Want To Buy: Canadian buying a boat in Mexico

[Corbin39dream]

I am a Canadian and I saw a American registered boat that I would like to buy in Mexico. The seller wants to sell the boat that is still at his wife's name and unfortunately she passed away lately from cancer. He doesn't want to use a broker and the price is right. I know for sure that first he will have to change the title of his wife's boat to his name before he could sale it and he said he will work on it.

I will probably keep the boat in his actual marina in Mexico for the first year, as she will need many refits before being ocean ready. What are other major issues that you can see I could encountered and how can I avoid them? Thanks!

[boatpoker]

Is it an American "State Registered" boat or a US "Documented boat" ?
If it is "US Documented" The current owner will need a release from USCG before you can register it anywhere.

Where will you register the boat ?

[wingssail]

Originally Posted by Corbin39dream

I am a Canadian and I saw a American registered boat that I would like to buy in Mexico. The seller wants to sell the boat that is still at his wife's name and unfortunately she passed away lately from cancer. He doesn't want to use a broker and the price is right. I know for sure that first he will have to change the title of his wife's boat to his name before he could sale it and he said he will work on it.

I will probably keep the boat in his actual marina in Mexico for the first year, as she will need many refits before being ocean ready. What are other major issues that you can see I could encountered and how can I avoid them? Thanks!

You have to assume that the boat is legally in Mexico with a TIP (this needs to be verified). You cannot normally change ownership of a foreign vessel while in Mexico, it needs to have the TIP cancelled and leave the country. There are brokers in Mexico who are experienced in this process and can handle it for you. I do not recommend that you bypass the broker and do it yourself. You could easily get into serious legal problems with Mexican officialdom.

[jamhass]

As WingSail said, strictly speaking it is illegal to sell a TIP boat in Mexico. It used to be common-place to "ignore" or somehow work around this issue, but it has become more difficult in recent years, partly as a result of Mexico's efforts to combat corruption.

So, relative to the TIP, you have 2 issues to overcome. One is the issue of the deceased TIP holder. This is possible, but will require the current owner to contact Mexican authorities to get the TIP either cancelled (likely requiring the boat to leave Mexico) or get the TIP transferred into his name first. Second is the requirement to leave Mexico to cancel the TIP. Depending where in Mexico, this can be either easy or difficult. It is essentially the same as an "off-shore" delivery in the US, where the boat needs to be in international waters. If the boat is in Cabo, you only need to check out of the country and go a few miles offshore. If in San Carlos, its a looong way to international waters.

Yes, many brokers "know" how to do this, but officials in many places are aware of related scams and have gotten more serious about ensuring TIP cancellations follow the rules.

We ran into this with a boat sale a couple years ago. We were unable to cancel the TIP in-country. Fortunately, our buyer was relocating the boat to the US, so the TIP was cancelled on leaving Mexico.

We know others who purchased boats in Mexico with a TIP in the name of a deceased. Took them over a year to get a "temporary" TIP and they are still working on their "permanent" TIP.

Note that without a valid TIP, it is near-impossible to check into a marina.

[jamhass]

Note also, that (depending on the marina) IF the marina is "officially" unaware that the TIP is no longer completely valid (ie, the marina is unaware that there is an ownership change) you might "get away" with staying there.

That said, there is also a liability insurance issue at most marinas (besides being a good idea) that might get complicated with insurance in one name and the TIP being in another.

[groundtackle]

Contact Marine Documentation Service (may not be exact name as it been a few years) in Anacortes. They can do all the paperwork for you.

[Corbin39dream]

I would like to register her as a canadian vessel, as I would like to bring her back to Canada after island hopping in the Caribbean for a few years.

[boatpoker]

Originally Posted by Corbin39dream

I would like to register her as a canadian vessel, as I would like to bring her back to Canada after island hopping in the Caribbean for a few years.

I know nothing of the TIP issue but bringing her back to Canada is easy.
1. Release from USCG documentation
2. Apply for Canadian Registration.

Sales tax will not be due until she hits Canadian water (if she ever does).
As the hull was Canadian built there will be no duties.

Center cockpit or pilot house ?

[jmschmidt]

And as a none US Citizen you cannot own a US Coast Guard Documented vessel.

[Marutji]

Originally Posted by Corbin39dream

I am a Canadian and I saw a American registered boat that I would like to buy in Mexico. The seller wants to sell the boat that is still at his wife's name and unfortunately she passed away lately from cancer. He doesn't want to use a broker and the price is right. I know for sure that first he will have to change the title of his wife's boat to his name before he could sale it and he said he will work on it.

I will probably keep the boat in his actual marina in Mexico for the first year, as she will need many refits before being ocean ready. What are other major issues that you can see I could encountered and how can I avoid them? Thanks!

Hey Brother. I suggest that you contact Eco Naviera in La Paz. (Google them). They deal with complex transfers. They speak English no worse than Canadians and are not expensive. As the others here have said, it is too complex to do alone (I tried it and ended up doing a midnight flit out of Mexico before the gov seized my boat).

[Mithril Bham]

As an aside I just sold a Documented Vessel and was told it would take four months to transfer. That was in November and I am still waiting. I was very surprised.

[boatpoker]

Originally Posted by Mithril Bham

As an aside I just sold a Documented Vessel and was told it would take four months to transfer. That was in November and I am still waiting. I was very surprised.

Lots of delays in Canada and USA with the covid stuff.
If one can show that the paperwork has been filed with USCG to release from Documentation. Transport Canada will issue (within a few days) a Provisional Certificate of Registry til' they get caught up on the paperwork.