Boat Title Methods Overview

What you should know about the various options for titling a boat.

This overview will provide an understanding of what boat titling is all about with a description of the various recording options. The information covers all types of watercraft from ski boats to mega yachts on the state, federal and foreign levels. You will also find references for more detailed information regarding specific titling requirements and applicable regulations.

Boat Title Definition

A boat title can be defined as a governmental certification that establishes legal ownership of a particular watercraft. It affords a designated party or multiple parties with rights of possession and operation which includes the ability to encumber or transfer such entitlements. Although typically evidenced by the issuance of an actual certificate, some jurisdictions offer what are known as electronic or paperless titles which are maintained in a database.

Evidence of Ownership

Ownership rights are acquired through instruments such as manufacturer statements of origin, builder's certifications, bills of sale, transfers of interest, court awards, and various other methods of conveyance. These are the items that must be presented when applying for a government issued title certificate. However, the extent to which these are recognized may vary among various jurisdictions.

Registrations vs. Titles

Although boat registrations and titles typically go hand-in-hand, there is a difference in functionality. This is especially true when it comes to state level jurisdictions in which a registration certificate merely affords operating privileges whereas a title certificate serves as bona fide evidence of ownership. Registering a boat can also be viewed as a process through which a title may become established. This applies in particular to U.S. Coast Guard documented vessels where a certificate of documentation serves as both evidence of enrollment and ownership.

State Titles

Most state jurisdictions now offer both registrations and titles in a similar fashion as those for vehicles. However, there are a few hold-outs that are still in a registration only mode and do no provide titles. Although generally accepted in other jurisdictions for re-registration and subsequent titling purposes, these are sometimes less than reliable. This is because stand alone registration requirements are often more relaxed than those involving the issuance of a title.

Federal Titles

Boats approximately 25 feet in length that are owned by U.S. citizens will usually qualify for USCG documentation. Although not mandatory for recreational boats, there are several advantages in this method of titling as explained in other sections of our website. However the application requirements are quite stringent and enrollment fees are typically higher than registering on the state level. While documentation precludes titling on the state level, it does not always exempt recreational boats from registration requirements or the collection of assessments and taxes.

Foreign Titles

Federal or national boat titling in most foreign countries is similar to USCG documentation. However, stand-alone titling on the provincial levels is not all that common. In this case boats are licensed or registered, but not usually titled in a formal sense. In the absence of federal titling they may accordingly serve as quasi-titles or evidence of ownership and are usually recognized as such in other jurisdictions. Information on foreign titles is available in the resources section of our website.

Liens and Encumbrances

Boat titles may become encumbered by loan security arrangements, vessel mortgages, mechanic's liens, and even hidden maritime liens. When proven or perfected, these effectively become equity positions in the boat itself. Methods by which boat liens and encumbrances are recorded may vary among different jurisdictions. In title states, security interests are typically shown on the certificate of title. In non-titling states, they are recorded with a county clerk or secretary of state as Uniform Commercial Code filings. When a boat is Coast Guard documented, these are handled more like a real estate transaction. Here, a lien or encumbrance is recorded on the vessel's underlying abstract of title. In any event, hidden or non-recorded maritime liens may become attached the boat itself and become a burden for subsequent owners. More information in this regard is available in other sections of our website.

Conclusion

The most important thing to keep in mind when it comes to boat titling is that regardless of the method, ownership may still become subject to disputes and challenges. If a title was acquired under fraudulent conditions or the boat was previously stolen, a subsequent owner could end up forfeiting any rights of equity and possession. This precipitates the need for a comprehensive title search on behalf of anyone involved in a boat transaction, regardless of how it is currently registered, titled or documented. You should consult with a qualified attorney about any such concerns or perhaps the need for protective contractual arrangements.

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