Registration
Most boats are required to be registered in their state of use and all states have special boating laws and regulations. Registration is not the same as "Titling," which is required in most of the states where boating is a major recreation. A good place to find details is from members of the National Association of State Boating Laws Administrators (visit www.nasbla.org). Lenders and buyers will want to assure that a boat they loan or borrow on is registered and titled to make sure that there is only one borrower/owner.
What are the state requirements for registration and titling?
All states require pleasure boats to be registered and/or titled in order to operate them legally in their jurisdiction. Unfortunately at this time there is no national standardized format or procedure, so the requirements and fees vary from state to state. Many states require payment of one-time sales or use tax at the time of registration.
Who can help me register/title my new boat?
When purchasing a new boat, the dealer will generally handle the initial registration and/or titling and sales tax payment for you. If you are financing your purchase, the lender will be listed as lienholder on the registration/title documents. It will be your responsibility to renew annually by return mailing the registration form along with the proper fee.
What if I buy a used boat?
A used or pre-owned boat will have an ownership history and it’s important you check with the proper state authorities where the boat is currently registered and/or titled for a lien search. This will tell you if the boat is financed, and in some cases may indicate any other claims that may be filed against it or the current owner. Any questions or concerns should be addressed with an attorney or a registration agent to be certain you understand the ownership status. You will need to gain clear title to the boat, while transferring it into your name. Any sales or use tax payment due at registration will also be your responsibility.
How do I find the registration office for my state?
For a directory of registration and titling contact information by state, please visit the National Association of State Boating Law Administrators’ Website at www.nasbla.org and go to the “Boating Law Administrators” page.
If you are financing your purchase, the lender (or its agent) may take the lead role in ordering and reviewing the lien search, paying off any outstanding claims, and transferring ownership into your name.
Should I document my boat with the US Coast Guard instead?
Most boats over 30’ in length are registered at the federal level, by documenting the vessel with the U.S. Coast Guard. For more information, please go to the “Understand U.S. Coast Guard Documentation of Your Boat” section of this Website.
Documentation
Owners of many larger boats (those that qualify are typically 25- to 27-feet long and up) "document" their craft with the U.S. government. Most lenders will require a qualifying boat to be "documented" because it gives a greater level of "lien protection." There are also advantages, and costs, for the boat owner to obtain documentation. Marine lenders, "vessel documentation specialists," and admiralty attorneys are good sources for information and to get the job done.
What is documentation?
US Coast Guard documentation is a federal form of boat registration controlled, monitored, and completed by the United States Coast Guard. When a vessel is registered with the Coast Guard it is given an official document number which remains with the boat, permanently displayed on an interior part of the hull. The issuance of the document number begins the Coast Guard history of the vessel. All future transactions are recorded and appear on the Abstract of Title produced by the Coast Guard.
What are the advantages of documentation?
US Coast Guard documentation provides a history and record of build and ownership for the vessel owner. This history is maintained at the Coast Guard and is provided upon request in the form of an Abstract of Title, reflecting all recorded ownership transfers, mortgage recordings, claims of lien and releases. This allows a boater to sell his boat, and a buyer to buy that boat, and be assured it is free and clear of all recorded liens and encumbrances. When financing a boat, lenders rely on the USCG records of documented vessels to confirm their security interest will be perfected by a First Preferred Ship Mortgage recorded with the Coast Guard.
Boaters cruising in international waters often prefer federal documentation to attain certain protections afforded by the US flag, which include aid from the US consulate when you are in need. Foreign port officials easily recognize federally documented vessels and appreciate that the ownership is supported by a detailed Abstract of Title reflecting all recordings.
Can anyone document their boat?
No, you must be a US citizen or naturalized citizen to document your boat with the US Coast Guard. If the owner of the vessel is an entity, that entity must be owned by citizens of the US as well.
What boats can be documented?
Generally boats that are in excess of 26' can be documented. The Coast Guard has developed a measurement formula that determines gross and net tonnage using the length, breadth, and depth of the vessel, and those boats with a measurement of 5 net tons or more can be documented. There are no further restrictions for pleasure boats operating under a recreational endorsement, however vessels operating in the commercial trade must be built in the United States.
Who can do the documentation process for me?
There are many marine documentation agencies across the US that can handle the transaction for you.
Your lender, yacht broker, or dealer may refer you to a specialist in their area, or you may contact the American Vessel Documentation Association (AVDA) at 888-832-2832 for a list of those near you. Or visit their web site at www.americanvessel.com.