Transferring Ownership

You’ve found the boat of your dreams, the price is right and you’ve paid the seller, so the boat is yours free and clear — or is it? Well, it isn’t until the seller signs over the title or provides other legal proof of ownership. In states that don’t require titling, ask to see the seller’s bill of sale from his seller. Other documents that help confirm ownership are insurance policies and boat registration cards. Crosscheck the boat’s Hull Identification Number (HIN) against the numbers listed on the seller’s records to make sure it’s the same boat.

Search the boat’s title and registration with the state in which the boat is registered. If the boat is documented, call the U.S. Coast Guard’s documentation division, 800-799-8362, to see if any liens have been recorded.

Vessel documentation is a national form of registration. To be documented, a boat must measure at least five net tons — most boats over 27 feet long will meet this criteria — and must be owned by a U.S. citizen. If the boat you want is documented, ask the seller to complete a U.S. Coast Guard Bill of Sale (CG- 1340), a copy of which must be submitted with an application for Documentation (CG-1258). Information about documentation is available at the Coast Guard’s web site, www.uscgboating.org, or by calling 800-799-8362.

A nationwide Vessel Identification System (VIS) is in the works, but at present there is no national clearinghouse for state title and boat registration information. This makes it difficult to track boats that cross state lines when owners move or when thieves "launder" stolen boats from another state.

Manufacturer’s Statement of Origin

The Manufacturer’s Statement (or Certificate) of Origin (MSO or MCO) that comes with each new boat contains the boat’s HIN and engine serial number(s). It shows when the boat was built and transferred to the retail dealer for resale purposes. You will need the MSO when you register or document your new boat. If the boat is financed with a loan, the MSO will be transferred to the lender, otherwise it will be included in the boat’s papers given to you at the time of purchase.

You or your loan company should receive the MSO when you take delivery. If not, contact the boat manufacturer at once. Without the MSO you may be unable to register the boat and may have trouble meeting insurance requirements.