Title insurance

[Chasemmc]

My broker said no one offers title insurance and a lien can be placed on the boat months after close of escrow and the title transferred to a new owner. Is this true?

[Boatsb]

How can you line something that is not owned by the debtor?

[jim rosenthal]

Probably true.

[Freeebird]

What type of lien specifically did this broker mention? I'm not sure how mechanic's liens would work, but I would think once you are given a clear title, it's game over.

Add to that you will get a bill of sale stating there are no liens or encumbrances on the boat, and you should be good.

[capttonyf]

Huh??? How can they lien something that no longer belongs to the person that ripped them off. That just doesn't make sense, if so we better hope they don't lien one our boats. Lol. Great question to ask if someone is leading telling you that. I guess anything is possible, but I wouldn't think it's probable. Why all this concern, were there previous issues with this boat, owner, broker etc. is this from your own fears and concerns or is this a feeling your getting from the way the deal is being handled in general. From your previous threads it just seems there is a ton of odd dealings with this boat deal. All kind of contract disputes, listing agent and selling agent trust and now concern about the boat being leined after the fact. Not sure if it's screwy broker you have or if your having, "not to be Rude in any way" paranoia. Regardless of who the listing agent is, the commissions are non of "Your" business to worry about. The seller has an agreement with the Central Agent you make your offer on your brokers agreement, the one your dealing with. Everything else is their worry and not yours. Also if you don't trust your broker enough to put money in his Brokerage Escrow account, then find a broker you trust. The Doc agent should pull an abstract just before closing and if it's good, close the deal, sign the papers, transfer the rest of the money, and go enjoy boating in your new toy.

Tony

[saltshaker]

Your broker is partially correct. A lien can be placed on the boat after you purchase it. It can only be done and enforceable if the boat was documented at the time the debt was incurred, the boat is documented now, the debtor can prove he attempted to collect prior to the sale, the time frame of the debt is relatively recent and the boat is currently documented. All has to go through the USCG. This is why there's are significant waiting period from when a bank repos a boat to when they list it for sale. The bank has to sell with all liens and encumbrances satisfied. This is why you pull an abstract early on in the deal and again a day or two before you close. You should also have the seller sign that he is delivering the boat with a clear title / document.

[Chasemmc]

Thanks Jack.

I believe the mechanics claim is against the asset he invested time and labor into. Without satisfaction from the debtor, it reverts to the asset which is then sold to satisfy the claim.

If I am understanding you correctly, the claim must be filed with the uscg documentation office. The real question is can the creditor perfect the claim after title has passed. While u would have a claim against the former owner, if they were a foreign national or found insolvent it would be tough to be made whole.

I do not consider understanding the risks associated with any transaction to be paranoia, just common sense. Which apparently isn't all too common

[carolinacoast]

indemnity is all you need.

[saltshaker]

The lien follows the boat but the boat must be documented. The lien can be placed on the boat after the sale but it's not that easy or very common. Talk to the USCG documentation center or a maritime lawyer for specifics.

[oscarvan]

There's some really good and REALLY bad in this thread. Consult a marine attorney when in doubt.