Buying a new boat is always a great experience. It unlocks a whole new lifestyle of long afternoons skipping across the water, be it on the river, lake or open ocean. Due to the costs involved you may have been saving up for years or sold an old boat and are upgrading to a bigger one. Regardless of your reasoning buying a new boat is a costly exercise.
If you are unlucky you might be reading this after you purchased a boat which had no title documentation with it. Or you may be interested in buying a boat that does not have a title. To make matters even more confusing, each state has a different set of rules and requirements for titles.
So, what happens if the boat you are buying doesn’t have a title? How can you get title for a boat without a title?
To get a title for a boat without a title you will need to contact your local Department of Motor Vehicles. Each state has different legislation regarding boat titles, so you could also need a bill of sale from the boat owner you are buying from, in order to prove ownership of the vessel.
Continue reading, as this article will clear the muddy waters on how to get a title for a boat that does not have one. I will shine some light on the key concepts involved, problems, and then some practical advice on how best to handle boats that are untitled.
Table of Contents
What Makes Acquiring a Boat Title More Challenging?
Getting a title for a boat that doesn’t already have one can be a challenging process. Below are some of the issues you may face when trying to get a title for your boat.Â
Disputes Over Ownership
A common challenge with acquiring a title for a boat without an already existing title is proving ownership.Â
Disputes can arise between people claiming ownership of the boat.Â
To prove you own your boat, you’ll need to provide evidence in the form of documentation. For example, proof of payment, a bill of sale, boat registration, or insurance documents.Â
Issues with the Chain of Title
A clear chain of title is necessary for establishing ownership and getting a new title for your boat.Â
If there are gaps in the title chain, such as incomplete or missing documentation, this can be problematic.Â
Not having a clear chain of title makes it more difficult to prove ownership. You may need to track down previous owners of your boat to request missing documents.Â
If you are unable to do so, seek assistance from a maritime attorney or reach out to a title company that specializes in boat titles.Â
Missing Documentation
Important documentation such as the bill of sale or manufacturer’s statement of origin (MSO) are necessary for obtaining a new title.Â
If you’re missing these documents, it will make getting a new title that more complicated.Â
Especially if obtaining these documents from the previous owner or boat manufacturer isn’t possible.Â
In this case, some jurisdictions may accept a surety bond as a substitute for these missing documents. A surety bond guarantees that your boat’s value will be covered if any ownership disputes arise in the future.Â
Compliance with RegulationsÂ
Lastly, make sure your boat complies with all applicable laws and regulations.Â
These may include registration requirements, environmental protections, and safety standards.Â
If your boat doesn’t comply with certain standards, it will be harder to get a new title.Â
Additionally, you may even be fined or pursued with legal action.Â
Registration vs titling
Much like a car registration, a boat registration card is issued to a boat owner and must always be carried on the boat as proof of registration.
If your boat has been registered, you can boat in all other states. But usually if your boat is in that state for more than a set amount of time you will need to conform to that states’ laws regarding registration and titles.
It must be noted that a registration is not a secure proof of ownership document.
A title is a legal document that proves ownership.
Titles are typically required by lenders to prove that the seller has clear ownership of the boat and is only purchased once.
When you buy a boat from someone, they should give you the title with a notarized signature on the back of it with various other state specific documentation.
A standard document across all states is a bill of sale.
What is a bill of sale?
A bill of sale is a document that legally transfers ownership and can also contain various warranties on the boat. This document contains some key information as listed below;
- Names and addresses of the seller and buyer as well as their signatures.
- Signature by a notary if required.
- Purchase price & date of sale.
- Detailed boat information like the hull I dentification number (HIN), the make, model, colorand condition.
- If any accessories are sold with the boat, then these will also be indicated here.
When you buy a boat make sure that you get a bill of sale.
It will be absolutely critical if you will want to obtain a title for the boat.
This document does not need to have a specific template and format but needs to include all the information required in your state. If you are unsure an attorney can assist with drawing up a bill of sale or you can easily find a template online.
However, beware that a bill of sale is not always enough to get a boat titled.
In fact, if the boat was previously titled and the person selling it does not have the title or is not the original owner then it could be that the boat stolen, or the title documentation is simply lost.
Either way, it can be a real hassle to get a title for a boat without a title.
Ask the seller for the boat’s registration number or HIN.
If they are unwilling to give this to you the this is a pretty large red flag and you might want to not proceed with the purchase.
If you do manage to get a registration number and hull identification number, then there is a good chance you will be able to check online to see if the boat was titled in the past or if there are any liens on the boat.
As a general rule of thumb if the boat was titled in the past and the person selling the boat is not the original title holder and does not have the title then its best to let this one go as it will be a major headache to unravel all the red tape to get a title.
How do you get a title for a boat with a bill of sale?
You will need to get evidence of proof of purchase. You can then take that to your local DMV who might then be able to produce a title for you.
The bill of sale for a boat is evidence that the owner bought the boat legally and is written proof that a business transaction occurred.
What is a lien?
Simply put, a lien is a debt or a claim against the value of the boat.
This can arise if a boat was previously financed and the owner never paid off the finance on the boat.
It is very important to make sure there are no liens on the boat before purchasing it or accepting ownership of it.
The debt is attached to the boat and not to the person who created the debt, as such if you change ownership to your name you inherit the debt that was attached to the boat.
How can you get a title for a boat without a title?
There are different requirements in every state with regards to titling a boat, however at the very least you will need the registration and a notarized bill of sale.
Some states don’t require a notarized bill of sale but it’s always good to have it if needed.
Before going too far make sure that your state needs a title in the first place.
The table below summarizes all the different requirements in each state regarding the titling of boats. Mississippi and Idaho are the only states where you can choose whether or not you would like to title your boat.
Please note, how to get a title for a boat without a title in Ohio, could differ on how to get a title for a boat without a title in Florida – make sure you do the checks in your local state.
States that do not require titles for a boat
- Alaska
- Arizona
- Colorado
- Connecticut
- Delaware
- Georgia
- Hawaii
- Kansas
- Louisiana
- Maine
- New Hampshire
- North Dakota
- Tennessee
- Wyoming
States that require titles for a boat
- Oklahoma
- Nevada
- South Carolina
- Illinois
- New Mexico
- Rhode Island
- Utah
- Washington
- West Virginia
- Wisconsin
States that require titles for boats over a certain length
- Missouri (12 ft)
- Montana (12 ft)
- New Jersey (12 ft)
- Oregon (12 ft)
- South Dakota (12 ft)
- Massachusetts (14 ft)
- New York (14 ft)
- Ohio (14 ft)
- Texas (14 ft)
- Minnesota (16 ft)
- Vermont (16 ft)
- Virginia (18 ft)
- Michigan (20 ft)
Special Requirements
- Michigan – Only requires titling if the boat has a permanent engine.
- California – A boat only needs to be titled if it also needs to be registered.
- Kentucky – A boat in Kentucky only requires a title if it is to be used in public, however if it is being used on private property it is exempt.
- Indiana – It was bought before January 1986 by an Indiana citizen, it is treated as a lifeboat for a ship, it was valued at less than $3000 when it was new, or if it was built for private usage and won’t be sold.
- Maryland – A boat only needs to be titled if it also needs to be registered.
- Pennsylvania- Powered by an inboard motor, powered by an outboard and is 14 feet or longer, currently titled in Pennsylvania, currently titled in another state when Pennsylvania becomes the state of primary use.
** Make sure you research the specific requirements for your state as they may change
What happens if the boat seller has lost the title?
If you have determined that you do in fact need a title and the seller claims to have lost theirs then you can ask the seller to apply for a lost title.
That means that before agreeing to a sale you will need to check if the seller is the registered owner, there are no liens on the title and that the registration is current.
You will need the registration number, HIN and any other identification numbers you can get a hold of.
You can then go to the local DMV or fisheries and wildlife office to check these numbers on their database to confirm ownership.
If all checks out, then you can ask the seller to add a clause on the bill of sale that a portion of the payment will be held back until the new title is given to you, or alternatively you can decide to wait until they get their title.
This is most likely the best course of action because if the seller is unwilling to do this then you probably wouldn’t have gotten the title in any case.
What happens if the boat seller is not the title holder?
If the seller is not the original title holder then either you or the seller must send a certified letter to the address of the original title holder with a proof of delivery.
In this letter you will request the original title from the owner, a letter from the DMV or local state marine board and a lost title form.
If they refuse the delivery of the letter, then the unopened certified letter is taken as the original title owner relinquishing ownership of the boat.
If the original title owner does accept the letter but does not give feedback within 30 days, then the signed delivery note is also used as proof of the original title owner relinquishing ownership.
If the boat was obtained illegally you might get a letter stating that they would like their boat back.
The last word…
I hope that this guide has helped you if you want to know how to get a title for a boat without a title. I originally put together advice on this matter regarding jon boats. You can read the jon boat title problems post as well, as that has some additional information in it.
Ultimately though, it can be a pain to buy a boat without a title, with lots of hoops to jump through.
Do I recommend it – not personally!
