Re: Vessel documentation, how are these look like?
Meridien here is an explanation of the documents and how they work. In a nutshell, the more a boat costs the more you need to know you really own it. Heres it is:<br /><br />The Certificate Of Origin (automobiles) or Certification Of Build (boats) is a document supplied with every new vehicle/vessel by the builder. It describes the vehicle/vessel, what it is made out of, and where and when it was built. This document often accompanies, or is combined with, a Bill Of Sale. The Bill Of Sale is a statement as to who is the rightful owner of the vehicle/vessel described in the Cert Of Build.<br /><br />If both of the original documents exist together, whoever holds them is the legal owner of the vehicle/vessel.<br /><br />In the United States (that includes Florida
but were not sure about Texas
) the norm is to borrow money to buy a new car or boat
they are expensive. The lender (bank) is required to send both the above mentioned, original documents to a local government bureaucracy (usually a states Dept of Motor Vehicles, or USCG for big boats) as proof the bank owns the boat for the purposes of registering the loan. If a loan is not registered the bank is limited as to how they can force collection of the loan. When the loan is paid in full the bank will notify the government bureaucracy that they (the bank) no longer have an interest in the property. At this point the person that paid the loan can request the return of the original documents that are in the custody of the government bureaucracy.<br /><br />Usually, the government bureaucracy refuses to return the documents and instead issues a Title, something we often call a Pink Slip. It is a little piece of paper that used to be pink, but now can come in any color
like our new money.
This Title describes the vessel and a statement of who the rightful owner is, as issued by the government. It is neither a Certificate Of Origin/Build nor a Bill Of Sale. You would think that since the Pink Slip is govt issued, it would be a controlling document. It is not. We just bought a car that did not have the Pink Slip available so we made our own, everyone signed it and we filed it with the appropriate government bureaucracy. We now own the vehicle with a brand new, government issued Title or Pink Slip
until such time as someone holding those original 2 documents shows up and challenges ownership. We are gambling that those original documents are still in the custody of a government bureaucracy somewhere and will never be produced.<br /><br />Our new project boat was purchased from an auction company that bought it from the United States Navy, who bought it from VT Halter as an OEM part for a boat they built, who bought it from U.S. Marine Inc., a boat yard in Louisiana. Somewhere in all that exists the original Certificate Of Build and Bill Of Sale. We dont know where. Instead, the U.S. Navy issued a Quasi-Certificate of Build and the auction house issued its own Bill Of Sale. A Quasi-Certificate of Build is a document that says, in affect, we didnt build the boat but we claim to own it and in good faith here is all the info that would otherwise accompany the real Certificate Of Build that we should have but cant produce because we dont have a clue as to were it is but it doesnt matter because if we did know were it was we still wouldnt give it up because no other government bureaucracy does, either. It works in place of the original Certificate Of Build that should have come from U.S. Marine, Inc.<br /><br />We pay our local government bureaucracy a fee to manage the safe keeping of all these documents for us. Its called a vehicle registration fee for automobiles or a boat registration fee for boats. In return, they give us a sticker to apply to the car/boat every year or two. Every time we get a new sticker it is a new color so we fell better about all the money we throw at our local government bureaucracy for managing our papers. Were damned proud of our colored stickers!!!
Current registration only means someone is continuing to pay a government bureaucracy to managing the boats documentation. It does not prove ownership and it does not mean there is not already an existing dispute as to who is the rightful owner of the boat.<br /><br />I tossed all that out there to illustrate there is nothing secure or final about the documentation that may accompany any boat you purchase. Any or all of the above mentioned documents could easily be forged. In addition to the documents, there are also valid substitute documents. This is why the suggestion of a broker is a good one, regardless of what (political) state you get the boat from.<br /><br />A bona-fide broker is insured so if there is ever a challenge to the ownership of the boat you bought, the brokers insurance either refunds your money to you, or they pay the rightful boat owner to release any interest they have, making you the new rightful owner. The more a boat costs, the more you should be concerned with a clear title
that is, paying someone to research the vessels documentation history so there will never be a challenge to your ownership of the boat.
