The Salty Barrister

I missed my Thursday Blog entry.  No real excuse because I could have stayed up and done it in the evening.  By way of explanation, I've been sidetracked with a house purchase.  That got me thinking this morning that there are some subtle but important differences between buying a house and buying a boat.

I've got a book coming out soon that'll try and treat most of those differences, among other salty topics.  But if you were crowding me at the local watering hole, I'd tell you the biggest difference between the two is the "lien".  In broad terms, a lien is a legal claim against an asset arising as a result of a loan, a debt, a service, etc.  In the housing world, the treatment of liens seems pretty straightforward in that they're identified on the property records.  In other words, in almost every instance concerning real estate, the world is on notice of the lien.  But boy, that's about as different from the maritime world as being afloat or ashore.  

Under the general maritime law, a lien almost always attaches to the vessel upon the rendering of a service, nonpayment of goods or crew wages, etc.  For instance, if a mechanic performs a repair, the lien for payment of that service automatically arises.  Again, in broad speak, the mechanic doesn't have to do anything for the lien to attach to the vessel.  The mechanic generally doesn't have to file the lien or give public notice all of which is the reason why you'll sometimes hear of a vessel having "hidden liens".

For the prospective purchaser, a hidden lien can pose potential downstream liability because the holder of a valid maritime lien can arrest and ultimately auction the vessel for payment.  It doesn't usually matter that the downstream purchaser wasn't aware of the lien because the claim is against the vessel.

I know you already know, but this Blog is not the place to get (and it doesn't provide) legal advice.  All I can say is that knowing something about the history of the vessel you intend to purchase, maybe speaking to the boat yard, getting a feel for the seller's situation and hailing your admiralty attorney are probably prudent considerations in any vessel purchase.

Underway and making way.

--- JKF

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