Open Titles: What Boat Owners Need To Know

When it comes to boat ownership, an open title refers to a vessel without a certificate of title, which is typically issued by a state authority to establish ownership. While this may pose challenges for prospective buyers due to legal complexities and ownership disputes, it is possible to obtain a title for such boats by following maritime laws and procedures. This often involves providing alternative documentation, such as bills of sale, registration papers, or insurance documents, to demonstrate rightful ownership. Understanding state-specific requirements is crucial for streamlining the registration process and ensuring compliance with legal regulations.

What is a Bill of Sale?

A boat bill of sale is a document that details the terms of a transaction between a private seller and buyer. It is a contract specific to a boat sale and can be used for a powered or unpowered boat, as long as it is not a U.S. Coast Guard-documented vessel registered by the U.S. government. The bill of sale outlines the purchase agreement and can be used for any motorized or non-motorized vessel. It is required in most jurisdictions to register the boat after purchase.

The bill of sale is an essential document that helps protect both the buyer and the seller. It serves as proof of payment in good faith for the buyer and protects them from accusations of fraud. For the seller, it provides protection if any problems arise after the sale. The document should include the names and addresses of both parties, the date of sale, the purchase price, and a detailed description of the boat.

In addition to the bill of sale, other documents may be required for the transfer of ownership, such as the boat's title, registration papers, and insurance documents. The specific requirements vary across different states, with some states requiring notarization of the bill of sale by both the buyer and seller. It is important to understand the state-specific regulations and gather all the necessary documents to ensure a smooth transfer of ownership and registration of the boat.

The process of registering a boat can be complex and time-consuming, involving extensive paperwork and strict regulations. It is important to be diligent in obtaining all the necessary documents, including the bill of sale, and to adhere to the specific requirements of the relevant jurisdiction. This ensures compliance with maritime laws and helps prevent legal issues related to ownership disputes or unpaid liens.

What is a Hull Identification Number?

A Hull Identification Number, or HIN, is a serial identification number for a watercraft. Similar to a Vehicle Identification Number (VIN), a HIN provides unique information about a boat, including the make, model, and date of manufacture. The Hull Identification Number makes it easy to look up a boat's history and is required to register your boat with your state department of motor vehicles.

The Hull Identification Number is made up of 12 characters, including letters and numbers. The first three letters indicate the make of the boat, which is known as the Manufacturer Identification Code (MIC) and is dictated by the U.S. Coast Guard. The next six characters are the boat's unique serial number, which may contain a combination of numbers and letters. Some letters, such as "I," "O," and "Q" are omitted due to their similarity to other letters and numbers, making the HIN easier to read.

The next character in the HIN indicates the month of manufacture, followed by the year of certification, and finally, the boat's model year. The Hull Identification Number must be at least 1/4 inch in size and permanently affixed to the boat. The primary HIN is typically found on the upper right of the boat's transom, but the location may vary depending on the type of boat. Most boats also have a secondary HIN located in an unexposed area, in case the primary HIN plate goes missing.

Since 1972, all boats manufactured in or imported to the United States have been required to display the 12-digit Hull Identification Number as part of the Federal Boat Safety Act. This makes it easier for buyers to verify the boat's model year and ensures compliance with Coast Guard regulations. When buying a used boat, it is important to check the HIN against the seller's documents to ensure they match.

What is a Certificate of Title?

A certificate of title is a legal document that proves ownership of a boat. It is similar to a car registration and is required by law in the United States. The rules and regulations for boat registration and titling vary from state to state, but there are some general guidelines to follow.

In most states, boats with a motor that operate in US waters must be registered and titled. This includes all boats powered by gasoline, diesel, or electric motors, personal watercraft, and sailboats over a certain size. Some states also require boats of a certain length to be titled, regardless of their propulsion method. For example, in Massachusetts, all boats 14 feet or longer that are designed for use with a motor or that use a motor at any time must be titled.

The process for obtaining a certificate of title varies depending on the state and the specific circumstances of the boat. In general, you will need to provide proof of ownership, such as a bill of sale or previous registration records, and pay a fee. Some states may also require additional documentation, such as a manufacturer's statement of origin or a completed application form.

It's important to note that boats that are already documented with the US Coast Guard may be exempt from state titling and registration requirements. Additionally, some states have specific requirements for homemade boats or boats purchased from out of state.

Obtaining a certificate of title for your boat is crucial to prove ownership and operate it legally in the United States. By following the appropriate procedures and providing the necessary documentation, you can ensure smooth sailing during the registration and titling process.

What is a Certificate of Number ID Card?

A Certificate of Number ID Card is issued at the time of registration of a vessel. The certificate of number (registration), if required:

• Must always be aboard and available for inspection by an enforcement officer
• Is valid through the expiration date shown on the certificate
• Must also be aboard USCG documented vessels that require Texas registration

What is a Manufacturer's Statement of Origin?

A Manufacturer's Statement of Origin (MSO), also known as a Manufacturer's Certificate of Origin (MCO), is a document that certifies the country of origin of a good or merchandise. It is typically required by certain foreign countries for tariff purposes when importing or exporting a vehicle. The MSO is used to register a vehicle for the first time and to obtain its title from the DMV.

In the United States, the MSO is particularly relevant for vehicles, including automobiles, aircraft, motorboats, and trailers. It is usually issued by the dealership when a new vehicle is purchased. The MSO includes information such as the manufacturer, vehicle identification number (VIN), and the year of manufacture.

The specific requirements for the MSO may vary from state to state in the US. For example, in Florida, the MSO must contain the following information:

• Name of the manufacturer registered with the National Highway Traffic Safety Administration (NHTSA)
• Vehicle Identification Number (VIN) as assigned by NHTSA
• Line-make assigned by the National Crime Information Center (NCIC) under the "make" procured by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV)
• Engine displacement in cubic centimeters (cc), watts, or brake horsepower (bhp)
• Number of cylinders
• Gross Vehicle Weight Rating (GVWR)
• Name of the licensed manufacturer, distributor, or importer, including signature, city, and state
• Name and address of the licensed franchise dealer or customer

It's important to note that federal law doesn't mandate MSOs, so the rules and styles differ across states. Some states require MSOs, while others don't. If you're importing a vehicle or constructing your own motor vehicle, you must consult the American Association of Motor Vehicle Administrators (AAMVA). It is illegal to create an MSO certificate yourself.

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