When you purchase a boat, it is standard practice to take out a particular type of loan known as a Preferred Ship Mortgage. These are a traditional type of bank loans, in operation for more than a century, which gives you special allowances on your mortgage, in exchange for the bank placing a lien on your vessel. After many years, you may have finally been able to complete the loan on the boat, and now need to take the lien off the documentation. In order to do this, you will need to have an NVDC satisfaction of mortgage document that proves you no longer have a lien on the boat.
NVDC Satisfaction Of Mortgage Vessel Document : Essential During Boat Sales
The NVDC’s satisfaction of mortgage document is of primary importance if you intend to sell the boat in the future. While the lien exists on the boat, you will not be able to sell the boat – the lien prevents it and you could face serious trouble if you attempt to make a sale without your end-of-lien documentation. The law demands that you have the paperwork, or face a fine of up to $10,000. The documentation proves that your obligation to the lender is over, and that there is no lien on the vessel. Obtaining this documentation is therefore essential if you want to cash in on the vessel.
Fulfilling Legal Responsibility
As part of your previous lien, you will have been obliged to register the vessel with the USCG. In order to take the lien off the documentation, you will have to show evidence that the mortgage has been repaid. This documentation will have to come from the lender, and you will have to submit the application form needed to remove the lien from the Coast Guard’s documentation on your vessel. If you sell the boat without submitting this form, you could land the new owner in a lot of trouble, particularly if they try to document the boat with the Coast Guard. They will not be able to obtain their documentation while your lien is still on the boat, and if you are the former owner of a commercial vessel, expect to be taken to court to recover the new owner’s costs. Filing the paperwork in good time is the only way to avoid trouble and expense in the sale of the vessel.
Help With Filing Paperwork
You will already know that the USCG application forms are long and difficult to understand, and you may be concerned that your application will suffer if you are not able to get the forms filled in correctly. As the NVDC satisfaction of mortgage paperwork is so essential if you want to sell the boat, you may need help with submitting the forms. This is where the Maritime Documentation Center can help you. Our teams have plenty of experience in submitting Coast Guard application forms, and can assist you with ensuring that your paperwork is submitted correctly the first time around. We can help you with any documentation, so contact us now, either through our online message board, or by calling (800) 535-8570 today.