Liens And Mortgages on Vessels

Attorney Miller Explains Maritime Liens and Mortgages to Clients

One of the most perplexing areas of maritime law is maritime liens. A lien is a legal claim for an amount of money or an obligation owed to a person or business that is secured by personal property or real property. A maritime lien is a unique type of lien that attaches to the vessel, and stays with the vessel until the lien is satisfied or discharged. A Preferred Ship’s Mortgage is one type of lien commonly encountered in the context of boat ownership, and purchase and sales. Whether you are a first-time boat buyer or expanding your fleet to include another yacht, it is wise to consult with an attorney who can demystify maritime liens and ship’s mortgages before you make a new purchase. Attorney Matt Miller has years of experience as a dedicated yacht lawyer serving Florida’s pleasure boat buyers and sellers. When you require an experienced maritime consultant to help you make informed decisions about your yacht, consider Attorney Miller.

Difference Between a Maritime Lien and Preferred Ships Mortgage

Maritime liens are placed on vessels without filing any consensual contracts, documents, or legal paperwork. A maritime lien, unlike a real property lien, automatically gives property rights of a vessel to the lien-holder. The lien does not need to be recorded in any way or need to fulfill any requirements. Generally speaking, any service provided to a vessel will automatically qualify for a maritime lien once the service is adequately completed. The service performed must have been necessary and benefit the vessel and it was done under the direction of the owner/person in charge of the vessel.

A preferred ships mortgage, on the other hand, offers lenders the best protection in the event the lender needs collateral to secure a loan. The mortgage is created mutually between lender and borrower and must be recorded with the National Vessel Documentation Center. Upon default of any term of the preferred mortgage, the mortgagee has the right to carry through with the following actions, according to U.S. Code Title 46:

  • enforce the preferred mortgage lien in a civil action for a vessel
  • enforce a claim for the outstanding indebtedness secured by the mortgaged vessel
  • make a claim against the mortgagor, maker, comaker, or guarantor for the amount of the outstanding indebtedness

If you are involved in any maritime transaction or interested in financing the purchase of a vessel, it is imperative that you have a thorough understanding of maritime liens and ship’s mortgages as they relate to recreational vessels. Attorney Matt Miller has real-world yachting experience that broadens his already extensive experience and knowledge. Contact Miller Watson PLLC for legal representation in any of your maritime lien issues.

Contact Our Florida Preferred Ship Mortgage and Maritime Lien Consulting Attorney Today

Attorney Miller is dedicated attorney providing maritime purchase transaction services in Florida.

We are committed to helping clients achieve desired results. Contact Florida yacht attorney Matt Miller today for your initial consultation at (561) 316-2032 or contact us online for your marine contract and vessel purchase transaction needs.

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Vessel Purchases & Sales

Managing yacht transactions for our clients worldwide

Our attorneys assist clients with yacht transactions of all sizes all over the world. Whether representing a buyer or a seller, we routinely manage the entire process on behalf of our clients, starting with the offer all the way through closing and registration.



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Documentation and Registration

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The attorneys and staff at Miller Watson PLLC have many years of experience providing registration services, including U.S. Coast Guard documentation, state registrations and foreign flagging. Our firm is able to handle registrations in essentially any jurisdiction in the world.



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Sales, Use and Property Tax

Protecting clients from unexpected tax liability

Each state has its own body of laws with respect to sales, use and personal property taxes. It is important for all owners to be familiar with the rules in each jurisdiction to which they travel with their yacht.



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For-Sale-By-Owner Transactions

Assisting parties in yacht transactions without broker representation.

Yacht brokers certainly carry a lot of value, but there are scenarios where an owner may sell his yacht without the assistance of a broker. In the event a broker is not involved, buyers and sellers will benefit from having a basic understanding of the purchase and sale process and should utilize various resources at their disposal both before and after closing. The attorneys at Miller Watson PLLC can draft the necessary documents, hold funds in escrow, and manage a closing when a broker is not involved.



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Assisting with and coordinating offshore closings

In certain yacht transactions, clients may find that it is advantageous to conduct a yacht closing offshore. The attorneys at Miller Watson PLLC can assist with drafting the necessary documents and coordinating with all parties involved to ensure that the offshore closing proceeds smoothly and is completed properly.



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Corporate Yacht Ownership Consulting

Assisting clients with formation and structure of entities for purposes of yacht ownership

Our attorneys can advise clients on the type and ownership structure of an entity, depending on a variety of factors related to the yacht and its planned usage by the owners.



Yacht Crew Employment

Crew Employment

Advising Clients on Crew Employment Matters on an International Scale

Employing crew members on a yacht is often necessary to operate a yacht and give the owner’s and guests the best possible experience. However, navigating the complex, cross-border rules and regulations involved with crew employment can be cumbersome. Our maritime attorneys are well versed in the crew issues facing yacht owners and we assist clients with crew employment related matters at the global, regional, and local levels.



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Marine Finance

Assisting Financial Institutions and Private Individuals with Marine Finance Solutions

In principle, loans to finance the purchase of a yacht are similar to other loans used to acquire asserts and property. However, marine finance is highly specialized and governed by unique laws. Our experience in yacht and vessel finance encompasses both United States and foreign law transactions.



Yacht Charters

Yacht Charters

Advising clients on the complex rules surrounding yacht charters

It is common practice to purchase a yacht and run charters to offset some of the costs. Charter operations of all types can be successful if set up properly and with the appropriate expectations, but all state laws, federal regulations and flag state rules must be closely followed. It is important for owners and crew to understand the different types of charters and be familiar with the applicable regulations.



Regulatory Compliance

Regulatory Compliance

Assisting clients with navigating complex maritime rules and regulations worldwide

Owning a yacht is supposed to be a pleasurable and relaxing experience, but keeping current with maritime rules and regulations can be daunting. The attorneys at Miller Watson PLLC have the expertise to help you navigate the numerous maritime rules and regulations involved with yacht ownership so that you can enjoy carefree time on the water.

Miller Watson PLLC serves the yachting community with legal services across the globe. Based in the Tequesta | Jupiter area in South Florida we are conveniently located to support yacht owners in Jupiter, Stuart, Fort Pierce, West Palm Beach, Delray Beach, Boca Raton, Fort Lauderdale, Miami, Aventura, the Florida Keys, and across Florida's Treasure Coast.

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