Actions and events which may effect boat ownership equity positions.
Escrows, transfers, financing, liens, and mortgage arrangements.
Information and resources for all types of transactions.
About Boat Transactions
An overview of boat ownership & equity transactions.
There are a wide range of circumstances in which
transactions, events, or activities can affect ownership
and equity positions in a particular boat. These may include purchase arrangements, transfers of interest, security agreements,
maritime liens, foreclosures, seizures, abandonments, demolitions,
environmental casualties, and legal settlements. In most cases, the
underlying condition of an existing title will weigh heavily on how
such matters are ultimately settled or resolved.
Purchase and sale arrangements are the most common transactions in which all or part of the boat's ownership is voluntarily transferred. This can also be said for transfers resulting from gifts, asset restructuring, and legal name changes. Such dealings are often accompanied by marine financing where the owners will grant a security interest for the loan amount. This effectively gives the lender an equity position in the boat until the loan is paid off.
The creation of maritime liens is another way in which certain actions can give rise to equity changes in a boat. These may come about voluntarily when the owner purchases goods and services or involuntarily in the case of operational liabilities. Here again, the claimant will acquire an equity position in the boat until a debt is settled. One notable thing about maritime liens is that they need not be recorded in order to remain effective, even through subsequent owners.
Other types of actions which may affect or encumber a boat's title are tax liens, governmental seizures, foreclosures, theft recoveries, and judgment awards. These conditions can result in either a complete or partial forfeiture of the existing owner's equity. Under most circumstances, such changes are brought about as a result of judicial rulings or by summary execution of state and federal regulations.
Although changes in ownership, equity positions, and lien claims are generally recorded with the appropriate state or federal agency, this is not always the case. In fact, maritime liens do not have to be recorded at all in order to remain effective. The same applies to instruments of transfer and security agreements which may be none the less valid even though not recorded. The absence of proper recordings may however, affect the rank and priority of those claiming an interest in the boat.
Equity positions, liens, encumbrances, and other claims of interest are not always self evident from a boat's certificate of title, documentation, or registration. A thorough boat title and background search should accordingly be implemented in all but the simplest transactions. A check on the owner's personal background is also recommended to make sure such party has the wherewithal to make good on any representations or guarantees of tile.
Our website offers a wealth of information, tools, and resources for implementing boat transactions and title searches. This includes a complete array of related services, forms, and our exclusive BoatScope database. Be sure to visit our Service, Forms, and Database pages for additional details, examples, pricing, and ordering information.
A Division of Maritime Partners, LLC
State of Washington USA
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