USCG Doc Roadblock

The Documentation Center has been giving me grief since August. A previous owner stopped renewing in 2020 and sold the boat in 2021. That sale included a lien release and clear title.
I chose to reinstate the Documentation, but after months of waiting got a notice of an unresolved lien. MD DNR retrieved the lien release and gave it to me. I submitted that and it was rejected as it did not meet their requirements. They require a notarized form with owner & bank signatures and details of where the release was recorded. There is no possible way I can produce that, and it's absurd that they think I can. I was given a phone number of that owner, but have yet to get a response. The bank declined to talk to me. The Doc Center even inferred that MD DNR lied, or screwed up processing the release, when I called them.
It turns out they have zero enforceability as they are a Notice of CLAIM of Lien. Which is not a legally binding recording. I also read that with proper documents a court can compel them to release it, for this reason. That sounds expensive and a wasteful use of courts.
Any suggestions on how to get this resolved?
The guy I bought from has a similar issue (estate sale) and a friend of his does as well. Sounds like a recurring theme with them.

You don't have any choice but to resolve this and get the lien released. Your going to have the same issue if you try and sell the boat, unless you get a cash sale and even that isn't guaranteed.

A notice of claim to lien is just a precursor to an actual lien. It has a life span. This may help: https://www.levelset.com/notice-int...one of a,preserve their mechanics lien rights.

Skybolt,
Thanks. This is a bank loan, not a mechanics lien. As far as MD is concerned, the lien was satisfied and released. The CG just refuses to accept their documents.

John E3 said:

Skybolt,
Thanks. This is a bank loan, not a mechanics lien. As far as MD is concerned, the lien was satisfied and released. The CG just refuses to accept their documents.

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I doubt the CG is singling out you. There is no doubt an issue with the validity of the documents. The DHS has specific guidelines and rules and they will not waiver. If you are running into a roadblock with the previous owner and/or institution that held the note then it's time to get a maritime attorney on the case. Or, stay with a title on the vessel

I'm curious, is your bank requiring you to document the boat?

In a world of identity theft, they have their rules for a reason.

In your case it goes back to when you bought a boat that had been previously documented which was 2 years ago. Even though the documentation had lapsed, the USCG still keeps the history of the boat.

Buying a documented or previously documented boat means you have to use the USCG forms for the sale and meet the lien release requirements if you want to consider bringing it current in the future.

Short of that…..you have to recreate the documents to their satisfaction or use your State title assuming you have one to register the boat. Any future owners will have the same problem getting it documented.

An attorney may help but the issue will come down to whether the previous owner can be tracked down. The bank should be easy for an attorney to deal with.

I would suggest contacting a large boat dealer/broker. There are certainly plenty to choose from in the Bay area. They will have either a person on staff or a sub who does the documentation for their sales. That person knows how to navigate the system and may have seen similar problems. I imagine they would charge the same fee they levy on sales which is probably much less than an attorney.

All very good points, thanks. I have a clear MD title to the boat, as did the previous owner. He received a lien release from the previous owner, issued by MD DNR. The owner prior to that also had a MD title, recorded by USCG, after satisfying their lien.
USCG threatens a $10,000 fine for failure to report, yet leaves the burden of resolving it on me. Given their fine threat, it would only make sense THEY would contact the previous owner for resolution, otherwise their fine threat is pointless.

My sister is a mortgage broker and has lots of contacts in the industry. She is trying to find out where the bank recorded the mortgage satisfaction. The owner in question works for a prominent person who grew up in the same community where my sister and uncle lived for decades, and one of her closest friends has known that family for decades. The joking suggestion of a casual comment to "mom" was raised to see if it trickles down to the former owner. I'm not pushing that idea, but who knows what might happen.

In the meanwhile I have no choice but to register with MD. They had to reissue the previous title to get signed again by me and the seller, as the original one was processed as a COD to be issued, and recorded that way. They have to reprocess that title to issue the registration.

Just went through this on a boat I brokered. Coast Guard requires the lien release be signed by a notary.

Like with most government agencies .....one size fits all. I don't think it matters to them if it is a 1999 370 AC or a 400' motor yacht or a 500' container ship......they have the same process requirements for documentation. Hopefully the notarized sign off on the loan will do the trick.