Posted by Steve Ball on February 26, 2004 at 21:00:06:
Considering buying a used boat? You're probably going to have a engine compression check, check the trailer tires for dry rot, and maybe even peck on the transom to sound it for rotten wood. Congratulations, you're thorough.
Don't forget, however, to check the probate records in the county where the previous owner(s) resides for liens. That is, don't simply assume that your seller owns the boat outright. He could have a note in favor of a finance company, said note secured by the boat you're about to buy. If your seller quits making payments and fails to "pay off" the boat, it's possible that the finance company can demand you surrender the boat, likely resulting in your loss of purchase monies.
Remember, you (yes,YOU!) are considered as being notified of all public records, including all records of boats purchased on credit. These are called UCC-1 financing statements.
Because the law regarding financing statements is somewhat complex and records searching techniques are not common knowledge, persons buying used rigs should contact an attorney to perform a records check.
The above is offered as a "heads-up" for area boaters and is not, nor is intended to be, an exhaustive representation of the law.
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