A Title Nightmare: Two Titles and Two Owners for One Yacht

For this installment of “Ask a Maritime Attorney,” we are departing somewhat from our usual format. We are asked from time to time to share legal “war stories,” so rather than answering a specific question, we will offer this discussion as a case study. The Facts This case involved a retired husband and wife who sold their home, with a dream of buying a large sailing yacht and cruising the Pacific (we’ll call them Mr. and Mrs. Smith). The Smiths ultimately made an offer on a $300,000 yacht in Florida, and they did a lot of research prior to closing the deal. They found a qualified marine surveyor to inspect the boat, and it passed the survey and sea trial with flying colors. They researched California and Florida sales tax law and successfully completed the transaction with no tax liability. They retrieved an Abstract of Title from the Coast Guard and confirmed that there were no recorded liens, and that the seller was the sole owner. So, they paid their $300,000 and eventually transported the boat to California.  Upon arriving in California, they started to prepare the boat for their voyage – but their dreams of cruising the Pacific were changed...