The below memo is from Agents University, which describes itself as “A Service of the National Title Insurance Company.” It discusses the treatment of docks in Missouri in terms of the valuation of a property. To some degree the text is specific to that state statute, however, the same principles are applicable in most jurisdictions. For a pier to be a valuable and permanent part of a property, the owner of the property must have riparian rights which allow the structure to be placed there, and it must be permanently attached to the land. The article was originally posted at http://news.agentstitle.com/?p=443.
Boat Dock Bulletin
Underwriting Bulletin
To: All Missouri Agents
From: David Townsend
Re: Boat Docks
Date: 9-9-2009
Missouri Agents:
The Missouri Legislature recently passed a new definition of “Boat Dock” for appraisal
purposes. Here is the new language:
339.503 (7) (a-c) of the Revised Statutes of the State of Missouri (RSMo), boat docks
may be legally defined as “real property” subject to the following conditions:
(a) The lender includes the boat dock as a fixture both in the lender’s deed of
trust and a uniform commercial code fixture filing under section 400.9-502,
RSMo;
(b) The boat dock is attached to the real property by steel cable, bar, or chain
that is permanently imbedded in concrete or rock, and otherwise securely
attached to the dock; and
(c) The owner of the dock has riparian rights by means of real estate rights
bordering the body of water, including such rights by license, grant, or other
means allowing access to the body of water, which access may be seasonal
because the water may be reduced for electric power production or flood
control;
This new definition is designed to allow lenders to lend money based on an appraisal that
includes the dock. You will note the above requirements for a dock to be considered real
property.
(a) The lender includes the boat dock as a fixture both in the lender’s deed of
trust and a uniform commercial code fixture filing under section 400.9-502,
RSMo;
According to this definition, the lender must include the boat dock as a fixture both in the
DOT and file a UCC fixture filing.
(b) The boat dock is attached to the real property by steel cable, bar, or chain
that is permanently imbedded in concrete or rock, and otherwise securely
attached to the dock;
The dock must also be permanently affixed to the land as stated above.
(c) The owner of the dock has riparian rights by means of real estate rights
bordering the body of water, including such rights by license, grant, or other
means allowing access to the body of water, which access may be seasonal
because the water may be reduced for electric power production or flood
control;
The owner of the dock must have riparian rights and the ability to place a dock in the
water. This could be in the form of an easement, license, or other right.
All three of these items must be met before the property can be considered real property
under the statute.
Due to the complex nature of determining if the dock is personal or real property and the
ability to move or remove docks, Agents National Title Insurance is unable to insure boat
docks under this statute. Any mention of the dock must be removed from the insured
legal description in both the owners and lenders policies.
It is important that you examine the contract, lender instructions and other documents for
requests for coverage of docks. You must alert the requesting party that you are unable to
provide coverage for the dock.
Furthermore, any “legal description” of a dock must be redacted to remove mention of
the dock on Schedule A of the policy. The legal could list the dock, the UCC, or both.