stuartwineberg
Well-Known Member
Just about to buy a boat on a private sale. How can I tell if there is an outstanding marine mortgage on it and what are the implications if there is and the vendor doesn't let on.
Thanks
Thanks
Is there a mortgage on the boat?
- Thread starter stuartwineberg
- Start date
Rivers & creeks
Well-Known Member
If it's part 1 registered then you can apply to see if a mortgage has been registered. Otherwise I believe there is no way to tell. If you buy and there is a mortgage then the loan company can repossess the boat.
Mistroma
Well-Known Member
I believe that if you are applying for boat loan finance, then most boat finance companies will require that you register your boat or yacht using full registration ( Part I).
If the boat you are buying is Part I registered then you can ask for a search to check on finance position.
However, the result of a search is only valid at the instant you get the result. i.e. A loan might be processed and not recorded until 30 seconds after you get the search result. I seem to remember that you can get the result via text just as you are about to buy in order to minimise the risk. Could be wrong though.
I think that the system is a bit antiquated as I wanted to find out if a particular name was available to register. I was told that the only way to find out was to fill in a form requesting a name change and send it off with a cheque. The cheque would be cashed, the request processed and the money refunded if the name was already in use. It wasn't possible to simply tell me over the phone, email, letter etc. that the name was already in use.
If the boat you are buying is Part I registered then you can ask for a search to check on finance position.
However, the result of a search is only valid at the instant you get the result. i.e. A loan might be processed and not recorded until 30 seconds after you get the search result. I seem to remember that you can get the result via text just as you are about to buy in order to minimise the risk. Could be wrong though.
I think that the system is a bit antiquated as I wanted to find out if a particular name was available to register. I was told that the only way to find out was to fill in a form requesting a name change and send it off with a cheque. The cheque would be cashed, the request processed and the money refunded if the name was already in use. It wasn't possible to simply tell me over the phone, email, letter etc. that the name was already in use.
Tranona
Well-Known Member
If it is not registered, then the chances of there being any charges against it are very small. You need to ask the direct question of the vendor as there is always the possibility that there is some unregistered claim against the boat. However, if you use the RYA or MCA model Bill Of Sale, the vendor declares that the vessel is free of any charges, so you will always have recourse to him. It is unlikely that a court would support a claim under an unregistered charge particularly if you show that you have made every effort to check that it is clear. Mortgages these days tend only to be used where the boat has substantial value, and the loan is significant. Lower value boats tend to be financed (if at all) by personal loans or loans secured against another asset such as a house. In these cases there is no charge against the boat.
