Boat title with Lienholder Question

[Thunder]

I should know this, but am having a mental block.

I am currently in the process of selling my boat, and found the trailer title, but I can't find the title for the boat anywhere. Then it dawned on me, would the bank that holds the lien against the boat have it? Does the bank keep it until the loan is paid off and the lien released?

Anyone able to help? Thanks!

[Sandmannd]

I believe the bank has the title until the boat is paid for or sold.

[wastewaterguru]

Just went through this last spring. The bank has the title. It is a little bit of a pain to transfer. Basically the buyer has to pay off the loan amount and take possession of the boat without the title. You need to write up a solid "bill of sale" describing the situation with the title to the buyer since this is all he will have until the bank processes the payoff and releases the title (usually 7 to 10 days). Usually the bank will only release the title back to you. Some buyers freak out a little when they realize they are buying a boat and not getting the title right away. Just explain that if you both sign the bill of sale and he has a copy of that and possession of the boat....that he should be covered.

[Double D]

You got it right on the mark, WWG.

Just to clarify, boat titles are different from car titles where you get the title and the bank gets a lien card.

Good information.

DD