Buying from Private Seller

Golfman25

Well-Known Member
Sep 12, 2009
7,587
IL
Boat Info
1998 370 Sundancer
Engines
7.4 MPI
Ok. Considering a boat for sale by a private seller. Mid 5 figure dollar value. Will do survey/seal trial. Boat has a loan on it. And 2 owners - one's a"silent" partner. Any tips on protecting myself? Any services who can/should handle the money, title, paperwork, etc? Doesn't look like Boat US does that any longer. Thanks in advance.
 
If you're financing it ask the loan broker. They will certainly want to protect their interest. A lot can vary depending on state of registration and if the boat is documented or not.

-Kevin
 
Just work it out with your bank and the sellers bank. I did a boat ramp cash transfer of $45k cash once.... That wasn't good and very stressful. Next time we sold a boat I just had my bank contact his bank and wire transfer... They worked out the title details ...all was good.
Talk to your bank and ask how they can help
 
If you lender is a true marine lender, they will most likely hire a closing agent to check for any additional liens etc. Most charge about $500-$600 to do it, but the bank will probably require it.
 
Even if you are not financing, you can have a lien search done by a lawyer or possibly there is a way to do it yourself. Then make as a condition of sale that all liens are discharged prior to closing the deal. That is very critical based on what you said about multiple owners.
 
i bought our Crownline through a private seller. not near as much money as you are talking but the seller had a loan at a local credit union and i went through Essex. Essex wired the funds directly to sellers credit union and i paid cash to the seller for the trailer while at the notary but she had the title in hand for the trailer. i had the typical contract signed by both of us with contingencies such as survey and sea trial too. very smooth process as far as the banks went (dealing with the seller was a different story...lol)
 
If the boat is not documented the process is really no different than buying a car other than your lender/insurance agent will likely require the survey (which we all know to get regardless). You buy it, satisfy the lien from the current owner, get a document saying the loan is paid off and then you title it yourself. No more painful than titling a car you buy from a private seller.

I imagine any bank can/will run a lien search as a part of their standard process??

If the boat is documented....get ready for a slow and painful process! All of the above is the same but you have to get the title released from the USCG.

I've bought two Sea Rays from private sellers so far. One undocumented, one documented. Both worked out fine in the end. But working through USCG for title release is pure, unadulterated pain.
 
If the boat is not documented the process is really no different than buying a car other than your lender/insurance agent will likely require the survey (which we all know to get regardless). You buy it, satisfy the lien from the current owner, get a document saying the loan is paid off and then you title it yourself. No more painful than titling a car you buy from a private seller.

I imagine any bank can/will run a lien search as a part of their standard process??

If the boat is documented....get ready for a slow and painful process! All of the above is the same but you have to get the title released from the USCG.

I've bought two Sea Rays from private sellers so far. One undocumented, one documented. Both worked out fine in the end. But working through USCG for title release is pure, unadulterated pain.

Closed on our loan April 7, still waiting to get my documents back from the USCG.... almost 16 weeks....
 
I am not using a loan to purchase. Looks like the vessel was documented as some point. Not sure if it has been updated.
 
I am not using a loan to purchase. Looks like the vessel was documented as some point. Not sure if it has been updated.
You can search the USCG document database if you have the Document number. Give you the ownership history.
 
It doesn't have to be tough. I look at the boat, hand them cash, hook it up and drive it away, or test it on the water, then pay and leave. Our state is pretty easy with paperwork. I would want to make sure that they pay off the loan before you take physical possession, or the lender might get the idea that they own the boat.
 
You can search the USCG document database if you have the Document number. Give you the ownership history.
The last time i tried to search, it looked like the Coast Guard may have stopped providing the historical ownership information. A couple years ago I was getting a lot of detail, now I just seem to get the current registration without ownership data. Maybe I'm looking in the wrong place.
 

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