TITLING OF WATERCRAFT AND OUTBOARD MOTORS

Every owner of a watercraft or outboard motor, or both, principally used in South Carolina must apply for a certificate of title for the watercraft and a separate certificate of title for the outboard motor 5 hp or greater.

Exemptions

Documented vessels, windsurfers, and watercraft propelled exclusively by human power with oars, paddles, or similar devices are exempted from being titled.

Sale or purchase without certificate of title prohibited.

No person may sell or otherwise dispose of a watercraft or outboard motor without delivering to the purchaser or transferee a certificate of title.

• No person may purchase or otherwise acquire a watercraft or outboard motor (5 hp or greater) without obtaining a certificate of title for it in his name.

Certificate as prerequisite to acquisition of right or title; recognition of right or title by courts.

• No person acquiring a watercraft or outboard motor from another person shall acquire any right, title, claim or interest in or to such watercraft or outboard motor until such person has had issued to him a certificate of title to such watercraft or outboard motor.
• No court in any case at law or in equity shall recognize the right, title, claim or interest of any person in or to any watercraft or outboard motor sold or disposed of, or mortgaged or encumbered, unless evidenced:

• By a certificate of title or a manufacturer's or importer's certificate, or
• By admission in the pleadings or stipulation of the parties.

Application for certificate, 30-day rule

Every owner of a watercraft or outboard motor required to be titled needs to apply to the department within thirty days of the purchase date for a certificate of title for the watercraft or outboard motor.

Vessel previously register in another state

If application for certificate of title is made for a watercraft or outboard motor last previously registered in another state or foreign country, the application must contain or be accompanied by:

• the certificate of title issued by the other state or foreign country;
• other information or documents the department reasonably requires to establish the ownership of the watercraft or outboard motor and the existence or nonexistence of security interests in it; or
• if the state or foreign country in which the watercraft or outboard motor was last previously registered does not issue certificates of title, a proper bill of sale or sworn statement of ownership or evidence of ownership required by the law of the state or foreign country from which the watercraft or outboard motor was brought into this State, plus other information or documents the department reasonably requires to establish the ownership of the watercraft or outboard motor and the existence or nonexistence of security interests in it.
• An application presented after thirty days is subject to a late penalty of fifteen dollars.

Transfer of ownership by operation of law; termination of ownership in accordance with security agreement.

• If the ownership of a watercraft or outboard motor is transferred by operation of law, such as by inheritance, devise or bequest, order in bankruptcy, insolvency, replevin, or execution sale, or satisfaction of mechanic's lien, or repossession upon default in performance of the terms of a security agreement, the transferee shall, promptly mail or deliver to the department the last certificate of title, if available, or the manufacturer's or importer's certificate, or, if that is not possible, satisfactory proof of the transfer of ownership, and his application for a new certificate of title accompanied by the required fee, and upon the appropriate form or forms prescribed and furnished by the department.
• If the ownership of a watercraft or outboard motor is terminated in accordance with the terms of a security agreement by a lienholder named in the certificate of title, the transferee shall promptly mail or deliver to the department the last certificate of title, his application for a new title accompanied by the required fee and upon the form or forms prescribed and furnished by the department, and an affidavit by the lienholder or his authorized representative, setting forth the facts entitling him to possession and ownership of the watercraft or outboard motor, together with a copy of the journal entry, court order or instrument upon which such claim of possession and ownership is founded. If the lienholder cannot produce such proof of ownership, he may submit such evidence as he has with his application to the department, and the department may, if it finds the evidence to be satisfactory proof of ownership, issue a new certificate of title.
• If a lienholder succeeds to the interest of an owner in a watercraft or outboard motor by operation of law and holds such watercraft or outboard motor for resale, he need not secure a new certificate of title thereto but, upon transfer to another person, shall promptly mail or deliver to the transferee or to the department the certificate, affidavit and such other documents as the department may require.

Notice of possession of abandoned, junked, or similar watercraft, 10-day rule.

• A person who comes into possession of an abandoned, junked, adrift, destroyed, or salvaged watercraft or outboard motor shall notify the department in writing of possession within ten days of acquiring possession.
• An owner who abandons or junks a watercraft or outboard motor, either on the land or waters of the State, shall notify the department immediately in writing and deliver to it any title or, if the title is lost or destroyed, a sworn statement of that fact within ten days of the abandonment.

A person in possession of an abandoned or junked watercraft or outboard motor

(1) whose owner of record has complied with this subsection may make application to the department on forms prescribed by the department for titles and transfer of ownership and after satisfying any security interest, if any, and proof of payment of taxes a title must be issued to the person;

(2) whose owner of record has not complied with this subsection shall contact the owner to get proper titles, duplicate title application, and bills of sale as necessary to transfer ownership after satisfying any security interest. The person in possession shall make application to the department within twenty days with appropriate documents;

(3) whose owner failed to comply with this subsection and cannot be located shall send a certified letter, return receipt requested, to the owner's last known address, and advertise three times, seven days apart, in a newspaper of local circulation in the county where the watercraft or outboard motor was found giving a description including the make, model, length or horsepower, and year. The application for title must be accompanied by the newspaper certification of the advertisement and the dates printed, copies of the advertisement, and certified letter;

(4) who does not desire to sell or obtain ownership may forfeit the watercraft or outboard motor to the department which may sell it at any department public auction or destroy it after every reasonable effort to locate the owner.

(B) A person finding a watercraft or outboard motor submerged, a watercraft, or watercraft with an outboard motor that is adrift on the waters of the State or one that has drifted onto land, and salvages the watercraft or outboard motor from the waters of the State, shall comply with subsection (A) to determine the owner giving the serial number, make, year, model, length or horsepower, or hull identification number, serial number, or registration number.

(1) If the owner of record is located, the person in possession of the watercraft or outboard motor shall notify the owner by certified mail, return receipt requested, advising of the reasonable cost of securing, storage, or salvage, and the time limit for response from the date received or presented. Any person who secures, stores, or salvages a watercraft or outboard motor shall acquire a lien against the watercraft or outboard motor senior to an existing lienholder. However, this does not apply to the department for a violation of this chapter. If the owner does not respond, the person in possession may apply for a duplicate title on a form provided by the department with his lien shown and advertise the watercraft or outboard motor for sale at public auction three times, seven days apart, in a paper of local circulation giving the make, year, model, length, or horsepower. The seller shall deduct his reasonable expenses and, after the satisfaction of any other lien, pay any proceeds to the owner upon application.

(2) If the person in possession of the watercraft or outboard motor desires the watercraft or outboard motor for personal use he shall notify the owner of record and all lienholders by certified mail, return receipt requested, with a time of response of thirty days from receipt of the letter. If the owner does not respond, the person in possession may make application on a form prescribed by the department. A title obtained pursuant to this subparagraph is subject to any lien of record previously listed on the watercraft or motor.

Lost, stolen or mutilated certificate; issuance of duplicate certificate

• If a certificate of title is lost, stolen, mutilated or destroyed or becomes illegible, the first lienholder or, if none, the owner or legal representative of the owner named in the certificate, as shown by the records of the department, may obtain a duplicate by application to the department, furnishing such information concerning the original certificate and the circumstances of its loss, mutilation or destruction as may be required by the department.
• The duplicate certificate of title shall be a certified copy plainly marked "duplicate" across its face. It shall be mailed to the first lienholder named in it or, if none, to the owner.
• In case an original certificate of title is mutilated or rendered illegible, such mutilated or illegible certificate shall be returned to the department with the application for a duplicate.
• In the event a lost or stolen original certificate of title for which a duplicate has been issued is recovered, it shall be surrendered promptly to the department for cancellation.

Cancellation of certificate when watercraft or outboard motor is destroyed.

• When a watercraft or outboard motor covered by a certificate of title is scrapped, dismantled, destroyed or changed in such manner that it loses its character as a watercraft or outboard motor, or changed in such manner that it is not the watercraft or outboard motor described in the certificate of title, whoever is named as owner in the last certificate of title shall promptly cause the certificate to be mailed or delivered to the department. Thereupon the department shall, with the consent of any lienholders noted on the certificate, cancel the certificate.