Lee, Risky without knowing more.
I have tried to study this problem from my legal background and for my own purposes in buying in the past. But I am not an Admiralty Lawyer, which is a specialized field. The person should not purchase the vessel without getting adequate counsel. Lien searches are good to find recorded mortgages, especially if its a USCG documented vessel. It will not find UNRECORDED LIENS OR ENCUMBRANCES. Also state licensed vessels may have liens peculiar to the state law of that state, which I am not familiar with. BUT HIDDEN LIENS OF THE MARITIME VARIETY IS WHAT SCARES ME. THERE ARE MANY MARITIME LIENS. There is no foolproof way to get clear title as there are always the possibility of hidden maritime liens. The only way to guard against the problem of liens is to be absolutely sure you know the TOTAL history of the vessel and its owner. For instance, there is a right to assert a lien if you provide goods or services to a vessel, including fuel, supplies, repairs or dockage. Florida and many states also have liens if you damage the environment, ie sea grass by grounding or dragging. I would not buy a boat that I did not have a very good idea about its total history and its prior owner. The other thing you can do is make a provision by adding a clause to the purchase agreement whereby the current owner (especially if you are sure he/she is solvent) gives a Warranty & Representation of no liens or claims of any kind, and also A HOLD HARMLESS & INDEMNITY AGREEMENT wherein the seller agrees to protect and defend the buyer from any liens or claims arising from any conduct or operation of the vessel prior to the offer, and indemnify and pay the buyer for any loss. If there is something known to the parties from the past that could give rise to a lien or claim, I would also not agree to pay for the boat without putting an amount of at least double the possible claim in an Escrow Acct to be delivered to the seller after a suitable lien waiver or release were obtained. Thats what I would do if I were buying a boat. It is a Buyers Market. Ed Ed & Sue Kelly aboard USSV Angel Louise DC Based SKYPE Phone # (202) 657-6357 please leave message for us You can see map and travel progress at http://tinyurl.com/EdandSue On Sep 27, 2010, at 10:30 AM, Lee Huddleston wrote: I have a friend who wants to purchase a large sailboat in Florida essentially for cash. How can he be sure that he is getting clear title to the boat without any hidden liens. I understand that a person can search the Coast Guard vessel documentation files. Is it also necessary to check state and local records in Florida. If so, how can that be done from somewhere other than Florida? Thanks in advance for any help and/or advice. Lee Huddleston s/v Truelove _______________________________________________ Liveaboard mailing list [email protected] To adjust your membership settings over the web http://liveaboardonline.com/mailman/listinfo/liveaboard To subscribe send an email to [email protected] To unsubscribe send an email to [email protected] The archives are at http://www.liveaboardonline.com/pipermail/liveaboard/ To search the archives http://www.mail-archive.com/[email protected] The Mailman Users Guide can be found here http://www.gnu.org/software/mailman/mailman-member/index.html
_______________________________________________ Liveaboard mailing list [email protected] To adjust your membership settings over the web http://liveaboardonline.com/mailman/listinfo/liveaboard To subscribe send an email to [email protected] To unsubscribe send an email to [email protected] The archives are at http://www.liveaboardonline.com/pipermail/liveaboard/ To search the archives http://www.mail-archive.com/[email protected] The Mailman Users Guide can be found here http://www.gnu.org/software/mailman/mailman-member/index.html
