|Posted: August 24 2008 at 21:54 | IP Logged
I found this on a website called marinetitle.com :
State Titling vs. Vessel Documentation
Owners and prospective buyers are often confronted with the issue of whether to state title the vessel or acquire Coast Guard documentation. Of course, this is a foregone conclusion when a lender is insisting on a preferred mortgage. Although most states now have tried and true vessel titling systems, there are still good reasons to document a vessel other than to merely satisfy a marine lender. The following are some of the reasons buyers may wish to consider documentation:
1. Documentation may be a better alternative when a buyer resides in a state which does not issue a formal title. Although yearly registration certificates can substitute in certain states as proof of ownership or as quasi-titles, they are not bona fide title documents and may be more difficult to defend.
2. Documentation should be considered for vessels that will traverse foreign waters or those of another state. A Certificate of Documentation is more universally recognized as an instrument of undisputed ownership. In foreign waters, documented vessels also enjoy certain protections afforded under international law that apply to U.S. flagged vessels.
3. A documented vessel can enjoy certain sales or property tax advantages in some states and may even be exempt from yearly registration fees.
4. Within the maritime community, documentation is viewed as a more prestigious method of titling. In the realm of national registry, a documented vessel joins the ranks of other luxury yachts and ships that carry the U.S. flag. In addition, documented vessels are not required to display state registration numbers on the vessel's exterior.
There are many reasons for titling a vessel either on the state level or with the federal government. However, in some cases it may simply come down to a matter of personal preference.
My parents documented their last boat as well as their current one, they live in Florida and did it for probably most of the reasons above.
Nauti Cat in NY
Formally owned by a
1985 Catalina 280