Question: How do you make sure that a documented boat is free ofliens
 

We are in the process of purchasing a 38' Irwin
that is a USCG documented vessel. I've been to
the USCG site and verified that the folks we are
dealing with are in fact the owners of the boat.

I've also seen that I can get an "abstract of
title" from the USCG by fax for a nominal fee, and
plan to do that as well.

What other steps should I take to make sure the
boat is free of liens before I hand over a
substantial certified check at closing? If there
were a mortgage or mechanics lien filed against
the boat either in Florida or Texas, how would I
go about finding it?

Just trying to cross the t's and dot the i's...

Don W.

Question: How do you make sure that a documented boat is free of liens
 

Get the USCG abstract of title. That will list the owner and lien history
and tell you if all the liens are clear. That is all I would do.

But be aware that any shipyard has an implied lien for unpaid work that runs
with the vessel and not the owner who incurred the debt. It is rather rare
for this situation to be claimed, but there isn't much you can do about it
other than buy title insurance. Title insurance is available but expensive.

So, go with the USCG abstract and you will be 99.99% clear.

David

Question: How do you make sure that a documented boat is free of liens
 

By all means get the abstract of title. In addition to boatyard and
mechanic liens (filed or unfiled), there is also the risk that a tax
jurisdiction may have a claim on the boat that has not been filed with
the USCG. It is difficult if not impossible to discover all of the
possibilities, but at the very least you should have words in the
purchase agreement to the effect that "the seller represents that the
boat is free of any prior claims, and promises to defend/pay any prior
claims that arise after the sale." This is standard verbiage on many
broker agreements.

If you are "really" concerned, rename the vessel and document it with
an offshore corporate entity. That will make it very difficult to
trace but will complicate the documentation process, incur costs and
raise other issues.