Coast Guard Documentation vs. Titling a Vessel
#52
Registered
I was forced to document in order to get a bank loan. Somehow I went from December 1998 until March 2018 and never received any communication/notices from the USCG. During that twenty year period I never paid any annual fees, nothing. The boat was register but not titled in Michigan and sales tax and registration fees were paid as required.
In March this year I sold the boat and after talking with the USCG documentation center was only required to complete this form https://www.dco.uscg.mil/Portals/9/D...-09-113141-317. There was no requirement to make up any previous fees or penalties or do any additional paperwork.
ed
In March this year I sold the boat and after talking with the USCG documentation center was only required to complete this form https://www.dco.uscg.mil/Portals/9/D...-09-113141-317. There was no requirement to make up any previous fees or penalties or do any additional paperwork.
ed
#53
Registered
I was forced to document in order to get a bank loan. Somehow I went from December 1998 until March 2018 and never received any communication/notices from the USCG. During that twenty year period I never paid any annual fees, nothing. The boat was register but not titled in Michigan and sales tax and registration fees were paid as required.
In March this year I sold the boat and after talking with the USCG documentation center was only required to complete this form https://www.dco.uscg.mil/Portals/9/D...-09-113141-317. There was no requirement to make up any previous fees or penalties or do any additional paperwork.
ed
In March this year I sold the boat and after talking with the USCG documentation center was only required to complete this form https://www.dco.uscg.mil/Portals/9/D...-09-113141-317. There was no requirement to make up any previous fees or penalties or do any additional paperwork.
ed
Oh and I always get something in the mail reminding me to renew.
#54
Commercial Member
Commercial Member
Thread Starter
I was forced to document in order to get a bank loan. Somehow I went from December 1998 until March 2018 and never received any communication/notices from the USCG. During that twenty year period I never paid any annual fees, nothing. The boat was register but not titled in Michigan and sales tax and registration fees were paid as required.
In March this year I sold the boat and after talking with the USCG documentation center was only required to complete this form https://www.dco.uscg.mil/Portals/9/D...-09-113141-317. There was no requirement to make up any previous fees or penalties or do any additional paperwork.
ed
In March this year I sold the boat and after talking with the USCG documentation center was only required to complete this form https://www.dco.uscg.mil/Portals/9/D...-09-113141-317. There was no requirement to make up any previous fees or penalties or do any additional paperwork.
ed
#55
Commercial Member
Commercial Member
Thread Starter
Renewal of Lost Certificate of Documentation
Tip of the Day...If a Certificate of Documentation has been lost, an application for replacement will be in order. If the lost document has expired, it will be necessary to apply for an exchange which is basically starting the process over to receive a Certificate of Documentation.
#56
Commercial Member
Commercial Member
Thread Starter
Tip for the day....if your boat is documented, be sure to keep the original Certificate of Documentation in your boat and suggest keeping a copy of it at home in the event you lose it or need to reference it in the future.
#57
Commercial Member
Commercial Member
Thread Starter
The More you Know…today’s subject is about one of the simplest things you can do when purchasing a boat. You will probably chuckle, but truly it is a simple thing to do and can save you time, energy and frustration!
Take a picture of the hull number on the boat and compare it to all the paperwork on the boat. Confirm all the numbers MATCH. You ask “why”? Keep reading… Our office encountered a file where a buyer purchased a titled boat from a boat dealership and wanted to Coast Guard Document the boat. The dealership provided all the sales paperwork, i.e. Bill of Sale, Registration, etc. and it ALL matched. The hull number was checked with the Coast Guard and found the boat had not been documented. The proper paperwork was completed and submitted to the Coast Guard for documentation thus starting the approximate three month waiting period. A few weeks later, while the buyer was detailing the boat for the first time, he noticed a number in the engine compartment. It was obscure, but nonetheless, it was a number. The buyer took a picture of the number and sent it to our office. We identified it as an Official Number given by the Coast Guard so we ordered an Abstract of Title. We found out the Official Number was assigned to a similar hull number but it did not match exactly to the hull number on the paperwork. Our guess is that somewhere along the way, the State issuing the title inadvertently switched a couple of the numbers. And to make matters more complicated, there was an outstanding lien against the boat. We were able to locate the previous lender, who by the way was bought out by a larger lender thereby making it more challenging to find the original loan documents, and we’re able to secure a Satisfaction of Mortgage and submit to the Coast Guard along with a corrected application. In doing so, the documentation process was delayed because the clock starts over with new paperwork. So, the simplest of things CAN save you a lot of headaches! Our office is here to help you work through the simple processes as well as the complicated ones. Before purchasing a boat from a dealership, be sure to check us out...we will likely save you money and will make sure it is done correctly. We appreciate the business!
Take a picture of the hull number on the boat and compare it to all the paperwork on the boat. Confirm all the numbers MATCH. You ask “why”? Keep reading… Our office encountered a file where a buyer purchased a titled boat from a boat dealership and wanted to Coast Guard Document the boat. The dealership provided all the sales paperwork, i.e. Bill of Sale, Registration, etc. and it ALL matched. The hull number was checked with the Coast Guard and found the boat had not been documented. The proper paperwork was completed and submitted to the Coast Guard for documentation thus starting the approximate three month waiting period. A few weeks later, while the buyer was detailing the boat for the first time, he noticed a number in the engine compartment. It was obscure, but nonetheless, it was a number. The buyer took a picture of the number and sent it to our office. We identified it as an Official Number given by the Coast Guard so we ordered an Abstract of Title. We found out the Official Number was assigned to a similar hull number but it did not match exactly to the hull number on the paperwork. Our guess is that somewhere along the way, the State issuing the title inadvertently switched a couple of the numbers. And to make matters more complicated, there was an outstanding lien against the boat. We were able to locate the previous lender, who by the way was bought out by a larger lender thereby making it more challenging to find the original loan documents, and we’re able to secure a Satisfaction of Mortgage and submit to the Coast Guard along with a corrected application. In doing so, the documentation process was delayed because the clock starts over with new paperwork. So, the simplest of things CAN save you a lot of headaches! Our office is here to help you work through the simple processes as well as the complicated ones. Before purchasing a boat from a dealership, be sure to check us out...we will likely save you money and will make sure it is done correctly. We appreciate the business!
#58
Commercial Member
Commercial Member
Thread Starter
Are you looking to purchase a boat and have questions whether to coast guard document or title it? Give our office a call so you are knowledgeable before making that big purchase! We are independent from boat dealerships and brokers so if you are looking at coast guard documentation, we believe we can save you money. We are here to help you through the boat purchase process. Call us, email us or send us a pm!
#59
Commercial Member
Commercial Member
Thread Starter
Today, we are going to compare IO/stern drives vs Outboard motor equipped boats. When Coast Guard documenting a boat, the type of drive is of no concern as the size of boat is what qualifies a boat for documentation. However, when it comes to registering a boat, one needs to take into consideration how the type of motor is treated when paying sales tax. With the popularity of Center Consoles and newer outboard setups, this will be a cost to take into consideration when purchasing a boat.
IO/stern drives are manufactured into the boat, so universally they are considered a single entity within a hull. Outboards are unique in that they are “attached” to the boat, thus completely separate entities. Some states require each motor to be titled and registered in addition to the boat. In most purchases, the tax difference when documenting will still justify the savings in sales tax compared to titling, but keep in mind there will be additional steps required. Again, this will be state specific. On an outboard boat that requires each motor be titled, regardless if it is a new or used boat, you will need to subtract the “value” of the motor(s) from the purchase price of the boat package. This value will have a separate sales tax imposed by the state, depending on where you live, and will have a separate titling fee for each motor. Deciding on a value will be based on what you tell them. However, they have the NADA book that everyone else uses, so by placing a value that is out of sorts it will raise a red flag. In conclusion, you will have the documented or titled hull along with individual titles for each motor.
IO/stern drive boats are straight forward; it is viewed as one unit.
Marine Vessel Documentation Service assists with both documentation and titling. We will help you navigate the costs and help you decide which application will work best for you. Feel free to contact us. We are here to help.
IO/stern drives are manufactured into the boat, so universally they are considered a single entity within a hull. Outboards are unique in that they are “attached” to the boat, thus completely separate entities. Some states require each motor to be titled and registered in addition to the boat. In most purchases, the tax difference when documenting will still justify the savings in sales tax compared to titling, but keep in mind there will be additional steps required. Again, this will be state specific. On an outboard boat that requires each motor be titled, regardless if it is a new or used boat, you will need to subtract the “value” of the motor(s) from the purchase price of the boat package. This value will have a separate sales tax imposed by the state, depending on where you live, and will have a separate titling fee for each motor. Deciding on a value will be based on what you tell them. However, they have the NADA book that everyone else uses, so by placing a value that is out of sorts it will raise a red flag. In conclusion, you will have the documented or titled hull along with individual titles for each motor.
IO/stern drive boats are straight forward; it is viewed as one unit.
Marine Vessel Documentation Service assists with both documentation and titling. We will help you navigate the costs and help you decide which application will work best for you. Feel free to contact us. We are here to help.
Last edited by mvdservice; 08-06-2018 at 08:35 AM.