Federal Vessel Registration
What you should know about U.S. Coast Guard vessel documentation.
Vessel documentation is a national system for certifying and registering pleasure or commercial boats
that have met certain requirements. This process is administered through the National Vessel Documentation Center in Martinsburg,
West Virginia which operates under the Coast Guard commandant's direction. The program is basically designed to enhance and regulate maritime commerce,
provide evidence of nationality, authenticate ownership, promote mortgaged financing and bolster national security.
Although mandatory for vessels engaged in commercial activities, Coast Guard
documentation is optional for recreational or pleasure purposes only. In addition to the
fulfillment of certain trade requirements, documentation offers the protections and prestige
associated with owning a U.S. flagged vessel. It also provides an abstract of title showing all
ownership, mortgage, and lien claim recordings implemented during periods of active
documentation. Documented vessels are furthermore exempt from the unsightly display of state
registration numbers.
In order to
qualify for documentation a vessel must measure at least five net tons in terms of cargo
volume. This is equal to approximately twenty four feet in length depending on the vessel's
overall width, depth, and hull configuration. All types of vessels may qualify for
documentation, including power boats, sailing craft, ships, barges, houseboats, and certain
inflatables. Documented vessels are assigned a six or seven digit official number which must
be permanently affixed to an interior part of the hull. The vessel's name and designated
hailing port must also be displayed on the vessel's exterior.
As a general rule,
documented vessels must be wholly owned by U.S. citizens. This includes individuals who were
native born, naturalized, or derived from U.S. citizens while living or travelling abroad.
Citizenship rules also apply to the principal parties of vessels owned by entities such as
corporations, limited liability companies, and partnerships. Trust arrangements, joint
tenancies, estates, and other types of ownership arrangements are typically allowed whenever
they conform to jurisdictional requirements. Vessels may become documented even if not
located within U.S. waters so long as the owners have met the necessary citizenship
requirements.
One of the most endearing aspects of vessel documentation pertains to
federal legislation called the Ship's Mortgage Act of 1920. It is one of the primary
reasons that most recreational boat owners choose such an option. In fact, most marine
lenders will require documentation in order to secure and perfect their boat loans with a
Preferred Vessel Mortgage. Upon recordation, this affords them with settlement priority over
all subsequent contractual loan arrangements. It also provides lenders with a
final say with respect to changing any aspects of the existing documentation status.
Ownership, lien, and mortgage recordings on documented vessels are indexed into a "Abstract
of Title" similar to what one would find in the real estate industry. Obtaining a copy of
this is paramount to any kind of boat title research endeavor, even though a documentation
is no longer current. The documentation center can provide these for any vessel that was
ever documented. A copy of the last Certificate of Documentation can also be obtained to
confirm it's validity and expiration date. Abstracts are however cryptic and can be
difficult to decipher if there are many entries which may therefore call for professional
assistance. As for discovery or preliminary documentation research, our BoatScope database
is an ideal starting point as it can be searched by various criteria.
There are also
matters of "Lien Claim" recordings and "hidden" or non-recorded liens which can impact
documented vessels. Certain states may additionally require registration of documented
vessels which may prove relevant to a thorough title search. More detailed information on
Coast Guard documentation research and how it relates to other recording methods be found on
the "Guidelines", "Database", "State" and "Foreign" pages of our website. You will also find
some extremely valuable boat title search resources on our "Resource" page which includes "free" preliminary database search lookups and other
validation tools.