Boat Bill of Sale: The Complete Guide

Selling or buying a boat privately? Unlike vehicle sales, boat transfers involve hull identification numbers, separate motor titles, state boating authority registrations, and sometimes Coast Guard documentation. This guide walks through everything you need to know.

What Is a Boat Bill of Sale?

A boat bill of sale is a legal document recording the private sale of a watercraft. Most states require it as part of the boat registration process, and it serves as proof of purchase for tax purposes, insurance, and ownership disputes.

Boats are more complex than cars because they often involve multiple registrations: the hull itself, the outboard motor (which may have a separate title), and sometimes a trailer. Each may require its own bill of sale or transfer documentation.

What to Include in a Boat Bill of Sale

Boat Details

• Year, Make, Model: e.g., "2020 Sea Ray Sundeck 210"
• HIN (Hull Identification Number): 12-character code stamped on the starboard transom (all boats built after 1972 must have one)
• Length: Measured in feet, determines registration category
• Hull material: Fiberglass, aluminum, wood, etc.
• Boat type: Runabout, pontoon, cruiser, fishing boat, etc.
• Registration number: State-issued (e.g., "FL 1234 AB")
• Color: Primary hull color

Motor Details

• Make and model: e.g., "Mercury 225hp OptiMax"
• Serial number: Motor has its own serial number separate from the HIN
• Horsepower (HP): Affects registration and insurance
• Fuel type: Gasoline, diesel, or electric
• 2-stroke or 4-stroke
• Hours: Like odometer on a car — critical for value assessment

Trailer (if included)

• Year, make, model
• VIN
• Capacity rating
• License plate number

Standard Sale Information

• Full names and addresses of buyer and seller
• Sale price (itemize if boat, motor, and trailer are separately priced)
• Date of sale
• Payment method
• As-is clause or warranty details

HIN: The Boat's Fingerprint

The Hull Identification Number (HIN) is to boats what VIN is to cars — a unique 12-character identifier that never changes. Since 1972, all boats manufactured or imported to the US must have an HIN permanently affixed to the starboard (right) side of the transom.

Always verify the HIN on the boat matches the HIN on the title and registration. HIN alteration is a federal crime and a red flag for stolen boats. The first three characters identify the manufacturer, the next five are a serial number, and the last four encode production month and model year.

State Registration vs. Coast Guard Documentation

State Registration (Most Boats)

Most recreational boats are registered at the state level through the state's boating authority (not the DMV). The specific agency varies — Fish & Wildlife, Parks & Recreation, or a dedicated Boating Commission depending on the state.

Coast Guard Documentation (Larger Boats)

Boats at least 5 net tons (roughly 27 feet or longer) can be documented with the US Coast Guard instead of state registration. Documentation is typically used for:

• Commercial boats (required)
• Boats that travel internationally (helpful for customs)
• Boats with marine mortgages (required by most lenders for larger vessels)
• Some recreational boats that prefer federal vs. state numbering

Sales Tax on Boat Purchases

Most states charge sales or use tax on private boat sales, but rates and rules vary dramatically:

• High-tax states: California (7.25%+), New York (4%+ local), Washington (6.5%+)
• Low/no-tax states: Oregon, Montana, New Hampshire, Delaware, Alaska (no state sales tax)
• Boat-friendly states: Florida caps boat sales tax at $18,000, making it attractive for luxury yacht purchases
• Use tax: If you buy in a low-tax state and register in a high-tax state, expect to pay use tax

Common Boat Sale Red Flags

• HIN doesn't match title: Stop immediately — this indicates theft or fraud
• Seller refuses to let you inspect out of water: Hidden hull damage is a common concern
• No motor hours recorded: Like unreported odometer — major valuation concern
• Missing maintenance records: Boats without service history are risky
• Abandoned title or missing documentation: Can lead to months of delays in re-registering

Pre-Purchase Inspection

For boats over $5,000, a marine surveyor inspection ($300-$800) is strongly recommended. A surveyor will check:

• Hull integrity (cracks, delamination, osmotic blisters)
• Structural soundness (stringers, transom)
• Electrical systems and wiring
• Plumbing and bilge systems
• Engine hours and condition (may require separate mechanical survey)
• Safety equipment compliance

After the Sale

Sellers should:

• Notify state boating authority of the sale (varies by state)
• Cancel boat insurance
• Remove registration stickers if required by your state
• Keep a copy of the bill of sale for tax records

Buyers should:

• Register the boat with their state boating authority (deadlines vary, typically 15-30 days)
• Obtain boat insurance
• Complete any required boating safety course
• Schedule Coast Guard inspection if documenting federally