How to Register a Used Boat

Before completing a used boat purchase, perform these critical checks to protect yourself legally and financially:

1. Verify the Hull Identification Number (HIN)

Every manufactured boat has a unique 12-character HIN permanently attached to the transom. Verify that:

• The HIN on the boat matches the HIN on the title and registration documents
• The HIN has not been altered or tampered with
• The HIN format follows the standard pattern (3-letter manufacturer code + 5 serial characters + month/year)

2. Check for Liens

A lien means someone else (usually a bank) has a financial claim against the vessel. You can:

• Ask the seller for a lien-free title or lien release documentation
• Check with your state's titling agency for existing liens
• Use a professional boat history service for comprehensive records

3. Verify Registration Status

Confirm the boat's registration is current and matches the seller's identity. An expired or mismatched registration is a red flag.

When purchasing a used boat, you should obtain the following from the seller:

In States Requiring Titles

1. Signed title — The seller must sign the title over to you on the designated assignment section
2. Bill of sale — Include the date, purchase price, vessel description (make, model, year, HIN), and both parties' full names and addresses
3. Current registration certificate
4. Lien release (if applicable) — Proof that any loan has been paid off

In States Without Titles

1. Bill of sale — This becomes your primary proof-of-ownership document
2. Current registration certificate
3. Prior bills of sale — A chain of ownership documentation is important

Additional Helpful Documents

• Maintenance records and service history
• Original manufacturer's documentation
• Coast Guard documentation (if the vessel was federally documented)
• Insurance records

Step 1: Complete the Title Transfer

In title states, you must transfer the title to your name before you can register the boat. This typically involves:

• Submitting the seller-signed title to your state's DMV or DNR
• Completing a title application form
• Paying the title transfer fee (typically $10-$25)
• Paying applicable sales or use tax on the purchase price

Step 2: Apply for Registration

With the title transfer complete (or bill of sale in hand for non-title states), apply for registration:

• Complete the boat registration application form
• Provide the HIN and vessel specifications
• Pay the registration fee based on your boat's length class

Step 3: Sales/Use Tax Considerations

Most states charge sales or use tax on used boat purchases based on the purchase price or fair market value (whichever is higher). Key points:

• Delaware has no sales tax — a significant advantage for buyers
• Some states cap the tax amount (e.g., Georgia caps at a certain value)
• If you paid sales tax in another state, you may receive credit against your home state's tax

Step 4: Display Your New Registration

Remove the seller's old registration numbers and decals. Display your new registration number on both sides of the bow following your state's display rules.

For private purchases, consider using an escrow service for larger transactions to protect both buyer and seller.

Purchasing a boat from another state adds complexity to the registration process:

Key Steps for Out-of-State Purchases

1. Obtain the seller's state title and registration
2. Transport the boat to your home state — You may need a temporary transit permit
3. Apply for title and registration in your home state — Using the out-of-state documents
4. Pay your home state's sales/use tax — You may receive credit for tax paid in the purchase state

Sales Tax Credit

If you paid sales tax in the state where you purchased the boat, most states will give you credit for that amount against your home state's sales/use tax. You'll only owe the difference (if any) between the two rates.

• Not verifying the HIN — Always confirm the HIN on the physical boat matches all paperwork
• Skipping the lien check — You could be responsible for the previous owner's outstanding loans
• Under-reporting the purchase price — States may assess sales tax based on fair market value if the reported price seems unusually low
• Not getting a bill of sale — Even in non-title states, always get a written, signed bill of sale with all details
• Operating before registering — Don't take the boat out on the water until you have at least a temporary registration
• Forgetting to remove old registration numbers — You must remove the seller's registration numbers and display your own