When buying or selling a boat, having a proper bill of sale is essential to ensure the transaction is legally documented and valid. Although no standardized governmental form exists for creating a bill of sale for boats, knowing what to include and how to craft one can simplify the process.
The good news is that you can draft your own. We’ll show you how and go into how CG Portal simplifies ownership documentation, especially for documented vessels.
What Is a Bill of Sale for Boats?
A bill of sale is a legal document that records the transfer of ownership of a boat from one party to another. It serves as proof of the transaction, outlining the agreed terms between the buyer and the seller. This document is crucial in creating a clear ownership trail, ensuring no disputes arise about the rightful owner.
For undocumented boats, a bill of sale is particularly important, as vessels can hold considerable financial and personal value. While there is no mandated federal form for a boat bill of sale, it must include key information to be valid across different jurisdictions.
What Details Should Be Included in a Boat Bill of Sale?
Creating a comprehensive bill of sale is essential for protecting both buyers and sellers in a boat transaction. Below are the key elements that should be included in a bill of sale for boats:
Identification of the Boat
The bill of sale must thoroughly identify the vessel being sold. Include:
- The boat’s full name, if applicable.
- Manufacturer’s name and the year of manufacture.
- Hull Identification Number (HIN) or Serial Number.
- The vessel’s length, type (e.g., sailboat, motorboat, or yacht), and primary color.
- Description of any attached equipment, such as trailers, motors, or other accessories included in the sale.
This information ensures clarity about which specific vessel is being transferred, avoiding future disputes.
Details About the Seller and Buyer
Accurate identification of both parties involved in the sale is critical. The bill of sale must include:
- Full legal names of both the seller and buyer.
- Contact information, including phone numbers, addresses, and emails for both parties.
- Government-issued identification numbers (optional, but adds another level of specificity).
These details can help clarify the agreement’s legitimacy if legal or administrative questions arise later.
Purchase Price and Payment Terms
The bill of sale should document the agreed purchase price of the boat. It’s important to specify:
- The final sale price in U.S. dollars.
- Payment terms, including any deposit or financing involved.
- The date payment is received or the method of payment (e.g., cash, check, bank wire).
Clearly stating these terms protects both the buyer and seller from misunderstandings post-transaction.
Sale Date and Delivery Conditions
Be sure to include the date the sale is final. Other delivery-related details to note:
- When and where the boat will be transferred to the buyer.
- If transportation or shipping is included in the sale, who is responsible for logistics and costs.
Disclosure of Liens or Encumbrances
If the boat has any existing liens or encumbrances—such as outstanding loans or financial obligations—the bill of sale must list them. The seller should also include a statement assuring that the vessel will be transferred free of any claims or with full disclosure of existing obligations.
Buyer’s Acknowledgment and Seller’s Warranty
The bill of sale should include:
- A buyer’s acknowledgement, verifying they’ve inspected the boat and accept it in its current “as is” condition unless warranties are specified.
- Any warranties or guarantees from the seller, if applicable. For example, the seller may provide assurance that the boat is free of legal disputes or mechanical issues.
Signatures of Both Parties
For the bill of sale to be legal, it should include the dated signatures of both buyer and seller. If notarization is required in the state where the sale is taking place, provisions should be made to include a notary’s stamp and signature.
How Can Someone Write Their Own Bill of Sale for Boats?
Since there is no pre-assigned governmental bill of sale form to use, you can create your own document by following the above checklist. Here are tips for crafting your own bill of sale:
- Use clear language that is easy for both parties to understand. Avoid vague terms.
- Utilize an online template as a starting point. Websites offering legal document tools often provide customizable templates, which you can adapt for your needs.
- Review state-specific requirements. Some states have specific regulations or require notarization for boat transactions.
Once you’ve drafted the document, it’s always a good idea to consult a legal professional or knowledgeable expert to ensure compliance with local and federal laws.
How Does CG Portal Support the Process for Documented Vessels?
If you’re selling a documented vessel, your responsibilities differ slightly. Documented vessels are those registered with the U.S. Coast Guard’s National Vessel Documentation Center (NVDC). When transferring ownership of such a vessel, you’ll need to complete a Transfer/Exchange of Ownership form.
Simplified Transfer and Documentation Through CG Portal
CG Portal makes it simple for sellers and buyers to manage all necessary documentation for a documented vessel. Here’s how we assist:
- Transfer/Exchange Form Support: CG Portal helps sellers complete and submit the Transfer/Exchange form required to change ownership for documented vessels.
- Upload Functionality: You can easily upload your completed bill of sale directly to our platform, minimizing delays or confusion in submitting documents.
- Guidance and Accuracy: Our user-friendly platform walks you through submitting the correct forms, so you don’t run into unnecessary delays with the U.S. Coast Guard.
Tips for Using CG Portal Services to Complete Your Sale
When selling or purchasing a documented vessel, leverage CG Portal’s services to ensure a smooth process. Here’s a brief guide on how we simplify your experience:
- Document Review – Avoid errors by having each document cross-checked for accuracy before submission.
- Centralized Digital Platform – Submit forms, upload supporting documents like bills of sale, and track updates directly through a single platform.
- Expert Help Available – Our team is available to answer your questions about ownership transfer or document submission.
Why Is Proper Documentation Critical for Boat Sales?
Proper documentation, including a well-crafted bill of sale, is vital for avoiding potential disputes or complications down the line. A thoroughly completed bill of sale guarantees:
- Protection for the Seller – Ensures payment terms are honored, and no ownership liability is retained following the sale.
- Protection for the Buyer – Provides necessary paperwork to register the vessel and clear up potential legal disputes.
- Compliance with Regulations – Documentation is necessary for subsequent federal or state registration processes.
For documented vessels, the additional legal framework emphasizes even more the importance of a complete and accurate bill of sale.
Start Your Documentation Process Today
Whether you’re drafting a bill of sale for a private sale or working through paperwork for a documented vessel, CG Portal offers the tools and guidance you need. Our streamlined services ensure that your bill of sale and related forms are completed and uploaded easily.
Handle your vessel’s sale with confidence—visit our portal today to see how we can help you.