buying a documented boat

Yountman · #1 01-26-2011

I am buying a documented boat and was told there would be a $450 transfer of title fee, is this normal? thanks

sailingdog · #2 01-26-2011

Quote:

Originally Posted by Yountman

I am buying a documented boat and was told there would be a $450 transfer of title fee, is this normal? thanks

Transferring the USCG documentation should not cost anywhere near that much. You can see the fee schedule for USCG documentation and associated actions HERE.

catamount · #3 01-26-2011

But Dog, those are only the fees if you send in the paperwork yourself. If you have somebody else do it for you, like the Broker, then of course you will have to pay whatever they ask! [/sarcasm]

Yountman, the broker or seller in your deal should provide you with a proper "Bill of Sale" using the appropriate USCG form. They might charge you a notary public fee, because this has to be notarized. The broker might also have done a title search with the USCG and would pass on that fee to you as well.

As soon as the seller has sold you the boat, their documentation is invalidated. The USCG would appreciate a letter from the seller notifying them of the sale, but it is not required as far as I know. To re-document the boat in your name, you simply send the USCG your notarized bill of sale (in the acceptable USCG format), an application form which you can get from the USCG website, and your money.

At least that was my experience.

JKCatalina310 · #4 01-26-2011

You can do it yourself, but if you choose to have someone do that for you that is the going price.

paulk · #5 01-26-2011

$500 for filling out forms that the Coast Guard will be glad to help you complete if you call their 800 number (you're already paying them!) seems pretty steep. At one point we had a change involving the buyout of one of our partners, making for more than average complexity. The USCG Documentation Service was helpful, courteous and a pleasure to work with.

sailingdog · #6 01-26-2011

Quote:

Originally Posted by paulk

$500 for filling out forms that the Coast Guard will be glad to help you complete if you call their 800 number (you're already paying them!) seems pretty steep. At one point we had a change involving the buyout of one of our partners, making for more than average complexity. The USCG Documentation Service was helpful, courteous and a pleasure to work with.

Well, about $100 of that would be the fees required to transfer the boat's documentation properly... but yeah, they're charging a pretty stiff fee for doing not a whole lot..

Yountman · #7 01-26-2011

thanks for that info - the yacht salesman told me the $450 goes "to cover the title company for the transfer of documents". Anybody ever had to pay this before or am I being swindled? I am in California btw, not sure if that makes a difference

Yountman · #8 01-26-2011

oh crap, just realized you guys just answered that stuff, somehow I got onto my post thing here without seeing that. so maybe I ask the broker kindly if I may do that myself? any reason the sale could not go through if I was to pass on the $450 fee and tell them I will take care of it? THX so much, I feel much empowered to know this information!

catamount · #9 01-27-2011

Is there financing involved in the deal or are you paying cash? If there is financing involved, your lender might have something to say about how the boat gets documented. Otherwise, just ask the broker to provide you with a proper notarized USCG bill of sale and tell them that you will re-document the boat yourself. (Don't know much about California, but according to BoatUS the state also issues titles, so that might be an additional complication.)

GeorgeDog · #10 01-27-2011

Just to berate the point, we bought a documented boat last year and re-documented it in our name. It was easy and the USCG personnel were very helpful. Do not let the broker charge you for that "service" (aka rip-off) unless you like paying someone $300 an hour for paperwork. In my experience they (the brokers) will recommend not doing it yourself.

Boat buying is a dangerous time for your wallet, every "professional" involved (brokers, surveyors, boatyards) looks at you and thinks PAYDAY! So view them suspiciously and think THIEF! Then act accordingly.