If you had the boat financed and there is a lien on the title, you’ll also need documentation for release of that lien from the finance company.
Even if your state does not require a bill of sale, it’s still good practice to have a written document recording the transaction, in case questions or problems arise later. Take the bill of sale to a notary public so your signature and the buyer’s signature on the bill of sale can be notarized. If the transaction is later disputed, the document will more likely hold up in court. Have 2 copies notarized so both you and the buyer have an original.
Check with the buyer to make sure the information you have is correct. Write legibly in blue or black ink.
If there is a space for a notary seal on the back of the title, that’s an indication that the signature must be notarized. If you’re unsure, you can call your state’s boat licensing office to find out. Getting the title notarized at the same time you have the bill of sale notarized can save you some time and money.
You may want to make a photocopy of the title before you hand it over, so you have it for your records. This might come in handy if, for example, the buyer misplaces the title before they get a chance to go to the title office.
If there are any questions or problems with your title, you also have the opportunity to clear those problems up immediately if you’re there in person.
Some states require titles to be signed in the presence of a notary. If there is space for a notary seal on the back of the title, don’t let the seller sign it until they’re in front of a notary. Otherwise the signature will be invalid.
An authorized representative should have a contract, power of attorney, or other document that makes it clear they are the legal, authorized representative of the title owner of the boat. If the representative cannot produce documentation, don’t go through with the sale – it might not be legitimate. Contact the title owner of the boat if possible.
With the seller by your side, most problems can be cleared up immediately. For example, the title may have a lien on it. The seller could produce a release of lien document to prove that they owned the boat free and clear when they sold it.
Some states also require you to present a written bill of sale for the boat. If you’re buying the boat from an individual, you may want to call your state’s boat titling office in advance and find out what documents you’ll need. Make sure all information about the boat is exactly the same as the information on the original title. This ensures a clean transfer of title.
Some states don’t assess taxes on casual boat sales (sales between two private individuals). However, you’ll still have to pay a fee to have the new title issued, typically around $15 or $20.
If you have to wait for your official title, find out if you can still register your boat with the temporary document. You won’t be able to take the boat out on the water until it’s registered.
