Selling A Boat In Texas: What You Need To Know

If you're looking to sell a boat in Texas, there are a few things you need to know. First, you'll need to decide how you want to sell your boat – whether through a broker, dealer, or private sale. This will involve gathering photos and documentation of your boat, including details such as recent upgrades and maintenance performed. After the sale, it's important to notify the Texas Parks and Wildlife Department of the transfer of ownership within 20 days. Additionally, a Texas boat bill of sale is required to legally transfer ownership and must include information such as the seller and buyer's details, a description of the vessel, the sales price, and the date of exchange. Tax must also be paid on the sale, which is typically 6.25% of the sales price and is due within 45 working days from the date of the sale.

A bill of sale is required to legally transfer ownership

When selling a boat in Texas, it is important to understand the requirements for legally transferring ownership. A critical component of this process is the bill of sale, which serves as a record of the ownership transfer. This document is essential for ensuring a smooth and compliant transaction.

The Texas Parks and Wildlife Department (TPWD) outlines specific guidelines for boat sales, emphasizing the necessity of a bill of sale or invoice for every transfer of ownership. This requirement applies to all vessels, motorized or non-motorized, that are 14 feet in length or longer. The bill of sale serves as proof of the exchange, detailing essential information about the transaction.

The bill of sale document includes critical information, such as the names of both the seller and the buyer, a detailed description of the vessel, the sales price, and the date of the exchange. This comprehensive description of the boat ensures that all relevant details are recorded, providing clarity and transparency for all parties involved.

To meet the requirements set by the TPWD, one of the following must be provided: a completed Form PWD 143/144 application, a handwritten receipt or sales invoice, or the completed back of a TPWD (brown) title. These options allow for flexibility in completing the necessary documentation while ensuring that all relevant information is captured.

In addition to the bill of sale, there are other important steps to consider when selling a boat in Texas. It is essential to gather photos and comprehensive documentation of the vessel, including details such as recent upgrades and maintenance performed. This information can greatly assist in the selling process, providing potential buyers with a clear understanding of the boat's history and current condition.

Notify Texas Parks and Wildlife Department of the transfer of ownership within 20 days of the sale

To sell a boat in Texas, there are a few key steps you need to follow. Firstly, decide on the method of sale, whether it's through a broker, dealer, or private sale. Next, gather all the necessary photos and documentation, including photos of the boat's interior and exterior, the engine, and any recent surveys or maintenance records. After the sale is complete, it is crucial to notify the Texas Parks and Wildlife Department (TPWD) of the transfer of ownership within 20 days. This step is essential for complying with Texas regulations.

Notifying the TPWD of the ownership transfer involves submitting specific documentation and information. You will need to provide the Boat TX number or outboard motor TX number/serial number, along with the purchaser's/new owner's name, address, and phone number. Additionally, you must include the date of sale and the sales price, excluding the trailer. It is important to list the sales price of the boat separately from the sales price of the outboard motor. All of this information should be submitted through the Boat/Motor Owner Transfer Notification form available on the TPWD website.

The TPWD requires this notification to ensure a smooth transfer of ownership and update their records. By providing the necessary details within the specified timeframe, you can avoid any delays or complications in the ownership transfer process. This step is separate from registering the boat, which may be done at a TPWD office or select law enforcement stations.

In addition to notifying the TPWD, there are other important considerations when selling a boat in Texas. For example, a bill of sale or invoice is required for every transfer of ownership. This document should include the date of sale, sales price (excluding the trailer), description of the vessel, and other relevant information. It is also important to be aware of any tax implications, as the TPWD is required by law to collect tax for vessels/boats (115 feet or less in length) and outboard motors purchased in Texas or brought into the state. The tax rate is 6.25% of the sales price and is due within 45 working days from the date of sale.

By following these steps and staying mindful of the documentation, notifications, and deadlines involved, you can ensure a smooth and compliant process when selling a boat in Texas.

Gather photos and documentation of the boat

When selling a boat in Texas, it is important to gather photos and documentation of the boat. This is a crucial step in the selling process, as it will help you advertise your boat effectively and provide potential buyers with the information they need to make an informed decision. Here are some detailed instructions on what to include when gathering photos and documentation:

Interior and Exterior Photos: Take multiple photos of the boat's interior and exterior. Make sure to capture all the key areas, including the cabin, galley, heads, and any other unique features your boat may have. These photos should showcase the boat in the best light, highlighting its positive attributes and any recent upgrades or improvements.

Engine Photo: Take a clear photo of the engine, ensuring that all important details such as the make, model, and serial number are visible. This will provide potential buyers with essential information about the boat's power and mechanical condition.

Boat Survey: If you have recently had your boat surveyed, make sure to include a copy of the survey report. A boat survey provides an independent assessment of the boat's condition, including any issues or repairs that may be needed. This adds credibility to your listing and helps build trust with potential buyers.

List of Upgrades and Maintenance: Create a comprehensive list of all the recent upgrades and maintenance work performed on the boat. This demonstrates to buyers that the boat has been well-maintained and improves their confidence in its reliability. Be sure to include any major repairs, engine work, or improvements to the boat's systems and interior.

Vessel Documentation: Gather all the necessary vessel documentation, including the boat's title, registration, and bill of sale. In Texas, a bill of sale is required by law to legally transfer ownership of a vessel. The bill of sale should include information such as the seller's and buyer's details, a description of the vessel, the sales price, and the date of exchange. Additionally, if your boat was registered with the US Coast Guard, you will need to submit a US Coast Guard Bill of Sale (Form CG-1340) or provide the information required on the USCG Form CG-1270.

By following these instructions and gathering comprehensive photos and documentation, you will be well-prepared to list your boat for sale and provide potential buyers with the information they need to make an informed purchasing decision.

Decide whether to sell to a dealer, or on the open market

When selling a boat, you have several options. You can sell the boat yourself, sell it through a broker, or trade it in at a dealership.

Selling to a Dealer

If you want to sell your boat to a dealer, you can consider Texas Marine, which buys hundreds of boats a year from individuals, businesses, banks, and even other dealers. They offer a free appraisal service and handle all the payoff paperwork. They also offer consignment services, so you don't have to worry about strangers knocking on your door or late-night phone calls.

Selling on the Open Market

If you want to sell your boat on the open market, you can use online marketplaces such as Boat Trader or boats.com, which have thousands of local buyers browsing for boats each day. However, keep in mind that you will need to decide on pricing, where to sell, and when to sell. Pricing a boat can be challenging, and you may need to adjust your asking price if there is a lack of interest. Online marketplaces typically charge an upfront listing fee, but you keep all the cash from the sale.

To sell your boat in Texas, you will need to provide the buyer with an original title (signed on the front and back) and a signed bill of sale. The bill of sale should include the date of sale, sales price (excluding the trailer), a description of the vessel, and the names and signatures of both parties. You must also pay a 6.25% tax on the sales price, assessed at the time of registration/title transfer.

In summary, selling to a dealer can be more convenient, as they handle the paperwork and there are no concerns about attracting buyers. However, selling on the open market may result in a higher selling price, although it requires more effort and time to list, advertise, and handle the sale yourself.

Submit a Vessel/Boat or Outboard Motor Ownership Transfer Notification to Texas Parks and Wildlife

To sell a boat in Texas, the process involves several steps and requirements, one of which is submitting a Vessel/Boat or Outboard Motor Ownership Transfer Notification to Texas Parks and Wildlife. This notification is a crucial part of finalising the ownership transfer and ensuring compliance with Texas laws. Here is a detailed guide on this process:

Understanding the Requirement:

Firstly, it is essential to recognise that Texas law mandates that the recorded owner of a vessel or outboard motor must notify Texas Parks and Wildlife (TPWD) within a specific timeframe when transferring ownership. This requirement is outlined in the Parks and Wildlife Code, specifically in Subchapter B-1, Section 31.037(a).

Timing and Deadlines:

The recorded owner has a deadline to submit the notification to TPWD. It must be done not later than 20 days after the date of the ownership transfer, whether through sale, donation, gift, or other means. This deadline is crucial to avoid any legal consequences for non-compliance.

Methods of Submission:

Texas Parks and Wildlife offers multiple methods for submitting the Vessel/Boat or Outboard Motor Ownership Transfer Notification:

• Online: TPWD provides an online platform for submitting the ownership transfer notification. This method is convenient and expedites the process.
• Paper Form: Alternatively, you can opt to complete and mail the paper form to the TPWD Boat Registration office in Austin, Texas. The form can also be faxed or scanned and emailed as per the instructions provided on the form.

Information to Provide:

When submitting the notification, you will need to furnish specific details, including:

• Vessel/Boat or Outboard Motor Information: Provide the Texas number or serial number of the vessel, boat, or outboard motor.
• Purchaser/New Owner Details: Share the name, address, and phone number of the individual or entity purchasing or receiving the vessel, boat, or outboard motor.
• Sale Information: Disclose the sales date and sales price, excluding the trailer if applicable. The sales price of the vessel/boat and outboard motor should be listed separately.

Benefits of Submission:

Submitting the Vessel/Boat or Outboard Motor Ownership Transfer Notification to TPWD brings several advantages:

• Compliance with the Law: Firstly, it ensures that you are fulfilling the legal requirement mandated by the Parks and Wildlife Code.
• Limitation of Liability: By notifying TPWD, you limit your future liability regarding the vessel, boat, or outboard motor. This step helps protect you from potential legal issues if the new owner fails to promptly transfer the title or comply with registration requirements.
• Prevention of Further Registrations: The notification prevents any further registrations from occurring until the ownership is officially transferred to the new owner.

In conclusion, submitting the Vessel/Boat or Outboard Motor Ownership Transfer Notification to Texas Parks and Wildlife is a critical step when selling a boat in Texas. It ensures compliance with the law, limits your liability, and helps prevent registration-related issues. By following the outlined process and providing the necessary information, you can efficiently complete this step in the boat selling process.

Frequently asked questions