What is a Documented Vessel?

What is a documented vessel?

What is a Documented Vessel?

A documented vessel is one that is registered by the Federal Government through the U. S. Coast Guard, rather than titled and numbered by a state. Pleasure vessels of 5 net tons and over (26 feet in length and up) may be documented, and commercial vessels 5 net tons and over must be documented.

What are the Benefits of Documentation?

Some benefits of federal documentation are:

1. TITLE ASSURANCE You have better assurance of title because the U.S. Coast Guard has more stringent chain of title requirements than do most states. Once a vessel is documented, the complete history of the vessel is available on the Abstract of Title.

2. FOREIGN TRAVEL If you sail in foreign waters, your Certificate of Documentation facilitates clearance with foreign governments and gives you the status and protection of a U.S. flag vessel.

3. FINANCING Most lenders require documentation so that their interest may be secured by a Preferred Ship’s Mortgage recorded by the U.S. Coast Guard.

4. OTHER REASONS Many boat owners like the prestige of having their boats documented. Others object to state registration because they do not want to display the numbers on the hull. A major advantage becomes evident when you sell your boat, as ownership and encumbrances are easy to check.

What are the Citizenship Requirements?

1. All individual owners must be U. S. Citizens

2. In order for a corporation to qualify as a “citizen of the United States,” it must be incorporated in the U.S.; the president or other chief executive office must be a U.S. citizen, and there may be no more alien directors than minority of the number required for a quorum. There are requirements pertaining to stock ownership, according to the use of the vessel.

3. There are specific requirements for partnerships and other types of ownership, which we will be glad to discuss.