Bill of sale vs. title vs. registration: the differences
These three documents serve different purposes. Buyers and sellers often need all three, but at different times.
Bill of sale
A bill of sale records the transaction. It says who sold the boat, who bought it, how much was paid, and when. It is created at the time of sale between the two private parties.
The bill of sale does not transfer ownership by itself. It is a record of the sale. The buyer uses it as part of the titling or registration process with the state agency.
See how to write one.
Title
The title is the official document that shows who owns the boat. It is issued by a state agency. When a boat is sold, the seller signs over the title and the buyer applies for a new title in their name.
Not all states title boats. Some smaller or older boats are exempt from titling in some states. Check with your state agency.
Registration
Registration is permission to operate the boat on the water. The state issues registration numbers (like CF-12345-AB in California) that must be displayed on the hull. Registration usually must be renewed each year.
A boat can be registered in a state without being titled there, depending on the state’s rules.
In a sale: what happens and when
- Seller and buyer sign the bill of sale at the time of sale.
- Seller signs over the title to the buyer.
- Buyer takes the signed title and bill of sale to the state agency to get a new title and registration in their name.
- Deadlines for step 3 vary by state — check your state page.