Documentation - Wow! That was easy.

[sailingdog]

Yes, USCG documentation is an advantage for a lender. But, USCG documentation is also a major advantage if you leave US waters. Being a USCG documented boat means you are a US-flagged vessel and that gives you certain rights over state-registered vessels in foreign waters. State registered vessels do not have to be recognized by foreign governments, as they are not sovereign nations in themselves.

A USCG documented boat also has a much better paper trail than a non-documented boat. Proving ownership and such is far easier on a USCG boat than in state registered boat. Foreign governments do not have any real way of checking the status of a state-registration or its legitimacy, where they do have ways of checking on the legitimacy of USCG documented boats.

Many countries, especially as you get further from the United States, will not recognize state-registered boats. In some foreign countries, this can lead to you having to check in and out with customs at every port in the country, rather than when you arrive and when you leave—which can get expensive, given the fees involved.

IMHO, if you're going to be leaving US waters, your boat is large enough to qualify for documentation (net 5 tons), and you are a US citizen, it would be foolish to leave with a state-registered boat.

States require registration but if it's fed documented you're supossed to leave the numbers off. MD, DE and NJ won't bother you as long as you have a current state registration sticker on the boat. I place mine on the base of the mast and have cruised right on by the marine plice and coasties with nothing more than a smile and nod from them. As far as the documentation being and advantage. Yes it is, for the banks. This way if you decide to leave US waters without paying the loan they can come repo it any where in the world.

 

[Rich (P303)]

I had my numbers made up on a copper plate that would normally be used for hot gold foil stamping through a friend's company.



One point I'd make about some of the boat documentation services. Some do a title search and provide title insurance in the case any liens were missed. If you're in the process of buying a boat that wasn't documented previously, or had the documentation lapse, this is probably a good idea.

As for state registration—some states require that you pay the registration fee. However, states CAN NOT require that you put on state registration numbers. They can require you put on a sticker though.

If I recall... Boat U.S was going to do this for +/- $350. I did it myself for less than $100.