Benefits of Vessel Documentation?

[Ralph18414]

I am in the process of buying a boat (Survey takes place on Tuesday). The boat is documented. I haven't owned a documented boat in over 25 years. Can anyone tell me what the benefits are. How will it affect registering my boat in AL? I am sure AL will still want their registration fees.

 

[Benny17441]

You get the privilege of sending $$$ to the Federal

Government. Unless you cruise to other countries, desire a mortgage on the boat or want to maintain a numbers free topside there is no advantage. Yes, Alabama will want their registration fee. It is your choice to forego documentation and just get a title and register with the state.

 

[jviss]

There ARE advantages

In Massachusetts, documented vessels need not be registered. So, no annual/biannual fees. The other benefits regard mortgages, being a US flagged vessel under admiralty law, ease in clearing foreign ports, etc.

 

[Jeff D]

It depends

Some states do not heve titles for boats. I like documentation since you use a Coast Guard bill of sale etc. Gives a little more evidence as to boat ownership. The annual remewal is free don't know what the transfer fee is these days.

 

[Don S/V ILLusion]

Be careful Jviss - MAssacusetts DOES require registration

From the Massachusetts DOR website:"Just about any type of a boat with a motor¯and there are an estimated 150,000 of them in Massachusetts¯must be registered with the Massachusetts Environmental Police Registration and Titling Bureau. Registration is mandatory for any boat with a motor that uses state waterways. Titling is mandatory for any boat that uses an engine and is 14 feet or longer.Boat Registration and Titling FeesBe prepared to pay the following to register and title your boat in Massachusetts:$25 for a title certificate. This is a one-time fee.A registration fee, good for two years. Exact cost depends on the size of your boat:Less than 16 feet: $4016 to 26 feet: $6026 to 40 feet: $80More than 40 feet: $100".There may be some states in which documentation replaces state registration but MA isn't one of them and since I can't tell where you are located, this is just an FYI.

 

[MoonSailer]

Alabama Documented boats MUST be Registered

Documentation is proof of ownership!!!! Alabama does not issue titles on boats. If you go to the Bahamas documentation will help and if the boat is stolen documentation might help. Once the transfer fees are paid it costs nothing for the yearly renewal...right now. No state numbers are required and I stick my registration sticker on my mast along with my MSD inspection sticker. I believe that there is a fee to undocument the vessel. You can not just ignore documentation!!!!! The coast guard must be notified of change of address ownership etc. The boat can't be moved without current documnetation if it is documented. Go to their website for the best advice!!!!

 

[sailortonyb Allied Mis]

Texas requires, Ms. doesnt

or at least Ms. 'didnt'.Thing of documentation as somewhat of a "title Search' like on a house. Someday your boat will be sold, if not by you, then by your widow or somebody else's widow LOL. Anyway, banks like Documentation if giving a mortgage on a boat.Tony B

 

[MoonSailer]

Some Banks Require Documentation

When I bought my documented boat the bank that held the mortage held the Documentation!!!!! Also the Coast Guard would not let me change ownership until they had proof that the lien on the boat had been paid off. So I had to wait for a couple of weeks before I got a statement from the bank and then a couple of months to get the documentation back from the coast guard. I used the boat with the old documentation while waiting but I think that technically I was breaking the law. I just kept copies of everything that I had sent to the coast guard onboard and went ahead and got state registration. For what it's worth in all of my years of boat ownership I have only been asked for registration once!!!!! And this was from a local game warden looking for some way to give me a fine. He asked for everything registration pfds insurance fire extinguisher. This game warden had a reputation.

 

[jviss]

Corrections

Don said "Be careful Jviss - MAssacusetts DOES require registration"Not true! See MGL, Ch. 90B, Section 2 and 323 CMR 1.00. Documented vessels are exempt from Massachusetts titling and registration requirements. MoonSailer "Alabama Documented boats MUST be Registered."Not entirely true! Only recreational documented vessels need be registered, commercial vessels are exempt.

 

[jviss]

MA laws actual text

MGL Ch 90B Sec. 2CHAPTER 90B. MOTORBOATS, OTHER VESSELS AND RECREATIONAL VEHICLESChapter 90B: Section 2. Numbering; exceptionsSection 2. Every motorboat on the waters of the commonwealth shall be numbered in accordance with this chapter, except:—(1) A motorboat owned in a country other than the United States temporarily using the waters of the commonwealth.(2) A motorboat owned by an agency of the United States government or by a state, county, city or town.(3) Ship’s lifeboats.(4) A motorboat numbered in accordance with a numbering system established by the secretary; provided, that the certificate of number or similar document awarding a number to such motorboat is in full force and effect; and provided, further, that such motorboat shall not have been within the commonwealth for a period of time in excess of sixty consecutive days.(5) A motorboat numbered in accordance with the numbering system of another state, which system has been approved by the secretary; provided, that the certificate of number or similar document awarding a number to such motorboat is in full force and effect; and provided, further, that such motorboat shall not have been within the commonwealth for a period of time in excess of sixty consecutive days.(6) A vessel which has a valid marine document issued by the Bureau of Customs of the United States government or any federal agency successor thereto.Subject to the above exceptions, no person shall maintain, operate or suffer or permit the operation of any motorboat on the waters of the commonwealth unless such motorboat is numbered in accordance with this chapter. In any prosecution under this section wherein one or more of the above exceptions is alleged in defense, the burden of proof thereof shall be on the defendant.323 CMR 1.061.06: Exemptions; Special Rules(1) The provisions of 323 CMR 1.00 through 1.05, 1.07 do not apply to the following vessels:(a) nonmotor-powered vessels less than 14 feet in length;(b) vessels owned by the United States;(c) vessels having a valid marine document issued by the Bureau of Customs or itssuccessor;(d) vessels used solely for demonstration, testing or sales promotional purposes by a bonafide dealer or manufacturer;(e) vessels owned by the state or its political subdivisions;(f) vessels bearing numbers awarded pursuant to federal law or the law of another state solong as such vessels are not operated in the waters of the commonwealth in excess of 60consecutive days.(2) The provisions of 323 CMR 1.03(1) shall not apply until October 1, 1990.(3) The provisions of 323 CMR 1.03(3) shall not apply until July 1, 1990.(4) The provisions of 323 CMR 1.04(1)(a), (d) shall not apply until October 1, 1990.(5) If a titled motorboat for which a certificate of title has been issued subsequently isdocumented by the Bureau of Customs or its successor, the owner shall remit the certificate oftitle to the division within 30 days.

 

[Don S/V ILLusion]

Jviss

what you cited exempts rec vessels from the NUMBERING requirements only, ie., displaying reg numbers on the hull.If you can find and reference a specific statutory exemption regarding registration fees, I'd like to know.You earlier said "In Massachusetts, documented vessels need not be registered. So, no annual/biannual fees." Where are these exemptions located?

 

[BobD17833]

Just the FACTS!

For no other reason then to get it correct...MASSSACHUSETTS DOES NOT REQUIRE REGISTRATION or TITLE OF FEDERALLY DOCUMENTED VESSELSMassachusetts provides information on its web site to encourage registration and if one researches no further they would be led to believe "registration is an absolute requirement".Fact is there are exceptions and one is "Federally documented vessels"MA wants registration for all..Registration = identificationIdentification = revenueRevenue = TAX & FeeFor futher research reference Massachusetts (Code of MA Regulation)C.M.R. 323 section 1.00 and especially C.M.R 323 1.06 "Exemptions"http://www.mass.gov/dfwele/dle/323cmr10.pdfBobDBoston

 

[jviss]

Massachusetts fine points

The way the law is written, one applies for a certificate of number, and that is registered to a particular person/vessel. The word "registration" hardly appears in the text of MGL 90B. To be specific, if you consult 90B sec. 1, Definitions, you will find:"“Certificate of Number”,—a document issued by the director, upon application therefor, stating the name and address of the owner of, and the number awarded to a vessel subject to this chapter, except such vessels, other than livery boats, owned by a manufacturer of or dealer in boats."This numbering is required by MGL and is handled by the environmental police, I recall. Titling is prescribed in CMR (Code of Massachusetts Regulations). THe exemptions for numbering (i.e., registration), and titling under MGL and CMR, respectively, are quoted in my previous reply.By the way, just so you know - I sail all over Massachusetts, and in any given harbor (including my own), sailboats in the 30+ foot class with a local hailing port will more than likely not have a registration sticker or number on them. This is not the case in Rhode Island, as you well know.On the other hand, while in the past a tender with a motor 2HP or less used only as a tender for a yacht was exempt, now they all require registration; mine is numbered and sticker, 'though the sticker isn't sticking very well this year! Many seem to ignore this requirement, as it is rare to see a dinghy with numbers and a current sticker.

 

[paulj]

If you are selected

USCG Documentation Group holds a banquet each year and if you follow rule 26 you will be eligible.paulj

 

[sailortonyb Allied Mis]

gards, you are correct

I just didn't explain myself right. Then again, there ain't no explainin' me.Tony B

 

[BobM]

I just went through this for MA

Advantages: The main benefit of documentation versus numbering, is that a documented vessel may be the subject of a Preferred Ship Mortgage under 46 United States Code Chapter 313. In practical terms, this means that lending institutions regard a documented vessel as a more secure form of collateral. For larger and more expensive boats, it may be easier to obtain bank financing if the boat is documented rather than numbered.Another benefit is that the certificate of documentation may make customs entry and clearance easier in foreign ports. The document is treated as a form of national registration that clearly identifies the nationality of the vessel.Disadvantages: The main disadvantage of documenting rather than numbering is the higher cost. The initial documentation fee for a recreational vessel is $100.00. The numbering fee varies from State to State but averages about $25.00. In addition, documented vessels are not exempt from State or local taxes or other boating fees. Some individual States require a registration fee even if a boat is documented. A big additional cost is that lenders currently charge ~$400 in fees to research a documented vessel, but there are no charges with a state titled vessel. So if your vessel is smaller or older and someone wants to finance it this may be a significant additional cost.I looked at a 1979 Newport for $10,000 and an additional $400 is 4% of the sales price, plus I still would have had to pay 5% sales tax. Oh well, the decks were saturated anyway so I ended up buying a non-documented boat.Bob

 

[jviss]

Registration is more money!

Hey Bob,Make that $80 EVERY TWO YEARS for a Catalina 36 in Massachusetts, plus a $25 titling fee (one time), plus a $15 transfer of registration fee (one time); that's $440 for 10 years, assuming they don't increase the fees.The documentation is one-time. Period. Year one documentation is cheaper. How do you figure it's more?

 

[Benny17441]

common guys, anyone can make a mistake.

Even though the commentary was incorrect it may have been well intended.

 

[jviss]

update- to Bob

I just re-read your note - the extra $400 for documentation research - is that the research to initially document a vessel? I mean, is it a one-time charge? I can see that. I did mine myself, and I recall (vaguely) spending a total of $180 to document it, the $80, I think, being the fee to process the paperwork I provided to demonstrate an unbroken chain of title, which in my case was from the previous owner's NY State boat registration. So, if you pay an agent to do it, it could indeed be expensive.

 

[MoonSailer]

Do it Yourself

I filled out the paperwork myself. Fairly easy paperwork. Some places were wanting several hundred dollars to do it.