Help me with an out of state purchase private purchase with a loan

[Iduna]

Hoping I can find some help here to help me get this all straight on the order of everything that I need to do.

Just got my offer accepted on a boat out of Ohio. I am a resident of Michigan.

I have a survey scheduled for tomorrow.

I'll also be applying for financing tomorrow.
What will I need from the private seller to complete the financing application?

After the successful survey, I'll have to send the money over or get a check.

Then, I need to have the boat title assigned to me.

How does the title get signed over if I'm going to have a bank lien on it?

Do I go to the Ohio BMV to get a new, official title in my name, or can I just take the original assigned title to the Michigan Secretary of State and have it all transferred in one step?

Will the lender send me the money for the boat and then I give it to the seller or is it wired directly? If it's sent to the seller, does he refund me the amount for the sales tax that I'm borrowing?

[Iduna]

Help on any of the questions would be great, even if you don't know the answer to all of it.

Lots of parallel work being done right now, just want to make sure it all comes together properly at the end.

[Cheechako]

There are people/services who do paperwork on boats, title transfer, USCG Documentation etc. The bank will want to be on the title. Personally I would have it done if there is much money involved. They will ensure the money doesn't transfer until the title is found to be clear etc. Your financing source can tell you more I'm sure.

The surveyor may have a recommendation of who he likes for title work too.
Remember, with results of the survey, you may still need to negotiate some price reduction.

[Shrew]

Does the P&S include:

Subject to Survey, Seatrial and Financing? If not then once the survey and seatrial are completed, they will be expecting a check.

Normally, there is a title company that escrows the deposit, verifies the title is clean and clear and transfers the title with the lien holder listed on the title. The title company collects funds from the lender and distributes funds to the seller.

[Iduna]

So far, everything was done verbally.
He doesn't know what needs to be done other than receive money then hand over keys and title. I'm trying to get it all straightened out correctly.

It is agreed that it's all subject to sea trial and survey, and he is expecting the money as soon as it's done. We're planning on heading over to the bank to have everything notarized a couple days after the survey, assuming it all goes well.

[Cheechako]

Originally Posted by Iduna

So far, everything was done verbally.
He doesn't know what needs to be done other than receive money then hand over keys and title. I'm trying to get it all straightened out correctly.

It is agreed that it's all subject to sea trial and survey, and he is expecting the money as soon as it's done. We're planning on heading over to the bank to have everything notarized a couple days after the survey, assuming it all goes well.

OK... First:
-If you are needing a loan to buy this boat I assume it's some amount of money. DO IT RIGHT!
-Get and sign a purchase and sale agreement. The bank will want one anyway. I have one, but not saying it's all that good or not.
-Beware of dates in the agreement. It's best to have them in there. Like "This offer expires on month/day /year." etc
-Usually the buyer puts down a deposit, "subject to inspection, survey and sea trial". It doesn't need to be a big deposit. Some want that, I refuse to leave a large deposit, even with a broker.
-Buyer pays for survey, hauling etc whether or not he buys the boat.

[Montanan]

1) Obtain a bill of sale. Reference document linked here which is the recommended US Coast Guard Bill of Sale document which can filled out online and printed for parties signatures AND FOR NOTARIZATION. Include a very detailed list of all the appurtenances & ancillary equipment that may be sold along with the boat, such as electronics, generator, outboard motor, dinghy, sails, anchors, and the trailer, list model and serial numbers. If the dinghy is over 13 feet in length then it should have a separate titling and registration for it and that will also require a bill of sale and a release of titling and registration, i.e., it's own Notice of Change in Ownership and may require to be registered and titled with the State in which waters that dinghy will reside, typically the same state as the vessel on which it is transported and stays with to service embarkation and disembarkation to shore.

https://www.dco.uscg.mil/Portals/9/D...-09-113141-317

If the boat is registered and titled with the State of Ohio then you will need to have the State titling released. If the boat is documented with the USCG then the documentation will need to be terminated with the USCG so as to avail either your USCG documentation of the vessel or State titling and then State registration with your State.

You will need a Notice of Ownership Change document for the State of Ohio.

"Notice of Address or Ownership Change or Destruction
May 19, 2020 | Ohio Department of Natural Resources ODNR
This form ensures that you get your registration renewal letter at the correct address. It also ensures that you do NOT get a reminder for a boat that you sold or that is no longer usable. For use by boat owner for address changes or boat destruction; for use by seller in case of boat ownership change.
References: https://ohiodnr.gov/wps/portal/gov/o...ing-documents/

https://ohiodnr.gov/wps/portal/gov/o...ents/form-8455

Unless otherwise exempted, registration required on boats over 13' in Ohio. Coast Guard documented vessels are also subject to registration. A complete list of requirements and exemptions may be found by visiting their website. Ohio does not have provisions for conditional registrations when there is insufficient proof of ownership.

Reference: https://www.marinetitle.com/boat-reg...on/OH-Ohio.htm

Ohio issues titles on all registered boats except for those which are Coast Guard Documented. This state has no provisions when there is insufficient proof of ownership. In this case it will be necessary to petition a local court of law for an award of ownership. Ohio has special provisions for titling abandoned boats if the value is less than $10,000 and it has been left for six months without permission on private property.

Security interests in state titled boats are recorded with the Department of Parks and Wildlife. These will be shown on both the registration and title certificates when applicable. All titles with active security interests are sent directly to the secured party. Security interests in boats that are neither titled or USCG documented are recorded with the Secretary of State as Uniform Commercial Code (UCC) filings.

Tax liens may be flagged on boat registration records, recorded as UCC filings, shown on state revenue records, or filed with a county clerk's office. There are no provisions for recording mechanic's liens or other non-secured claims against state titled boats.

If the vessel is USCG documented, a lender's security interest must be perfected by filing a preferred vessel mortgage. These are recorded with the National Vessel Documentation Center and priority is attained according to the date filed. Other maritime liens can be filed in the same manner although they function as notifications only. All mortgage and lien filings are indexed on the vessel's underlying abstract of title.
Title Searches Boat title and registration records in Ohio are maintained by the Department of Parks and Wildlife. This agency does not facilitate online searches for the general public due to strict privacy laws. However, record printouts may be obtained by an owner or otherwise qualified party by submitting a boat record request form. It is also reported that the registration office will provide telephone verifications on information shown on boat title or registration certificates in hand.

Uniform Commercial Code searches are available online from the Secretary of State. However, if there are any suspected state or federal tax liens, it may be advisable to use a public record vendor as they have a much broader access to such filings nationwide.

Ownership, mortgage, and lien search recordings for USCG documented vessels can be obtained by ordering an abstract of title and a copy of the certificate of documentation from the National Vessel Documentation Center. However, these are encoded and can be difficult to interpret, especially on older vessels with numerous recordings. It may be worthwhile to contact a professional vessel documentation company for assistance in this regard.

Non-recorded maritime liens may also be a factor when conducting boat title research in Ohio. These include liabilities for items such as services, equipment, fuel, storage, parts, supplies, and damages which can become attached to the boat itself regardless of ownership. One of the most useful tools for doing this kind of research is our premier boat history search database. It offers a gathering of eight nationwide databases into a single interface which can be searched by numerous criteria. These include records for stolen boats, marine lien claims, boating accidents, pollution incidents, auctioned boats, factory recalls, and documented vessels.

With the Notice of Ownership Change filed with the State of Ohio, the vessel's title and registration can be released by the State.

With the Bill of Sale one can pursue titling and registration with your State [registration in the State in which the boat will reside, not where you reside]. Or you can pursue documentation of the boat with the USCG.

Titling with a State or [Documentation with the USCG] avails the recordation of priority lien on the vessel by the institution that is providing you with collateralized financing for purchase of the vessel.

Vessels are either titled by a State, or they are documented with the USCG. Titling / documenting are the same thing but a vessel is provided such government database services by either one or the other, but never both. A vessel receives such either at the State level or the Federal level. USCG documentation avails USA nationality [ie., flagging] to the vessel which provides for UNCLOS rights and obligations in international waters to the vessel.

States may require registration of USCG documented vessels, depends on which State the boat is residing and if the boat is residing in the State's waters [or land] beyond a short period of temporary waiver, e.g, 90 days. One has to investigate the rules of the specific jurisdiction where the boat resides to determine the requirements. Google the subject and follow the State rules.

Google the specific State requirements in which the boat will reside to determine the rules, procedures, time schedule and documents required for titling and registration of your vessel. Your personal residency does not factor into the requirements of the vessel's registration and titling.

As to USCG documentation your citizenship and permanent resident status in the USA is required. Get's detailed so research at the details at the Nav Center of the USCG website if one wishes to have the boated documented instead of State titled. Reference link: https://www.dco.uscg.mil/Our-Organiz...ons-and-Forms/

[TrentePieds]

Iduna:

Wow! Just "wow!" Call the seller, tell 'im that you "need time to straighten things out". DON'T send the seller money till you've got your ducks in a row!

We can give you advice, and it being free from ordinary Joes, it'll be worth what you pay for it. What you really need is a "buyer's broker" to do the legal stuff - or even an attorney, depending on how much lucre is involved.

If the seller get his skivvies in a twist because you ask for an extension of the closing date, you'll known for damnsure that you shouldn't have dealt with him in the first place. The world is full off boats for sale, so don't get yourself trapped!

TrentePieds

[Tingum]

You would be better off asking these questions to whatever institution you plan on getting the loan through. Also are you using a documentation service, if so,ask them.

[Cadence]

Originally Posted by Iduna

Hoping I can find some help here to help me get this all straight on the order of everything that I need to do.

Just got my offer accepted on a boat out of Ohio. I am a resident of Michigan.

I have a survey scheduled for tomorrow.

I'll also be applying for financing tomorrow.
What will I need from the private seller to complete the financing application?

After the successful survey, I'll have to send the money over or get a check.

Then, I need to have the boat title assigned to me.

How does the title get signed over if I'm going to have a bank lien on it?

Do I go to the Ohio BMV to get a new, official title in my name, or can I just take the original assigned title to the Michigan Secretary of State and have it all transferred in one step?

Will the lender send me the money for the boat and then I give it to the seller or is it wired directly? If it's sent to the seller, does he refund me the amount for the sales tax that I'm borrowing?

Your best soure of info. is probably your lender.

[GWilly]

My lender wanted a copy of the survey as a condition to providing funds. Plus, they were on the title, not me. I’d strongly urge you to get a professional agent involved to do your paperwork. Like many of us, sounds like you know just enough to get yourself into trouble. Innocently perhaps, but potentially costly. For the peace of mind a professional will provide, its money well spent.

[Sailorman Ed]

Iduna,
you never said if you were going to keep the boat in Ohio or Michigan, that will determine where to register it (and tax it). Did you compare taxing issues? The title can be a different state. And since you said "title" and not documentation, we assume it is NOT federally (CG) documented. Most state titles have a place on the title to list the lienholder, if the seller has a lien, it will have be be released before transfer. Did you ask him? When you apply for a new title in your name, the title application will ask if there is a lienholder, yes, your lender. And if you are getting a loan, the lender is going to want to see proof of insurance who will likely need a copy of the survey. Hopefully your lender has a branch office in Ohio, best place to complete the transaction.


Slow down, get your ducks all lined up!