Buying a boat from a private seller

Verify ownership first

A private seller is an individual owner selling a boat directly, rather than through a dealer or broker. Before you spend money on a survey, ask to see the ownership paperwork and a photo ID, and confirm that:

• the name on the title, registration or documentation matches the seller's ID;
• if more than one owner is listed, all of them can sign the transfer;
• the hull identification number (HIN) on the transom matches the paperwork exactly;
• engine serial numbers and the trailer's title or registration, where required, also match.

If the seller is selling on behalf of someone else, such as an estate, ask what legal authority they have to sign, and consider having a qualified professional review it.

State title vs Coast Guard documentation

Boats in the U.S. are recorded in one of two main ways. Many states issue a title for boats, similar to a car title, and a state registration with numbers displayed on the hull. Some states do not title boats at all and rely on registration only. Larger vessels may instead be documented with the U.S. Coast Guard's National Vessel Documentation Center, which issues a Certificate of Documentation.

The type of record affects how ownership is transferred and how a lender's lien is recorded. For a documented vessel, a lender will often record a preferred ship's mortgage with the Coast Guard. For a titled boat, the lien is usually noted on the state title. Ask the seller which applies before you make an offer, and check the rules of the state where you will register the boat.

Check for liens

A lien is a lender's legal claim on the boat until a loan is repaid. Look for a lienholder on the title or an existing mortgage on the documentation abstract. If the seller still owes money, the sale needs to pay that loan off and the seller's lender needs to release the lien, so that the title or documentation can transfer cleanly to you and your lender.

Ask the seller for a written payoff statement from their lender, showing the exact amount and how long that figure is valid. With a lender on your side of the deal, that payoff is typically paid directly to the seller's lender, and any remainder goes to the seller.

Survey and sea trial

Private sales are usually "as is", which makes your own inspection especially important. Arrange a sea trial to see how the boat runs, and consider an independent marine survey and an engine inspection. Some lenders and insurers require a survey on certain boats. Write your offer so it is contingent on a satisfactory survey and on financing approval. The used boat guide explains what a survey and sea trial typically cover.

Bill of sale and paperwork

A bill of sale records the transaction. Many states publish their own form; when one is not required, a written bill of sale is still useful. It typically includes:

• names, addresses and signatures of buyer and seller;
• date of sale and purchase price;
• year, make, model, length and HIN of the boat;
• engine make, model and serial numbers, and trailer details if included;
• a statement that the boat is free of liens, or how existing liens will be paid;
• any items included in the sale, such as electronics or safety gear.

Some states require signatures to be notarized. Keep copies of everything, including the survey report, payoff statement and lien release.

Safer ways to pay

Large cash payments are hard to trace and offer little protection if something goes wrong. Common alternatives include a cashier's check, a bank wire confirmed by phone with a known number, an escrow service, or a closing handled by your lender. Be cautious of a seller who pressures you to pay before you have seen the boat and paperwork, asks for gift cards or unusual payment methods, or changes wiring instructions at the last minute.

An escrow or documentation service should be one you find and verify independently, not one suggested only by the seller.

How financing a private sale typically flows

Lenders handle private-party loans in different ways, but the sequence often looks like this:

1. Estimate your payment and budget, then apply with a lender that finances private-party purchases.
2. Agree on a price with the seller, with contingencies for survey and financing.
3. Provide the lender with the purchase agreement, ownership documents and, if requested, a survey.
4. The lender verifies ownership and any existing lien, and confirms the boat's value.
5. At closing, the lender pays the seller's lender (if any) and the seller, and records its own lien.
6. You register or title the boat in your name and add insurance.

For details on documents and requirements, see private-party boat financing.

Registering the boat

After the sale, you typically need to transfer the title and registration into your name with your state's boating or motor vehicle agency within a set period, and pay any sales or use tax due. For a documented vessel, the transfer is filed with the Coast Guard, and some states also require state registration for documented boats. Requirements and deadlines vary by state; for questions about tax or legal obligations, consult a qualified tax or legal professional.

Frequently asked questions