Uniform Certificate of Title for Vessels Act
All you should know about the Uniform Certificate of Title for Vessels Act
The Uniform Certificate of Title for Vessels Act (UCOTVA) is a set of proposed rulings as set forth by the Unified Law Commission. These relate to uniform titling methods for boats registered on the state level. Although not yet adopted by many jurisdictions, they are broadly supported by the marine industry in general.
Definition
UCOTVA is intended to promote the standardization of boat titling regulations in a way similar to those that have been implemented for vehicles across the country. This will aid in verifying legitimate owners and identifying boats that have been salvaged, damaged, or stolen. It will also significantly increase the availability of maritime financing for potential customers.
Context
The marine industry is far behind its automotive counterpart when it comes to uniform state level registration and titling for boats. There are in fact, a number of jurisdictions that do not currently even issue boat title certificates. These shortcomings are further compounded by a lack of standardization between state level and U.S. Coast Guard recording methods. This often cumulates in enormous problems for prospective buyers and lenders that are looking to secure their respective equity positions.
Unified Titles
The major purpose of UCOTVA is to standardize how boats are titled in all of the separate states. Given their ability to travel between states, recreational vessels will benefit greatly from this. Owners, lenders, and prospective buyers can gain greater trust in the face value of boat titles, just as they can in autos.
Title Branding
Title branding is a designation on a certificate of title that denotes whether the boat has ever been salvaged, damaged, or stolen. The demand for this in the marine industry has driven a widespread introduction of UCOTVA. It will bring boats into the same category as vehicles in terms of reporting techniques. Unfortunately, such legislation has only been implemented by a few states, and it will likely be many years before these rules become fully effective.
Preferred Mortgages
Another feature of UCOVA, which is not yet available, is the ability to record preferred vessel mortgages at the state level. The majority of lenders will no longer require USCG documentation for recreational boats longer than 25 feet. It provides significant savings to owners who would not otherwise make such a choice.
Conclusion
Boat titling standards has been long in the works and may take several years to completely implement. Boaters should be aware of the lack of boat titling in some states, as well as the fact that title branding is not yet a practical method of determining a boat's history. When purchasing a boat, a comprehensive title investigation and inspection are essential.
References and Referrals
Comments - Suggestions - Corrections