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How to place a lien on a boat title

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  • How to place a lien on a boat title

    Anyone know how placing a lien on a boat title works? I'm buying this boat and the owner is financing some of the price. We are trying to figure out a way to do it legal like. I told him we could place a lien on the title that way I can register it in my name and we could right out a legal form on how and when the amount of the lien is to be payed and that would be that.


  • #2
    Re: How to place a lien on a boat title

    It should be just like with a car. He gets put on the title just like a bank that was financing it would. There is (should be) spot for lienholder on the title. DMV will show you how to do it when you take the paperwork in.
    1994 Bayliner Capri 1604 w/94 70 Force (sold)
    1984 SportCraft 222 OFF w/84 Mercruiser 488 & Alpha 1
    1979 Sears Gamefisher 13'6" Aluminum w/1959 Johnson 10HP
    1969 Smokin' Hot Wife

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    • #3
      Re: How to place a lien on a boat title

      I kind of thought thats the way it worked. Then I go ahead and do all my registration of the boat and trailer and I pay off the lien then send something into the state to lift it?

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      • #4
        Re: How to place a lien on a boat title

        He should hold the title until you pay off the boat. He sends you the title signing it over to you, you apply for a new title in your name...

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        • #5
          Re: How to place a lien on a boat title

          There's too much trusting doing it that way seabob. Too many people loose titles, which creates another hassle, and then you have to trust him (PO) to send the title once final payment is made. Of course, with a lein, you still have to get him to sign-off, but at least your name is on the title somewhere. Owner financing can be a pita, imho
          1994 Bayliner Capri 1604 w/94 70 Force (sold)
          1984 SportCraft 222 OFF w/84 Mercruiser 488 & Alpha 1
          1979 Sears Gamefisher 13'6" Aluminum w/1959 Johnson 10HP
          1969 Smokin' Hot Wife

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          • #6
            Re: How to place a lien on a boat title

            Originally posted by chris0061 View Post
            I kind of thought thats the way it worked. Then I go ahead and do all my registration of the boat and trailer and I pay off the lien then send something into the state to lift it?
            You would title the boat and trailer in your name, with the previous owner as a lien holder. Make sure you have a contract that spells out the amount of the lien. When you have paid it off there is a place on the title where the lienholder releases their interest in the boat. You would have the lienholder sign it and getting it notorized would be a good idea.

            Having the previous owner keep the title would be the stupidest thing they could possibly do. As the registered owner of the boat, they would have liability.
            2012 Malibu VTX 5.7 Monsoon 350
            2009 Ram CC 5.7 Hemi

            www.oldjeep.com

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            • #7
              Re: How to place a lien on a boat title

              In Ohio it's called a Retail Installment Sale, and you need a Retail Installment Contract. Easily found online. On the Retail Installment Contract is an area for the Leinholder information and signature boxes so that everyone agrees. Once the contract has been recorded with the title, a memorandum title is issued to the buyer. Seller retains the original. Seller must release the lein by signing that the agreement has been satisfied. You can do anything to the boat with the memo title as you can with the original except sell it.

              In the event of a disagreement between buyer and seller the Retail Installment Contract spells out the terms. If the terms are met the seller must relequish the title and remove the lein. If the terms are not met the seller can take back the unit. Simple.


              I tried to contain myself...but I escaped!

              Scott & Roxanne
              1989 Carver Santego 30
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              • #8
                Re: How to place a lien on a boat title

                Seems complicated? Why not finance it yourself? Bad credit?

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                • #9
                  Re: How to place a lien on a boat title

                  Yeah bad credit. We have a great legal form to fill out for the remainder of the money complete with payment plan and what happens if payment is not met. I'm in IL, He is in MO. IL registration has a place on the back were to fill out lien information, name and how much. I don't know about MO. I'll call the Department of natural recources tomorrow to find out for sure about this.

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                  • #10
                    Re: How to place a lien on a boat title

                    Originally posted by Beefer View Post
                    There's too much trusting doing it that way seabob. Too many people loose titles, which creates another hassle, and then you have to trust him (PO) to send the title once final payment is made. Of course, with a lein, you still have to get him to sign-off, but at least your name is on the title somewhere. Owner financing can be a pita, imho
                    I guess I'm just a trusting sort...my bad.

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                    • #11
                      Re: How to place a lien on a boat title

                      I don't finance toys anymore.
                      1995 SeaRay BR200 5.0 Alpha I "Texas Belle"
                      1999 Starcraft Aurora 2415 5.7 Alpha I "MO Belle"

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                      • #12
                        Re: How to place a lien on a boat title

                        One thing not mentioned - insurrance

                        The lien holder should get paid first in a total loss event.

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                        • #13
                          Re: How to place a lien on a boat title

                          Be careful doing your own legal work. It can be like doing your own knee surgery. And many "on line" legal forms cause more problems than not. Lots of lawyers stay busy getting people out of jams caused by their trying to save a buck at the front end.
                          Of course, how much you spend to do it right is just an assessment of how much is at risk and the degree of risk.
                          So don't rely on information from people who did it in another state. In some places, the lien holder keeps the title. Telephone or visit the agency that titles boats in your state and get the information from the source. Every state is different, and boats can be different than cars. And even with boats, there can be state and federal processes, such as the "Preferred Ship's Morgage."
                          Good point on the loss payee for the insurance.
                          A man of constant boat tinkering.

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