Virginia Code 29.1-733.20: Transfer by operation of law.
A. As used in this section, unless the context requires a different meaning:
Terms Used In Virginia Code 29.1-733.20
- Agreement: means the same as that term is defined in subdivision (b)(3) of § Virginia Code 29.1-733.2
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Certificate of title: means a record, created by the Department under this article or by a governmental agency of another jurisdiction under the law of that jurisdiction that is designated as a certificate of title by the Department or agency and is evidence of ownership of a watercraft. See Virginia Code 29.1-733.2
- Decedent: A deceased person.
- Electronic: means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. See Virginia Code 29.1-733.2
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fiduciary: A trustee, executor, or administrator.
- in writing: include any representation of words, letters, symbols, numbers, or figures, whether (i) printed or inscribed on a tangible medium or (ii) stored in an electronic or other medium and retrievable in a perceivable form and whether an electronic signature authorized by Virginia Code 1-257
- Legatee: A beneficiary of a decedent
- Lien: A claim against real or personal property in satisfaction of a debt.
- Owner: means a person that has legal title to a watercraft. See Virginia Code 29.1-733.2
- Owner of record: means the owner indicated in the files of the Department or, if the files indicate more than one owner, the one first indicated. See Virginia Code 29.1-733.2
- Person: means an individual, corporation, business trust, estate, trust, statutory trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency or instrumentality, or any other legal or commercial entity. See Virginia Code 29.1-733.2
- Process: includes subpoenas, the summons and complaint in a civil action, and process in statutory actions. See Virginia Code 1-237
- Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. See Virginia Code 29.1-733.2
- Sale: means the same as that term is defined in § Virginia Code 29.1-733.2
- Security interest: means an interest in a watercraft that secures payment or performance of an obligation if the interest is created by contract or arises under § Virginia Code 29.1-733.2
- Statute: A law passed by a legislature.
- Watercraft: means any vessel that is used or capable of being used as a means of transportation on water and is propelled by machinery, whether or not the machinery is the principal source of propulsion, except:
1. See Virginia Code 29.1-733.2
- Written certificate of title: means a certificate of title consisting of information inscribed on a tangible medium. See Virginia Code 29.1-733.2
“By operation of law” means pursuant to a law or judicial order affecting ownership of a watercraft:
1. Because of death, such as in the case of a legatee, distributee, or surviving joint owner;
2. Because of divorce or other family law proceeding;
3. Because of any written agreement ratified or incorporated in a decree or order of a court of record;
4. Because of merger, consolidation, dissolution, insolvency, or bankruptcy;
5. Because of an execution sale;
6. Through the exercise of the rights of a lien creditor or a person having a lien created by statute or rule of law, including a lien provided for in § 43-34;
7. Through the execution of a statement of transfer on death; or
8. Through other legal process.
“Transfer-by-law statement” means a record signed by a transferee stating that by operation of law the transferee has acquired or has the right to acquire an ownership interest in a watercraft.
B. A transfer-by-law statement shall contain:
1. The name and last-known mailing address of the owner of record and the transferee and the other information required by subsection B of § 29.1-733.7;
2. Documentation sufficient to establish the transferee’s ownership interest or right to acquire the ownership interest;
3. A statement that:
a. The certificate of title is an electronic certificate of title;
b. The transferee does not have possession of the written certificate of title created in the name of the owner of record; or
c. The transferee is delivering the written certificate to the Department with the transfer-by-law statement;
4. Except for a transfer described in subdivision 1 of the definition of “by operation of law,” evidence that notification of the transfer and the intent to file the transfer-by-law statement has been sent to all persons indicated in the files of the Department as having an interest, including a security interest, in the watercraft; and
5. If the owner is dead and no fiduciary has qualified for his estate, an estate statement to the effect that no qualification for the estate has been made, that no qualification is expected, and that the decedent‘s debts have been paid or that the proceeds from the sale of the watercraft will be applied against his debts. The estate statement shall contain the name, residence at the time of death, and date of death of the decedent and the names of any other persons having an interest in the watercraft for which the transfer of title is sought. If these persons are of legal age, they shall signify in writing their consent to the transfer.
C. Unless the Department rejects a transfer-by-law statement for a reason stated in subsection C of § 29.1-733.8 or because the statement does not include documentation or an estate statement satisfactory to the Department as to the transferee’s ownership interest or right to acquire the ownership interest, not later than 20 days after delivery to the Department of the transfer-by-law statement and payment of fees and taxes payable under the law of the Commonwealth other than this article in connection with the statement or with the acquisition or use of the watercraft, the Department shall:
1. Accept the statement;
2. Amend the files of the Department to reflect the transfer; and
3. If the name of the owner whose ownership interest is being transferred is indicated on the certificate of title:
a. Cancel the certificate even if the certificate has not been delivered to the Department;
b. Create a new certificate indicating the transferee as owner;
c. Indicate on the new certificate any security interest indicated on the canceled certificate, unless a court order provides otherwise; and
d. Deliver the new certificate or a record evidencing an electronic certificate.
D. This section does not apply to a transfer of an interest in a watercraft by a secured party under Part 6 (§ 8.9A-601 et seq.) of Title 8.9A.