To sign over a boat title, the seller fills out the assignment section on the back of the title certificate — buyer’s name and address, sale date, sale price, and the seller’s signature — then hands the signed title and a bill of sale to the buyer, who files them with the state titling agency to have a new title issued. If the boat is U.S. Coast Guard documented rather than state titled, the transfer runs on a Coast Guard bill of sale filed with the National Vessel Documentation Center instead. Everything else in a clean sale is paperwork around those two steps.
Before you sign anything, confirm which system your boat is in. Most recreational vessels carry a state-issued title. Roughly nine states don’t issue boat titles at all and rely on registration, in which case the current registration and a signed bill of sale are what you hand over. Vessels of at least five net tons may carry a U.S. Coast Guard Certificate of Documentation instead of a state title, and those transfer through the Coast Guard rather than the state.1eCFR. 46 CFR Part 67 – Documentation of Vessels If the hull shows a USCG official number rather than state registration numbers, skip to the documented-vessel section below.
Filling Out the Assignment Section
Every state title has an assignment block on the back for transferring ownership. The seller enters the buyer’s full legal name and address, the date of sale, and the sale price, then signs. Most states want both parties to sign, and some require the seller’s signature to be notarized. A notary verifies each signer’s identity in person, so if your state requires notarization, plan to sign in front of the notary together rather than trying to catch the other party later.
Print clearly and don’t cross out or write over anything. On state titles, scratched-out entries can force a duplicate title; on federal forms, alterations disqualify the document from filing entirely. If you make a mistake, stop and get a corrected title before continuing.
The Bill of Sale and Supporting Documents
Even in states that don’t require one, write a bill of sale. It’s your proof of what changed hands, and the buyer will need the figures to calculate sales tax when they file. A workable bill of sale includes:
- The hull identification number, make, model, year, and length of the boat
- The agreed sale price and the date
- The full names, addresses, and signatures of both parties
- A description of anything else included in the sale, such as the trailer or motor if separately titled
The HIN on the bill of sale, the title, and the registration must all match the 12-character HIN stamped on the transom. If they don’t, fix the discrepancy before signing anything, because the state will reject a transfer where the numbers don’t line up.
Both parties should also have government-issued ID on hand, especially where notarization is involved. Keep copies of every document once signed: the title, the bill of sale, any lien release, and receipts. Hold onto them for at least several years in case the state loses paperwork in processing or a dispute surfaces later.
Clear Any Lien Before You Sign
If the title shows a lienholder, you cannot cleanly sign the boat over until that lien is released. The lender issues a signed lien release once the loan is paid off, and many states will not process a transfer while a lien remains on record. Don’t rely on a verbal promise to pay the loan out of sale proceeds. Either pay off the lender in advance and get the release in hand, or handle the payoff at closing with the lender’s payoff letter and have the release sent directly to the buyer or the titling agency.
For Coast Guard-documented vessels, mortgages and liens are recorded federally. A buyer can request an Abstract of Title from the National Vessel Documentation Center for $25 to see everything on record, which typically takes two to three business days.2U.S. Coast Guard. National Vessel Documentation Center Table of Fees Any recorded mortgage needs to be satisfied and discharged before the transfer.
When the Title Is Missing
If the seller can’t find the title, get a duplicate before you sign the boat over. Every titling state issues duplicates: apply to the agency that issued the original, pay the duplicate fee, and wait anywhere from a few days to a few weeks depending on the state and whether you file in person or by mail. Fees are generally modest.
Handing a boat to a buyer with only a bill of sale and a promise to send the title later is a bad idea for both parties. The buyer cannot register or title the boat without the signed original, and the seller has effectively given up possession while remaining the titled owner. Get the duplicate first, sign it, then close.
What the Buyer Will Pay at Filing
You aren’t paying these fees as the seller, but expect the buyer to ask. Title transfer fees range from nothing to about $75, with most states under $30. Sales or use tax is the larger number: rates run roughly 3% to over 8%, though a handful of states charge no sales tax on boats and some cap the total tax on expensive vessels. On a $30,000 boat at 6%, that’s $1,800 due when the buyer files.
Many states exempt transfers between immediate family members, though the definition of family varies. Some states cover only parents, children, siblings, and spouses; others include grandparents, in-laws, and step-relatives. If a family exemption applies, use it properly rather than understating the sale price on a non-exempt transfer, which is tax fraud.
Notify the State and Drop Your Insurance
Some states require the seller to separately notify the titling agency that the boat has been sold, similar to a release-of-liability filing for a car. Check whether your state has this step and file it promptly if so. Then call your insurance carrier and remove the boat from your policy as of the sale date. Until you do, you may remain connected to the vessel for liability purposes.
Peel off any old registration decals from the hull before the buyer takes possession. The buyer will apply their own once the new registration issues.
Don’t Forget the Trailer
The trailer has its own title and registration, entirely separate from the boat. Signing over the boat title alone leaves the buyer unable to legally tow it. Trailer titling rules vary — some states title all trailers, others only above a weight threshold, a few don’t title trailers at all — so handle the trailer’s paperwork the same way you’d handle a car transfer: sign over the trailer title, and let the buyer file it with the state motor vehicle agency. Include the trailer explicitly on the bill of sale so there’s no question what was sold.
If the Boat Is Coast Guard Documented
A documented vessel doesn’t have a state title to sign over. The transfer is done on Coast Guard Form CG-1340, a bill of sale that lists the vessel’s official number and the names and addresses of both parties. The seller’s signature must be acknowledged, similar to notarization, and any alteration to the form after signing makes it ineligible for filing.3U.S. Coast Guard. CG-1340 Bill of Sale Where multiple buyers are named without specified ownership shares, each is treated as holding an equal interest.
The buyer then files Form CG-1258 to exchange the Certificate of Documentation.4U.S. Coast Guard. Application for Initial, Exchange, or Replacement of Certificate of Documentation The exchange fee is $84, plus $8 per page to record the bill of sale.2U.S. Coast Guard. National Vessel Documentation Center Table of Fees The buyer must be a U.S. citizen to hold documentation.5Office of the Law Revision Counsel. 46 USC 12103 – General Eligibility Requirements
One trap worth flagging: a bill of sale for a documented vessel that isn’t filed with the NVDC is only valid between the buyer and seller. It won’t hold up against a third party who doesn’t know about the sale. Recording the bill of sale with the Coast Guard is what establishes ownership against the rest of the world.3U.S. Coast Guard. CG-1340 Bill of Sale Confirm with the buyer that they intend to file promptly.