Boat Bill of Sale: What You Need for a Legal Watercraft Transfer

Boat Bill of Sale: What You Need for a Legal Watercraft Transfer

Buying or selling a boat? A proper bill of sale is essential for both parties. It documents the transaction, establishes the new owner's legal right to the vessel, and protects the seller from future liability if the boat is involved in an accident or violation after the sale.

What Is a Boat Bill of Sale?

A boat bill of sale is a legal document recording the transfer of ownership of a watercraft. It serves as a receipt and a legal record of the transaction — essentially the marine equivalent of a vehicle title transfer receipt.

Is a Bill of Sale Required for Boats?

Requirements vary by state and by boat type:

• Titled watercraft: Some states issue certificates of title for boats (especially motorized watercraft over a certain horsepower or length). The title transfer process is similar to a car — the bill of sale accompanies the title.
• Non-titled watercraft: Canoes, kayaks, and small sailboats may not require formal titles in many states, but a bill of sale still provides essential proof of ownership.
• USCG-documented vessels: Larger vessels (typically commercial or ocean-going boats 5+ net tons) may be documented with the U.S. Coast Guard rather than state-titled. Federal documentation rules apply.

Check your state's boating authority for specific requirements in your jurisdiction.

What a Boat Bill of Sale Must Include

Vessel Information - Year, make, model, and hull identification number (HIN) - Engine make, model, and serial number (if applicable) - Vessel type (motorboat, sailboat, personal watercraft, etc.) - State registration number (if the boat is currently registered) - Length and color of the vessel

Transaction Details - Date of sale - Sale price (or indication that the boat is gifted) - Payment method

Seller Information - Full legal name - Current address - Signature

Buyer Information - Full legal name - Current address - Signature

Odometer/Hours Disclosure (Optional but Recommended) If the boat has an hour meter, recording current hours at time of sale is good practice — similar to odometer disclosure for vehicles.

"As-Is" Statement (If Applicable) If the boat is being sold without warranty, explicitly state that the buyer accepts the vessel in "as-is" condition. This limits post-sale disputes about mechanical issues.

After the Sale: Registration and Titling

Once you have the signed bill of sale:

1. 1Buyer: Visit your state's DNR, MVD, or boating authority to register the boat and transfer (or apply for) a title. You'll need the bill of sale plus the previous title (if applicable).
2. 2Seller: Remove the vessel from your insurance immediately after the sale is documented.
3. 3Both parties: Keep signed copies of the bill of sale permanently.

Trailer Bill of Sale

If a trailer is included in the sale, handle it separately. Trailers are considered motor vehicles in most states and have their own titles. A separate bill of sale (or separate section for the trailer in the boat bill of sale) with the trailer's VIN is recommended.

Use iRunDocs to create a complete, properly formatted boat bill of sale in minutes — covering all the fields required for a smooth ownership transfer.