Everything you need to know about a Boat Bill of Sale

What is a Boat Bill of Sale?

A Boat Bill of Sale is a legal document that records the sale of a boat or vessel and transfers ownership from the seller to the buyer. It serves as proof of the transaction for both parties and is required by most states (and by the U.S. Coast Guard for documented vessels) when titling, registering, documenting, or insuring the boat in the buyer's name.

What a Boat Bill of Sale should include

A complete Boat Bill of Sale captures the full legal names and addresses of buyer and seller, the vessel's identifying details (make, model, year, length, hull color, Hull Identification Number or HIN, registration number, and outboard motor information if applicable), the agreed sale price (or "gift" if no money changes hands), the date of sale, payment method, and the signatures of both parties. Many states require a notarized signature, and the U.S. Coast Guard requires notarization for documented vessels.

Why both parties need one?

For the buyer, the Bill of Sale is the document that lets you title, register, document, and insure the boat. For the seller, it's the record that releases you from future liability tied to the vessel — accidents, environmental incidents, or unpaid registration fees that occur after the sale date are no longer your responsibility. Both parties should keep a signed copy with their records.

State, federal, and tax considerations?

Boat titling and registration rules vary by state and by vessel type. Boats of 5 net tons or greater can be documented through the U.S. Coast Guard rather than titled at the state level — USCG documentation requires a notarized Bill of Sale on Form CG-1340 or equivalent. Most states collect sales tax at the time of registration based on the price listed on the Bill of Sale. Check your state's Department of Motor Vehicles, Department of Natural Resources, or Department of Wildlife for the exact requirements.