Pay attention to character, even if you did vote for Bill Clinton twice. Without a title, you have nothing to go on. Bear in mind that if you purchase a stolen boat, not only can you loose it with no chance of recovery, but you may also find yourself on the wrong end of a criminal investigation. It's not worth fooling around with. Check, check and triple check.
Major faults mean anything that affects the safety and operation ability of the vessel.
From bent propellers to bad exhaust risers, anything that generally affects the performance and normal operation of the vessel is considered grounds for adjustment. So is anything that is about to fail, but hasn't yet. It does not include the stereo doesn't work, the brightwork needs varnish or other routine maintenance items. It's not a new boat and you aren't paying a new boat price for it, so it is to be expected that all is not perfect. But if the head doesn't function, that's a problem with operation ability.