SETTLEMENT EXCHANGE SERVICE
Available through our full-service boat titling affiliate.

   
       EXCHANGE BENEFITS

  An inexpensive way for buyers and sellers to exchange considerations at closing.

  Buyers funds are never at risk while in safekeeping at all times until closing.

  Sellers can be assured of good funds upon finalization of the purchase transaction.

  An experienced professional can officiate the exchange of buyer and seller considerations.

  Boat transaction closings can be handled long distance without the buyer's or seller presence.

  An excellent way to retire encumbrances or liens while affording protection to the buyer.

  Title and lien research services available as an option to all settlement services.

  Vessel titling services available as an option to all settlement services.

         A safe, efficient, and economical way for buyers and sellers to exchange considerations when finalizing the purchase and sale of a boat or yacht. The settlement exchange service is ideal for those who need a neutral third party to gather funds and ownership documents for distribution at the time of closing.

Compare Settlement Exchange vs Marine Escrow.

Please read our terms and conditions before using this service.

Settlement Exchange

          The settlement exchange is designed as an alternative to traditional marine escrow practices which can be unsafe, cumbersome, and expensive. It is an efficient way for buyers and sellers to utilize the services of a neutral third party agent without placing the purchase funds at risk. This concept is very straight forward where the buyer simply makes payment in the form of a cashier's check payable directly to the seller. The agent can then exchange this for the seller's title or ownership transfer documents.
          By using the exchange method, purchase funds are never deposited into an escrow agent's bank account. This eliminates the potential for commingling and accidental funds conversions. If there is a payoff involved or other disbursements, the buyer can simply provide the necessary bank checks payable directly to the respective parties.
          In setting the stage for an exchange, the agent will work with the parties to identify and gather up all of the considerations they wish to exchange. This may consist of cashier's checks, bills of sale, payoff authorizations, title documents, and other transfer instruments. Such items are then listed on an settlement exchange authorization form which will clearly describe the conditions under which the distributions are to be made.
          When the buyer and seller are ready to finalize, they merely authorize the agent to distribute all considerations that have been gathered up for the exchange. Prior to such time, either party can withdraw their respective items for any reason whatsoever. This means that the buyer and seller are always in full control of their funds or transfer documents until the exchange has been finally consummated.
          In conjunction with an exchange service, the parties can arrange for optional services such as a title verification, lien research, payoff assistance, and document preparation. This can include subsequent  U.S. Coast Guard documentation or other title recording services. If nothing else, the agent can simply hand the exchange items over to appropriate parties at closing.

Resources ►     Settlement Exchange Service

Marine Escrow

          In an industry where the value of a yacht often exceeds that of a home, you would expect an abundance of qualified marine escrow companies. This is not the case however, and for good reason. There is a great deal of mystique associated with boat titling, Coast Guard documentation, and yacht registration. Most professional third-party escrow agents are simply unwilling to swim in such waters.
          Settlements, closings, and escrows of a maritime nature are accordingly left to the devices of yacht brokers, marine lenders, documentation companies, and attorneys. Herein lies a great dilemma for unwary buyers and sellers. Only a handful of these agents truly possess the qualifications and knowledge necessary to address the requirements of implementing a vessel closing in escrow.
          Consider the role of yacht brokers as marine settlement, closing, or escrow agents. Given the absence of any viable alternatives, they have been historically compelled to perform such duties themselves. Although sincere in their efforts, brokers are sales oriented and there is always a much needed commission at stake. This sets the stage for potential conflicts with respect to management of the buyer's and seller's diverse interests. Such condition is illuminated by the fact that regulatory oversight of yacht brokerage activities is lacking in many states or minimal at best.
          Marine lenders, like yacht brokers, must often act in the capacity of an escrow agent in order to close boat loan transactions. This is more often the case with small watercraft which are dealt with in the same fashion as vehicles. Although financial institutions are certainly more qualified to handle escrows, they are not generally knowledgeable about boat titling issues. A borrower can however, take comfort in the fact that the lender typically has more to lose in an escrow gone bad than anyone else.
           Vessel documentation agents have recently gained the spotlight with respect to marine escrows. This has come about largely as a result of increased demand from a growing number of yacht brokers and marine lenders. While it makes more sense for boat titling experts to handle closings, this poses an even greater risk for buyers and sellers. Regulatory oversight is all but non-existent with respect to the fiduciary activities of most vessel documentation companies. There are no bonding requirements whatsoever and your funds can be commingled if the agent so chooses.
          Hiring an attorney to act as the escrow agent would seem like a logical conclusion, given the aforementioned issues. However, it is very difficult for a law firm to remain neutral while representing the diverse interests of both the buyer and seller. A lot of non-maritime attorneys are also unfamiliar with matters of boat titling, encumbrances, and marine liens.
          As you can see, there are some obvious concerns with any of these options. So, what is the answer or best solution to all of this? It is basically a matter of common sense and some very careful homework. The most important thing is to make sure you know precisely who you are dealing with before handing over your life savings. Be sure to determine whether the escrow agent has a surety bond which will adequately cover your investment. You may otherwise wish to utilize a settlement exchange service where the purchase funds are handled in a more secure manner.

Resources ►     Settlement Exchange Service

MarineTitle.com

A Division of Maritime Partners, LLC

Seattle, Washington  USA
©Copyright 1998 - 2010.      All rights reserved.

Terms of Use   |   Privacy Policy   |   About Us   |   Testimonials  |   Partners   |   Advertising   |   Add Link   | Contact Us