Just as real estate titles are subject to record errors, preexisting liens and other encumbrances, vessel and boat titles may have hidden problems which can pose a liability to new vessel owners. Institutions that provide this type of insurance conduct a thorough investigation to ensure the title history of the ship's degree in "good opinion". If you want to get the best information about calculate title insurance cost in NJ and get quote then clear skies title agency can provide the best information.
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Why Boats Need Title Insurance?
There are several types of problems that can occur in the title of the boat. Buyers vessels are usually not aware that any of these problems exist – until they were slapped with lawsuit ownership or costs associated with prior liens.
Common problems associated with yachts and boat titles include:
False documents or fraud may occur at any point in the history of ownership. Shipbroker or previous owners sometimes try to sell the ship under false titles; two ships deceive mortgage lenders and the new owner. In some rare cases, the mortgage in the ownership history of the vessel can be expressed as a fraud.
Ownership disputes. Although the owner of the ship carrying a valid Certificate of Documentation and federal registration of the boat, he may still be disputed ownership. If the underlying contract ship titles are arranged on forged documents, the buyer could otherwise limit holdings.
The new owner of a boat which is responsible for unpaid taxes, mortgage unfinished and unpaid contract work related to the title of the ship, even if he is not privy to them at the time of purchase.