the vessel is subject to a
mortgage, submit one original or one copy of the satisfaction of mortgage (completed by mortgagee, NOT vessel owner and properly acknowledged); OR, one original or one copy of Form CG-4593, signed by both the owner and mortgagee. A copy of the satisfaction of mortgage will be returned. A copy of the form CG-4593 will not be returned.

[Cheechako]

Originally Posted by Pontoonrob

I am considering purchasing a boat in Florida. This is between the owner and myself, no broker involved, cash deal.

Considering the dollars involved is there a way to know that it is a clear title?

Are there standard procedures one goes through such as escrow or similar? So that the funds could be clawed back should there be registration or title issues?

Could someone with good search skills point me to the relevant reference materials so that I may educate myself on this topic?

Thank you.

I would use a Marine title agency. Make sure they will check title, liens etc. I did this once selling a boat in the Caribe, but the agency was in Florida. For a $200k-$250k etc transaction it was money well spent for peace of mind. Both of us were US citizens, both boats US titled. ... and no one mentioned or asked where the boat was.
They will hold payment of funds until both parties say "OK". It was 20 years ago, and was $500-600

[smj]

I ordered an abstract of title through CG on a boat that was state titled but previously documented, came back clean. Months later after the transaction and receiving a state title in my name the boat came up as being stolen and was taken from us. I called and questioned the CG about this, their reply was there was a note in the file stating it had been stolen, but they aren’t in the business of tracking stolen vessels. There are no guarantees.

[Pontoonrob]

Originally Posted by smj

I ordered an abstract of title through CG on a boat that was state titled but previously documented, came back clean. Months later after the transaction and receiving a state title in my name the boat came up as being stolen and was taken from us. I called and questioned the CG about this, their reply was there was a note in the file stating it had been stolen, but they aren’t in the business of tracking stolen vessels. There are no guarantees.

This is my great fear. Not necessarily stolen, but multiple owners or an unknown foreign registration or documentation that doesn't appear until I travel to some other country.

I may just worry alot. But I have such bad luck that if anything like that can happen it will happen to me.

I have been in contact with a buyers broker. I am still seeking the roght type of lawyer. Unfortunately I am in Florida at the moment and it's hard to trust anyone in florida being that all the news stories start with "Florida man"..

Everything in Florida just seems so temporary, buildings come and go, businesses here one week, gone the next...it all seems so fly by night....

[Jammer]

Originally Posted by smj

I ordered an abstract of title through CG on a boat that was state titled but previously documented, came back clean. Months later after the transaction and receiving a state title in my name the boat came up as being stolen and was taken from us. I called and questioned the CG about this, their reply was there was a note in the file stating it had been stolen, but they aren’t in the business of tracking stolen vessels. There are no guarantees.

I am curious. Did you voluntarily surrender the boat? Did they have a warrant? Was the individual you purchased it from the thief? Were you able to find and get any recourse from the seller?

[Montanan]

There are NO assurances of clear title. Only degrees of comfort and of risk.

FYI:

At to the use of a title research firm, they will review the standard records and provide you with copies of what they receive in return of their search.

If you do not know how to search records or do not wish to search, then they can be useful service providers.

But unlike real estate, you will not receive a title insurance policy for disclosed limitations and encumbrances of title.

By way of example:

https://www.marinetitle.com/


https://www.marinetitle.com/about-our-website.htm

What you should know about boat title and history searches!

⚫ There is no such thing as boat title insurance in the marine industry. Yacht brokers, documentation companies, and attorneys do not guarantee titles. There is accordingly no substitute for a title, lien, and history search when it comes to any boat transaction.

⚫ What you see isn't always what you get with boat title certificates. They may not always show full ownership, certain liens, and deficiencies or may have been superseded. Boat title and registration information should always be verified with the issuing agency.

⚫ Boat ownership, liens, and mortgages can be recorded in different ways. It all depends on where the boat is located and whether used for recreational or commercial purposes. Boat liens and claims can in fact exist even without having ever become formalized.

⚫ A particular boat may have been subject to numerous titling and registration jurisdictions during its lifetime. These may include USCG vessel documentation, state registration, and foreign yacht registry. All of which can still impact the most current title's veracity.

⚫ Title branding for boats or reporting requirements for salvage and insurance companies is minimal at best. Although such information is available from within our databases, coverage for all damaged boats is not attainable. A hull inspection should be implemented before closing any boat transaction.

⚫ Errors and omissions are commonplace in boat title recordings. Hull numbers can be easily misread, obscured, or altered. It is important to ensure that the boat's title documents match up exactly with the numbers affixed to the boat itself. Our website also provides a free hull number check service to determine whether the assigned number is formatted correctly.

⚫ Boat ownership data is becoming ever more difficult to obtain due to strict privacy laws in many jurisdictions. It may therefore take some effort and time in checking this out. Don't wait until the last minute to initiate a thorough ownership, title, and lien search.

⚫ When all is said and done, the boat's owner is your only recourse in case of title deficiencies. Of course this doesn't matter if such party becomes insolvent, unavailable, or non-cooperative. You should run a background check on all owners unless you have supreme confidence in their wherewithal to stand behind any representations of title.

[Montanan]

It's Florid'uh.

Just saying.

[Amapola]

If it is USCG documented, any liens will appear on the USCG records.

[Montanan]

Originally Posted by Amapola

If it is USCG documented, any liens will appear on the USCG records.

Only liens recorded with the USCG will appear on the USCG records.

Liens that are not recorded with the USCG will not appear but can be valid and be tied to the vessel.

[sailcrazy]

Following. Very enlightening thread.

[Goodxcharly]

I used a marine title escrow company in Seattle for my last purchase. Works just like a real estate transaction.

They take care of the whole transaction including documention, paying of sellers loan etc.Great to work with.

Pacific Maritime Title
655 NE Northlake
Seattle Wa 98106

206-632-4668

[Montanan]

Marine Title Search Services and / or Escrow Services should not be confused with title insurance or title assurance.

The Marine Title Seach Services are limited discovery and informative services only. The service provider will share with you what they discover only; they offer no guarantees of veracity of ownership or of the personal property being free and clear of encumbrances.

By way of example, a reference:

https://howardsreederinc.com/will-ya...earch-uncover/

Snipet:

What Will Your Yacht Title Search Uncover?

Howard S Reeder Inc

Buying a yacht can be a lot like buying a new home in that due diligence must be carried out to confirm that the title is both marketable and free of encumbrances like liens. Title searches for boats can be challenging given the complexities surrounding boat registration, titling and liens as well as Coast Guard documentation, but there are some clear signs that something is amiss with the transaction. Below is a list of five red flags that signal potential problems.



Inconsistencies in Vessel Description: If the vessel you are thinking about buying has an entirely different description than the one that appears in the title or registration certificates, it’s an immediate red flag.

Mismatched Identification Number Details: If the state titling agency records for the yacht show a different seller name and address for the hull and registration number, be extremely cautious.

Missing Registration Certificate: The registration certificate proves that the boat is registered, and must be kept on board during operation. If the title search confirms that the vessel is registered but the seller cannot provide you with the certificate, be careful about proceeding further.

Missing Titling Certificate: If the title search indicates that the vessel is titled, but the owner/seller says that the documentation is missing, proceed with caution.

Unsatisfied Liens: If a lien search reveals an unsatisfied claim, it could cause issues with your ownership of the vessel in the future, unless any parties holding a security interest or claim provides a release or discharge.


Even if a title search does not reveal anything unusual or concerning, non-recorded liens and claims can become a surprise burden later on. These liens may include unpaid debts for repairs, supplies, moorage, and other operation-related necessities. Unfortunately, such claims can be next to impossible to detect unless you go to the extent of checking with service yards and marine suppliers who may have done business with the seller. It would be wise to arrange the terms of the sale so that the seller is held responsible for any undisclosed liens that arise in the future.

Unless you feel confident that the seller can provide you with a marketable title that is also free of encumbrances, the boat sale should not be finalized. Once the purchase price has been received, the seller may not be inclined to help you resolve any title problems that arise.

[DShant]

Despite all the blather it's simple. Use a Closer. There are dozens and they do this all day every day in Florida. Several people have recommended it. Don't overthink it. I have closed numerous boats in Florida and it is safe, not expensive and you will get a clear title.

They can be very picky which is a PITA but I guess that is what you pay them for.

[Montanan]

Security interests in boats that are neither titled or USCG documented may be recorded with the Secretary of State as Uniform Commercial Code (UCC) filings.

[Montanan]

The Uniform Certificate of Title for Vessels Act (UCOTVA) regulates the titling of boats in a manner similar to the way that all states now issue titles. In general the Act is about codifying best practices for titling vessels, and making sure the requirements for all states are the consistent.

The Act does 4 things:

Allows undocumented state-titled vessels to secure Preferred Ship Mortgages
Brands the titles of vessels who have suffered hull damage
Unifies procedures and titling laws among states
Brings state titling laws in line with UCC Articles 2 and 9

https://www.boat-alert.com/blog/unif...ls-act-ucotva/