A Boat Bill of Sale is a legal document that records the sale of a boat between two parties — a seller and a buyer. In exchange for a certain amount of money, the seller agrees to transfer ownership of a boat to the buyer. A Boat Bill of Sale serves as an official record that a boat was sold on a certain date for a certain price.
What Is a Boat Bill of Sale?
A Boat Bill of Sale is a document that legally transfers the ownership of a boat or other watercraft from a seller to a buyer.
You need a Bill of Sale form when buying or selling a boat because it outlines the terms of the sale, prevents disputes, and serves as proof of ownership for the buyer so they can register their new boat.
If the boat has an accompanying trailer, you can record the sale of multiple items on a single bill of sale (for example, a boat, motor, and trailer) or an accompanying trailer bill of sale form.
What Should Be Included in a Boat Bill of Sale?
A valid bill of sale for a boat, jet ski, or other watercraft vessels must include the following:
- Buyer and seller information
- Watercraft description (make, model, hull identification number, condition, etc.)
- Title and registration numbers
- Purchase price and payment method
- Date and location of the sale
- Signatures of the buyer and seller
- In some states, a Boat Bill of Sale must be notarized for the document to be legally binding.
If the sale includes a warranty, document it on the Boat Bill of Sale. Private sales of boats typically don’t offer warranties and are sold “as-is,” meaning the buyer agrees to purchase the vessel in its current condition.
Boat Bill of Sale Templates
The boat bill of sale form you need depends on what’s included in the sale and how your boat is registered or documented.
How to Sell a Boat?
When it comes to selling a boat, there are several steps you need to take to keep in mind to make the process as stress-free and straightforward as possible.
Step 1 – Decide Exactly What You’re Selling
Firstly, you’ll need to decide exactly what you’re selling. Will you be selling just a boat? Or will it include an outboard motor? Will you be including a trailer?
Whatever it is you’re selling, make sure you include everything in the final value of the sales price.
Step 2 – Prepare the Boat for Sale
You need to take a few steps to prepare your boat for sale. You’ll need to:
Get paperwork in order
When you’re ready to sell your boat, ensure you have the title and registration for each component (boat, outboard motor, and trailer). Most states require this information for sale, plus it assures the buyer that you’re the owner and there are no liens (outstanding debts) on the vessel.
If your boat doesn’t have a title, ensure you have the previous bill of sale or purchase agreement to prove that you’re the owner. A potential buyer may also ask for records of any maintenance work done on the boat to verify its condition.
Clean and photograph Your boat
It’s a good idea to clean the inside and outside of your boat and make any necessary repairs or touch-ups. This will help you attract more potential buyers and list your boat at the best price.
A prospective buyer will want to see pictures of your boat, and listings with multiple photos from different angles get more attention in online marketplaces. Take several photos showcasing the features of your boat in good lighting before attempting to sell your watercraft.
You’ll want to:
- Clean the interior and exterior of the boat
- Remove everything that isn’t included in the sale
- Repair any minor cosmetic issues
- Tune up your boat’s engine(s) and fix any mechanical issues
- Disinfect surfaces to prepare your boat for viewing
Step 3 – Determine Your Boat’s Value
To determine your boat’s value, you’ll need to:
Decide whether to sell privately or commercially:
You may wish to hire a broker or dealer to help sell your boat, especially if it’s a higher-cost watercraft.
Selling your boat privately lets you manage the process while eliminating fees and commission costs, but it can be more time-consuming.
Determine market value:
To get an idea of the market value of your boat, you can use a price-checker tool or search for local listings of a similar make and model. Keep in mind that factors such as condition, age, and demand can greatly impact market value. A vessel’s average sales price may not accurately represent how much your boat is worth. If you’ve made extensive modifications, this could increase the value. Ensure you consider everything when calculating the sales price.
Decide on an asking price and the lowest offer you’ll consider before you list.
Step 4 – List Your Boat for Sale
Several websites help private boat sellers reach buyers. To reach a wider audience, consider creating multiple listings across sites like Boat Trader, The Hull Truth, Craigslist, eBay, and Facebook. For high-end and specialty boats like yachts and sailboats, also try YachtWorld.
In addition to several clear photos of your boat, you should provide a detailed description of the condition and features of the vessel and any accompanying motor, trailer, or accessories.
Make sure you include the following information in your post:
- Make, model, and year
- Dimensions
- Condition
- Repairs or improvements
- Terms of the sale (cash-only, delivery available, etc.)
If you’re willing to offer a warranty on the boat, you should mention it here. Otherwise, you should include terms like “as-is” or “sale final” in the listing description.
Step 5 – Present Your Boat to Potential Buyers
Now that your boat has been listed for sale online, it’s time to show it to potential buyers. For ease, you’ll want your boat stationed at a dock for easy access, so buyers can understand what the boat is like on the water. If your boat is on a mooring, this will provide challenges when showing it to anyone interested in viewing the boat. You could also consider parking your boat on land, a trailer, or a stand.
Before meeting potential buyers, ensure the following:
- You’re honest and up-front about the boat
- You know the boat inside and out
- The boat is ready to be sold
- You’re prepared to communicate and negotiate with buyers
- You know your lowest asking price
Step 6 – Boat Bill of Sale and Ownership Documents
Once you’ve found a buyer, you’ll need a boat bill of sale template (required by all states) to complete the sale. Copies of the boat bill of sale form should be given to each party. The buyer needs a copy for registering and obtaining the title with their state.
Step 7 – Payment
Once agreement on a price with the buyer, you need to secure the boat sale. Before signing the boat bill of sale, the buyer must pay the seller.
Don’t hand over the keys or ownership documents under the funds have cleared.
You should also negotiate which party will be subject to the sales tax, typically, it is split between both parties. To close the sale:
- The buyer needs to make payment in full.
- The seller must sign the title to the buyer and hand over any current registration documents.
Step 8 – Sign and Notarize the Boat Bill of Sale
After completing the boat bill of sale form and receiving payment in full, you and the buyer can sign the document according to your state’s requirements.
Some states require the buyer and seller to sign in the presence of a notary public for the form to be valid. If your state doesn’t require boat bills of sale to be notarized, it’s still a good idea to have another adult witness the sale in case a dispute arises.
After the sale is complete, make a copy of the bill of sale for your records. The buyer should keep the original copy for registration purposes.
How to Write a Boat Bill of Sale?
Step 1 – Fill in the Buyer and Seller Information
Once the buyer and seller have agreed on all the transaction details, arrange to meet in person to complete the sale. It’s a good idea to have both parties show ID to verify personal details are correct on the form and to prevent fraud.
You’ll need to include both parties’ names, addresses, and contact details.
Step 2 – Fill in the Boat, Motor, and Trailer Details
Fill out the boat details on the bill of sale, including year, make, model, HIN (hull identification number), dimensions, etc. You can usually find your boat’s HIN on the right side of the transom (rear of the boat).
Include outboard motor information like serial number, model, and horsepower, which can be found on a plate attached to the motor.
You can find trailer details like the vehicle identification number (VIN) and weight on a sticker or plaque, usually attached to the frame.
You can use the notes section of your Boat Bill of Sale form to mention additional details about the condition of these components.
You should also include whether you will include any warranties to the buyer or if they will buy the boat “as is.”
Step 3 – Fill in the Selling Price and Payment Method
Before meeting to complete the sale, the buyer and seller should agree on a purchase price and payment method. The buyer will need to pay sales tax when registering their new boat, but you might split or cover the sales tax cost by deducting the applicable taxes from the selling price.
Payment method could be:
- Personal check
- Cashier’s check
- Money order
- Cash
- Credit Card
- PayPal
If the boat is a gift, fill out your relationship to the recipient and the boat’s total value and other items included in the transfer.
Step 4 – Sign and Notarize
Once the buyer has made the payment, you can sign the boat bill of sale to make the transaction final. Some states require boat bills of sale to be notarized.
Boat Bill of Sale Example
Below, you can see a filled-out example of a boat bill of sale:
Boat Bill of Sale Frequently Asked Questions
Can you register a boat with a bill of sale?
You can use a boat bill of sale as proof of purchase to apply for the legal title with the state agency that handles boat registration. Check your state laws and requirements to determine if you need to register the boat. If you’re purchasing a trailer, you may need to register that too.
Make sure you check your state requirements before you register your boat.
Can I buy a boat with just a bill of sale?
Yes, you can buy a boat with just a bill of sale. However, the boat must be undocumented, i.e., no title must be attached. The bill of sale must provide all the necessary details mentioned earlier so that there is adamant proof the transaction took place. If a title is attached to the boat, then the title must be transferred to you for you to be the new owner legally.
You should also refer to your state laws about boat registrations, as they may require a title for your boat to be registered.
Can you sell a boat without a bill of sale?
Yes, you can sell a boat without a bill of sale, but this isn’t advised as it means there would be no proof that the transaction took place and there was a change in ownership. This could lead to legal ramifications for both parties involved in the sale.
For example, say you sold your boat to a buyer and got into an accident where they damaged another vessel. The owner of that vessel could take you to court for compensation. As the boat is still in your name and there is no proof of a transaction, it won’t be easy to prove your innocence.
Does a boat bill of sale need to be notarized?
A boat bill of sale may need to be notarized to be legally binding, depending on the state in which it is being sold. Many states require a boat bill of sale to be notarized or witnessed by at least two people. Even if you are not required to have your bill of sale notarized, it can be a good idea to have someone witness both parties signing to help avoid any disputes.