So here’s the question… is it possible to buy a boat for which the seller does not have a title, and be able to get title to the boat with a bill of sale provided by the seller? What are the potential issues with back taxes, etc.?
Hobie Outback
WS Ride 135
‘66 13’ Boston Whaler w/ Merc 25
15’ Henry O w/Johnson 50
I have an older jon boat that my father gave to me. It had been used in a private lake and never titledregistered In order to get a title and registration number, I had to advertise it in the paper for a set period of time. I would contact SCDNR before I bought it. Unless it is free, I’d make the seller get the title.
“Apathy is the Glove into Which Evil Slips It’s Hand”.
Just a general question…What if a person in SC buys a boat from out of state such as Georgia, which does not require titles for boats?
Capt. Larry Teuton
Cracker Built Custom Boats
“Ships are the nearest things to dreams that hands have ever made.” -Robert N. Rose
quote:
Originally posted by Cracker LarryJust a general question…What if a person in SC buys a boat from out of state such as Georgia, which does not require titles for boats?
Capt. Larry Teuton
Cracker Built Custom Boats“Ships are the nearest things to dreams that hands have ever made.” -Robert N. Rose
SC Dnr has most of the information of the website, if bringing in from another state you need a bill of sale or registration from the other state.
http://www.dnr.sc.gov/boating/faqs.html
17’ Hewes Stalker
As long as you have the serial number, you can advertise your claim and eventually get a title from DNR.
Seafox 246 w 300 Yamaha
if you have a bill of sale from a state that doesn’t title and its never been titled in SC it pretty easy. you have to have a picture of the hull id number
I purchased a motor from out of state & it had never had a title. It was easy process, just followed SCDNR website instructions.
Thanks all.
Capt. Larry Teuton
Cracker Built Custom Boats
“Ships are the nearest things to dreams that hands have ever made.” -Robert N. Rose
On a related note, I just registered mine last week and the process went incredibly easy, compared to what I was imagining it would be - honestly, too easy. So, my fiancee is an attorney and wanted to set the boat up in an LLC (because that’s what attorneys do, I guess). She creates the LLC - except for that she’s listed as the authorized agent, but I have to handle everything. So, I’m figuring that I’ll go down to DNR and get the runaround about “You’re not the ‘owner’ of this LLC, you can’t do this…” We had the Bill of Sale and the titles both signed over as the owner listed as our LLC and I take the paperwork down there. I’m armed with the Articles of Organization from the SOS and all, in addition to everything else I knew I’d need. I was hoping I could show them my DL and that it had the same address as the LLC and maybe that would quell their concerns.
Walk in there, give the lady everything and she has me fill out the yellow sheet, that we hadn’t filled out yet. She asks me to list the owner and that’s when I ask her about that - “So, I want to put it in an LLC. The same name we have listed on the Bill of Sale and the Titles”. Okay, she tells me - then put that on the sheet, just like you want it listed. I did, she asked me for $326 and less than 5 mins later I was out the door, registrations in hand.
So, for anyone that knows more about this stuff than me - how does this work? She didn’t ask my name, address or anything. She never saw my driver’s license or anything - I never signed one document; only printing the name of the LLC in a couple of places. How did she know that was even a real LLC? What’s to stop - say, Larry from registering his boat in my LLC’s name. He gets drunk in Shem Creek and hits another boat, then flees the scene. The cops look up the registration and come to my house? How would that work? I don’t understand the record-keeping of it at all. I asked her a little bit, but she wasn’t understanding what I was asking I guess, and I didn’t want to cause any
So how does that LLC work exactly? Say the operator is the reason an accident happened, not the boat. Why couldn’t someone sue you personally for negligence just because the boat isn’t in your name? If I went out and drove someone elses boat, and hurt someone, I would think I would be sued. Or does it just cover you in case someone else is driving and is careless so they down’t sue your friend and you?
“Banana Pants”
Indigo Bay 170
90 Johnson
Wilderness Ride 115
I honestly do not know. I believe that it shields people from attaching, say - our house (or anything not listed under that LLC name) to any lawsuits. But you’re right - it seems like if the operator is negligent (which would be 99% of the time), then they personally would be responsible and could be held personally liable. I think in the end, it would keep an attorney from placing a lien on our home (also in a separate LLC) should we get a judgement we can’t pay levied against us. I’ll find out exactly for you though, unless someone else answers more clearly before I get home.
My fiancee deals with them all the time and understand exactly how they work and how and what they do and don’t shield. But as far as the “so what if someone else files something under our LLC” - she didn’t seem to get what I was asking. All I got from her is “the cops would come here and asked if we owned XYZ boat, I’d tell them no and that would be it.” But that doesn’t seem right at all.
Gotcha, I know I have seen lots of people form LLCs for protection, just make sure you have a legit company, with employees, taxes, bank accounts etc. Otherwise the judge will call it a sham company and throw the LLC out and just pin you personally liable. That also means meeting minutes, more than 1 officer.
I could see this if someone has a business that needs a boat. Like a charter, or maybe someone to entertain clients. But I would think the boat would just be in the companies name, not some new LLC just for the boat. Seems pretty obvious if you have your house in one LLC, and you boat in another, and you and your wife are the only officers, that is was just setup as a liability shelter.
I am sure your wife knows way more about this than me. It just seems like a lot of hassle to keep up with annually just to have a boat in an LLC for “what if.” But she probably has paralegals to do all that stuff for her anyway.
“Banana Pants”
Indigo Bay 170
90 Johnson
Wilderness Ride 115
Wow… didn’t expect this to go in the direction it did, so here we go, eh? With respect to my initial question and DFreedom’s advice to check with DNR, I called them today. I was told that the seller should be able to provide a bill of sale in substitution of a title, but that it is recommended to first get the boat’s ID # and/or hull # and then call them. They stated that if the seller is not the same person as the registered owner, the bill of sale would not be sufficient to get a new title, and they can also check and determine to what extent if any, back taxes would be owed. I had asked the question due to the presence of mulitple boats and motors advertised on Craigslist that state the seller’s do not have title but are willing to provide a bill of sale. Some time ago I had seen on the DNR website that it was illegal to buy or sell a boat without a title which has up until now caused me to shy away from these “deals”. But now that I have been told by DNR that it can be done, I’ll proceed accordingly.
Hobie Outback
WS Ride 135
‘66 13’ Boston Whaler w/ Merc 25
15’ Henry O w/Johnson 50
If you buy from out of state the bill of sale must be the South Carolina Bill of Sale.
Bring it with you when you go to buy the boat, have the seller sign the South Carolina Bill of Sale.
quote:
Originally posted by friogattoIf you buy from out of state the bill of sale must be the South Carolina Bill of Sale.
Bring it with you when you go to buy the boat, have the seller sign the South Carolina Bill of Sale.
And have it notarized. Don’t forget that part.
'06 Mckee Craft
184 Marathon
DF140 Suzuki
Yes, notary is required.
It depends on what state you are buying the boat/motor from. A notoery is not required in SC unless it is registered in SC, has no lean, and title is present from current owner. In Ga you will need the registration card and a bill of sale from owner for the motor but it does not need to be notorized. In NC you need the Title to the boat and bill of sale for motor, does not need to be notorized.
If you intend to purchase a boat or motor that the current owner has the title in the previous owners name then you will need: Copy of that persons driver license. A completed registration form from the current owner signed by them. Then you need a bill of sale from him to you, and that needs to be notarized. You will be responsible for all fees occurred by current owner and all sales taxes from both transactions.
It doesn’t hurt to get a notary so I advise to do so when you can. As far as back taxes, they follow the boat. That doesn’t make it right, just the way it is. Call DNR with hull ID and have them run it. If taxes are owed it will be flagged and must be satisfied in order to obtain a new title/registration. Also ask if there is a lien on it, as that will have to be satisfied as well. This is especially important if you are buying a boat from the current owner without a title but bill of sale.
If you have any questions feel free to pm me with your number and I will give you all the details.
Scout 185