A vessel abstract of title is a document that allows you to transfer ownership of a boat. It’s essentially a title for a ship, also called a bill of sale or title deed. No matter what you call it, the purpose remains: to transfer ownership from one person to another.
The process for creating and maintaining a vessel abstract of the title varies by state. Still, the general gist is this: the person selling the boat provides the buyer with all relevant information about their ship and signs over the title. Then, both parties go to their state’s motor vehicle office and file the document. Here are tips on how to create and maintain a vessel abstract of title:
Maintain an Accurate Record of Every Owner’s Change
Buying a yacht comes with the immediate responsibility of paying property tax, which many people must know. It is your responsibility to check your state’s rules and ensure you don’t owe any money to the government.
Keeping tabs on your boat’s condition can be difficult (and costly) if you need help knowing where to start, but it can be. When transferring ownership of a ship, a new vessel summary of the title must be submitted to the state where the boat is registered. A “vessel abstract of title” is simply a record of everyone who owns a watercraft.
The formal document that shows who possesses the yacht and when and how possession changed hands is called a Statement of Facts or Certificate of Title, depending on the state. The present proprietor needs to know if there are any claims or bills on the vessel, which can be found in the vessel summary. (This means your neighbor might not be allowed to sell his half-share in your motorboat because he owes money on it).
Get Proof of Every Transaction Involving Your Vessel into the Vessel Abstract Of Title
When you own a boat, you have a lot of legal responsibilities that come with that ownership. You must ensure your boat is insured and registered appropriately, pay all the fees, and take care of any necessary maintenance or repairs.
To do all this, you need a legal document called the “vessel abstract of the title.” The vessel abstract of title contains all the information about your boat: who owns it, who has owned it in the past, who has a lien against it, and what its current ownership status is. It’s an important document for maintaining your boat’s ownership.
A vessel abstract of title is more than just a list of names and dates—it’s a way to keep track of every official transaction involving your boat. For example, if someone buys your ship from you, that transaction would be recorded in the vessel abstract of the title so everyone can see who has ownership rights to the boat. If someone puts a lien against the ship for repair work, that would also be recorded in the vessel abstract of the title so that we know to whom we should send bills.
Document When Your Boat Was Sold or Transferred
The transfer of possession of your watercraft can be verified with a summary of the title. Find out who owns the property and when and how the deed was sold or moved. This data will be invaluable if you ever have to interact with a collector or insurance company regarding your watercraft.
For other purposes, it’s important to know when your yacht was sold. For instance, if you want to sell your boat, having a complete and correct vessel abstract of title will save you a lot of time and trouble. If there are any discrepancies in the paperwork, such as who the vendor bought it from in between, you can ask the seller about it.
The prior proprietor may need to be located and persuaded to turn over possession if there are discrepancies. Even if it doesn’t seem important right now, knowing where and how many sales records there are for a yacht is reassuring when your time and money are at stake.
Contact the Commercial Fishing Permits Center today if you have any questions about vessel abstracts of title. We’re happy to help you with any concerns you may have.