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trying to help a friend with boat purchase


skinny

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ok my buddy is looking at a used boat he found for sale. He says the price is not bad and the boat is only a few years old. His question was how does he find out if there is loans agaist the boat or that it is clear of owing monies. From the sounds of it he not so long ago purchased an item and next thing he knew they were knocking on his door for payment or they were taking the item. He's in the once bitten twice shy mode

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A quick check at the Better Business Bureau returns this...

 

"When you buy a used vehicle, especially if buying from a private sale, check for liens. A lien usually means that a previous owner still owes money on the car for purchase or repairs. If you buy a car with a lien you may be responsible for the lien.To check for a lien, contact your nearest private registry office. You may need to provide the registry office with the vehicle identification number (VIN)."

 

Service Ontario has the following info on searching for a lien...

"How can I register a lien or conduct a lien search?

 

Lien searches may be done over the telephone by calling 416-325-8847 or toll-free in Ontario at 1-800-267-8847 or TTY at 416-325-3408 or 1-800-268-7095. Please have your credit card or PPSR deposit account number ready. Hours of service are Monday to Friday, from 8:30 a.m. to 5:00 p.m."

 

I suppose the negotiated price can include the lien...that is your friend pays the lien and then the remainding cash goes to the person selling the boat.

 

Good luck to your friend!

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well you are right....kinda...

if you pay me cash for my boat

and try to put it in your name, (assuming I didn't tell you about the registered loan on the boat)

you will not be able to get it in your name without getting me to pay off the loan..good luck

if I default on the loan they will track down the boat and the repo man will drag it away

or you can assume the loan then you can put it in your name

 

you can take me to court and try to get your money or boat back, but I am going to tell the judge you new you had to assume the balance of the loan on the boat.....it can be messy

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This is where I like the US system a bit better.. Bank holds the title, you can't register without the title, etc.. So it's really easy to figure out if the seller is feeding you a line of crap or not.. No title should make your ears perk up :) Had an issue similar to that when we bought our Lund from Michigan (It all went smoothly however)

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yes that is the license from the govt you are talking about, which, kind of like your license plate, doesn't prove ownership the way, say, your vehicle ownership does.

 

my only point in this is more of a question - if you were to register your boat at the bank as collateral for the loan how would you prove you own it? and when they went to reposses it how would they identify it as being the right one?

 

i suppose from the bow numbers, if it had them and they were in your name.

 

or the hull identification number, which doesn't help with the motor. or trailer.

 

or the serial # of the motor, which could be on a different boat by now. if it was recorded. which you can't really prove you own either.

 

or by the trailer plate, if it was on the right trailer, or the vin of the trailer if it wasn't registered or reregistered as homemade, or worn off, again provided someone else didn't have their boat on the trailer that day.

 

all points that their should be an outright ownership or title for the boats we buy and can't prove we own.

 

 

does the bank even give loans on boats? and i can't imagine the boat itself would qualify as its own collateral. what with no regualtions for insurance and their questionable title exchanges.

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The only thing you can do is see if there is a lien using the resources listed above. The system is kinda screwy but it is the system we have and need to work around. Don't ever trust a private seller unless he has all his paperwork and never buy without seeing it run and better yet, a test flight on the water to make sure everything that is supposed to work does.

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banks do give loans for boats

 

they do make insurance a requirement to get the loan

hell the give mortgages on boats

 

when you buy a boat you get the recite from the dealer that is your title in canada

when you buy from a private person same thing along with the registered numbers for the boat which also show ownership, so title

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BTW... the ministries records don't get updated as quickly as CarFax does. It has happened where a person has bought a car and sold it before the liene gets registered with the ministry. Buyer beware. I know this because my dad works at Toyota and this has burned them in the past.

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