Title and documentation

[otaga05]

Hi folks,

I just finished negotiating on CS 36http://www.yachtworld.com/core/listi...g_id=1619&url= and I have two questions about title and documentation. Since I am not using a boat loan secured by title I can't rely on a bank to make sure the title is above board and there are not any liens etc. on the boat.

What should I do to make sure that the title is "clean"?

The second issue relates to documentation. She is documented, but if I hold the title after purchase, I won't be able to maintain the documentation as I am not a US citizen. My wife, who is a US citizen says that she would prefer not to hold the title. She works in the medical professions and for liability reasons she prefers to have major assets in my name. She also feels that since I am paying for the boat I should hold the title.

What are the pros and cons of maintaining the boat as a US documented vessel and is it worth doing despite my wife's misgivings?

BTW thanks to all the folks who helped out with my last question on sea trials. I wound up keeping a 10% escrow until the sea trial. The survey is scheduled for the end of next week.

Thanks for all the help
Otaga05

[sailingdog]

Otaga-

If the boat is documented, you should be able to check the liens via the USCG documentation site IIRC.

The long-term costs of maintaining a USCG documented boat are about the same as a state-registered boat. Some states do not require that you pay the state registration fees, so it can be less expensive, but others do not.

If you are planning on taking the boat into foreign waters, it would be a serious error IMHO to not document the boat. You should be able to document the boat with the two of you listed as co-owners, since she is a citizen.

Many foreign countries do not recognize state-registration, and state-registered boats often have to do more paperwork and pay more fees than USCG documented boats. Also, a USCG documented boat is a flag vessel of the United States and has some diplomatic reprecussions as well when sailing in foreign waters.

[CDRA]

You may have some difficult explaining to do with law enforcement as a non-resident alien, (I am assuming you are not a resident alien), on a US registered boat in coastal waters. Perhaps discuss your options with the USCG and the State that will be the boats home port.

[otaga05]

Thanks for the suggestion about co-ownership we will look into that. FWIW I am a Resident Alien if that has any impact on my options.

Otaga05

[SailorMitch]

Call the CG Documentation Office for how to get an abstract of title for the boat. It used to cost $25. It will tell you the prior owners, names of the boat, liens, etc. While you're talking to them, get their advice on your other issue. They are most helpful folks on the phone. Contact info is here: http://www.uscg.mil/hq/g-m/vdoc/nvdc.htm

[T34C]

If I may, what country are you a citizen of? I would think your country of citizenship as well as your intended use of the boat will have to figure into this. If you are a Canadian citizen you may not have an issue taking the boat into Canada with only a state rego. Just things to consider, but the CG should be able to assist.

[CDRA]

As a resident alien (I was one and am now a citizen), you can hold title issued by State authorities to property including boats in the US. I don't know if this also applies to USCG documentation.

[otaga05]

Hi T34C,

I am British, I expect that my travels will be limited to the US and Canadian Maritimes, although I have dreams of sailing to the Hebrides one day. It did occur to me that if I show up in the UK or EU as a citizen with a boat that isn't documented in the US that the powers that be might start demanding import duties or VAT.

Cheers
Otaga05

[sailingdog]

CDRA-

USCG Documentation requires that a majority of the ownership in any US documented vessel be by American citizens.

[CDRA]

I am a Brit too.
The VAT will be due if you title the boat in Britain. If the boats home port is not in Britain then the boat has not been imported, but if you maintain a home address in Britain you may be liable for VAT upon entering British water.