Boat Title in previous owner's name yet

[danek]

Long time lurker, first time poster, a lot of good info on here but can't find what I'm looking for [yet]... We found a boat we like in a different state. The current owner has indicated the title is still in the name of the previous owner even though they have used the boat for one season (they got this smaller boat in trade for their bigger boat plus cash). What issues does this present for me as the buyer? fwiw, me (buyer) is in IL and they (seller) is in MD. Appreciate any info or direction that can be provided. Thanks and regards!

danek

 

[a70eliminator]

Re: Boat Title in previous owner's name yet

If there's no owners signature on that transferees line then don't do it, if it's signed and notorized then your clear to go. The seller technically isn't the owner, it's just in his possession.

 

[UnregisteredUser]

Re: Boat Title in previous owner's name yet

Have them email you a scanned copy of the back of the title. If it has a name on the buyers line, steer clear. They would need to title it first then sign it over to you. This can become a huge issue, I bought one like that once, and it cost me money to get rid of it. (thats another story)

If it is just signed by the seller, not sure about a notary, here in MO we did away with that, then you might be OK.

I hate it when people do things like this, the Unregistered guy says...

 

[The Great Escape II]

Re: Boat Title in previous owner's name yet

Check with your state. In Georgia we do not title boats bill of sale only.

 

[mthieme]

Re: Boat Title in previous owner's name yet

I've just, er...I'd just sign the back and trot down to DNR to update the paperwork. Most sellers are happy to get any liabilities out of their name.
Done.

 

[dlngr]

Re: Boat Title in previous owner's name yet

I live in Illinois. When I bought my boat,the seller promised me the title was in the mail. Never got it. I printed an applcation for title and registration-[download from IDNR website,and a power of attorney,from same source.]
Filled them out,mailed them in,,with the proper fees of course,,got title and reg in mail.. .
The hardest part was trying to find the seller to sign the POA for me- You need to go to the person whose name appears printed on the title,not the guy you bought it from-if you can't find him,just sign it for him. !!!
If you have a savvy 'fast license and title service' nearby,they will take care of all the paper work for a small fee.

 

[tashasdaddy]

Re: Boat Title in previous owner's name yet

legally the seller does not have title to sell the boat. have them get clear title in their name, then buy it. it is his responsiblity, to provide you with a clear and marketable title/registration, which ever that state uses.

 

[Shizzy]

Re: Boat Title in previous owner's name yet

I would agree. Due to them being a few states away I would agree even more. I just avoid this whole title issue and only buy if there is a legit title in hand. No cash till I get the title.

I have never understood the comment "I never put it in my name" I have always either met the owner/seller at the DMV or went right to the DMV after the transaction was made. also here in Minnesota you can get on the DMV website and Tag the vehicles title as being sold. you just type in basic info about the buyer and it starts the clock ticking for the buyer to transfer within 10 days. I dont know about other states but here in MN there is a fee if you dont transfer title within 10 days.

since its winter I would tell them to put it in their name and then call you when the title shows up.

 

[tashasdaddy]

Re: Boat Title in previous owner's name yet

exactly, in Fl, we can go to the DMV, and do the paper work, and get an instant title. which the seller can then sign over to you, and you get your title. i think it is $5.00 more for the quick service.

 

[mtsumedi]

Re: Boat Title in previous owner's name yet

exactly, in Fl, we can go to the DMV, and do the paper work, and get an instant title. which the seller can then sign over to you, and you get your title. i think it is $5.00 more for the quick service.

It was $8 last time I did it to get a title printed off immediately. I bought a Camaro and had this issue where the person I bought it from had filled all of the buyer info out but never titled it. Too bad for him I guess.

 

[danek]

Re: Boat Title in previous owner's name yet

Thanks for all the input. So far what I'm hearing is pretty much in line with what I had been speculating. According to the Maryland DNR website (http://www.dnr.state.md.us/boating/registration/) it seems that there is/was an obligation to register and pay tax and is likely liable for penalties and interest now. Illinois registration is not unlike Maryland and who knows what they'd do (or start digging into) if they start seeing a bill of sale documented to someone completely different than the title. I'd hate to be liable for someone else's back taxes/penalties/interest too. If I can find a title/license service open over the next few days I'll see what they might have to say.

Not that I need this answered, just thinking, but what happens in this kind of case if the current owner were to pass away - does the boat not stay in the estate of that person and reverts back to the original owner of record???

 

[tashasdaddy]

Re: Boat Title in previous owner's name yet

reverts back to the original owner of record. until the record is changed. i've been trying for over 1 1/2 years to buy a classic Chris Craft. the owner died, there is some dispute to clear ownership, as the boat is in a warehouse, and the warehouse owner wants storage fee, for the boat. heir refuses to pay, warehouse will not release boat. i offered to compensate both of them, both are horses butts.

 

[Silvertip]

Re: Boat Title in previous owner's name yet

This is exactly why I tell people if the person selling a titled item does not have the title or cannot produce a title proving he/she is the owner, walk away until said paperwork is in order. Until that happens you have no idea whether or not that item is stolen and you are leaving yourself open to the equivalent of a paperwork treadmill. How much of a problem that is varies by state and municipality.

 

[Dave K.]

Re: Boat Title in previous owner's name yet

they used the boat a year w/out registering it. didn't pay taxes on the sale is my guess. someone is gonna' want that $$ for sure & then whatever else your DMV wants to make it legitimate.

 

[a70eliminator]

Re: Boat Title in previous owner's name yet

More than likely the guy who's selling the boat now is not wanting to deal with the technicalities, if he could prove to me that he indeed bought the boat from it's registered owner and that nothing shifty was going on with it (like a divorce settlement escrow) then I mignt take on the burden as I have family sworn in as a notary public statis. I have bought many cars with nothing but the owners signature on the back of the title, but technicaly the owner must sign it in the presents of the notary. But your not only looking at the owner not being present your also looking at the owner possibly not being aware. Here in Ohio the guy wouldn't necesarily have to get the title put in his name to transfer ownership, as long as the title was signed off by the registered owner.

 

[a70eliminator]

Re: Boat Title in previous owner's name yet

Yep yep, that is the best advise, plain and simple.