New South Carolina title transfer regulations streamline ownership changes for watercraft and motors

A new legislative proposal, South Carolina Senate Bill 61, introduced on January 16, 2025, aims to streamline the process of transferring ownership of watercraft and outboard motors while addressing issues related to liens and encumbrances. This bill seeks to clarify the procedures for lienholders and transferees, ensuring that ownership transfers are efficient and legally sound.

One of the key provisions of the bill mandates that when ownership of a watercraft or outboard motor is terminated due to a lienholder's action, the lienholder must provide specific documentation to the South Carolina Department of Natural Resources. This includes the last certificate of title, an application for a new title, and an affidavit confirming their claim to ownership. If the lienholder cannot produce the required proof, they may submit alternative evidence, which the department will evaluate to determine if a new title can be issued.

The bill also stipulates that if a lien is created at the time of transfer, the certificate of title must be retained by the lienholder, either in paper form or electronically. This provision aims to protect the interests of all parties involved by ensuring that liens are properly recorded and prioritized according to their creation date. Additionally, it outlines the process for discharging liens and the conditions under which a security interest is perfected.

Debate surrounding Senate Bill 61 has highlighted concerns about the potential for increased bureaucracy and the burden it may place on both lienholders and transferees. Critics argue that the requirements for documentation could complicate what is often a straightforward transaction. However, supporters contend that the bill will ultimately protect consumers and promote transparency in ownership transfers.

The implications of this bill extend beyond legal formalities; it could significantly impact the boating community in South Carolina. By clarifying the ownership transfer process, the legislation aims to reduce disputes over watercraft ownership, which can lead to costly legal battles. Furthermore, it may enhance the overall safety and security of watercraft transactions, fostering a more trustworthy marketplace.

As the bill moves through the legislative process, stakeholders from various sectors, including boating enthusiasts and financial institutions, are closely monitoring its progress. The outcome of Senate Bill 61 could reshape the landscape of watercraft ownership in South Carolina, making it essential for residents to stay informed about its developments and potential impacts on their rights and responsibilities as owners.