Boat Buyer, Finance & Legal Title

[camperlove]

In a nutshell what's the best financial and legal advice when buying a boat?

 

Have read many of the posts and from what I can see, it's almost impossible to prove legal title or outstanding finance on a boat so a very big risk when buying?

 

One post mentioned that you would need to see every bill of sale in the chain and even then they could be faked.

 

Is it any safer buying from a broker, at a glance it appears not and even they can go bust. Recently had a narrow escape when large car dealer went bust the day after my vehicle came out.

 

Some boat builders offering new build with no money up front and no survey required, starts to look attractive proposition?

[Alan de Enfield]

In a nutshell what's the best financial and legal advice when buying a boat?

 

 

If it is going to worry you then the advice would be "don't do it"

 

Alternatively - pay cash and immediately take possession of the boat. The chances of it being stolen are remote, the chances of it being sold without a partners knowledge are remote. The chances of it being subject to finance are 'slim'

[b0atman]

ask for any paperwork repair bills, maintenance, supply of any parts with warranty, BSS forms ,insurance cover note & licence paperwork from CRT.

Some or all of these may have sellers name address and boat details.

[camperlove]

ask for any paperwork repair bills, maintenance, supply of any parts with warranty, BSS forms ,insurance cover note & licence paperwork from CRT.

Some or all of these may have sellers name address and boat details.

Thanks that's a good starting point

[WJM]

, it's almost impossible to prove legal title or outstanding finance on a boat so a very big risk when buying?

 

 

100% correct - in comparison with just about every other capital asset, narrowboats are very difficult to lock-down title on.

 

You just have to be careful, trust your instincts and balance risk.

[camperlove]

100% correct - in comparison with just about every other capital asset, narrowboats are very difficult to lock-down title on.

 

You just have to be careful, trust your instincts and balance risk.

Thanks for confirmation of that, it's a crazy system when some of these boats are the same price as a house.

[magnetman]

It was suggested to me once that something worth asking about is photographs of the vendor using the boat over time, like holidays etc - that would help to prove ownership or at least a connection to the owner. Also you can ask CRT to confirm that the person selling the boat is the person paying for the cruising license and/or mooring. They won't tell you who it is but I think they will tell you if it is not the vendor.

[camperlove]

It was suggested to me once that something worth asking about is photographs of the vendor using the boat over time, like holidays etc - that would help to prove ownership or at least a connection to the owner. Also you can ask CRT to confirm that the person selling the boat is the person paying for the cruising license and/or mooring. They won't tell you who it is but I think they will tell you if it is not the vendor.

Yes I think that would help too, thanks

[David Mack]

it's almost impossible to prove legal title or outstanding finance on a boat ?

 

Surely very few boats are subject to finance, as in having finance secured against them which gives the lender legal title to the boat. In most cases, where someone has borrowed money to buy a boat that will be a personal loan, not secured on the boat, and the liability to repay the loan remains with the borrower if they sell the boat.

 

The only exception I am aware of is a marine mortgage, currently only available from RSL, although previously available from other lenders. Is there any way to check specifically for a marine mortgage on a boat?

[camperlove]

 

Surely very few boats are subject to finance, as in having finance secured against them which gives the lender legal title to the boat. In most cases, where someone has borrowed money to buy a boat that will be a personal loan, not secured on the boat, and the liability to repay the loan remains with the borrower if they sell the boat.

 

The only exception I am aware of is a marine mortgage, currently only available from RSL, although previously available from other lenders. Is there any way to check specifically for a marine mortgage on a boat?

Thanks, that's interesting as I thought finance was the biggest problem and that many boats would be financed. However, I can see that getting finance on a boat could be harder than getting a personal loan. Guess most people would probably find it easier to get a personal loan secured on their property.

[Alan de Enfield]

........ Guess most people would probably find it easier to get a personal loan secured on their property.

 

A personal loan is 'secured' on the person - NOT on any property.

 

If a loan is secured on property it becomes a 'secured loan'.

[camperlove]

 

A personal loan is 'secured' on the person - NOT on any property.

 

If a loan is secured on property it becomes a 'secured loan'.

I see the difference now and neither are secured on the boat so in with a good chance on financial side.