If you are planning to buy a boat, the vessel abstract of title is going to be a vital part of the process. If you worry that you’ll end up with a boat that is too good to be true, or comes with legal problems, you can be as sure as possible that you’re buying the right vessel by studying the abstract of title associated with it. So what is the abstract of title? Keep reading to find out.
What is a Vessel Abstract of Title?
The abstract of title is a document that outlines pertinent information about the boat in question. That includes its origin, history, chain of ownership and much more. You can view who has owned the boat in the past, whether that’s an individual or some type of business entity. You can find out where the boat was manufactured and when. You can also read about its legal interests, details about the boat itself and a lot of other data that will help you decide if the boat is the right one for you to buy or if you should keep looking.
Liens and Encumbrances
One of the most valuable pieces of information you can glean from a boat’s abstract of title is the presence of liens or other financial barriers that may make it a bad choice. A lien against the boat will become your responsibility if it isn’t cleared before you make the purchase. That means you’ll be stuck paying it off if that happens. To avoid taking on debt that you didn’t know about, you must read the abstract of title carefully before you agree to a transaction.
What Else is in the Abstract of Title?
While the debt and other legal matters pertaining to the boat are pretty important to know about before you buy, there are some other vital pieces of information that you can find by reading the vessel’s abstract of title. It’s a good idea to review these details closely so that you are fully aware of everything having to do with the boat. This prepares you for potential problems you could be taking on and allows you to determine if the boat is a good price for what you’re getting. Find out about the following before you buy:
- Name of the boat
- Coast guard number
- Hull identification number
- Date and place of built
- Manufacturer’s name
- The boat bill of sale
- Preferred ship mortgage
- Satisfaction of mortgage
- Notice of claim of lien
Satisfaction of Claim of Lien
Understanding all of this information is a responsible part of choosing the right boat for your needs. Failing to review the abstract of title can leave you with a boat that you owe money for or that has more problems than you are prepared to deal with.
Never buy a boat without first reading the vessel abstract of title. If you need more help navigating the boat buying process or have questions about the documentation that goes with it, contact the Commercial Fisheries Permit Center today for the assistance you are looking for.