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My friend is buying a boat, previous owner owes slip fees so...

4962 Views 56 Replies 18 Participants Last post by bwaherne, 2 mo ago

sailguy40

Discussion Starter · 3 mo ago

My question is, if my friend buys the boat, is it now his responsibility to pay those slip fees that the previous owner owes? Or is that between the previous owner and the marina?

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boatpoker

· #18 · 3 mo ago

The Marina can place a lien on the boat ...The boat ! Not the owner.
Who else does the owner owe that can put a lien on the vessel ?

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boatpoker

· #21 · 3 mo ago

MikeOReilly said:
I think some of you are making this unnecessarily complicated. The previous owner -- not the boat -- has a legal obligation to the marina. The new owner has no relationship with the marina. Inanimate objects cannot enter into contracts, only people, or in the case of a corporation an "artificial person," can sign a contract.

The primary issue the new owner faces is the possible lien on the asset (the boat). The secondary issue could be a desire to carry on doing business with the existing marina.

A marine lien placed by the marina on the boat follows the boat regardless of the owner. I've been involved with several such cases and will be testifying (as to condition & valuation) in one such case this summer. So yes, the buyer could buy the boat then lose it to the lien holder(s).

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boatpoker

· #45 · 3 mo ago

MikeOReilly said:
Yes, that's why I mentioned (twice) the issue of a lien, but the debt is owed by the PO, not the new owner; not unless the sale agreement specifically includes past encumbrances (which should be a HUGE red flag). A lien is made against an asset as a form of surety. The marina can foreclose on the asset to recoup their loss, but the debt is still the PO's.

A lien must be registered, so it's relatively easy to check whether one exists. There is also a process for registering one -- it's not a slam-dunk -- and there's usually a small cost involved.

I'd search the public registry of the jurisdiction to check regarding a lien. If there is none, then the new potential owner is good to go.

The punch line is the same ... Bob buys a boat with a lien attached. Boat is seized. Bob is still out his money and his boat regardless of who owes the debt.

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