not sure a marine title company offers me much piece of mind...this is what I have always heard about boats. I have heard that title insurance is now becoming available...but not inexpensive when factored into buying cheaper boats.
Boat Title & Transaction Information For Buyers - MarineTitle.com
Who guarantees a boat or vessel title? - The words "caveat emptor" represent what is arguably one of the most important concepts you should bear in mind when purchasing a vessel. This Latin phrase, which means "let the buyer beware", is further defined in legal terms as "an axiom or principle in commerce that the buyer alone is responsible for assessing the quality of a purchase before buying". In the marine industry, this is true not only as it pertains to a vessels condition, but also as it relates to the quality its title.
Boat title insurance is not available in the marine industry and it is unlikely that a broker, titling agent, attorney, or any other party would be willing to offer such assurance. This means that buyers must generally rely on the sellers representation regarding the boat's title or lien status. Accordingly, the buyer becomes subject to the sellers good faith in rectifying any title deficiencies that may be encountered subsequent to the closing.
As an offset to these conditions, you should be diligent in gathering as much information as possible about the seller. This way you will know where to turn in the unlikely event there are some hidden liens or title deficiencies which may become evident after the closing. On or before closing, the seller should also be required to execute an explicit title warranty statement regarding any existing liens, encumbrances, or adverse title conditions. An additional precautionary measure would be to hold back a reserve from the purchase funds to deal with any such contingencies. You should of course seek the assistance of an attorney in structuring any mechanisms by which the seller can be held accountable.
It is also prudent to investigate the title's condition as opposed to simply relying on the seller's representations. There are various methods of doing this depending on whether the vessel is documented with the Coast Guard, state titled, or foreign registered. Information, guidelines, and resources for researching vessel titles on the federal, state, and foreign levels is available from our web site.
