53 Free Boat Bill Of Sale Forms – Word – PDF

A boat bill of sale is defined as a document that shows the transfer of ownership of a vessel between two individuals.

Therefore, it is sometimes called a vessel bill of sale form. The form contains the transaction details, including the details of the vessel, the parties involved in the sale, the purchase price, and where the transaction occurred. As such, it acts as proof that there was a transaction between a buyer and seller. It also shows that the boat’s ownership changed from the seller to the buyer.

Therefore, it is vital to have a boat bill of sale form to protect the buyer from being accused of fraud and to make it easy for the seller to transfer ownership to the buyer. In addition, the bill of sale provides an official record of the date the boat was sold and its purchase price.

If you want to know how to buy or sell your vessel, this article will be helpful as it discusses the types of vessels whose ownership can be transferred using a boat bill of sale form and the information you need to make the transaction successful. It also discusses how to prepare your form. 

Given below are the boat bill of sale forms:

Boat Bill of Sale Form

A boat bill of sale form is an agreement between a seller and buyer for the sale of a vessel in exchange for a particular amount of money.

It provides a transaction record, thereby protecting the buyer from being accused of fraud should they be questioned about its ownership. The form also protects the seller if any issues arise after the sale. The form is proof of a change of ownership; once it is signed, the buyer legally owns the vessel even if they have not paid for it in full yet. Sellers should obtain the full payment before finalizing the sale to avoid fraud.

There are different vessels, including those with or without a motor, and some come with trailers. If the vessel to be sold has a trailer, a motor, or both, they can be sold in the same bill of sale as long as their details are included to show that they are being bought together with the vessel.

However, registered vessels belonging to the United States Coast Guard cannot be sold using an ordinary boat bill of sale form. Instead, they require the CG-1340 Bill of Sale, which must be notarized.

A boat bill of sale form can be used to sell different boats. Boats sold through a boat bill of sale are commonly used for recreational purposes, sports and business.

Some common types of vessels include:

• Tugboat: It is used to push or pull large vessels in water when manoeuvring obstacles. 
• Canoes: Canoes are narrow boats propelled by oars. They are often used for recreational activities like racing.
• Pontoon boat: A pontoon is a boat with a flat bottom that stays afloat using floaters and decks. It is used for water sports like water skiing.
• Dinghy: Dinghies are small open sailing boats used as lifeboats or sailing boats.
• Yacht: Yachts are slightly larger boats used for racing and sailing; they are preferred for short overnight stays on the water.
• Catamaran: Catamarans are sailing boats with two or three hulls and a deck. They are fitted with motors and can be used for sports and recreation.
• Motorboat: A motorboat is a watercraft with an internal electric or combustion engine. Standard motorboats accommodate six people. They can be used for cruising, fishing, or swimming.
• Ski boats: These boats with inboard engines are often used for water skiing and related water sports.
• Cabin cruiser: Cabin cruisers are boats structured to accommodate the crew inside the boat. They are often used for a vacation as they accommodate at least two people.

Do you know? A boat bill of sale is not mandatory to register a vessel in all states; however, you are advised to have one because it protects both the buyer and the seller. The buyer can contest any charges of fraud brought against them, and the seller can prove that the boat’s ownership has changed. Not all boats have titles. However, boats more than 16 feet long must have titles. The title of the boat has to be transferred to the buyer according to state laws.

A boat bill of sale form helps to identify the details required for the sale or purchase of a boat. While the details required to complete the form may be straightforward, the decision-making process requires attention to detail to ensure a vessel’s successful sale or purchase.

The boat bill of sale form works as follows:

Decide what you are selling

Vessels come with different parts and may include gear purchased as an accessory to the vessel. The different parts may be sold together and included on the bill or separately to different people. Each add-on carries costs that may contribute to the selling price. As a seller, you need to decide whether you are selling the whole or part of the vessel and determine the price depending on your decision.

Specify the worth of your boat

A boat’s worth is determined by various factors, including the size, type of boat, and condition of your boat. You may get a broker to help you value your boat but get a second opinion so you do not undervalue your vessel. You can also research the market price and use the NADA guidelines to assess your boat’s value.

Advertise your boat

Before advertising your boat, you should ensure it looks good and is in good working condition because it will be displayed to potential buyers. After that, you may decide to sell the boat yourself or hire a broker to do it for you.

Typically, if you are selling the boat for over $ 40,000, it is advisable to hire a broker. Brokers often sort issues like cleaning the boat and putting up advertisements. As a private seller, on the other hand, you can advertise your boat through online platforms or paid websites like Craigslist. 

Show it to the potential buyer

Once you get potential buyers, you should schedule a time to show your vessel. You should choose a location that will be convenient for most of your buyers. You may dock your vessel at a port or park it on land. Avoid mooring your boat away from the docks because your buyers may have difficulty getting to the location, which may inconvenience you as the seller.

Start negotiation

Once you have shown potential buyers your vessel, you may begin negotiating its price. Negotiation may be a one-time event or done over a series of meetings. Ensure you set a selling price that can be negotiated without accruing a loss. At the same time, be flexible because buyers are more likely to buy if they feel they have made a good bargain.

Complete the transaction

Once you have finalized the price, you should complete the transaction by exchanging the boat with the money. Ensure you receive the money before signing the bill of sale because once ownership passes to the buyer, they may fail to pay, and you may not have grounds to seek payment. It is also at the transaction stage that the sales tax needs to be paid. You may split the cost or have either party pay the sales tax.

Register the boat

Once the sale is complete, the seller should provide the buyer with a registration card or certificate of title. The registration card is provided for vessels less than 16 feet long, while the certificate of title and registration card are provided for vessels more than 16 feet long. Once they have provided these documents, the seller should notify the appropriate state department of the sale.

Boat Bill of Sale Form

As a purchaser or seller, you may find it hard to prepare a boat bill of sale form from scratch; even worse, you may prepare one and fail to include essential details. To ease the process, we provide free downloadable boat bill of sale form templates to help you. The templates provide valuable information, are simple, easy to use, and can be adjusted to fit your needs.

As an agreement, the boat bill of sale form requires you to fill in details regarding the transaction, the vessel, and the parties, as it will be legally binding.

As such, you need to add the following information:

Date

The date indicated on the bill of sale should be the date on which it is signed. It is crucial to indicate the correct date as it shows when the legal ownership of the vessel was transferred to the buyer.

Location of sale

The location of the sale is typically the county and state where the boat bill of sale form was signed. The location determines the documents and requirements that must be fulfilled when registering the vessel.

Identify the parties

The identities of the parties are necessary to establish their capacity to sign the agreement. In addition, by identifying them, the parties show commitment to fulfilling their responsibilities according to the agreement.

Seller’s information (name, mailing address)

The seller’s information should typically be their full legal name and mailing address; it allows anyone with issues with the boat bill of sale to contact them. It also allows the state to verify the seller’s identity if the need arises.

Buyer’s information (name, mailing address)

Like the seller, the buyer must also provide their full legal name and mailing address. Again, their identity can be verified through this information, and they can be contacted to clarify or verify any information should the need arise.

Transaction amount

The transaction amount is the amount the buyer and seller have agreed to exchange for the boat. Sometimes, the buyer and seller may agree to exchange vessels of similar value instead of cash or exchange the vessel for cash. Therefore, it is in this section that all this information should be indicated.

Boat details

There are different types of boats, and even the same types of boats have different makes and years of manufacture. The details of the boat act as an identifier for the boat.

The following boat details should be filled in the boat bill of sale:

• Make: The make of the boat tells you about the manufacturer and can help you determine whether the boat has accessible spare parts and other features related to the model of the boat.
• Year: The year of manufacture is when the boat was produced; this sometimes plays a part in determining the boat’s value. Vintage boats often attract a higher price.
• Title number: The title number of the boat establishes its ownership. The title number is often indicated on the certificate of title. Typically, the title number is a series of numbers and letters.
• Hull ID: The Hull ID is a unique series of numbers and letters usually affixed to the boat by the manufacturer when the vessel was manufactured.
• Odometer reading: The odometer measures the distance the boat has travelled. A high odometer reading means the boat may not be in satisfactory condition.

Purchase price

The purchase price is the final amount agreed upon for the whole or part of the vessel. This section has blank spaces for all the vessel parts which may be sold, including the vessel itself, trailers, and motors. The agreed-upon price should be indicated in the appropriate blank space.

Sales taxes

The payment of sales tax may be negotiated or split between the two parties. The sales taxes may or may not be included in the purchase price. Be sure to mark the appropriate box as to whether or not the sales taxes have been included in the selling price.

Authorization

The buyer and seller must authorize the sale by indicating their names, transaction dates, and signatures. By signing the bill of sale, the seller acknowledges receipt of money and transfer of ownership of the vessel to the buyer. Likewise, the buyer acknowledges receipt of ownership of the vessel and payment of the purchase price.

Notary acknowledgment

The boat bill of sale is a formal acknowledgment of the transfer of ownership; the document must be notarized as proof of verification. Notarization of the bill of sale involves a notary public verifying the identities of the buyer and seller when they sign the bill of sale in their presence.