BoatWiki

BoatWiki.com

The Free Boating Encyclopedia

DefinitionsGuidelinesResources
FormsDatabasesBlogsProfiles

Participate TranslateAbout
LinkTermsPrivacyContact

--- WikiTags ---

Maritime Liens - Blog



BoatScope

The nation's premier boat history report with a full compliment of title search resources. Includes eight maritime databases all rolled into one convenient interface. A must-have service for any prospective buyer, marine lender, or maritime professional.

Visit Now

Advertisement

Owner Background Search

Court Records - Criminal Records
Assets - Properties
Personal Details


Know your seller!

Sponsored by

BeenVerified

Boat Title Encumbrance

WikiTagsWikiShare


BoatWiki - Definitions

Definition


An encumbrance in boating terms can be defined as a claim or action against a boat which prevents its title from being transferred to another party. This differs from a lien as these do not always prohibit such actions and may follow through subsequent transfers. In order to become effective as an encumbrance, the claim must be perfected through an appropriate governmental recording or by compliance with statutory reguations.

Meaning


Encumbrances are usually of a contractual nature where a boat is pledged as collateral  through a loan security agreement. They can, however, also result from tax liens, possessory liens, impoundments, repossessions, and court actions.

Context


Encumbrances in the boating industry are typically evidenced by a preferred vessel mortgage or state level boat title recording. Uniform Commercial Code (UCC) filings, although certainly viewed as legitimate claims, do not meet the strict definition of an encumbrance as these may not in themsleves preclude the transfer of a boat title or registration.

Conclusion


Whether a lien or encumbrance, any outstanding claims against a particular boat will usually dissuade a buyer from finalizing a transaction unless cleared. The object is, of course, to make sure all of these are identified and dealt with prior to a closing or settlement.


Credits and References

4/23/2022 - Page initiated by Team BoatWiki.




Advertisement

BoatUS Towing


---  Float Your BoatWiki ---

Learn about the role you can play
in supporting the internet's most reliable
source of boating information.

---  WikiAlerts ---

Stay informed about urgent matters of
boater fraud and the latest changes in
 boat registration or safety regulations.

Advertisement

Advertisement

BoatUS Member


BoatWiki.com

A Division of Maritime Partners, LLC
State of Washington  USA
© Copyright 1998 - 2022 All rights reserved.