Understanding Abstracts of Title for Commercial Fishing Vessels
Since the very beginnings of the trade, the owners of commercial fishing ships have been required to register their boats with a short history of the title. Commercial fishing is hard work – it not only demands physical and mental strength, it also requires a solid understanding of the ships, the sea, and the law that comes with the ownership.
In case a fishing vessel is bought for commercial purposes, an abstract of title is a must-have document. The document denotes the home history of the vessel and includes the rights or the charges like mortgages and liens, if any. So by examining it, both purchasers and owners get to know the legal status of the ship before going on with the transaction.
For those who are not familiar with the process, the legalities involved can be quite difficult to understand. This is where our team comes in. We can take you through all the steps and assure you that your paperwork is complete, correct, and in agreement with the law.
Here, we will outline the fundamentals of abstracts of title for Commercial fishing vessels and explain why they are such a critical part of the industry.
What an Abstract of Title Is
An abstract of title is a primary document that indicates the ownership of a vessel. This is generated upon the sale or ownership transfer of a boat, and most of the time a previous owner or his title insurance company will issue it to you.
Just like in the case of a car or a house, when you buy a boat you are entitled to know the whole history of its ownership. Responsible for informing the potential buyers about the encumbrances on the titles of the item for sale are the sellers. These encumbrances may also involve the entity that the lien may belong to as well as the liquidation of the debtor in case bankruptcy was declared by a previous owner.
An abstract of title summarizes the description of all the liens and encumbrances in simple terms. This allows prospective buyers to take an informed decision before proceeding with the purchase. Moreover, when one has done his/her homework and decided to go on, financial institutions which might be available for lending purposes usually demand a title abstract before they can grant a loan.
Why You Should Have an Abstract for Your Vessel
In most instances, a Certificate of Title is a legally binding document, which is the vehicle’s or a vessel’s title, and it establishes ownership. An abstract of title, which is generally a duplicate or an electronic copy of the original, is the official record of that ownership.
This is not just another government form that is required to be filled. It is one of the main legal evidences that can be used in resolving disputes about who the owner is. Through a review of an abstract, you can determine the origin and the place of vessel’s buying, as well as the legal owner.
For instance, assuming you bought a boat at an auction, and the previous owner still has debts with which he or she cannot clear, an abstract of title will show if there are any liens on the boat. It is vital to solve these problems before trying to put your boat on the water or sell it because, unresolved liens can directly affect your ability of operating or transferring the vessel.
What to Do if There’s a Problem with Your Title
Either when you are buying a boat or you already have one, having a clean title is an absolute must. It protects your rights as the rightful owner of the boat and also ensures no one else can legally claim the vessel.
The boats in general can be categorized into two groups depending on their ownership records – documented and undocumented. Documented vessels are those which have full titles with a detailed account of the ownership, and legal rights including liens. Whereas undocumented boats are mostly dependent on simple papers such as endorsements and assignments.
In a legal case, a recorded title is the strongest proof of ownership. Still, both forms of documentation are legitimate, and if any trouble occurs, then the fixing of your records will be a simple procedure.
Keep up with licensed title documentation also helps protect your boat from dangers such as fraud or identity theft. By keeping your records up to date, you ensure that only you have access to the legal details of your boat.
What Information Is Included in an Abstract of Title
An abstract of title is a must-have document if you own a commercial fishing vessel. Since these boats entail many legal responsibilities, it is advisable to point out what information is included and excluded in an abstract.
An abstract of title often comprises such items as:
• The complete description of the vessel (manufacturer, length, beam, engine type, and other physical details)
• The name and address of the present owner(s)
• The names and addresses of the owners before, recorded chronologically
• Date of the most recent sale
• The purchase price or the assessed value, if relevant
An abstract is worth noting, does not anticipate or keeps record of ownership in the future. Simply saying, it will not point out the next buyer’s identity, rather it only shows the vessel’s ownership history to the present time.
At the Commercial Fishing Permits Center, we are more than happy to help you get an abstract of the title for your vessel. Our team will take care of all the procedures, and, in most cases, we can get your abstract in less than a week. With our vast experience in working with commercial fishermen in obtaining the needed permits and documents, we can’t go wrong in our directions to you. Please get in touch with us through our website to start the process.
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