Putting A Lien On Your Boat: Maryland's Process

If you're looking to secure payment for services or supplies provided to a boat owner in Maryland, you may need to know how to put a lien on their boat. The process can be complex and time-consuming, varying depending on whether the boat is registered as a vehicle by the state or documented as a vessel by the US Coast Guard. In this guide, we'll walk you through the steps to take, from understanding maritime liens and researching the vessel to drafting and submitting the necessary documentation. We'll also discuss the role of an attorney and the potential for litigation if negotiations with the boat owner fail.

Registered boats in Maryland will have titles, except for Coast Guard-documented vessels

In Maryland, registered boats will have titles, except for Coast Guard-documented vessels. The state issues both registrations and titles for all non-exempt boats operating within its jurisdiction. These are administered through the Department of Natural Resources in Annapolis. While outboard motors are not registered or titled in Maryland, boat trailers are.

Registration is mandatory for all motorboats in Maryland. However, Coast Guard-documented vessels are exempt from this requirement. These vessels must, however, obtain a special use decal. The sale, transfer, abandonment, theft, or destruction of a registered boat in Maryland must be reported to the Department of Natural Resources within 15 days.

Maryland boat registration numbers begin with "MD" followed by four numbers and two letters. These must be displayed on all non-documented boats, along with registration sticker tabs. Coast Guard-documented vessels are prohibited from displaying these state registration numbers. Instead, they must display an owner-designated vessel name and a hailing port. Additionally, an official documentation number must be affixed to a visible interior location in the hull or an integral part of the hull.

All vessels manufactured after 1972 are mandated to have a 12-digit hull identification number affixed by the manufacturer. For homemade boats or those lacking factory designations, Maryland offers state-assigned hull numbers prefixed with "MDZ." It is important to note that hull number inspections are not required in this state.

Registration is required for all motorboats in Maryland

In Maryland, all motorboats must be registered and titled with the Maryland Department of Natural Resources. This applies to both commercial and recreational vessels with motors, regardless of whether the motor is the primary source of propulsion. The registration is valid for two years, and you will be provided with a registration card that must be kept on board and available for inspection by law enforcement whenever the vessel is in operation.

To register your motorboat, you can submit an application in person at a DNR Service Center or by mail. The required documents include a completed and signed DNR Form B-240, the original Manufacturer's Certificate of Origin, and an original Certified/Notarized Bill of Sale if the certificate does not include the purchaser, purchase price, date of sale, and signatures of all owners. All documents must identify the vessel using the hull identification number, assigned boat number, or USCG boat documentation number.

Additionally, specific requirements must be met for displaying the registration number and decals. The boat number must be painted or permanently attached to each side of the bow, using BLOCK letters that are at least three inches high and in a color that contrasts sharply with your boat's color. The letters and numbers should be separated by a hyphen or space, for example, "MD-1234-AA" or "MD 1234 AA," and they should be read from left to right. Decals must be displayed on both sides of the boat, within three inches of the registration number, and only current decals should be shown.

It's important to note that certain vessels are exempt from registration in Maryland. These include human-powered vessels such as canoes, kayaks, and rowboats, as well as vessels that are properly registered in another state and are temporarily using Maryland waters for less than 90 days. US Coast Guard-documented vessels are also exempt from registration but are subject to vessel excise tax if they are principally used in Maryland.

A special decal must be obtained for Coast Guard-documented vessels

A boat may be identified as either a State Registered Vessel or a Federally Documented Vessel, but not both. A vessel that is federally documented does not need to be titled by a state, but it may need to be registered with a state depending on how long the boat is present in the state's waters. For example, in Florida, registration is generally required if a boat spends more than 89 consecutive days in the state.

Federal documentation is like a title for your boat. According to federal law, under 46 U.S.C. § 12106, a USCG-documented vessel is prohibited from being titled by a state, and a state cannot require such a vessel to display registration numbers. However, states may still require the registration of USCG-documented vessels for tax purposes or other reasons.

The title is a formal, coloured document used to prove and transfer ownership. The registration typically consists of a registration card and an annual state decal, which must be affixed to the boat. So, while the Coast Guard Documentation serves as the title for your boat, you may still need to register with a state and obtain the necessary decals.

To register a USCG-documented vessel in Florida and obtain the required decals, you must provide the following:

• Application to Register Non-Titled Vessel
• Copy of documentation papers
• Copy of the executed bill of sale to document the amount of sales tax due
• Proof of payment of sales tax or proof of tax exemption
• $50 non-resident commercial vessel fee, if applicable

To place a lien on a boat registered as a vehicle, file a lawsuit and obtain a court judgment

To place a lien on a boat registered as a vehicle in Maryland, you must navigate the legal process, which involves filing a lawsuit and obtaining a court judgment. Here are the steps to follow:

Understanding the Legal Process

Before initiating any legal action, it is crucial to understand the concept of liens and the specific laws that govern them in Maryland. Consult with an attorney who specializes in this area of the law to ensure you comply with the applicable laws and procedures.

Filing a Lawsuit

If you are seeking to place a lien on a boat, you will need to file a lawsuit in a court with jurisdiction over such matters. This typically involves submitting the necessary legal documents, such as a complaint or petition, to the appropriate court. Consult with your attorney to ensure you file in the correct court and meet all the procedural requirements.

Obtaining a Court Judgment

After filing the lawsuit, attend all court hearings and present your case to the judge. If the court rules in your favor, it will issue a judgment granting you the right to place a lien on the boat. This judgment serves as an enforcement mechanism to secure the payment you are owed.

Recording the Lien

In Maryland, the process of recording a lien may vary depending on the county. In Baltimore City, the court will record the lien automatically without any request from the creditor. However, in all other counties, the creditor must file a request to record the lien in the circuit court. This step is crucial to ensure that the lien is officially recognized and attached to the boat owner's property.

Enforcing the Lien

Once the lien is recorded, you can work with legal channels to enforce it. This may involve seizing and selling the boat to recover the debt owed to you. It is important to follow the proper procedures for enforcing a lien, which may include additional legal steps and court approvals.

Understanding Time Limitations

Keep in mind that a judgment lien in Maryland typically lasts for 12 years. After this period, the plaintiff can renew the judgment for another 12-year period if necessary. Time limitations may vary, so consult with your attorney to understand the specific timeframe for your case.

Boats registered as vessels must be recorded with the US Coast Guard's National Vessel Documentation Center

To put a lien on a boat in Maryland, one must follow specific legal procedures, particularly if the boat is registered as a vessel. In this case, the boat must be recorded with the US Coast Guards National Vessel Documentation Center (NVDC). This centre maintains records of vessels and their ownership, and any liens or mortgages against them.

The NVDC provides a range of services, including initial vessel documentation, reinstatement of documentation, certified copies of documentation, and changes to documentation, such as name changes or transfers of ownership. One of the key services offered by the NVDC is the recording of a Notice of Claim of Lien (NCL) against a documented vessel. This is a critical step in the process of placing a maritime lien on a boat.

Maritime liens are used to secure payment for services or supplies provided to a vessel, and the process can vary depending on the jurisdiction. In Maryland, the specific laws and regulations governing maritime liens must be followed. The NVDC provides the necessary forms and guidance to apply for a Notice of Claim of Lien. This typically involves documenting the claim with invoices, contracts, and other relevant evidence, as well as providing detailed information about the vessel, including its registration and ownership details.

It is important to note that the process of placing a maritime lien can be complex, and it is recommended that boat owners or lien claimants consult with a maritime attorney or legal professional familiar with the specific laws in Maryland. They can provide guidance on the validity of the claim, the documentation required, and the legal steps necessary to enforce the lien if negotiations with the vessel owner are unsuccessful. By following the procedures outlined by the US Coast Guards National Vessel Documentation Center, individuals can effectively establish and record a lien on a boat registered as a vessel in Maryland.

Frequently asked questions