Things may have changed, but when we bought our boat in 2004, we were told by many experienced cruisers that documented boats are preferable to state registered boats when traveling internationally. We have been out of the US and plan to do much more in the near future, so we documented.

I can't confirm, however, that being documented really makes a big difference.

US Coast Guard documentation provides a history and record of build and ownership for the vessel owner. This history is maintained at the Coast Guard and is provided upon request in the form of an Abstract of Title, reflecting all recorded ownership transfers, mortgage recordings, claims of lien and releases. This allows a boater to sell his boat, and a buyer to buy that boat, and be assured it is free and clear of all recorded liens and encumbrances. When financing a boat, lenders rely on the USCG records of documented vessels to confirm their security interest will be perfected by a First Preferred Ship Mortgage recorded with the Coast Guard.

Boaters cruising in international waters often prefer federal documentation to attain certain protections afforded by the US flag, which include aid from the US consulate when you are in need. Foreign port officials easily recognize federally documented vessels and appreciate that the ownership is supported by a detailed Abstract of Title reflecting all recordings.

Whispering Eye
2004 C36 Mk II
#2201

Thanks, Whispering Eye. I feel even better about my decision, now.

Duane

Because an oceangoing vessel is such mobile security for a loan, to finance a boat purchase banks will usually require USCG documentation...as stated above, because the lien is trackable and enforceable worldwide. Nevertheless, if the boat is documented, the state that the boat is resident in will require state registration in addition to documentation. In Oregon the state's decal goes in a different location on the hull than if it were only state registered.

Oregon:
State registration: Forward on the bow, registration number followed by decal.
Documented: no registration numbers issued or displayed, but the decal goes aft quarter near transom.

Many / most lenders will require federal documentation so they can record a preferred mortgage lien. Mine did.

The PO was a foreigner so the boat wasn’t eligible for federal documentation when he owned it. My getting the boat documented was a painless process easily handled by a service.
Californian does not require state registration for a federally documented boat. My dinghy is registered with the Ca. DMV.

If I'm stranded at sea. I am going to call the USCG before the CA DMV. I would want them to have the correct documentation on my boat. Not the DMV...
Just my thoughts.

I doubt the CA DMV will be able to help you. But I'll go out on a limb here and guess, just guess, that no matter where you are in the world if the USCG looks at your boat through a long range infrared and sees CA registration numbers on your bow, they WILL know exactly who the registered owner of that boat is.

Two other nice benefits of documentation:

--renewing the documentation is cheap, as in: free. You just respond to a postcard questionnaire from Homeland Security, and get this classy looking certificate, which is certain to impress your guests (and the USCG, when you are boarded for inspections).

--no CF numbers on the bow!! Just like the big boys in the big yachts.

--Nelson Lee