How to Find Boat Liens
Boat lien search guidelines with step by step instructions.
These guidelines will provide step by step instructions on how to find any liens or encumbrance against a particular boat. This includes everything from ski boats to mega yachts whether state, federal or foreign registered.
Gathering Information
In order to conduct a comprehensive lien search, you will need
to gather up detailed information about the boat, it's registration or title
status, operational history and ownership standing. There are a number of
ways to go about this including a visual inspection, certificates in hand,
online research and information provided directly from the owner. Ideally,
you should obtain written boat title disclosure similar to that used in
professional transactions. An example can be found in the referrals for this
page that will at least provide the types of questions you should be asking.
Owner Name and Address - The owner's legal name and a physical
address are of vital importance when searching for boat liens. These are not
only important for registration and title verification purposes, it will be
crucial with regard to any requisite Uniform Commercial Code (UCC) lien
searches.
Boat Specifications - Knowing the boat's year,
make and length are helpful determining its registration and title status.
These are also a factor in search criteria, especially on documented
vessels.
Identification Numbers - A boat's identification numbers may
include the hull identification number, state registration number, official
documentation number and any foreign equivalents. These should match those
actually affixed to the boat itself and checked for accuracy against any
registration or documentation certificates.
Historical Details -
You should to the greatest extent possible, determine where and how the
subject boat has been previously registered and titled. This may offer some
clues about any hidden liens or unresolved claims.
Operational Details
- A solid understanding of where the boat is currently located, it's
permanent place of moorage, and recent areas of operation are important in
determining the existence any unrecorded claims or liens. This includes any
obligations for haul outs, major repairs, upgrades, fuel, supplies that
remain unpaid. There is also a matter of whether the boat may have caused
damages to people, property or the environment that remain unsettled.
Determining the Registration Status
The manner in which a boat is registered, documented or
titled is a
determining factor in where and how liens are recorded. Without a full
disclosure from the owner, this kind of discovery may entail some investigative efforts.
State Registered - The most obvious indication of whether a boat
is state registered can be determined by the existence of state registration
numbers on the bow or periodic registration decals on a forward area of the
hull or superstructure. Although documented vessels that are state
registered may not display the bow numbers, they must show the registration
decals.
State Titled - Not all states issue boat titles and those
which do are not allowed to provide them on USCG documented vessels.
USCG Documented
- USCG documented vessels can be recognized by three factors. First, they
must be at lease 25' in length to qualify for documentation. Second, they
must display an owner designated name and hailing port. Third, documented
boats must display state registration decals if state registered, although without the
bow numbering.
Provincially Registered - Boats that are registered on the provincial
level in foreign countries will usually display some type of registration
numbers and perhaps the respective decals.
Foreign Flagged -
Foreign vessels that are registered on the national level will usually
display a name and hailing port. They may also display the respective
country's flag or ensign.
Conducting Lien Searches
Armed with whatever information you have managed to gather up,
the actual lien searches can now get underway. The following searches may
apply depending on the status of such findings.
State Registration
- Security interests and encumbrances on state registered boats that are
non-documented and non- titled are more typically recorded as Uniform
Commercial Code filings. Additional information in this regard van be fount
by visiting the state registration overviews listed in the referrals for this page.
State Titling - Security
interests and encumbrances on state titled boats are usually shown on the
certificate of title and recorded on the underlying registration database.
Visit the state registration and database overviews for more information in this
regard.
Vessel
Documentation - Mortgages, security interests, encumbrances and lien
claims on documented vessels may be found by ordering a copy of the
underlying abstract of title. This should be searched regardless of whether
the documentation is currently active or has expired.
Provincial Registration -
Security interests, liens and encumbrances on foreign boats registered on
the provincial level may be difficult to detect. Especially if registered in
a non-English speaking country. At best, you may do some online research for
that particular country or visit the foreign registration overviews as
listed in the
referrals for this page.
Foreign Registry - Security interests,
liens and encumbrances on foreign vessels that are registered on the
national level may be found by ordering a transcript of registry which
serves the same purpose as a Coast Guard abstract of title. However these
can be difficult to interpret and may need to be translated.
Information in this regard can be found in the foreign registration
overviews shown in the referrals for this page.
Uniform Commercial
Code - Every state has provisions for recording security interests in
personal property items which technically includes watercraft and boats.
This will perfect such encumbrances on boats that are neither state titled
or USDG documented. Information for conducting UCC searches can be found in
the state registration overview referrals for this page.
Delinquent Taxes -
Delinquent taxes that may encumber a boat are sometimes difficult to detect.
These may show up as red-flags in state registration records, UCC filings or
on a USCG abstract of title. More information in this regard can be found by
visiting the state registration overview referrals for this page.
Possessory Liens
- Possessory or mechanic's liens for goods, supplies, fuel,
maintenance, repairs, moorage and storage are not always recordable or
recorded. However they become manifest upon the merit of a lien-holder's
actual possession. You should accordingly check with the respective
lien-holder to make sure any obligations have been settled.
Hidden Liens
- In the realm of maritime law, there are matters of non-recorded and
non-possessory liens which may attach to the vessel itself regardless of
current or subsequent ownership. Such items may include virtually anything
obligations or liabilities related to the maintenance and ongoing operations of the boat itself. These are known as
maritime liens and can be difficult to detect short of an exhaustive investigation effort.
Stolen Boats
- Although a rightful owner's entitlement to reclaim a stolen boat is not
typically viewed as a lien, it serves the same purpose. You should
accordingly include a stolen boat check
in your lien search efforts if there is an indication this could be the case.
Owner Background
Checks -
Conclusion
The scope and effort of searching for liens and encumbrances may depend on your confidence in the owner's wherewithal to make good on any representations or guarantees of title. In any event, resistance from an owner in providing all known information about the boat's title, lien, historical and operational status should be met with a great deal of trepidation.
References and Referrals
Comments - Suggestions - Corrections