A jet ski bill of sale is a legal document that records the transaction details when a jet ski is sold from one party to another. Similar to a vehicle bill of sale, a bill of sale for a jet ski provides proof of the transfer of ownership from the seller to the buyer, along with the sale price and other information specific to the jet ski.
This document serves as proof of purchase and is crucial for both the buyer and the seller:
- For the seller – it provides evidence that they have transferred ownership and are no longer responsible for the jet ski, which can be important for liability reasons.
- For the buyer – it’s a proof of ownership and is often required for registration purposes, insurance, and, in some cases, for obtaining financing.
The bill of sale typically includes the jet ski’s make, model, year, identification number, sale price, and date of sale, along with the names and signatures of both parties involved in the transaction. It acts as a binding agreement and is an essential record for any jet ski sale.
When Should You Use a Jet Ski Bill of Sale?
Every state has different registration and documentation requirements for recreational or personal watercraft like jet skis.
In some states, you must present a signed or notarized jet ski bill of sale to prove that you own the personal watercraft.
The state may also use the bill of sale to establish the jet ski’s value for registration fees, sales tax, excise tax, and other financial obligations.
Even if your state does not require a bill of sale for the purchase and sale of your jet ski, you benefit from having a clear legal document to prove ownership.
Jet Ski Registration: What to Consider?
Registering your jet ski involves various regulations at both state and federal levels, as well as insurance and usage requirements. Here’s what you need to know:
State Regulations
- Mandatory or Voluntary Registration: Each state has its own requirements for registering jet skis. In some states, registration is mandatory, while in others, it may be voluntary.
- Fees: There are often registration fees, which vary by state. Be sure to check your state’s specific fee structure.
- Title Transfer: When purchasing a used jet ski, ensure the proper transfer of the title to the new owner.
- Boating License/Safety Certificate:: According to the US Coast Guard, most states require operators to undergo mandatory boating safety education to operate a jet ski.
You can sign up for boating safety courses through the Boats US Foundation or contact your state boating license agency for local resources.
Federal Regulations
- Hull Identification Number (HIN): Jet skis must have a Hull Identification Number, which is similar to a VIN for vehicles. This number helps identify the watercraft.
- Federal Registration: Some jet skis may require federal registration, depending on usage, though in most cases, it is voluntary. Always confirm with the relevant federal authorities.
Insurance
Some states require jet ski owners to have personal watercraft insurance, which typically includes liability coverage and physical damage coverage.
How Much Is Jet Ski Insurance?
Jet ski insurance rates differ depending on the following:
- Your location
- The size, age, and condition of the jet ski
- Your coverage level
Certain states require a certain level of liability insurance coverage. Be sure to check your state requirements when purchasing insurance for your jet ski.
Usage Restrictions
Certain states, cities, or municipalities may have specific restrictions regarding where and when you can operate your jet ski. Be sure to research any local laws governing the use of jet skis in the waters you intend to navigate.
Key Details for Registration
To register your jet ski, you may need to provide the following details:
- Buyer’s name and address.
- Seller’s name and address.
- Amount of the sale.
- Proof of inspection.
- Jet ski description, including serial number or hull identification number, year, manufacturer, physical description, size, weight, and rating.
- Signature of buyer and seller.
- Notary signature (optional).
- Date of sale.
A bill of sale for a jet ski provides these details all in one easy legal document.
If your jet ski comes with a trailer, you may need to complete a trailer bill of sale and register it separately.
How to Sell Your Jet Ski
If you are selling a jet ski, you can improve your chances of a higher-than-average sale price with the following steps:
Step 1 – Clean It and Get It Serviced
- Presentation Matters: A clean jet ski is more appealing to potential buyers. Wash and detail your jet ski to make it look its best.
- Ensure Optimal Performance: Have your jet ski serviced by a qualified technician to address any mechanical issues. Request copies of all maintenance and service documentation.
- Sell with Confidence: While you can sell your jet ski as-is, a well-maintained and good-condition jet ski can command a better price.
Step 2 – Gather Necessary Documents
Before listing your jet ski, ensure you have all the necessary documents:
- Proof of Ownership: Such as the title or previous bill of sale.
- Identification: A valid government-issued ID for identification purposes.
- Insurance: Proof of current insurance, if applicable.
- Hull Identification Number (HIN): This unique number identifies your jet ski.
- Registration Certificate: Proof of current registration.
Step 3 – Decide on a Listing Price
- Determine Market Value: Use an authoritative source like J.D. Power’s personal watercraft guide to determine the book value of your jet ski and decide on a fair and reasonable listing price.
- Consider Fees and Taxes: Remember that some states base registration fees and taxes on the book value.
Step 4 – List Your Jet Ski
You can list your jet ski for sale on a variety of local and national sale sites, as well as watercraft-specific websites.
Some places you can list a jet ski include the following:
- PWC Trader
- Boat Trader
- Boats.com
- Bert’s Mega Mall
- Craigslist
- Facebook Marketplace
- eBay
Step 5 – Negotiate With Potential Buyers
- Engage with Interested Parties: Respond promptly to inquiries via calls and emails.
- Negotiate Fairly: Be prepared to discuss and negotiate the price, but don’t feel pressured to accept the first offer.
- Document Agreements: Thoroughly document the terms of the agreement in writing to avoid misunderstandings.
- Handle Financing Arrangements: If the buyer requires financing or a payment plan, document any payment arrangements with a promissory note, loan agreement, IOU, or another legally binding contract.
Step 6 – Complete the Sale
- Finalize the Transaction: Once you and the buyer agree on the terms, proceed to complete the sale.
- Secure Payment: Ensure that you receive payment in a secure and agreed-upon manner before handing over the jet ski.
Step 7 – Sign a Bill of Sale
- Create a Comprehensive Document: Use a detailed jet ski bill of sale that includes all necessary information about the transaction.
- Legal Binding: The bill of sale becomes a binding contract once both parties sign it.
- Notarization: Some states may require the signatures to be notarized for registration and ownership transfers, so check your local requirements.
Step 8 – Transfer Title
- Proper Title Transfer: Ensure that the jet ski’s title is properly transferred to the new owner according to your state’s regulations.
- Submit Required Forms: Complete and submit any necessary forms to your state’s motor vehicle or boating authority to officially transfer ownership.
- Notify Relevant Authorities: Inform your state’s registration authority about the sale to update their records and release any associated liabilities.
What Should Be Included on a Jet Ski Bill of Sale?
To transfer to a new owner or register a jet ski, your bill of sale should include the following:
Identify the Seller and the Buyer
Add the full names of both the buyer and seller. Include the buyer’s and seller’s address and other contact information, such as email or phone number, if available.
Include Jet Ski Information
Describe the jet ski in detail, and include the following information:
- Make, model, manufacturer, and year
- Size and weight of the jet ski
- Color and distinctive markings
- Jet ski condition, including existing damage
- Hull identification number or serial number
- Trim level, rider aid functions, seating capacity, cruise control, and other features
Add any additional information you can use to identify the craft if an ownership dispute or other legal issue arises.
If the jet ski is being sold as-is, note it on the bill of sale.
Add the Selling Price
Indicate the purchase price on the jet ski bill of sale.
Make sure to fill this in thoroughly before you sign, and do not leave space to alter the selling price.
Date, Sign, and Witness the Form
When the bill of sale is complete, the buyer and seller should sign and date the form.
The sale is official as of the signing date, and the signed jet ski bill of sale provides a record of the transaction and proof of transfer of ownership on that date.
Your state may require the signature of a notary or witness in addition to those of the buyer and seller.
Check your state and local laws before you proceed.
Jet Ski Bill of Sale Sample
