It's not perfect, Craig. You can have the equivalent of a mechanic's lien which essentially GOES WITH THE BOAT. But with USCG documentation, you can't have an encumberance (borrowing) that won't be be superior to your bill-of-sale purchase. IF you don't have some title recordation system in a State, then you could be in a situation where you buy a boat that comes with debt. Then you'd have to sort it out with previous owner(s).

The problem with a UCC search is that not finding something, isn't proof that there isn't something.