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Old 05-25-2015, 08:24 PM   #14
twistedtree
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City: Vermont
Join Date: Jan 2013
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Quote:
Originally Posted by BandB View Post
So, we're back to use a documentation agent as a couple of us recommended (They are the house equivalent of Title Agent and arrange that aspect). They can also provide escrow services. They can walk you through the process correctly. You wouldn't buy a house without a Title Agent and you wouldn't allow a check to be given to the seller. In fact, on a house you just pay earnest money until the Title work is complete. Documented boats should be thought of in the same way as houses. Many of us have more money in our boat than in our house.

In all boat transactions I've been involved with, all the title and due diligency work is done before you close on the deal. Checking for clear title is just as important as a survey, etc.

I can certainly see using an agent to handle the documentation paperwork, and perhaps order the title abstract as well. But ti's not clear to me what value they bring to begin part of the closing. You had over the money and the seller signs the USCG bill of sale. Then the boat is yours.

It's then up to you to reapply for documentation, and as pointed out, that will take months. No seller is going to wait that long to get their money, so if there is any sort of escrow, what will it be for? To ensure there are no title surprises? I suppose it's to your advantage if you can get the seller to do this, but as a sell, I'd be very resistant. I would want to buyer to satisfy themselves that the title is clear before closing, and I'd be happy to certify that there are no liens or encumbrances, etc. But I wouldn't want to wait around while the buyer applies for documentation, or doesn't. What if they drag their feet? What if they decide to register at teh State level rather than document? Then when do I get my money? It's very unlikely I'd agree to such a thing as a seller, but that's just me.
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