Just bought first boat in California, seller wants to use title company?

[GWilly]

I suspect it depends on the size of vessel, and the amount of money being exchanged. When I bought my current boat, the seller used a titling service as a middle man for handling the money and to get all the paperwork done. For my part, as buyer, I appreciated the service. Sure, it may have taken an extra day or so, but it was worth it.

[jmschmidt]

That's ridiculous, just do a bill of sale on the US Coast Guard form even if it is not currently USCG documented. Do a title search on the USCG website (about $25). If you are real paranoid go on the California state judiciary website and check the guy out for law suits and or criminal activity. Have him give you his clean bill of health, why should you have to pay?

[thataway41]

I have been reading your other thread about "Essentials".

Now you say you "Bought a boat and are going to Calif. to meet with a title company" for a $5,000 boat?

The process of buying a boat, is you look at the boat, visually. You make an offer with a contract, which stipulates that the purchased is subject to "Survey" and "Sea Trial". You usually give 10% down. Then the rest of the money is due upon completion of the Survey and Sea trial.

I have been boating for over 70 years, and about 50 years of that was in Calif. I never used a title company to transfer sale of a boat. I have done my own documentation--but if you are buying a documented vessel--that may be very prudent to use a agent who specializes in documented vessels.

Something is not right here. I hope that you have not given this -E-Bay. buyer any money until you see and have the boat surveyed. Please be sure that you are protected. A transfer of title would involve a bill of Sale. You are a Nevada Resident, so any registration would be in Nevada. But if the boat was to be kept in Calif. You would then register it in Calif. There will be sales tax, and personal property tax from the county that the boat is kept collected yearly, even if you live in Nevada.

[KP44]

Originally Posted by Portage_bay

I think using a marine title and escrow agent is a good idea. It protects both you and the seller. Make sure you have a good solid contract. As a previous poster suggested find the title and escrow agent on your own, this is an eBay transaction, a place known for scams.

Watch the escrow instructions and be sure they are followed.

My contract to purchase had my name as the buyer; not my name and spouse's name. At the last minute, our escrow agent said she had noticed that mistake and happily corrected it. My spouse is a foreign citizen and can not be an owner.
This was while dealing with a worthless survey by the "best" surveyor in Seattle. (It was suspicious when Edwards demanded payment before he would do the survey. Not a single dimension was correct and the surveyor refused to correct his work. My wife got his secretary to change the "typo" from 36' hull to 45' 1" which is reality. In fairness, SAMS said they would sanction the surveyor if I wrote a formal complaint.)
It took a lot of time and paperwork to undo that mess.

[Hoodsail]

Would agree with others that the seller "...wants to use title company..." is a bit out of the norm...that in concert with, purchased on eBay, and I get the impression you have a long drive, cross country? ...all make me a bit suspicious. I attempted to buy a 1990's vintage Sabre 36, over eBay from a seller in Texas (i am in CT)...really amazing price, I recall about $20,000 ish and the pictures looked fantastic...but when i tried to arrange to see the boat, I was looking at flites to Texas, seller made excuses about why that would be difficult, but if I was still interested to send a cashier's check as deposit "to hold" the boat...I believe the seller asked for a few thousand dollars...when i pressed him for a date and exact location of the boat, he stopped responding...needless to say, I never met him or the boat or flew to Texas.....
Does the seller have a bank loan on the boat? Seems a copy of that paperwork would list any other liens/title holders, so why get a title company involved? good luck

[KP44]

Title companies are escrow agents. A marine escrow agent might serve you better. Escrow is where the buyer and seller send titles, funds, instructions, etc.
When everything is together and in order, escrow agent does everything at (virtually) the same time, usually called "close of escrow" or closing date. At close; liens are paid off, seller is paid, buyer receives title, and any other instructions are fulfilled.