Boat title issues - who should cover the costs?

[JustinCrowther]

Hi,
Having lots of issues with boat title for a sailboat bought in Florida in 2005.

It was bought through a major broker and the vessel was bought from a Fl resident in Fl. He had bought the boat himself from Martinique where she was de-registered. He paid import duty but as far as I can tell, never registered her in the US.

I did not register her in the US either, as I am non resident and the broker advised (incorrectly) that as long as she was undergoing work (which she was in a major way) she could stay in the US using the 20 day removal Affidavit. I have subsequently been advised this is not right and dealt with tax issues directly.

The remaining issue is regarding Title. I have original bills of sale, but according to brokers, this is not proof enough to sell the boat in US. They have insisted on Florida title and advised I was not given the correct documentation to close the sale.

I have managed to find a way through this using a documantation agent, but should it be me picking up the cost for correcting the paperwork and getting the title or the broker who should have been acting on my behalf for the sale (after all, he banked the commission fee). He/They are refusing to admit to liability as are the association. What should I do? Helpful comments welcomed

[JimHawkins]

You can start by posting the name of the brokerage here, and we'll all know to stay away from them.

[sailingdog]

If you bought the boat through a major broker, the broker should have been responsible for providing you with the title to the boat FREE AND CLEAR of all encumbrances, as was probably the wording in the P&S agreement.

If the broker didn't do this... they didn't do their job, and what the hell were they being paid for???

[sailingfool]

Originally Posted by JustinCrowther

....
I have managed to find a way through this using a documantation agent, but should it be me picking up the cost for correcting the paperwork and getting the title or the broker who should have been acting on my behalf for the sale (after all, he banked the commission fee). He/They are refusing to admit to liability as are the association. What should I do? Helpful comments welcomed

Understandably aggravating, but you should remember that the broker was working for the seller, not you, regardless of how chummy he/she may have behaved. The broker owes you only what deliverables are detailed in the contract you signed, and even then those would be seller's resposibilities, not the broker's.. as SD says, if the contract requires delivery of a title, you might be able to go back to the seller, more likely it requires only any cooperation necessary for you to do your titling....

[hellosailor]

"but should it be me picking up the cost for correcting the paperwork and getting the title or the broker who should have been acting on my behalf "
And the answer is, welcome to America. Here, the normal broker is a "seller's broker" who works for the seller and the seller only. If YOU employed a broker and asked him to find you a boat, he might be a "buyer's broker" and legally obligated to you, but that is very rare.
Broker liabilities are highly limited and regulated by law, and unfortunately in what we lovingly call "FloriDUH!" the laws are often fast and loose.
The odds are that the broker owes you nothing, the seller may or may not owe you anything, and you may be stuck with a boat illegally imported into the US or improperly sold in the US. The State of Florida will probably be expecting sales taxes and penalties back to the sale date as well, since the boat was in Florida waters for more than 90 days.
I believe Florida only allows 90 days grace, regardless of whether the boat is on the hard or afloat. You might need to check into that as well. If the seller is still a Florida resident, your recourse might be to use the Small Claims Court system, which may cost you several hundred dollars to file but allows you to take them to court without an attorney. (Although an attorney might be the better way to proceed at this point.)
If you can't find the seller...you'll have to contact whatever agency you plan to register the boat with, and find out how they want papers for it. "Missing title" certificate or otherwise. As you're not a US resident, that probably means Florida state registration--and paying the penalty for not paying sales tax and registering it after all this time. Walk delicately.

[FloridaWriter]

You didn’t indicate if a lender held a mortgage on your boat, but assuming that you own the boat without any liens, Florida gives you 30 days to present a manufacturers statement of origin and a valid title, pay sales tax (or show a valid receipt for the sales tax paid in another state) and display the registration. Registration is done at any county tax collector's office.
Operating the vessel after that 30 day grace period is a second degree misdemeanor.


You do NOT need a title if the vessel is a US Documented vessel, or a vessel from another country temporarily using the waters of Florida for not more than 90 days.
This might help: http://www.flhsmv.gov/dmv/FFFVO.pdf

Good luck