A bill of sale for a boat and trailer needs to identify each piece of property separately, list the buyer and seller, state the price and date of sale, carry both signatures, and — in many states — be notarized. Because the watercraft and the towing equipment are registered through different agencies in most states, the document should break out a separate price and a full set of identifiers for each one, even when a single form covers both.
Why the Boat and Trailer Get Listed Separately
Boats typically register through a Department of Natural Resources, a fish and wildlife agency, or a dedicated marine division. Trailers, because they travel on public roads, register at the DMV like any other road vehicle. That split means the agencies want the purchase price broken out for each item, and some states require entirely separate bills of sale. Even when one form covers both, listing individual prices avoids problems at the counter when clerks calculate sales tax on each item independently.
What to Write Down for the Boat
The single most important identifier for any watercraft is the Hull Identification Number, a twelve-character alphanumeric code permanently affixed to the hull.1eCFR. 33 CFR 181.25 – Hull Identification Number Format Federal regulations require every boat to carry two identical HINs, one in a visible location (typically the upper starboard side of the transom) and a duplicate hidden on the boat’s interior or beneath a piece of hardware.2eCFR. 33 CFR 181.29 – Hull Identification Number Display Copy the HIN exactly as it appears, with no slashes, hyphens, or spaces. A single transposed character can cause the registration office to reject the application.
Beyond the HIN, record the make, model, year of manufacture, and overall length. If the vessel has an outboard motor, include the engine manufacturer, the serial number (usually stamped on the mounting bracket), and the horsepower rating. Many states use horsepower to set registration tiers, and buyers who leave this off end up making a second trip. If the boat already carries a state registration number, list it too. That helps the agency pull up the existing record and confirm the seller’s ownership.
What to Write Down for the Trailer
Boat trailers are manufactured vehicles under federal law, and each one carries a seventeen-character Vehicle Identification Number.3eCFR. 49 CFR Part 565 – Vehicle Identification Number Requirements The VIN is usually stamped into the tongue or frame rail, or printed on a metal plate riveted to the frame. This number is what the DMV uses to track the trailer’s history, so transcribe it exactly.
Also include the trailer’s manufacturer, model year, and gross vehicle weight rating. The GVWR determines which registration class the trailer falls into and affects the fees the buyer pays. If the trailer has a current license plate or tag number, add that as well.
Buyer, Seller, Price, and Date
Both parties need their full legal names and current mailing addresses on the document. If either side involves more than one person, every owner’s name and signature must appear. The purchase price goes on the form in clear, unambiguous terms, and it is the number the government uses to calculate sales tax. Listing a suspiciously low price to reduce the tax bill invites scrutiny. Many states compare the declared price against fair market value and assess tax on whichever figure is higher.
The date of sale matters more than most buyers realize. Registration deadlines run from that date, and many jurisdictions impose late fees if the new owner doesn’t complete the paperwork within 30 to 60 days. Fill out the form in black or blue ink. Government offices routinely reject pencil entries or hard-to-read documents. Both parties should keep a signed copy.
Including an As-Is Clause
Most private boat sales happen “as is,” meaning the buyer accepts the vessel in its current condition with no guarantees about what might break next week. Under the Uniform Commercial Code adopted in some form by every state, a seller can disclaim all implied warranties by using language like “as is” or “with all faults” in the bill of sale.4Legal Information Institute. UCC 2-316 – Exclusion or Modification of Warranties Without that language, a buyer could argue the seller implicitly promised the boat was fit for its intended use.
A simple clause works: “Buyer acknowledges inspecting the vessel and trailer and accepts both in their present condition, with all faults, and with no warranties express or implied.” That sentence does more to prevent post-sale disputes than anything else on the form. Sellers who skip it are leaving themselves exposed, and buyers who see it should treat it as a reminder to inspect the boat thoroughly and run the engine before signing.
Does the Bill of Sale Need to Be Notarized?
It depends on the state. Some states require notarized signatures for any boat title transfer, others only above a certain dollar threshold or vessel length, and a handful accept witnessed but unnotarized bills of sale. Check with the specific agency that handles boat registration in your state before the transaction. Showing up without a notarized document when one is required means starting over.
Notary fees for a single signature acknowledgment generally run between $2 and $25, depending on the state’s fee cap. Banks, shipping stores, and government offices commonly offer notary services during business hours. For Coast Guard documented vessels, notarization is not optional. The bill of sale must include an acknowledgment completed by a notary or other authorized official before the National Vessel Documentation Center will accept it for recording.5U.S. Coast Guard. Bill of Sale – CG-1340
Check for Liens Before You Sign
A seller can hand over a signed bill of sale and still owe money on the boat to a bank or finance company. If there is an outstanding lien, the buyer may not be able to get a clean title, or the lender could repossess the vessel.
For state-titled boats, ask the seller to show you the physical title. If a lien holder is listed on it, the loan has not been satisfied unless the seller can produce a separate lien release. You can also run a lien search through the secretary of state’s office in the state where the boat was last titled, since most lenders file a UCC-1 financing statement as part of the loan.
For vessels documented with the U.S. Coast Guard, the National Vessel Documentation Center maintains a separate ownership record. Buyers can request an abstract of title through the NVDC, which shows the chain of ownership and any recorded mortgages or liens.6National Vessel Documentation Center. National Vessel Documentation Center – Instructions and Forms The current fee for an abstract of title is $25.7National Vessel Documentation Center. National Vessel Documentation Center Table of Fees Spending that money before you hand over a check is one of the cheapest forms of insurance in a boat transaction.
What the Seller Should Do After Signing
Signing over the title and handing over the keys does not end the seller’s exposure. Until the buyer actually completes the registration transfer, the seller may remain the owner of record with the state. If the buyer gets into an accident, racks up fines, or abandons the vessel at a marina during that gap, the state comes looking for the name on file.
Many states offer a notice of transfer or release of liability form the seller can file independently to put the agency on notice that the property changed hands. Filing deadlines vary, but some states require it within five days of the sale. Even where the form is not technically mandatory, filing one is cheap insurance. Keep your signed copy of the bill of sale indefinitely as backup proof that you no longer owned the property on the date any incident occurred.
Filing, Sales Tax, and Registration Deadlines
Once both parties sign, the buyer is on the clock. The bill of sale, the signed-over title (or titles, if the boat and trailer have separate ones), and an application for new registration go to the appropriate agencies. The boat paperwork typically goes to the wildlife or natural resources office; the trailer paperwork goes to the DMV.
Sales tax is collected during this filing process, based on the purchase price listed on the bill of sale. Combined state and local rates range roughly from 4% to over 9% depending on where you live, and a few states apply reduced rates to certain marine purchases or cap the total tax on high-value boats. Registration fees come on top of the tax. These vary widely but commonly fall in the $20 to $75 range for recreational boats, with trailers carrying their own separate fee.
Most states give the buyer 30 to 60 days from the date of sale to complete the transfer. Miss that window and you are looking at late penalties. The amounts are relatively small, often $10 to $50, but the real cost is the hassle of explaining the delay and potentially needing additional documentation. Some states increase the penalty the longer you wait. Getting everything filed within two weeks of the sale is the safest approach. After the paperwork is processed, new registration decals and cards typically arrive by mail within two to four weeks.
When the Boat Has No Title
Older boats, homemade vessels, and watercraft that were never properly registered are common in the used market. If the seller cannot produce a title, the buyer faces extra steps that vary by state but generally follow a similar pattern.
The most common path is a bonded title. The buyer applies to the state titling agency, provides whatever proof of ownership they have (bill of sale, old registration, handwritten receipt), and the agency investigates. If approved, the buyer purchases a surety bond, typically one and a half times the boat’s appraised value, that protects any prior owner who might come forward with a legitimate claim. The state then issues a title with a “bonded” notation. After a set period without any ownership challenges, usually three to five years, the bond requirement drops off and the title becomes clean.
The process takes time and involves extra fees, so factor that into your offer. A boat without a title is worth less than the same boat with one, and any seller who tells you “you don’t really need a title for a boat” is either misinformed or hoping you won’t look into it.
Coast Guard Documented Vessels
Boats measuring at least five net tons, which in practice covers most vessels over about 25 feet, are eligible for federal documentation through the U.S. Coast Guard instead of or in addition to state registration.8GovInfo. 46 USC 12103 – General Eligibility Requirements Documented vessels follow a different title transfer process. Instead of filing with a state agency, the buyer and seller use Coast Guard Form CG-1340, which requires detailed information including the vessel’s official number, the percentage of ownership being transferred, and the manner of ownership such as tenancy in common or joint tenancy.5U.S. Coast Guard. Bill of Sale – CG-1340
The bill of sale must be filed with the National Vessel Documentation Center. Federal law states that an unfiled bill of sale is not valid against anyone except the seller or a person who already had actual knowledge of the transaction.9Office of the Law Revision Counsel. 46 USC 31321 – Filing, Recording, and Other Requirements If you buy a documented vessel and don’t file with the NVDC, a third party with no knowledge of your purchase could potentially claim superior rights. The trailer is still handled separately through the state DMV regardless of whether the boat is documented with the Coast Guard.
When the Transfer Is a Gift
When a boat and trailer change hands as a gift rather than a sale, the bill of sale still matters. It establishes the transfer date and the relationship between the parties. The purchase price line shows zero or states “gift,” and most states waive sales tax on bona fide gifts between immediate family members, though some still require the recipient to pay a use tax based on fair market value. Check your state’s rules before assuming the transfer is tax-free. On the federal side, the annual gift tax exclusion for 2026 is $19,000 per recipient, and gifts above that threshold require the giver to file IRS Form 709.10Internal Revenue Service. Frequently Asked Questions on Gift Taxes