anyone ever done a title chec?

[CharlesM]

Hi there

I would appreciate any gidance in the title check process. Particularly what do I put in the letter to the financial institutions, and where can I find the relevant addresses to send these title checks to?

Regards
Charles

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[extravert]

When I bought my current boat I followed the RYA's book on how to buy a used boat, which includes checking ownership. The boat I bought was only Part 3 registered, which meant that the registration document meant nothing.

The RYA book recommends in this case that you check with the boat's insurance company. If there is a mortgage on the boat, the insurance company should know about it. They will let you have this information if the previous owner gives them permission in writing to divulge it.

Apart from that, the only other action you can go is follow the ownership trail all the way back to the initial owner and the original boatbuilder, if the paperwork is all present, and if you are lucky. From my experience, boatbuilders seem to keep pretty good records, but many have gone out of business.

When selling my previous boat I managed to follow the ownership all the way back to the builder (who still had the original invoice) through 5 owners over 15 years. I would not expect this to be possible normally though.

As with all buying/selling/tax type queries, the best source of information is the RYA booklets, which you can buy from their website for a few pounds.

<hr width=100% size=1>One day, I want to be a real sailor. In the mean time I'll just keep tri-ing.

 

[AndrewB]

There are too many companies providing loans for boats to check them all out. And if there is a mortgage, you are still reliant on the seller to settle it with the proceeds of the sale. What's more, this isn't the only source of problem. Disputed ownership can occur for example in the case of acrimonious divorce, a time when many boats are sold.

When I've bought privately, I've asked to be able to seek references. Preferably someone in an official capacity such as an officer of the seller's yacht club or the marina manager, who has known the seller and the boat for a few years, and has some general awareness of their integrity. If that can't be provided, for a deal of any magnitude, I would back off.

It is possible to ask a solicitor to handle the deal, but in practice that doesn't really give you a lot more assurance. The RYA recommended purchase procedure allows for 6 weeks or so between agreeing the offer and settling up, which not only allows time for these checks but at least weeds out the fly-by-night con artist.

However there is always a risk with a private sale. It has always seemed ironic to me that with a brokered sale it is the seller who pays, yet the buyer who has most to gain in terms of security.



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[extravert]

And another minor tip I learned (I can't remember where from) but which I have put into practice...

Arrange to sign the sale agreement and then the Bill of Sale in the seller's home. This is no guarantee of anything, but it is likely to put off anyone trying to sell a stolen boat. (You may also be able to spot a stroppy partner throwing pots and pans around if there is an acrimonious divorce underway).


<hr width=100% size=1>One day, I want to be a real sailor. In the mean time I'll just keep tri-ing.

 

[cliff]

If you purchase the boat using a marine mortgage the lender will check the ownership out before THEY part with any money. If going this route use a MARINE finance house not an "any reason loan" from general lendors.

The ownership trail on mine was traced back through 4 previous owners to the original owner although I had all previous bills of sale the finance house was able to contact all previous owners - don't ask me how. BTW this was private purchase (no broker) and finance house did all the donkey work on my behalf.

If you have the capital to buy the boat outright it might pay to keep the capital and take out a marine mortgage they are really not so expensive and the lendor carries the can over ownership claims.
In my case the capital returns me slightly more than the mortgage costs so I "break even" so to speak not counting inflation etc.

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