Boat Title what the heck?

[NewGuy]

OK members, here’s a weird one. So I am selling my boat to someone out of state. I go to fetch my title from the safe and I have every paper imaginable, but no title. Think I’ve gone crazy, but didn’t remember getting a title. No worries I go to the County Clerks Office and they tell me the reason I don’t have a title is because boats and trailers are not titled in Tennessee. Seriously? Long story short the buyer can’t get a loan without a title for both the boat and trailer. How would Anyone prove there is no leinholder. This is asinine. Anybody run into this?

 

[adrianp89]

Yes. You need the Certificate of Origin, but most likely new buyer just needs bill of sale and copy of your current registration, then his DMV will title it.

 

[HawaiiBreeze]

Funny you mention this. The 50th State last year made us all get titles to our boats. Come on in, stand in line and pay-up.

 

[NewGuy]

Yes. You need the Certificate of Origin, but most likely new buyer just needs bill of sale and copy of your current registration, then his DMV will title it.

Thank you adrianp89. I don’t seem to have that in my paperwork. Problem we’re having is with his bank. I do have the rest. Is the Certificate of Origin something the dealer would have?

 

[adrianp89]

Thank you adrianp89. I don’t seem to have that in my paperwork. Problem we’re having is with his bank. I do have the rest. Is the Certificate of Origin something the dealer would have?

More than likely Yamaha has it, or your lender. Your dealer can also point you in right direction. In Florida I had it, but didn’t need it. The DMV created their own title for both when I registered. His bank probably doesn’t understand the process.

 

[Ronnie]

Look into buying title insurance, I have for hard to register used cars not sure if it’s offered for boats. Basically a third party reviews the title history and certifies that it is clean/clear. The CA DMV accepts it your buyer’s lender may as well. It was $400 or so when I used it last in 2015.

 

[adrianp89]

Look into buying title insurance, I have for hard to register used cars not sure if it’s offered for boats. Basically a third party reviews the title history and certifies that it is clean/clear. The CA DMV accepts it your buyer’s lender may as well. It was $400 or so when I used it last in 2015.

Doubt it’s any good. Boats don’t get titles in TN.

 

[Ronnie]

Doubt it’s any good. Boats don’t get titles in TN.

Understood but title insurance companies don’t give title to anyone they just verify that there are no other claims or liens on it. This may be good enough for a lender to make a loan on the boat. However, I would check with the lender before spending any money on title insurance.

 

[2kwik4u]

@NewGuy

I bought my first boat out of Tennessee, brought it into Kentucky. I had to file for titles with the local county clerks office. To do this, I had to take both the boat and trailer to the clerks office (There is one in particular in Louisville that does it), and have a sheriff do an "inspection". Basically they just check the Hull ID against the certificate of origin, or the bill of sale. Once they have that, they will issue a new title in the state it's being registered in. It was my responsibility to list the new lienholder on the title. The bank was less than pleased with this process, but I was able to talk my loan officer into the idea that I was a trustworthy individual.

Also, my trailer was built, then sold, then used in TN exclusively before I got it. We couldn't find a VIN anywhere on the trailer, so I had to have a new one issued, then had to stamp it on with punches, then have it inspected and registered. It was a humongonomous pain in the arse. I doubt you'll have this issue with your trailer if it's under a Yamaha boat, but be aware it could happen.

Finally, KY doesn't require registration on the trailer unless you leave the state, so I never had a plate on it. I sold it to a woman out of Indianapolis, and she had to jump through similar hoops to get it registered and ended up making a trip BACK down to Louisville to get me to sign some additional papers to make it happen.

Overall, there has to be a lot of trust in the people working deals around this kind of BS. Because at some point you'll find you just don't have the thing you need to get the process complete and will have to go back to the other party and get something signed, or get some additional piece of paper. I've imported a car from Canada into Indiana with less PIA than I have transferring between states.

Good luck dude!

 

[NewGuy]

@NewGuy

I bought my first boat out of Tennessee, brought it into Kentucky. I had to file for titles with the local county clerks office. To do this, I had to take both the boat and trailer to the clerks office (There is one in particular in Louisville that does it), and have a sheriff do an "inspection". Basically they just check the Hull ID against the certificate of origin, or the bill of sale. Once they have that, they will issue a new title in the state it's being registered in. It was my responsibility to list the new lienholder on the title. The bank was less than pleased with this process, but I was able to talk my loan officer into the idea that I was a trustworthy individual.

Also, my trailer was built, then sold, then used in TN exclusively before I got it. We couldn't find a VIN anywhere on the trailer, so I had to have a new one issued, then had to stamp it on with punches, then have it inspected and registered. It was a humongonomous pain in the arse. I doubt you'll have this issue with your trailer if it's under a Yamaha boat, but be aware it could happen.

Finally, KY doesn't require registration on the trailer unless you leave the state, so I never had a plate on it. I sold it to a woman out of Indianapolis, and she had to jump through similar hoops to get it registered and ended up making a trip BACK down to Louisville to get me to sign some additional papers to make it happen.

Overall, there has to be a lot of trust in the people working deals around this kind of BS. Because at some point you'll find you just don't have the thing you need to get the process complete and will have to go back to the other party and get something signed, or get some additional piece of paper. I've imported a car from Canada into Indiana with less PIA than I have transferring between states.

Good luck dude!

Super helpful and it's why I love this forum. You sure are right that Tennessee has made it a huge pain in the arse to sell out of state. The dealer did have the Certificates of Origin thankfully, but this guy's bank is more confused than Paris Hilton taking a math test. Anyway, last bit of drama is that the trailer certificate is stamped as "duplicate" and my dealer doesn't know why. They just say that's all they have. Very helpful. Anyway, I've left it with the buyer and their banker to just call the TN dealer to get an understanding of how the process is suppose to work here. I did have a banker friend help out. Evidently the "UCC" is a service all banks should have that searches for liens and verifies there isn't one. Caught between a backward state government process and a clueless lender on the buyer's side. Unbelievable. This should be so easy. Again, thank everyone for the help and guidance.

 

[AZMark]

Most states let anyone search UCCs.

UCC Document Search - UCC Services Online

Web site for Tennessee Secretary of State, UCC Division Online Services

tnbear.tn.gov

 

[2kwik4u]

Super helpful and it's why I love this forum. You sure are right that Tennessee has made it a huge pain in the arse to sell out of state. The dealer did have the Certificates of Origin thankfully, but this guy's bank is more confused than Paris Hilton taking a math test. Anyway, last bit of drama is that the trailer certificate is stamped as "duplicate" and my dealer doesn't know why. They just say that's all they have. Very helpful. Anyway, I've left it with the buyer and their banker to just call the TN dealer to get an understanding of how the process is suppose to work here. I did have a banker friend help out. Evidently the "UCC" is a service all banks should have that searches for liens and verifies there isn't one. Caught between a backward state government process and a clueless lender on the buyer's side. Unbelievable. This should be so easy. Again, thank everyone for the help and guidance.

I will say the few times I've had to deal with this crap, getting a check, or cash in hand from my lender has made the whole thing much easier. I had one credit union that wouldn't release funds until the title came back with them as a lien holder. I get protecting their investment, but in what world do they think a buyer is going to let a title and registration change to a new owner without cash in hand. A clueless or overly panic'd lender can cause the whole thing to come crashing down.

I've bought a few cars with HELOC funded cash, and they have been some of the easiest to deal with. Hand them a stack of $100's, and drive off in the car. FIgure the paperwork out later. Most have been more than helpful in getting the right paperwork later when needed.

Hell, getting a truck across the canadian border during the import process was fairly straightforward because the seller walked it through like it was his, then handed me the keys......because I had 1/2 cash and 1/2 check for him when I picked it up.

Good luck man, I hope it works out for you.

 

[adrianp89]

Lightstream is great for this - they just put the cash in your bank account.