Our FAQs page contains answers to the most frequently asked questions
about Coast Guard vessel documentation, state level boat registration,
boat titling, foreign registry, and our services. The questions are
derived from the most common inquires we receive from vessel buyers, boat owners, marine lenders,
yacht brokers, boat dealers, marine attorneys, and the general boating
public.
We hope you enjoy this
resource and be sure to
bookmark
our web site to stay current with the latest revisions. Please contact
us if you have questions about any of these subjects
● Our Services FAQs - Answers
to frequently asked questions about our online self-services, vessel
forms, databases, and our web site in general.
● Boat Registration FAQs - Answers to frequently asked
questions about state level boat registration, boat trailer
registration, and outboard motor registration.
● Vessel Documentation FAQs - Answers to frequently
asked questions about the various aspects Coast Guard Vessel Documentation
for pleasure and commercial vessels.
● Vessel Title Research FAQs
- Answers to frequently asked questions about conducting record
searches for federal, state, and foreign registered vessels.
● Foreign Registry FAQs -
Answers to frequently asked questions about foreign yacht registries as
they relate to vessel documentation and boat registration.
● Boat Buyer FAQs - Answers to frequently asked
questions from boat buyers about vessel documentation and boat
registration as they relate to purchasing a boat.
● Boat Owner FAQs - Answers to frequently asked
questions from boat owners about vessel documentation and boat
registration as they relate to owning and selling a boat.
● Marine Lender FAQs - Answers to
frequently asked questions related to securing an interest in Coast
Guard documented vessels or state registered boats..
● Yacht Broker FAQs - Answers
to frequently asked questions related to vessel documentation, boat
registration, and closing transactions on brokered boats.
● Boat Dealer FAQs - Answers to
frequently asked questions related to vessel documentation and boat
registration on new and trade vessels.
Our services FAQs
will provide answers to frequently asked questions about our
services and forms. Please visit our Services Page and
Forms Page for
additional information about this subject.
What type of services do you offer? -
MarineTitle.com has become the nation's undisputed leader with
respect to web based vessel documentation and boat registration
self-services. We are the first in our industry to offer a very
unique and low cost alternative to expensive documentation agents. Our
online self-services represent the internet's most comprehensive array of downloadable forms,
self-service kits, instructions, guidelines, and resources which make it very easy for
anyone to file direct with the appropriate state, federal, or
foreign titling agency. Please visit our Services page and Forms
page for a complete description of each product.
How much do I save with
your online self-services? - In addition to
governmental filing fees, you will typically pay from several hundred dollars
to over a thousand dollars for the
services of a vessel documentation agent. Our vessel documentation or boat
registration forms and self-service kits are available for just a
fraction of what you would normally pay. The fee for each
self-service product is
clearly listed on our Services and Forms
pages.
What are the pros and
cons of filing my own recordings? - Filing
your own recordings will require a certain investment of time end
energy. Although normally simple, vessel documentation and boat
registration recordings can get complicated under certain
conditions. This is especially true if
the transaction involves court actions, estates, and commercial
vessel transfers. However, we do not simply leave you to your own
devices should you encounter difficulty or need help when using our
self-services. On the plus side, you will
enjoy a substantial savings, maintain full control of the
process, and walk away with a much better understanding of how
your vessel is titled or registered.
Why should I pay when some forms are available free on government
sites? - Our forms are not generally available
from governmental sites. However, you will find in such cases that
we offer far more than just downloadable copies with minimal
instructions. Our forms are completely fielded, have navigation
tabs, come bundled with expanded guidelines, and include multiple
examples of usage adaptations. As with all of our products, your
complete satisfaction is also fully guaranteed.
What
type of support do you provide for your self-services? -
Online support is an integral part of every product we offer. Each
self-service kit or individual form comes with a contact link where
you will get a timely response to any questions and
additional instructions you may need on how to complete your
transaction. Our self-service kits and individual forms are
all backed by a satisfaction guarantee where you may request a full refund if
they do not meet your
expectations.
What are your qualifications and background? -
Maritime Partners, LLC, the publisher of MarineTitle.com, is staffed by
individuals with extensive backgrounds in vessel documentation, boat
registration, marine escrow, yacht brokerage, boat sales, and yacht
chartering. We are also highly
skilled in web development, electronics, and systems
integration.
Where do I go if I wish to use a documentation agent? -
Self-services are not for everyone, and we will be the first
to say that you should employ a documentation agent if you
have neither the time or inclination to implement your own
recordings. However, you should keep in mind that documentation
agents are not a valid substitute for legal assistance and will
charge a substantial fee for their services.
Please contact us if you have any
remaining questions about this subject matter.
Our boat buyer FAQs
will provide answers to frequently asked questions we receive from
boat buyers. Please visit our Boat Buyer Page
for additional information, articles, and resources for boat buyers.
What is a so called paper trade? - Many states
allow a reduction in sales or use tax on a vessel purchase for the
value of a trade vessel. This has created a tendency among some
buyers to arrange for passage of title for a trade through the
seller and then on to a third party as evidenced only by bills of
sale. The buyer maintains control and possession of the trade
pending delivery to the third party. Buyer's should be aware that
such tax deductions can be disallowed should the respective state
not view this as a bona fide transaction. Sellers should also be
concerned about stepping into the chain of ownership, even if it is
only on paper.
Where can I find marine escrow services for the boat I am buying?
- Marine escrow agents, other than yacht brokers, marine
lenders, and attorneys, are almost non-existent in the United
States. There are a limited number of vessel documentation agents
which provide settlement services, but they are not generally licensed
or regulated for escrow activities. You should accordingly be very
cautious when utilizing this type of service. The only other option is an internet service which is listed in our
Directory Page.
Please contact us if you have any
remaining questions about this subject matter.
Our boat dealer FAQs
will provide answers to frequently asked questions we receive from
boat buyers. Please visit our Boat
Dealer page for additional information, articles, and resources
for boat dealers.
Can we file a preferred vessel mortgage ourselves in conjunction
with in-house financing? - Filing for initial
documentation with a preferred mortgage on new boats is an easy task. It is simply a matter of sending the builders certificate, a
bill of sale, an application for documentation, and a preferred
vessel mortgage directly to the National Vessel Documentation Center.
You can recover hundreds of dollars in administrative costs and
avoid last minute delays by integrating this process with your
in-house financing service. Please visit our Services page where you
will find a listing of self-service initial documentation and
preferred mortgage kits which can fulfill these needs. We also
provide free advisory services and a satisfaction guarantee with
each
package.
When do I need a Builder's Certificate on the sale of a new boat? -
It depends on whether the boat is to be documented with the U.S.
Coast Guard. The National Vessel Documentation Center will accept a
Manufacturer's Statement of Origin (MSO) to establish ownership, but
this will not qualify for establishing build evidence. A properly
drafted Builder's Certificate or a letter from the builder with the
necessary information must be presented for this purpose. Build
evidence is not required if the vessel is to be documented solely
for recreational purposes. However, Certificate of Documentation
will appear incomplete without such information and the new owner
may find this objectionable. Most builders that construct boats of
the size which will qualify for documentation should be able to
provide a Builder's Certificate. If not, a blank Builder's
Certificate form is available from our Forms Page.
Please contact us if you have any
remaining questions about this subject matter.
Our boat owner FAQs
will provide answers to frequently asked questions we receive from
boat owners and sellers. Please visit our
Boat Owner Page for additional
information, articles, and resources for boat owners.
May I simply allow my Coast Guard document to expire if I no longer elect
documentation? - You must surrender your last
Certificate of Documentation and provide a written notification if
you wish to remove the vessel from documentation. This applies, even
if your documentation has expired. A "Request for Removal" form with
instructions can be found in the "Vessel Documentation Forms"
section of our Forms
page.
Where can I find marine escrow services for the boat I am selling?
- Marine escrow agents, other than yacht brokers, marine
lenders, and attorneys, are almost non-existent in the United
States. There are a limited number of vessel documentation agents
which provide settlement services, but they are not generally licensed
or regulated for escrow activities. You should accordingly be very
cautious when utilizing this type of service. The only other option is an internet service which is listed in our
Directory Page.
What is a so called paper trade? - Many states allow
a reduction in sales or use tax on a vessel purchase of for the
value of a trade vessel. This has created a tendency among some
buyers to arrange for passage of title for a trade vessel through
the seller and then on to a third party as evidenced only by bills
of sale. The buyer maintains control and possession of the trade
pending delivery to the third party. Buyer's should be aware that
such tax deductions can be disallowed should the respective state
not view this as a bona fide transaction. Sellers should should be concerned about stepping into the chain of
ownership, even if only from a technical perspective.
Please contact us if you have any
remaining questions about this subject matter.
Our boat
registration FAQs will provide answers to the most frequently asked
questions we receive about boat registration and titling on the
state level. Please visit our
State Page and our
Boat Registration Summary for additional information, articles,
and resources regarding state level boat registrations and titles.
What exactly is boat registration? - Boat
registration is the the process by which boats and watercraft are
listed on the records of the state where they will be principally
operated. Upon payment of the registration fees and any related
taxes, the state registration agency will issue a registration
certificate. These must be renewed or replaced on a one to three
year basis depending on the state. Replacement certificates issued
upon each renewal and new color coded tabs or stickers are awarded
for that period. On a first time registration, the state will also
assign a registration number which must be permanently affixed to
the boat adjacent to the tabs. Although registration certificates can serve as proof of ownership
when issued by a non-title state, they should not be confused with a
state title certificate or a Coast Guard certificate of
documentation.
What is the difference between boat registration and state
titling? - Boat registration certificates are just
like those issued for a vehicle in that they must be renewed and are
replaced on a periodic basis. On the other hand, boat titles are
issued on a one time basis and are not replaced until there is a change in the
registered or legal ownership. Registration certificates must be kept on
the boat during its operation, but the title is held by the
registered or legal owner for safekeeping. The confusing aspect of
boat registration is that not all states issue boat titles as they
would for a vehicle. Under these circumstances, the registration
certificate acts as a quasi-title because it is generally accepted
as proof of ownership. This is assuming of course, that the boat has
not been awarded a certificate of documentation by the U.S. Coast
Guard which would then become the title. Please visit our Boat
Registration Summary for a list of states which do not provide boat
titles.
Do I need to register or title my boat with the state if it is U.S.
Coast Guard documented? - Coast Guard documented
vessels are subject to registration in certain states. However, documented vessels
are not subject to state titling as this violates federal regulations. States are allowed to
issue registration certificates on documented vessels because the
Coast Guard does not view these as bona fide titles. Please visit
our Boat Registration Summary for a list of states that require the
registration of documented vessels.
Must I be a U.S. Citizen to title or register a boat on the state
level? - Citizenship is not a issue for state level
boat registration and titling. Residency is not typically required
of foreign owners either, but the boat must be located within the
respective state.
Can I register my boat in the State of Delaware to avoid taxes?
- Delaware does not levy sales, excise, or personal property
taxes on boats. Accordingly, many boat owners form entities such as
corporations in Delaware to establish in-state residency for boat
registration purposes. However, in order to qualify for the
registration, you must declare on the application that Delaware will
the the state of principal use.
Please contact us if you have any
remaining questions about this subject matter.
Our foreign
registry FAQs
will provide answers to frequently asked questions we receive about
foreign yacht registries. Please visit our
Foreign Page for additional
information, articles, and resources on this subject.
How can I conduct a title search on a foreign registered vessel?
- Foreign registry systems are for the most part quite similar
to our Coast Guard vessel documentation system here in the United
States. In most cases the respective federal agency can issue a
Transcript of Registry which offers the same basic information as
our Coast Guard's Abstract of Title or Certificate of Ownership.
Some foreign provinces also issue boat registration certificates or
licenses which serve the same function as those issued by our
states. The biggest challenge in obtaining foreign vessel title
reports is, of course, the language barrier. Accordingly, foreign
searches often require the assistance and cooperation of the seller
while working in conjunction with a qualified translator. Please
visit our Foreign Page for additional information, articles, and
resources regarding this topic.
Is the seller normally responsible for de-registering a foreign
vessel ? - As with all things in vessel purchase
transactions, this can be a matter of negotiation. However, it is
generally the seller's responsibility to provide all of the
necessary items that will allow a domestic buyer document the vessel
and register it on the state level. It is also much easier for
the seller to handle the de-registration process from a logistical
perspective, especially when dealing with a foreign language.
Should a seller be required to de-register a foreign vessel prior
to closing? - This is a difficult issue because
de-registration can be expensive in some cases and sellers generally
want to ensure that a sales transaction will be consummated before
doing so. On the other hand, a buyer would then be relying solely on
the seller's promise to do this after the closing. The solution may
necessitate a binding agreement which spells out such obligations or
a hold-back reserve from the closing proceeds until de-registration
has occurred. In any event, it is something that should be addressed
as part of the purchase and sale negotiations.
Must I be a U.S. Citizen to title or register a boat on the state
level? - Citizenship is not a issue for state level
boat registration and titling. Residency is not typically required
of foreign owners either, but the boat must be located within the
respective state.
Can I register my boat in the State of Delaware to avoid taxes?
- Delaware does not levy sales, excise, or personal property
taxes on boats. Accordingly, many foreign boat owners form entities
such as corporations in Delaware to establish in-state residency for
boat registration purposes. However, in order to qualify for the
registration, you must declare on the application that Delaware will
the the state of principal use.
Please contact us if you have any
remaining questions about this subject matter.
Our marine
lender FAQs
will provide answers to frequently asked questions we receive from
marine lenders. Please visit our
Marine Lender Page for additional information, articles, and
resources for marine lenders.
Exactly what is a preferred vessel mortgage? -
A preferred vessel mortgage is an instrument which perfects a
lender's interest when recorded with the National Vessel
Documentation Center. However, mortgages can only be filed on
vessels which are actively documented or in the process of
becoming documented. Any number of mortgages can be recorded on the
same vessel and they attain priority according to the date on which
filed. Please visit our Guides page, for more information about
vessel documentation and mortgages. Self-service preferred
mortgage filing kits can also be found on our
Services page and individual mortgage forms
are available on our Forms page.
When should I require a preferred vessel mortgage to secure a boat loan?
- The issue of whether to require a preferred mortgage is a moot
point if the boat is too small to qualify for Coast Guard
documentation. As a rule of thumb, most boats under 25' in length
can not be documented. A preferred mortgage can only be recorded on
a vessel that is currently documented or in the process of acquiring
documentation. Once filed, it will rank higher in priority than
anything recorded on the state level such as a legal ownership position
or UCC recording. Many lenders require a preferred mortgage under
any circumstances if the boat is large enough to qualify for
documentation. Others have risk thresholds and may forego such requirement on smaller loans.
Do I need to record my security interest on the state level if I
have a preferred mortgage?
- If your mortgage has been properly recorded with the
National Vessel Documentation Center, there is no real need to
perfect it on the state level. However, some lenders elect to file a
UCC financing statement as an interim measure until a mortgage has
actually been recorded or to cover any accessories. The lag time
between a mortgage filing and its actual recordation can be several
months depending on the documentation center's workload. Many
lenders also insist on becoming named as a legal owner on state
level registrations if such methods are available for documented
vessels.
Does the preferred mortgage cover a boat trailer?
- A boat trailer is considered a vehicle rather than a
vessel. Accordingly, your security interest in a boat trailer should
be perfected on the state level even though you have a preferred
mortgage on the vessel itself.
When should I file a UCC financing statement?
- A UCC recording is appropriate for perfecting an
interest in a boat, trailer, or outboard motor that is neither state
titled or Coast Guard documented. However, many lenders elect file
UCC statements in any event as an interim protection measure until
higher level recordings have been implemented. UCC filings are most
common in states that register boats, but do not issue corresponding
titles
Please contact us if you have any
remaining questions about this subject.
Our vessel
documentation FAQs
will provide answers to frequently asked questions we receive
regarding U.S. Coast Guard vessel documentation. Please visit our
Federal and
Guide pages for
additional information, articles, and resources about vessel
documentation.
What is Coast Guard vessel documentation? - Coast Guard
vessel documentation is a national form of vessel registration which
is administered by the U.S. Coast Guard's National Vessel
Documentation Center. It is one of the oldest functions of our
Government, dating back to the 11th Act of the First Congress.
Vessels that meet the required qualifications are issued a
Certificate of Documentation which serves as evidence of ownership
and entitles the vessel to engage in certain commercial activities.
Although vessel documentation is optional for vessels that operate
exclusively for recreational purposes, it is required for vessels
that will engage in commercial activities within U.S. waters.
Certificates of documentation for commercial vessels must be
endorsed for the respective types of usage.
Is my vessel large enough for documentation? - In
basic terms, a vessel must measure in volume at a minimum of five
net tons. Depending the length beam, and overall depth, most vessels
will need to be at least approximately twenty five feet in length to
qualify. Vessel tonnage is determined by a measurement process
rather than by calculating the vessel's weight or displacement.
Depending on a vessel's length, the Cost Guard will require either a
simple declaration from the owner, or a formal detailed measurement
by an approved agency.
Must I provide my social security number when applying for
documentation? - Unless you are an entity with a
federal tax identification number, the bottom line is yes, you must
provide it. Many have tried to get around this and many have failed.
It is a regulatory requirement and without it you will simply not be
issued a certificate of documentation. The Coast Guard is however,
very protective of such information and will not disclose it to the
public.
Must a vessel be U.S built to qualify for documentation?
Although the place of build is not an issue for recreational
vessels, evidence that a vessel was built in the United States is
required for those which are to be used in a fisheries or coastwise
trade. Such evidence usually comes in the form of a Builder's
Certification which is issued by the manufacturer.
What are the citizenship requirements for documentation?
- As a general rule, all owners of a documented vessel must be
US Citizens. This also applies to legal entities such as
Corporations, Limited Liability Companies, and Partnerships.
Corporations must be registered in the U.S. in order to own a
documented vessel. Principals who own and operate corporations other
legal entities that own a documented vessel must be U.S. Citizens in
their own right. An individual person who owns all or part interest
in a documented vessel must be native born, naturalized, or a
derivative U.S. citizen. Cost Guard documented vessels may be
operated or placed under the command of a foreign citizen only if
the vessel is used for recreational purposes.
Can more than one documented vessel share the same name?
- Yes, vessel names are not exclusive and any number of
documented vessels can share the same name. In order to see how many
vessels are documented under a particular name, you can visit our
Database page and perform a vessel documentation search.
Why must I declare a managing owner on my documentation?
- In cases where there is more than one owner, the Coast Guard
wants to designate only one of them for mailing and contact
purposes. There are no special obligations for a managing owner
other than to return a yearly renewal notification which is sent by
the National Vessel Documentation Center.
Do I have to renew my certificate of documentation?
- The certificate must be renewed annually based on the date
of issue. There is no renewal fee if renewed before the expiration
date. The Coast Guard will send a Notice of Renewal to the address
they have on record for the managing owner approximately 45 days
prior to expiration. However, it is the owner's responsibility to
renew even though such notification was not received. A late fee of
$5.00 will be assessed for late renewals which do not exceed 30
days. After that time, an Application for Documentation to file for
a reinstatement must be submitted with the appropriate fees. You
will find a Renewal Certification form with instructions on our
Forms page and a Reinstatement of Documentation kit on our Services
page.
May I simply allow my Coast Guard document to expire if I no longer elect
documentation? - You must surrender your last
Certificate of Documentation and provide a written notification if
you wish to remove the vessel from documentation. This applies, even
if your documentation has expired. A "Request for Removal" form with
instructions can be found in the "Vessel Documentation Forms"
section of our Forms
page.
Exactly what is a preferred vessel mortgage?
- A preferred mortgage is an instrument which is given status
as a maritime lien. Depending on the filing date, the mortgage
attains a certain priority in the event
of default. It also gives the mortgagee control in that once filed,
the Coast Guard will not allow a
change of vessel ownership, name, and hailing port without the
mortgagee's consent.
Does documentation exempt my vessel from state level titling or
registration - Federal regulations prohibit state
titling of documented vessels. However, the states may at their
option issue yearly registration certificates for revenue collection
and other purposes. Certain states exempt documented vessels from
registration requirements. Please visit our Boat Registration
Summary for this information. It can be found on our State page.
Where do I get a U.S. build waiver for a small passenger vessel?
- The Maritime Administration administers waivers for small
passenger vessels with regard to operation in the coastwise trade.
For further information, please visit
www.marad.dot.gov/programs/smallvessel.
Please contact us if you have any
remaining questions about this subject.
Our vessel
title research FAQs
will provide answers to frequently asked questions we receive about
researching vessel documentation, boat registration, and foreign
registry records. Please visit our
Federal Page,
State Page, and
Foreign Page for additional
information, articles, and resources on this subject.
How do I research the Coast Guard records on a documented vessel?
- There are several ways of conducting research on documented
vessels. Links to preliminary vessel documentation searches can be
found on our Federal Page. This information should not, however; be
relied upon as completely accurate or current. You must order either
an Abstract of Title or a Certificate of Ownership directly from the
National Vessel Documentation Center in order to obtain the most
current and accurate information. Information and instructions for
placing such orders can be found on our Federal Page.
How can I conduct a title search on a foreign registered vessel?
- Foreign registry systems are for the most part quite similar
to our Coast Guard vessel documentation program here in the United
States. In most cases the respective federal agency can issue a
transcript of registry which offers the same basic information as
our Coast Guard's abstract of title or certificate of ownership.
Some foreign provinces also issue boat registration certificates or
licenses which serve the same function as those issued by our
states. The biggest challenge in obtaining foreign vessel title
reports is, of course, the language barrier. Accordingly, foreign
searches often require assistance and cooperation from the seller
while working in conjunction with a qualified translator. Please
visit our Foreign Page for additional information, articles, and
resources regarding this topic.
Please contact us if you have any
remaining questions about this subject matter.
Our yacht
broker FAQs
will provide answers to some of the frequently asked questions we receive from
yacht brokers. Please visit our Broker
page for additional information, articles, and resources
for yacht brokers. You may also
contact us if you
have any further questions or need assistance with a specific
transaction.
Can I add a link to MarineTitle.com on our web site? - We
definitely encourage the placement of a link to
http://www.marinetitle.com.This will be of great benefit to your customers
and save you a lot of time in trying to explain vessel
documentation, preferred mortgage, and boat registration issues
yourself. Simply direct a buyer or seller to our web site for all of the
information and resources they need. We also offer a free link
exchange program if you would like to be listed on our Directory
page. Just contact us
with your request and we will make sure you become listed right
away.
Should I conduct a vessel record search on my listings? -
From a practical standpoint, you should conduct a record search not
only on all boat listings of your own, but those of a co-broker when representing their listings. It is always a good practice to verify
the seller's title representations when the listing is first
initiated rather than waiting until the time of closing. The seller
may not even be aware of certain undischarged liens or adverse title
conditions which could impact the sale. A lot of valuable time,
money, and effort can go by the wayside if the buyer withdraws from
a purchase transaction under such circumstances. Please visit our
Guides page for
information about conducting vessel record searches.
As a broker, how much do I need to know about vessel
titling? - A good working knowledge of Coast Guard
vessel documentation, preferred mortgages, and state level boat
registration is vital to your career as a professional yacht broker.
Our web site can
provide you with a wealth of information, guidelines, and resources
regarding all
of these subjects. We hope you will take full advantage of what we
have to offer and invite you to
contact us at any
time with specific questions you may have about vessel titling as it
relates to
brokerage transactions.
Please contact us if you have any
remaining questions about this subject matter.
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