I have a friend of mine looking at a used boat. The owner of the boat states that there is no title for the boat because it is registered with the coast guard. Does this sound right?

there should still be a title, the lady that did my documentation has my title, if it's financed the bank wont even ask, if it's documented. my dad just bought a new one thats documented and he got the title in the mail.

Do not believe boat can be both registered thru Coast Guard and the state, so most likely there is no state title.

Look up the Coast Guard website - vessel documentation. There are forms and explanation. You can process yourself, or hire a company that does that all day long, for approx $300.

There is no actual "Tiltle" issued by a state for a USCG documented boat. You have a USCG Registration. The lien is filed with the USCG.

what are the advantages/disadvantages of registering with USCG instead of the state? do you still have to have state numbers on the boat?

It's my Donzi you are referencing...no title with the Coast Guard documentation...really.

No you do not have the numbers on the boat. You still have to register it with the state, but all you have is the registration sticker that goes on the boat. In Missouri the registration is good for 3 years. The advantage to documenting the boat is that you pay an "in lieu of" tax vs. sales tax. Saves big $$$, but every state is different.

Here is the link to the coast guard FAQ's...it will answer all the questions.

WHAT HAPPENS WHEN I SELL MY DOCUMENTED VESSEL?

When the sale is finalized you may complete a U.S. Coast Guard Bill of Sale (CG-1340) or complete the “Sale or Transfer of Vessel” section on the reverse of the Certificate of Documentation (CG-1270). Documentation forms, fee schedules, and instructions are available for downloading on this web site. If there is an outstanding mortgage, the mortgagee ( lender) should complete a Satisfaction of Mortgage. The vessel cannot be removed from documentation with an outstanding mortgage.

http://www.uscg.mil/hq/g-m/vdoc/faq.htm#21

The way it was in MD, was; the boat has been registered with the CG, but still had to pay state tax. No numbers on hull and lasts two years, cost only 10 bucks every two years. also made the transaction go better as the banks like seeing documented vessels

i still havent registered my boat since i bought it last year. Would there be any savings registering it the USCG over the state?