(1) In the event of a transfer by operation of law of the title or interest of an owner in a vessel or motor titled under this chapter, the transferee or his legal representative shall apply to the department for a certificate of title within thirty (30) days of the transfer. The application shall be accompanied by the title or other states registration previously issued for the vessel or motor, if available, together with any instruments or documents of authority, or certified copies thereof, satisfactory to the department as proof of ownership and the required fee.

(2) For purposes of this chapter, transfer by operation of law shall include transfers to anyone as legatee or distributee or as surviving joint owner or by an order in bankruptcy or insolvency, execution sale, repossession upon default in the performing of the terms of a lease or executory sales contract, or transfers pursuant to any written agreement ratified or incorporated in a decree or order of a court of record, or otherwise than by the voluntary act of the person whose title or interest is so transferred.

(3) If the holder of a certificate of title is deceased and there has been no qualification on his estate, a transfer may be made by a legatee or distributee. The legatee or distributee presents to the department the original certificate of title and a statement made to the effect that there has not been or expected to be a qualification on the estate and that the decedent’s debts have been paid or that the proceeds from the sale of the vessel or motor will be applied against his debts. The statement shall contain the name, residence at the time of death, date of death of the decedent, and the names of any other persons having an interest in the vessel or motor for which the title is to be transferred. If these persons are of legal age, they shall indicate in writing their consent to the transfer of the title.