CALIFORNIA BOATING STUDY GUIDE 2025 QUESTIONS
WITH ANSWERS RATED A+
✔✔504.a - Vessels of $1500 or Less - ✔✔1) departmant shall furnish lienholder with the
names and addresses of legal owners
2) Lienholder shall immediately send by mail with return receipts requested - a)
complete notice of pending lien sale b) black declaration of opposition form c)
preaddressed return envelope to department, registered owner, any person known to
have interest, and department.
3) Upon receipt - department mark its records and notify proprietary interests of pending
lien sale that no transfer of title until lien is satisfied or released.
✔✔504.b - Signed statements include: - ✔✔1) Description of vessel including make, hull
ID, and state of registration
2) Specific date, exact time, and place of sale set no less than 35 days and not more
than 60 days.
3) names and addresses of registered legal owners / interests
4) These Statements:
a) statement of amount of lien and facts behind lien plus an estimate of additional
storage costs.
b)statement of person having right to court hearing
c) If court hearing desired, declaration of opposition signed and returned to DMV within
15 days
d)IF declaration of opposition is signed, lienholder can sell vessel only with court
judgement / release from declarant.
e) If court action is filed, declarant will be served by mail the process
f) person may be liable for court costs
✔✔504.e - If department receives dec of opposition - ✔✔Dept will notify lienholder
within 16 days that lien sale shall not be conducted unless lienholder files an action in
court within 20 days of notice and judgment favors the lienholder / or if declarant
releases interest in the vessel.
✔✔504.f - Declarant by mail - ✔✔a)Service on declarant by mail with return receipts
requested, signed by declarant or authorized agent at address shown on declaration is
effective.
b)Return of dec. of opposition shal is consent to legal process.
c)If mail is returned unclaimed, the lienholder may proceed with sale.
✔✔505.a - Releasing Interest - ✔✔1) A registered or legal owner may release (by
signed and dated copy) interest in the vessel after lien has arisen.
2) Release is 12pt type and shall contain:
a) Description of vessel, make, hull ID, state of reg.
b) The names and addresses of registered legal owners of vessel
c) A statement to amount of lien and facts of lien.
, d) Statement that releasing interest understands: 1) he has legal right to hearing in court
prior to any sale 2) he or she gives up the right to a hearing.
e) Statement that 1) person releasing the interest gives up interest 2) he is giving
permission of lienholder to sell.
✔✔505.5 - Trick / Fraud - ✔✔Whenever lien upon any vessel is lost by trick, fraud, or
device - the repossession of the vessel by former lienholder revives the lien, but any lien
is subordinate to any right, title, or interest of any person under any sale, transfer,
encumberance, lien, or other interest acquired or secured in good faith...
2) It is a misdemeanor for any person to obtain possession of any vessel or to claim a
lien on a vessel through trick, fraud, or device.
✔✔506 - Inspection - ✔✔No lien shall be undertaken unless the vessel has been
available for inspection at accessible location to the public for at least 1hr before sale.
Sealed bids not accepted. Lienholder conducts sale in commercially reasonable
manner.
✔✔506.5 - After Sale - ✔✔Within 10 days after sale pursuant to sec. 503 and 504, the
legal owner may redeem vessel upon payment of lien and all costs associated with lien
and interest. If the vessel is not redeemed, all sale documents completed and sent to
buyer.
✔✔507 - Fair Market Value - ✔✔1) Lienholder shal submit with application the fair
market value as determined by yacht/ship broker - not surveyor - with 30 days of that
submission.
2) This is not required if public agency removes abandoned vessel, or arranges by
contract for removal of vessel.
The public agency determines if estimated value of vessel is $1500 or less. If public
agency fails to determine value, lienholder shall determine the value.
✔✔507.5 - Disposal of Proceeds - ✔✔1) Amount necessary to discharge lien and cost
of selling go to the lienholder.
2) Actual cost of sale includes fees charged by department, publication of fees, postage
and service of notices. COST of Sale must not exceed $100 w/out trailer and $125 with
trailer.
3) Balance shall be sent to dept within 15 days of sale.
4) After 30 days, the dept shall send notice of receipt of the funds if amount exceeds
$10, to legal and registered owners.
5) Any person claiming interest of vessel may file a claim claiming any portion of funds -
upon determination department pays amount which does not exceed funds remaining. -
Dept shall not honor any claim after 3 years of funds received. At End of fiscal year,
department deposits funds in Harbors and Watercraft Revolving Fund - all funds with no
claim after 3 years are held.
✔✔508 - Who is a Lienholder - ✔✔lien provided for repairs, labor, supplies, materials,
storage, etc... the assignee may exercise the rights of lienholder.... Any lien as
WITH ANSWERS RATED A+
✔✔504.a - Vessels of $1500 or Less - ✔✔1) departmant shall furnish lienholder with the
names and addresses of legal owners
2) Lienholder shall immediately send by mail with return receipts requested - a)
complete notice of pending lien sale b) black declaration of opposition form c)
preaddressed return envelope to department, registered owner, any person known to
have interest, and department.
3) Upon receipt - department mark its records and notify proprietary interests of pending
lien sale that no transfer of title until lien is satisfied or released.
✔✔504.b - Signed statements include: - ✔✔1) Description of vessel including make, hull
ID, and state of registration
2) Specific date, exact time, and place of sale set no less than 35 days and not more
than 60 days.
3) names and addresses of registered legal owners / interests
4) These Statements:
a) statement of amount of lien and facts behind lien plus an estimate of additional
storage costs.
b)statement of person having right to court hearing
c) If court hearing desired, declaration of opposition signed and returned to DMV within
15 days
d)IF declaration of opposition is signed, lienholder can sell vessel only with court
judgement / release from declarant.
e) If court action is filed, declarant will be served by mail the process
f) person may be liable for court costs
✔✔504.e - If department receives dec of opposition - ✔✔Dept will notify lienholder
within 16 days that lien sale shall not be conducted unless lienholder files an action in
court within 20 days of notice and judgment favors the lienholder / or if declarant
releases interest in the vessel.
✔✔504.f - Declarant by mail - ✔✔a)Service on declarant by mail with return receipts
requested, signed by declarant or authorized agent at address shown on declaration is
effective.
b)Return of dec. of opposition shal is consent to legal process.
c)If mail is returned unclaimed, the lienholder may proceed with sale.
✔✔505.a - Releasing Interest - ✔✔1) A registered or legal owner may release (by
signed and dated copy) interest in the vessel after lien has arisen.
2) Release is 12pt type and shall contain:
a) Description of vessel, make, hull ID, state of reg.
b) The names and addresses of registered legal owners of vessel
c) A statement to amount of lien and facts of lien.
, d) Statement that releasing interest understands: 1) he has legal right to hearing in court
prior to any sale 2) he or she gives up the right to a hearing.
e) Statement that 1) person releasing the interest gives up interest 2) he is giving
permission of lienholder to sell.
✔✔505.5 - Trick / Fraud - ✔✔Whenever lien upon any vessel is lost by trick, fraud, or
device - the repossession of the vessel by former lienholder revives the lien, but any lien
is subordinate to any right, title, or interest of any person under any sale, transfer,
encumberance, lien, or other interest acquired or secured in good faith...
2) It is a misdemeanor for any person to obtain possession of any vessel or to claim a
lien on a vessel through trick, fraud, or device.
✔✔506 - Inspection - ✔✔No lien shall be undertaken unless the vessel has been
available for inspection at accessible location to the public for at least 1hr before sale.
Sealed bids not accepted. Lienholder conducts sale in commercially reasonable
manner.
✔✔506.5 - After Sale - ✔✔Within 10 days after sale pursuant to sec. 503 and 504, the
legal owner may redeem vessel upon payment of lien and all costs associated with lien
and interest. If the vessel is not redeemed, all sale documents completed and sent to
buyer.
✔✔507 - Fair Market Value - ✔✔1) Lienholder shal submit with application the fair
market value as determined by yacht/ship broker - not surveyor - with 30 days of that
submission.
2) This is not required if public agency removes abandoned vessel, or arranges by
contract for removal of vessel.
The public agency determines if estimated value of vessel is $1500 or less. If public
agency fails to determine value, lienholder shall determine the value.
✔✔507.5 - Disposal of Proceeds - ✔✔1) Amount necessary to discharge lien and cost
of selling go to the lienholder.
2) Actual cost of sale includes fees charged by department, publication of fees, postage
and service of notices. COST of Sale must not exceed $100 w/out trailer and $125 with
trailer.
3) Balance shall be sent to dept within 15 days of sale.
4) After 30 days, the dept shall send notice of receipt of the funds if amount exceeds
$10, to legal and registered owners.
5) Any person claiming interest of vessel may file a claim claiming any portion of funds -
upon determination department pays amount which does not exceed funds remaining. -
Dept shall not honor any claim after 3 years of funds received. At End of fiscal year,
department deposits funds in Harbors and Watercraft Revolving Fund - all funds with no
claim after 3 years are held.
✔✔508 - Who is a Lienholder - ✔✔lien provided for repairs, labor, supplies, materials,
storage, etc... the assignee may exercise the rights of lienholder.... Any lien as
