Deleting a vessel from documentation

M

mvoellinger

Member
Aug 26, 2008
618
Jacksonville, FL
Boat Info
2002 260DA
Engines
350 MAG w/ Bravo III
Hey everyone, didn't want to jinx it but my boat is under contract. The new guy is approved for it but his lender wants a FL title. My boat is documented. So it looks like we will have to do a deletion from documentation.

heres the problem - I don't owe a ton on it, but my company is shakey right now and I don't want to tie up any liquid assets into the deal if it falls through. So this is my understanding, and the problem comes with time frames:

1) pay off loan using his money from his lender, get mortgage release
2) submit deletion of documentation to CG with mortgage satisfaction document
3) request FL title once undocumented

is this right? Some questions here - how long do banks take to release a mortgage? Can they just fax to the coast guard the same day? I show the CG is showing 6 days behind right now on deletions with fees. Once the CG undocumentes do I then request a title from FL or does CG issue or what? How long do lenders generally give for leniency between issuing the check and when they expect a clear title?

thanks everyone....sorry for the rambling, just got off a 9 hour London to Miami flight.
 
You should be able to transfer the boat with your documentation directly to a Florida title for the new owner. Did you use a broker on this deal, they should be doing all the paper work for you and the new lender. If the bank wants to see you own the boat without other liens, they can request a "abstract of title " from the Coast Guard. Most states now allow both documentation and state title.. Also the new bank should send payoff to your lender and separate check to you for any equity. This should be very simple, any true marine lender should know what to do.
 
I think any true marine lender would prefer a CG certificate and title abstract over a state title, so you are probably in for a little hand holding to make this deal work. Also, if you ever had one, you may find that the Florida title was never deleted. Take a look at your FL registration and see if it references a title number different than your doc #.
 
The new lender is a local credit union, not sure they are 100% in the marine lending business. The boat originally came from VA so it's never had a FL title as it went straight to documented.

This is for my education, I am using a broker but want to understand the process myself.
 
mvoellinger said:
The new lender is a local credit union, not sure they are 100% in the marine lending business. The boat originally came from VA so it's never had a FL title as it went straight to documented.

This is for my education, I am using a broker but want to understand the process myself.
Click to expand...

Is there a title company in the mix? When I bought my 350 it was kinda a unique situation on the title and my dealer had a title company (similar to closing on a home) handle the exchange. They were able to get the bank what they needed and everything I needed to change the document on the boat.
 
In Washington state, I have both my USCG doc. title & state of WA title....
 
Interesting, I could've sworn I had a title from the state... But you are correct Woody, all I have is registration for the $1,000 privilege I pay to the great state of Washington.
 
Woody said:
You shouldn't have both. While your state can require registration it shouldn't issue title on a documented boat.

Titles for documented vessels
We don’t issue titles for documented vessels since the federal government provides the ownership documents.

http://www.dol.wa.gov/vehicleregistration/docvessels.html
Click to expand...

I ran into the same problem in NJ. Despite multiple arguments with the DMV they would not register my boat without a state title. They ultimately made me pay for state title and told me they would send it to the US Coast Guard. Not sure if that ever happened. But I am also an documented and have a state title. I know that this is not how it should be done, but I was forced into it if I wanted to register my boat. Good luck with your sale!
 
Vince_nj1 said:
I ran into the same problem in NJ. Despite multiple arguments with the DMV they would not register my boat without a state title. They ultimately made me pay for state title and told me they would send it to the US Coast Guard. Not sure if that ever happened. But I am also an documented and have a state title. I know that this is not how it should be done, but I was forced into it if I wanted to register my boat. Good luck with your sale!
Click to expand...

Let's pretend you are boarded on the water...what do you have to show ownership and that you're legally running in the states water.

-the only paper work showing ownership that you have is the federal Certificate of Documentation, your state title was surrendered to the feds

-you also would be able to show a state Registration Certificate and have the state registration stickers on your boat
 
Wow, again I guess I didn't have to deal with this because a title company handed my transaction. I do have a registration in DC where my boat stays, but that's like $15/year and I get stickers that say "Documented" that go in the windshield instead of normal registration hull numbers.
 
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