Buying a used boat is a simple way to save money, but you should consider the legal aspects of the purchase before you hand your hard-earned cash to the previous owner. Like vehicles, boats must be registered with the local DMV, and the title must be transferred to your name for tax purposes. Once you find a boat with a valid title, you are ready to begin the registration process.
1. Getting Started
The first step is to determine whether you need to register your boat. In Texas, all boats that are powered by a motor must be registered, even if the motor is removable. Crafts that don’t require registration include those under 14 feet that are wind-powered, kayaks, inflatable rafts and manually-powered rowboats. Sailboats over 14 feet long require registration.
2. The Registration Process
To register your boat, visit your local DMV, or Department of Motor Vehicles. You have 20 days from the purchase date to register the craft without penalty. To make the process simpler, print the necessary forms out at home, and complete them before going to the DMV. The forms are also available at your local office.
The Texas Parks and Wildlife Department recommends the seller and buyer visit the local DMV together to avoid any liability issues that result from failing to register the boat and to help the new owner avoid delays in the registration process. If both parties aren’t present, the proper forms should be signed before going to DMV to prevent registration delays.
3. Getting Boat Insurance
Boat insurance is necessary if you take the boat out on the water, or if you need to haul the boat in a trailer on the road. Liability insurance covers and accidents that may occur while using or hauling the boat, but more comprehensive types of insurance are also available.
Choose comprehensive insurance if you want the policy to cover the cost of replacing or repairing the boat in the case of an accident. To save money on your policy, consider taking a boater’s education course before purchasing the policy.
4. What If I Don’t Have a Title?
You should avoid purchasing a boat if the seller doesn’t have a legal title that is registered in their name. If you purchase a used boat without a title, you need to provide the DMV with alternate documents to complete registration. The previous owner, or the person you purchased the boat from, should write a bill of sale that proves you have purchased the boat.
The bill of sale should include the person’s name, how much you paid for the boat and the date of the purchase, along with a written statement that you have paid for the boat to prove your ownership. A tax affidavit form is also necessary if you don’t have a boat title. The affidavit form is also available from your local DMV.