Documentation, titles, liens and the bill of sale

Paperwork & ownership · Power & sail

A boat is either federally documented with the Coast Guard or titled by a state, and documented boats often still need a state registration. Before closing, confirm who owns the boat and whether any mortgage or lien is recorded. General information only, not legal advice.

Documented or state-titled?

• Coast Guard documentation is a national form of registration. For recreational boats it is optional, open to boats of at least 5 net tons (a volume measure, not weight) wholly owned by US citizens. BoatUS says most boats over about 27 feet qualify.
• Lenders on larger boats usually require documentation, which allows a preferred ship mortgage. It is also clear proof of nationality when cruising abroad.
• Since December 14, 2023, recreational owners can choose a certificate valid for 1 to 5 years. NVDC fees as of September 2025: $133 for initial documentation, $26 per year to renew, $25 for an abstract of title.
• Undocumented boats are titled and registered by the state. Documented boats may still need state registration: Washington registers them but issues no state title, and Florida exempts them from its title.

Checking for liens

• For a documented boat, order an abstract of title from the National Vessel Documentation Center (NVDC). It is the historical record of sales, mortgages and lien notices filed against the boat.
• A preferred mortgage stops the Coast Guard from changing the owner, name or hailing port without the lender's consent, so an existing mortgage must be paid off and released at closing.
• The NVDC says filing a notice of claim of lien doesn't prove the claim is valid, and federal law says filing doesn't decide whether a maritime lien exists. The record may not show every claim; consider having an attorney or closing agent handle it.
• For a state-titled boat, search the title with that state. In states without boat titles, ask for the seller's own bill of sale and registration, and check the HIN against every record.

Bill of sale and closing papers

• For a documented boat the seller signs a Coast Guard bill of sale (CG-1340), filed with your application for documentation (CG-1258). For a titled boat the seller signs over the state title.
• The contract or bill of sale should state the boat is sold free of liens and encumbrances. Keep copies of everything, including proof of any sales tax paid.
• Private companies offer to handle documentation for a fee. The NVDC says it doesn't endorse them and they don't act for the Coast Guard; owners can apply directly through the NVDC's online storefront.
• Rules and fees differ by state and change over time. Check with your state boating agency and, for a large or complicated deal, a maritime attorney.

General guidance for recreational boaters, researched from the sources listed and written in our own words. Your equipment manuals, local knowledge, the Navigation Rules and a qualified instructor come first.