Why You Need an Abstract of Title for Your Vessel

abstract of title

Are you the owner of a vessel in the USCG? In such cases, you know that owning and running a boat responsibly comes with significant responsibilities. It is essential to have an Abstract of the Title available to ensure that the vessel is registered correctly. In addition to providing evidence of your ownership, an Abstract of Title may shield you from any legal complications arising from marine legislation. 

If you have one, you can stay current no matter where your travels take you, whether they take you over state boundaries or across international waterways. Continue reading to find out how having an Abstract of Title for your USCG watercraft may help you save time, money, and energy while out on the water!

To Avoid Headaches When Selling Your Boat

If you are looking to sell a boat, you should be aware that certain prospective purchasers will only be interested in your vessel if you provide them with an abstract of the title. Those customers must have this paperwork because they run the risk of being sued if they acquire your boat without it, and it demonstrates that your yacht is free and clear of any liens or other claims. 

Why would someone sue them in court? So, let’s assume you decide to purchase a secondhand automobile from someone, but you don’t bother to verify the vehicle’s title to see if there are any problems with the car. 

You discover later that the individual you purchased it from didn’t truly own it—instead, the bank was the one who had ownership of it! You are also sticky since you may be sued for buying stolen stuff. If you don’t have an abstract of the title, this may also happen with boats.

To Make Sure There Are No Outstanding Liens Against Your Boat.

If you’re in the market for a boat, one of the first questions you should ask is whether or not it’s subject to any liens. A lien is a claim on a ship made by someone else who has a right to share the boat’s equity. A boat owner can have a lien on their vessel if they still owe money on a loan used to acquire the ship and where to buy the yacht at auction. Unpaid marine taxes are another example of a lien. 

If a person owed past taxes and hadn’t paid in years, the government would have a legal claim on a portion of their vessel until they settled their tax debt. Because of the stigma associated with the previously claimed property, having a lien placed on your boat might make it harder to sell in the future. Obtain an abstract of the title from your title firm and check it for liens to ensure your boat is lien-free.

An Abstract Of Title Helps Prove Ownership When You Need Financing For Repairs Or Upgrades

You might expect life to take a turn when you own a boat. When docking or approaching a wild coast, the hull might be damaged. No matter who was at fault, you’ll have to foot the bill for fixing whatever broke. Getting an abstract title for your boat is the best way to ensure you have the money to cover your expenses. Here’s where we come in. 

We provide a service that can find out who owns your boat, how much it is worth, and the conditions of ownership by searching county records. You can finish in a matter of minutes since it’s all so easy. If you want to establish that you are the rightful owner of a boat, you will need an abstract of the title. If there are any mortgages or liens on the ship, these will also be shown. This paper will confirm your boat ownership and the bank’s right to place a lien if you require financing for boat repairs or improvements.

abstract of title

To Prove Ownership in Case Someone Tries To Take Possession of Your Boat Without Permission

If someone attempts to remove your boat without your permission, an abstract of title will establish that you are the rightful owner. This may happen if you sell your ship or lend it to a friend who abruptly departs the country without giving you any notice. One may argue that the boat rightfully belongs to him if you still need to register it with the relevant agency or have someone else do it on your behalf. 

If you find it implausible, consider the following: what if you loaned the boat to a former service member who wanted to go fishing in Alaska? That individual can register your boat in his name and assume legal ownership of it even though he does not own it. Then what? You may only get your boat back for some of the money you spend on penalties, storage, and legal expenses. You may avoid this by acquiring an abstract of title that verifies your ownership.

The Commercial Fishing Permits Center is a one-stop shop for any questions on applying for permits. We’re here to help from when you decide to start your business to when you’re ready to retire your commercial fishing license. We’ll walk you through each step of the licensing process, ensuring you have all the information and training you need to succeed in the fish business.

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