Please help WHEN did you pay the seller ?

[arch007]

Thanks in advance.

I would really like help buying a boat from a private seller in california.

My concerns are:

1. When to pay the seller. After he signs over title ?

2. How to check for liens

Thanks once again

arch

[slowpoker]

At least, in Florida; the Official Title that the seller signs will show if there are any Liens.
At a local Bank, the Title can be signed over to you and if required by Cal. Law, can be
Notarized there also in front of a Bank's Official.
Also, the Bill of Sale should be a Legal Document, showing price and terms.
You can pay the seller at the Bank in front of the Official when they sign the Title and show you Identification which you should copy the details, Driver's License has lots of info for you. Registration for his Automobile will show their address.
Then, I would insist that the seller go with you to the Vessel Registration Office and follow the instructions of that other Official, pay the Sales Tax and get the Vessel registered in your name there, in front of the Seller. Get his Automobile Tag Number also to match the registration. Of course, check the vessel's Identification Numbers, make a rubbing by placing a piece of paper to cover it and rub with a soft lead pencil sideways to imprint the actual numbers on the paper in case you need it at the Vessel /Registration Office and show it at the Bank. Those Vessel Identification Numbers are usually punched into the stern of vessels near the rub rail.
Congratulations!. Hope your new to you boat gives you years of satisfaction.
Did you do the Survey yourself?, if not, the hired Surveyor could help you somewhat with the local ordinances.

[Calif.Ted]

If it's a state registered boat it will have a pink slip from DMV, seller signs and you handle same as private auto sale.
I sold a documented boat for $30,000, buyer gave me a bank check and I signed Coast Guard Bill of sale.
I also went to marina office with him to assist him with getting a slip, and spent a couple hours teaching him to maneuver around the docks. I just deposited the check in the ATM and didn't try to spend it until it cleared. I guess there was an element of trust involved for both of us and you could use an escrow account thru an escrow company or broker if it's of an amount to warrant more concern.

[CaptJamesCook]

Isn't there something the previous owner has to do with USCG if it is document?

[arch007]

I had an idea. What does everyone think ?

I was thinking maybe I can exchange credit checks with the seller.

This way at least I will know whom I am dealing with ?

archie

[Calif.Ted]

Nothing else I remember if you sign the back of the documentation form, buyer had made appointment for us to use notary at the auto club nearby.





CG-1270 Certificate of Documentation: Interest in a vessel may be transferred by the last documented owner(s) on reverse of the original OR copy of the Certificate of Documentation. Signature(s) of seller(s) must be acknowledged before a notary public. Altered documents may be rejected.


https://www.uscg.mil/nvdc/instr/inst%20exchange.pdf

[TooCoys]

Here in Texas, the title will list a lien, or second lien if there are any. Seller signs the title, a few forms from parks and wildlife, you hand over a check, and you're done. Easy Peasy.

[Calif.Ted]

You can and should order an "abstract of title" from USGC for $25 on a documented boat that will list any lien holders, state registered boat will have lien holder (mortgage or loan) listed on pink and registration.

[hellosailor]

Titles will only show liens that existed at the time they were issued. If you are buying a state titled boat (as opposed to a USCG documented one) then you have to go through the procedures FOR YOUR STATE to find out if any subsequent liens have been filed against the vessel. Like, the PO might have screwed a mechanic and storage yard, and each could have put a $5000 lien on the boat, which wouldn't show on a title issued ten years ago.

There's also nothing wrong with writing up a bill of sale that says "sold, free and clear of all liens and claims" to ensure that the seller is formally attesting to the lien-free status of the boat. Including liens that may actually be in the process of being filed now, like from the boatyard he just pulled it out of.

With a USCG documented vessel, the process is much simpler as the federal system is one central place that tracks the title and all liens must be registered in it.

[wunderluster]

IF you're that concerned, use a title company or a broker. Either one can put your money into an escrow account, order an abstract of title, and disperse the money at the appropriate time. If I was the seller I would want a wire transfer for the closing funds. No, you don't have to pay a broker 10% to do that.

[Dave22q]

I met the seller at the DMV where I registered the transfer, passed the check and paid the sales tax. My understanding is that any claims not previously filed with the state are blocked by the title transfer but you might want to check with your state's offices. To me, executing the transfer in a bank puts all of the risk of problems on you. Using a certified check on a local bank should solve any legitimate seller concerns.

[Dockhead]

Originally Posted by wunderluster

IF you're that concerned, use a title company or a broker. Either one can put your money into an escrow account, order an abstract of title, and disperse the money at the appropriate time. If I was the seller I would want a wire transfer for the closing funds. No, you don't have to pay a broker 10% to do that.

Yes. Or better yet, just hire a lawyer. You could probably find one who will only charge you for an hour or two of his time, and this would eliminate these risks. I wouldn't buy a boat without a lawyer, myself.

[wunderluster]

Certified checks are no longer considered cash ar a bank. They are too easily faked. A wire transfer or cash is the only safe way to transfer title. Ask your bank if they will give you immediate cash for a Certified or cashiers check.

[BandB]

Use a title and documentation company. I would also use a lawyer but that's not as key to your question. Let the title company hold and release the money, but like a home sale.

[longjonsilver]

This is a great thread guys. Many Thanks
jon