Buzz
To legally operate a boat in American waters, it must be titled and registered in your state of residence. When purchasing a boat from a private seller, transferring the title to your name is essential. While the process is generally simple, errors can lead to ownership disputes.
Steps
How to Sell Your Boat
Obtain necessary proof of ownership. Typically, you'll need the boat's title as well as one for the outboard motor. In certain states, these documents may be separate.
- If the boat was financed, ensure you have documentation for the lien release from the lender.
Draft a sales agreement. A formal bill of sale documents the boat's sale price and transaction details. Some states mandate presenting a written bill of sale during title transfer applications.
- Even if your state doesn't mandate it, having a written record of the sale is wise to address potential issues later.
- Notarize the bill of sale to enhance its legal standing. Have both parties' signatures notarized for added security. Keeping two notarized copies ensures each party has an original.
Complete the title transfer section. On the back of the boat's title, there's a section for recording the transfer to the new owner. Fill in the buyer's details accurately, including name, address, and other required information.
- Confirm the accuracy of the buyer's information. Use legible blue or black ink.
Notarize your signature on the title. Signing the title's transfer section finalizes the ownership transfer. Some states require notarization of the seller's signature.
- If there's a notary seal space on the title, it likely needs notarization. Contact your state's boat licensing office for clarification.
- Having the title notarized along with the bill of sale can save time and money.
Hand over the title to the buyer. After completing and signing the title's transfer section, it's the buyer's responsibility to obtain a new title from the state's title office.
- Consider making a photocopy of the title for your records. This copy could be useful if the buyer misplaces the original before obtaining a new title.
Accompany the buyer to the title office. Until the buyer obtains a new title, the boat remains registered in your name. Accompanying the buyer ensures a smooth title transfer process.
- Being present allows you to address any title-related issues immediately.
Buying a Boat
Ensure seller's signature on the title. Before initiating the title transfer for your newly acquired boat, ensure the seller fills and signs the transfer section on the back of the title.
- In some states, titles require notarized signatures. If there's a space for a notary seal, ensure the seller signs in front of a notary to validate the signature.
Verify authorized representative's credentials. Some sellers might delegate title transfer to authorized representatives like attorneys or dealers.
- An authorized representative should provide valid documentation such as a contract or power of attorney.
- If no documentation is provided, reconsider the purchase and contact the boat's title owner if possible.
Accompany the seller to the title office. Having the seller present can preempt any issues with the title or ownership record.
- With the seller's presence, most issues can be swiftly resolved. For instance, if the title has a lien, the seller can furnish a lien release document to prove clear ownership.
Complete a title application. Every state provides a title application form where you input your details and boat information to acquire a new title.
- Some states may necessitate a written bill of sale. If purchasing from an individual, contacting the state's boat titling office beforehand can clarify required documents.
- Ensure all boat information matches the original title for a seamless transfer.
Settle applicable taxes and fees. Upon submitting your title application, expect to incur taxes and fees determined by your state. Tax rates vary, so it's prudent to inquire in advance about the amount and accepted payment methods.
- Some states waive taxes for private boat sales but charge a fee for issuing the new title, typically $15 to $20.
Obtain your fresh title. While some states issue titles immediately upon application and fee payment, others issue temporary documents and mail the official title later.
- If awaiting the official title, inquire about registering the boat with the temporary document. Remember, you can't take the boat out until it's registered.
