Buying from a private party

[a_nyc_scott]

Hi,

I was wondering if anyone could provide guidance about the basic process of purchasing a used boat from a person rather than from a broker? My question has less to do with how do find the "right boat" and more to do with how do you close the purchase of the boat once you have found "the one"?

I've bought a fair amount of real estate over the years and am comfortable with buying/selling property but how does it work for boats? Do you engage an attorney to manage the process (if so how do you find an attorney with this type of experience/expertise)? Do you do a title search to be sure there are no liens against the boat (I imagine there is no title insurance for a boat but perhaps there is)? How do you escrow the money to close the purchase? Who holds the deposit? How do you manage it if the seller has a loan out for the boat? Who is responsible for drafting the purchase agreement (buyer or seller)?

Thanks for any (and all) help!

Scott

 

[Don and Brenda]

I would just use a boat title company, they handle all the paperwork from Coast Guard, state title etc.

 

[NorthernFocus]

The amount of paperwork several things. Will you be paying for the boat outright or financing it? If no financing it's much simpler. Then is the boat documented with the coast guard or state registered? Again much simpler if only state registry. Then what state will you be registering it in? Each state is different. For example, in AK, boats aren't titled. So here all you need for the transaction is a bill of sale. In most states the owner will need to sign over the title. Which is more complicated if the current owner has a loan on the boat. Some states also require a "certificate of origin" even if it's not a new boat.

So if the boat is currently documented with the CG, and the owner has a lien on it, and you plan on taking out a loan, it's probably worth going through a title company. At the other extreme, if the boat is only state registered, has no lien, and you plan on paying cash, then the transaction is pretty simple.

At any rate not nearly as complex as real estate.

 

[Crewdog]

Check out some of the resources available on BoatUS for purchasing a boat:
http://www.boatus.com/buyer/

I would recommend becoming a member, and you can always upgrade to get their on the water towing service once you get a vessel.

If you're purchasing a used boat from a private party, I would think a good marine surveyor might be a worthwhile investment.

Also, I think most states tax boats as property in the county in which it is docked, so eventually you'll have to file a property tax return. Those offices are usually pretty hungry, and they should send you a bill after 30 days.

 

[a_nyc_scott]

Thank you for all of the input. I think I will use a title company (seems to be the easiest/least costly way). I'm looking forward to joining the Ranger Owner's community!