A Boat Bill of Sale is a legal document that records the transfer of ownership of a watercraft (boat, yacht, personal watercraft, or other vessel) from the seller to the buyer. Boat sales are regulated at both the federal and state levels. The United States Coast Guard (USCG) maintains a federal documentation system for vessels of five net tons or more used in coastwise trade, fisheries, or international commerce under 46 U.S.C. Chapter 121. All other recreational vessels are titled and registered at the state level through state departments of natural resources, marine agencies, or departments of motor vehicles.

Every boat manufactured or imported for sale in the United States after November 1, 1972, must have a Hull Identification Number (HIN) permanently affixed to the hull in accordance with 33 C.F.R. Part 181. The HIN is the boat equivalent of a VIN for automobiles and is the primary identifier used for title verification, registration, theft deterrence, and safety recall tracking. The HIN follows a standardized 12-character format established by the USCG that encodes the manufacturer, serial number, and date of manufacture.

State titling requirements for boats vary significantly. Most states require a title for boats with motors over a certain horsepower (commonly 10 HP or 25 HP), while some states title all motorized watercraft regardless of size. States that participate in the International Association of Marine Investigators (IAMI) hull numbering system allow title verification across state lines. The bill of sale is a prerequisite for title transfer in virtually all states and must accurately reflect the transaction details, including the purchase price on which state sales tax will be calculated.

A private seller is transferring ownership of a recreational boat, sailboat, personal watercraft (jet ski), or yacht to a buyer and needs documentation for the state title and registration transfer. A buyer is purchasing a boat and must present a bill of sale to the state titling authority along with the signed-over title certificate to complete the registration process.

A boat owner is trading their vessel to a marine dealer and needs to document the trade-in transaction for title transfer and sales tax credit purposes. A person is purchasing a boat from out of state and needs a bill of sale to register the vessel in their home state, which may also be required for the use tax calculation.

An estate executor is selling a boat from a deceased person's estate and needs documentation for the probate court and to transfer the title to the buyer. A marine lender or bank is financing the purchase of a boat and requires a bill of sale documenting the purchase price and vessel details before funding the loan and recording a lien on the title.

A boat owner is donating their vessel to a qualified charity and needs a bill of sale documenting the transfer and the vessel's fair market value for the charitable contribution deduction under IRC Section 170(f)(12), which has special rules for donated vehicles, boats, and aircraft valued over $500.

The seller's and buyer's full legal names, addresses, and contact information must be clearly stated. For corporate or entity sales, the authorized representative must be identified. Both parties' identification (driver's license numbers) may be required by state titling authorities.

The vessel description must include the boat's official name (if any), year of manufacture, make (manufacturer), model, length overall (LOA), beam, hull material (fiberglass, aluminum, wood, composite), hull type (mono-hull, catamaran, pontoon), propulsion type (inboard, outboard, I/O, sail), and the Hull Identification Number (HIN). The HIN must match the HIN on the existing title certificate and the physical HIN on the hull.

Engine and motor information must be specified separately, including the engine make, model, serial number, horsepower, fuel type, and number of engines. For outboard motors, each motor's serial number must be documented as outboard motors may be separately titled or registered in some states.

Trailer information, if a trailer is included in the sale, must be listed with its own make, model, year, VIN, license plate number, and weight capacity. The trailer may have its own separate title that must also be transferred.

The purchase price, payment method, and date of sale must be stated. The sales tax obligations should be acknowledged. For financed purchases, the lender's information and the existence of a lien should be noted. The seller should disclose whether the title is clear or whether existing liens must be satisfied before transfer.

The condition of the vessel should be described, including warranty status (as-is or with warranty). The seller should disclose any known material defects, prior damage, insurance claims, or environmental issues (such as fuel system leaks). The USCG vessel documentation status, if applicable, must be addressed. Both parties must sign and date the document. Notarization may be required by the state for boat title transfers.