buying from owner-safely transferring funds

Discussion in 'Ask the Broker' started by BOB TYSON, Dec 7, 2018.

  1. BOB TYSON

    BOB TYSON Active Member SILVER Sponsor GOLD Sponsor

    156
    Oct 5, 2017
    (tired of being) boatless.
    Cobalts 272,252,222
    Sea Ray 390 Express
    Chris Craft 21
    boatless
    Hi,
    I'm purchasing a ,05 460 Sundancer from a private individual-owner who resides in Florida . The vessel is located there as well. The vessel has a mortgage as it's only lien. I live in Kansas. How can I be sure the mortgage is satisfied once I transfer the funds to the seller? If the boat has a USCG documentation then is there a title with the state of Florida as well?
    Thanks for your help!
    Bob
     
  2. hottoddie

    hottoddie Well-Known Member

    Jan 11, 2012
    Boston/Cape Cod
    1986 Sea Ray 390 EC
    Garmin 4212 Chartplotter
    Garmin 24 HD Radar
    Garmin 546s Plotter
    454 Crusaders
    Why not contact the mortgage holder directly and see what they require in order to obtain title. Also there the paperwork are title transfer companies that will handle the paperwork for all aspects of the transaction.
     
  3. BOB TYSON

    BOB TYSON Active Member SILVER Sponsor GOLD Sponsor

    156
    Oct 5, 2017
    (tired of being) boatless.
    Cobalts 272,252,222
    Sea Ray 390 Express
    Chris Craft 21
    boatless
    Thanks.
     
  4. TNT8808

    TNT8808 Active Member PLATINUM Sponsor

    275
    May 25, 2016
    West Michigan
    2008 48 Sundancer
    Cummins QSC 540's
    Avon Seasport 340
    40 HP Yamaha
    Normally in this type of situation you pay the mortgage holder directly, they release the title to you and disperse any funds that are remaining to the seller.

    -Tom
     
    JVM225, gdavis67, JC3 and 1 other person like this.
  5. FootballFan

    FootballFan Well-Known Member PLATINUM Sponsor

    Jun 20, 2012
    Florida
    Marquis 59
    MTU Series 60
    I always include a condition in an Offer conditions requiring that the boat is free and clear of any encumbrances. Not that this alone takes care of everything, but gives me some footing if it became contested. Right after suitable sea trial, surveys, and all the manuals and past invoices on the boat.

    The boat before this I lived in TX, bought a boat from a private individual in North Carolina, and was moving the boat to FL after the purchase. Used a company called Yacht Registry in Fort Lauderdale. They handled the escrow and pay off, then the completion of the Documentation paperwork with the Coast Guard. They were insured and bonded.

    Total cost which also included all paperwork and FL registration - stickers delivered was in the $1,500 range. I included the Sales Tax in the funds sent to Yacht Registry.

    Everything worked well.

    In that transaction wound up buying the tender that the PO had on the boat. It was almost new and had never been registered anywhere. Was purchased by the previous owner in FL, but was sitting in NC. Linda at Yacht Registry got it all straightened out with a remote registry in Delaware, then transfer to me in FL. ( that whole process cost 2-300. She knew exactly what to do, I wasn't sure where to start).

    The other question about FL title. Your USCG documentation is the "designation of ownership" similar to a title.

    Whether or not you have to register in FL, depends on where you will be keeping the boat. I believe you have 30 days to either register in FL or get the boat out of the State. There are some short term options like 60-90 days.

    As I understand FL laws, if the boat will be in the State at least 6 months it has to be registered and sales tax paid. There are reciprocal agreements with other states, for example Sales Tax paid in FL - your ok in MD - and vice versa.

    The Sales Tax is capped - I think at either 15 or 18K.

    If the boat stays in FL, you do need to display the FL registration sticker, but numbers are not required (since the boat is documented).
     
  6. The Bill Collector

    The Bill Collector Well-Known Member GOLD Sponsor

    Jun 2, 2008
    Tacoma, WA
    450 Sundancer
    3126 Cat's
    Or split your purchase price between the two, paying off the lien and then paying the owner his equity. Or find an escrow company to do this for you...
     
  7. BOB TYSON

    BOB TYSON Active Member SILVER Sponsor GOLD Sponsor

    156
    Oct 5, 2017
    (tired of being) boatless.
    Cobalts 272,252,222
    Sea Ray 390 Express
    Chris Craft 21
    boatless
    Very helpful. thanks to all.
     
  8. carterchapman

    carterchapman Well-Known Member TECHNICAL Contributor SILVER Sponsor

    Mar 25, 2008
    Lake Chickamauga/Marietta, GA/Ft. Myers, FL
    2006 Sea Ray 58 DB
    MAN CRM V8-900s, Twin Disc Drives; Onan 21.5 Generator
    Bob,

    I believe FL is a Titled state, unless you are Documented, then there is no FL Title. I'm going from memory here, but I found that info online fairly easily...
     
  9. Larry Sturm

    Larry Sturm Active Member GOLD Sponsor

    126
    Mar 26, 2017
    Chiefland, Florida
    2003 SeaRay 420 Sundancer
    2003 SeaRay 320 Sundancer
    Cummins 6CTA8.3-M3
    Mercruiser 350MPI
    No title in Florida if the boat is Documented.
     
  10. fwebster

    fwebster Well-Known Member TECHNICAL Contributor PLATINUM Sponsor

    Oct 6, 2006
    Middle Tennessee ; Panama City Beach, FL
    1996 450DA
    3116 Caterpillars
    Not quite right. Your title is still in the state system even though you may have surrendered it. Why I do not know because the USCG Doc certificate becomes the controlling ownership document. Look at your registration certificate and you will see the state title number printed across the bottom near the FL#.
     
  11. bbwhitejr

    bbwhitejr Well-Known Member SILVER Sponsor

    Apr 14, 2013
    Lake Lanier GA
    2007 44DB
    Cummins QSC 8.3s
    If I remember correctly, I had 90 days to remove my boat from FL or I had to pay tax and registration. I had to have the bill of sale and an invoice from the transport company.

    Bennett
     
  12. JVM225

    JVM225 Well-Known Member GOLD Sponsor

    Apr 8, 2008
    Farmingdale, NY
    2002 410 Sundancer, Monaco Edition.
    3126 Cats.
    That’s the way I understand it.
    Contact the lien holder and see how they want to handle it.
     

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