Free Alabama Boat Bill of Sale
Alabama is unusual in that ALEA's Motor Vehicle Division — the same agency that titles cars — also handles titles for all motorized watercraft and sailboats 16 feet and longer. The 12-character Hull Identification Number (HIN) stamped on the boat's transom is the boat equivalent of a VIN and must appear on both the bill of sale and Form MVT 5-1. Registration decals and an Alabama boat-registration number (AL-XXXX-XX format) come separately from the Division of Wildlife and Freshwater Fisheries.
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Boats are sold with undisclosed liens far more often than cars. Our guide covers running a title search, decoding the HIN, separating boat and trailer titles, and what a Coast Guard document means for the transfer process. Read: Boat Bill of Sale: Complete Guide →
Alabama Boat Bill of Sale — What You Need to Know
Primary Form
Standard bill of sale
Primary ID Field
HIN (Hull ID Number)
Sales Tax
2%
Title Required
Yes
ALEA titles ALL motorized boats and sailboats 16 ft or longer. The buyer files the same Form MVT 5-1 used for vehicles. Registration decals are issued separately by the Alabama Game & Fish Division.
Inspection
Not required
Sales Tax Details
2% Alabama state sales tax applies to boat sales, plus applicable county/municipal add-ons. Tax is paid at the county probate office during title transfer.
Inspection Requirements
No safety inspection is required prior to a private boat sale in Alabama.
Registration
Registration for this vehicle type is handled by Alabama Department of Conservation and Natural Resources, Division of Wildlife and Freshwater Fisheries — not the same agency that handles cars in Alabama. Plan for separate filings.
Alabama Boat Sale — Step-by-Step Checklist
- Locate the HIN on the starboard side of the transom at the top outer corner; photograph it and confirm it matches the existing Alabama title.
- Write a bill of sale that includes: HIN, year, make/manufacturer, model, hull length, hull material (fiberglass, aluminum, etc.), engine make/model/serial number, sale price, and full names and addresses of both parties.
- Sign the back of the existing Alabama title in the seller's signature block.
- Remove the Alabama registration decals from the bow of the hull before transfer — registration numbers in Alabama are issued to the owner, not permanently affixed to the vessel.
- Provide the buyer with the signed title, bill of sale, and any lien-release documentation.
- Buyer files Form MVT 5-1 at the county probate office within 20 days to obtain a new title, paying 2% state sales tax and title fees.
- Buyer separately registers the boat with the Alabama Division of Wildlife and Freshwater Fisheries to receive new registration decals and an Alabama registration number.
- Both parties retain copies of all documents; the buyer should keep the bill of sale on board as supplemental ownership proof.
Common Pitfalls
- Confusing the ALEA title process with the DNR registration process: in Alabama, boat titling (ALEA/probate office) and boat registration (Division of Wildlife and Freshwater Fisheries) are two separate steps handled by two separate agencies. Completing only one is a common and costly mistake.
- Missing or tampered HIN: federal law requires every boat manufactured after November 1972 to have a permanent HIN. A missing or altered HIN can indicate a stolen vessel — buyers should verify the HIN against the title and run it through the USCG documentation database before finalizing the purchase.
- Skipping the bill of sale for smaller boats: boats under 16 ft with no motor are not titled in Alabama, but a bill of sale is still the only legal proof of ownership change for these vessels.
- Forgetting lien-release documentation: if the boat was financed, the lender's name appears on the title. The seller must obtain a written lien-release letter from the lender before the probate office will issue a clean title to the buyer.
Alabama Boat Bill of Sale — FAQs
Which Alabama agency handles boat titles versus boat registration?
ALEA's Motor Vehicle Division (via the county probate office) handles titles for motorized boats and sailboats 16 ft or longer. The Alabama Division of Wildlife and Freshwater Fisheries handles annual registration and issues the hull-number decals. You must complete both processes after a private sale.
What boats must be titled in Alabama?
All motorized boats and all sailboats that are 16 feet or longer in length must be titled through ALEA using Form MVT 5-1. Non-motorized boats under 16 feet (kayaks, canoes, small rowboats) are not titled but may still need to be registered with the Division of Wildlife and Freshwater Fisheries depending on where they are used.
Where is the HIN located on my boat?
Federal regulations require the HIN to be on the starboard (right) side of the transom at or near the top, and a duplicate HIN in a hidden structural location. It is a 12-character alphanumeric code. If the HIN is not present or appears to have been altered, do not complete the purchase without first contacting ALEA.
Do I pay sales tax when buying a boat in Alabama?
Yes. The same 2% state sales tax that applies to cars applies to boat sales. County and municipal add-ons may raise the effective rate. The buyer pays the tax at the county probate office when filing the title application.
Other Alabama Templates
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