Vessel Documentation
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Welcome to our FAQs page!

          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.
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Our Services FAQs

          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.


Boat Buyer FAQs

          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.


Boat Dealer FAQs

          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.


Boat Owner FAQs

          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.


Boat Registration FAQs

           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.


Foreign Registry FAQs

          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.


Marine Lender FAQs

          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.


Vessel Documentation FAQs

          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.

 


Vessel Title Research FAQs

          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.

 


Yacht Broker FAQs

          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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