Boat U.S. - January 2008 - (Page 31) aged their credit. A dealer’s failure to satisfy a loan can also have repercussions for buyers of used boats. For example, a Texas boat owner reported to BoatU.S. that months after he purchased a boat from a Lewisville, TX, dealer, he still had not received the title and consequently could not register or use the boat. He found out later that the dealer had not paid off the boat’s original owner and the lender wouldn’t release the title to the second owner. State laws prohibit the sale of goods that are encumbered by liens or security interests, but this doesn’t necessarily make it easy for the consumer. In the Texas case, the dealer pleaded guilty to charges of theft and fraud, but both boat owners, the buyer and the seller, were forced to sue the dealer in civil court to recover their damages. Boat purchases between private parties present a slightly different set of challenges, according to Addington. Titling is required in 35 states and the District of Columbia, but only 18 of those jurisdictions require either that the creditor be noted on the title or that the creditor’s security interest be filed with the boat titling agency. In the case of federally documented boats, lien information recorded with the U.S. Coast Guard documentation office may not show up in state records. Addington said that when a buyer can’t obtain a vessel’s title, it could be a sign that the loan hasn’t been paid off. In the case of a lost title, the original owner can easily apply for a duplicate. Most states charge a small fee for this service. In any case, buyers should not proceed with purchases until title or registration questions are cleared up. In states that do not require titles — 16 do not — Addington recommends including in the written sales agreement a statement that the boat is sold “free and clear of all liens and encumbrances.” Both parties, of course, must sign the agreement and it should be notarized, she advises. Because it may be difficult and timeconsuming for the average buyer to track down liens against a vessel, Addington recommends using a settlement service like the one offered by BoatU.S., which can help with purchase agreements, lien searches, loan payoffs and transfer of ownership. BoatU.S. can even act as agent and coordinate all transactions between buyer and seller. Visit BoatUS.com/boatloans/service or call 706-869-8241 for more information about the BoatU.S. Settlement Service. — By Caroline Ajootian BOAT BUYING TIPS: Know how much you can afford. Prequalify for financing before you shop. Check up on the dealer. Go to the BoatU.S. Consumer Protection Bureau’s consumer protection database online at my.BoatUS.com/consumer/database.aspx or call 703-461-2856. The Better Business Bureau (bbb.org) also has an online database of complaints. Research your current boat’s value before negotiating the trade-in value. Try to keep negotiations for the trade-in value separate from the negotiations for the new boat. The free BoatU.S. Value Check service (703-823-9550 ext. 3990 or BoatUS.com/buyer/valueform.asp) can give fair-market values for used boats, which may be useful when making a trade. Be aware, however, that trade-in values are considerably less than market value. If there’s a loan on your trade-in, make sure the purchase agreement includes a written provision that the dealer will pay off the loan within no more than 30 days. Write in contingencies that the boat being purchased will undergo a satisfactory survey and sea trial. This is essential for all used boat purchases but is also advisable when buying an expensive new vessel or when the buyer is inexperienced. Contracts should state clearly that the vessel is being sold free and clear of all liens and encumbrances. At the time of purchase, buyers of new boats should receive a manufacturer’s certificate of origin or a builder’s certificate, stating that the vessel has no prior retail owners. Contact the boat manufacturer if you do not receive this document. New and used boats are sold with temporary dealer registration numbers that bridge the gap between purchase and registration by the new owner. In some cases, the dealer takes care of registration. If this process takes more than 30 days to complete, contact the state boat registration agency. Consumers who have traded in vessels should verify with the lender that any loans have been paid off. Payoffs should be completed within a few weeks after the deal is completed. Use an independent service, like the BoatU.S. Settlement Service (706-8698241), to obtain information about liens or title abstracts or for complete assistance with all aspects of a purchase or sale. Consumer Alert Federal laws require marine manufacturers to issue defect recall notices when boats or related equipment contain “defects which create a substantial risk of personal injury” or when they do not comply with boat manufacturing regulations. The U.S. Coast Guard recently published the following defect recall notices. For more information about these campaigns, contact the manufacturers directly or go to the Coast Guard’s web site, USCGboating.org, or call 202-3721073. New recalls are listed monthly at the BoatU.S. National Recall Alert Registry, BoatUS.com/recall. Sea Ray Boats, Inc., 865-5822200 (Recall 070041S) 2007-08 205SP: Some 205SP models have battery switches with backside not properly covered, leaving continuously energized terminals exposed. ••••• Marine hardware manufacturer Groco of Hanover, MD, recently issued Service Bulletin IBV-FBV describing possible problems with ball valve models IBV, FBV, TWV and FV sold approximately 2004 through 2006. Although the ball valve defect does not create an emergency situation, the company advises that the valves be removed from service. Groco’s design for this valve series specified a high-grade stainless steel (silver color) stem. The manufacturer discovered that the stem material used in some of the valves might not comply with specifications, making them unsuitable for use in saltwater. The noncompliant silver-color stems may fail when the valve is operated. Valves with a brass stem (yellow color) are not the subject of this service bulletin. Groco will supply replacement valves at no charge and says replacements should be conducted at the boat’s next scheduled haul-out. See www.groco.net for photos and additional information. Contact Groco by phone 410-712-4242 dept. 224 or by e-mail V224@groco.net for return authorization. BoatU.S. Magazine January 2008 31 http://www.my.BoatUS.com/consumer/database.aspx http://www.bbb.org http://www.BoatUS.com/buyer/valueform.asp http://www.BoatUS.com/recall http://www.groco.net http://www.BoatUS.com/boatloans/service
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