The Florida Senate

328.17  Nonjudicial sale of vessels.--

(1)  It is the intent of the Legislature that any nonjudicial sale of any unclaimed vessel held for unpaid costs of repairs, improvements, or other work and related storage charges, or any vessel held for failure to pay removal costs pursuant to s. 327.53(7), or any undocumented vessel in default of marina storage fees be disposed of pursuant to the provisions of this section.

(2)  The Department of Highway Safety and Motor Vehicles shall provide certification forms for the nonjudicial sale of vessels as authorized by this section.

(3)  Unless otherwise stated, all nonjudicial sales as provided in this section shall be subject to prior recorded liens against said vessels.

(4)  Written leases for the storage of undocumented vessels which are executed between a marina in this state and persons who own such undocumented vessels shall contain a provision which authorizes the marina to sell such vessels at a nonjudicial sale in the event of nonpayment of rent for a period of 6 months. Said provision shall be set forth in bold print. Such leases are valid and enforceable under the following conditions:

(a)  The written lease contains the address of the vessel owner and the marina sends written notice by certified or registered mail, return receipt requested, to the address of the vessel owner as set forth in the lease at least 30 days prior to the proposed sale.

(b)  The marina sends written notice of nonjudicial sale by certified or registered letter, return receipt requested, to each recorded lienholder of such vessel registered with this state as shown by the records of the Department of Highway Safety and Motor Vehicles at least 30 days prior to the proposed sale. In the event the vessel is registered with another state, such verification and notification of lienholder interests shall be based on records maintained by the vessel registering authority of the other state.

(c)  The marina publishes in a newspaper of general circulation in the county in which the marina is located a notice indicating the time and place of the sale; a complete description of the vessel; and a statement that the sale will be a public sale at auction to the highest bidder, provided the sale price is greater than 50 percent of the fair market value of said vessel. Fair market value shall be determined by two independent appraisals by factory representatives of the vessel's manufacturer or licensed marine surveyors. The notice shall be published at least 10 days prior to the sale.

(5)  In the event the proceeds from a sale conducted in conformance with the provisions of subsection (4) exceed the storage fees due and owing on the vessel as of the date of sale, together with the costs of the sale, including publication costs and appraisal costs, the balance of the proceeds shall be deposited within 72 hours of the sale with the clerk of the circuit court of the county in which the sale is held, to be returned to the owner or lienholder of the vessel sold upon application within 1 year from the date of the sale by the owner or lienholder, less any fee charged by the clerk for such deposit, as allowed by law.

(6)  In making application for transfer of title from a previous owner in default of marina storage fees, the new owner shall establish proof of ownership by submitting with the application, which includes the applicable fees and original bill of sale executed by the marina, a certified copy of the written lease signed by the marina and the previous owner, a copy of each registered or certified letter sent by the marina to the previous owner and lienholder, certified copies of the appraisals as required in paragraph (4)(c), a certified copy of the signed receipt from the clerk of the circuit court for any proceeds from the sale deposited with the county in which the sale was held, and a certified copy of the public notice of intent to sell published in a newspaper of general circulation in the county in which the marina is located. At the time the purchase price is paid, the marina shall provide the documentation required by this subsection to the purchaser.

(7)  Any person who, with the consent of the owner, has physical possession of an undocumented unclaimed vessel for repairs, improvements, or other work shall have an unrecorded lien against the vessel for all reasonable costs of the completed work and associated reasonable towing and storage charges levied against the vessel. If the costs which give rise to such a lien are due and unpaid 90 days after the vessel owner is given written notice of the completed work, said person may sell the vessel, including its machinery, rigging, and accessories, at public auction. Wrecker service in and of itself shall not constitute repair or storage, and the charge for such service shall not be grounds for the establishment of a lien interest in the vessel. The sale of such vessel shall be valid and enforceable under the following conditions:

(a)  The person who intends to sell an undocumented vessel registered with the state sends written notice of nonjudicial sale and an itemized invoice of the charges owed and due to the owners and recorded lienholders of said vessel at least 30 days prior to the sale. Such notice shall be considered made when certified or registered letters, return receipt requested, are mailed to the owners and recorded lienholders at the latest address of each as shown by the records of the Department of Highway Safety and Motor Vehicles. In the event said vessel is registered in another state, such verification and notification shall be based on ownership and lienholder interest records maintained by the vessel registering authority of the other state.

(b)  A notice is published in a newspaper of general circulation in the county in which the repair business is located and in the county of the owner's last known address at least 10 days prior to the date of the sale. Such notice shall indicate the time and place of the sale; shall contain a complete description of the vessel, including the name of any known owner; and shall contain a statement that the sale will be a public sale at auction to the highest bidder, provided the sale price is greater than 50 percent of the fair market value of said vessel. Fair market value shall be determined by two independent appraisals by factory representatives of the vessel's manufacturer or licensed marine surveyors.

(c)  The proceeds from the sale, less the costs incurred in the sale and the reasonable costs for the work done on the vessel and associated reasonable towing and storage costs, shall be deposited within 72 hours after the sale with the clerk of the circuit court of the county in which the sale is held. Upon receipt of the proceeds, the clerk shall be entitled to receive 5 percent of said proceeds for the care and disbursement thereof. At any time within 1 year after the sale of such vessel, the former owners or lienholders of the vessel may recover the net proceeds by filing a claim with the clerk against the county.

(8)  When any vessel is sold pursuant to subsection (7), the person selling the vessel, at the time the purchase price is paid, shall deliver to the purchaser an executed bill of sale and certified copies of the documentation required by subsection (7).

(9)  In making application for transfer of title from a previous owner whose vessel is sold pursuant to subsection (7), the new owner shall establish proof of ownership by submitting with the application, which includes the applicable fees and sales tax, the original bill of sale executed by the repair business, certified copies of the documentation required by subsection (7), and a certified copy of the signed receipt from the clerk of the circuit court for any proceeds from the sale deposited with the county in which the sale was held.

History.--s. 1, ch. 78-264; s. 17, ch. 84-184; s. 5, ch. 85-252; s. 13, ch. 87-225; s. 8, ch. 94-241; s. 957, ch. 95-148; s. 61, ch. 95-333; s. 115, ch. 99-13; s. 312, ch. 99-248.

Note.--Former s. 371.84.