Questions about purchasing a small boat from another state

[cmd056]

I am in the process of purchasing a small boat (U20) from an owner that lives in a different state then mine. Any advise on how to set up the financial dealings so that the owner and myself don''t have any worries?Thanks in advance.

[Sailormon6]

Small boats usually don''t have certificates of title. If the boat is not titled, then you should get a bill of sale, which is just a simple writing that records the names and addresses of the Buyer and Seller, identifies the boat, and the general terms of the sale, especially the price. I also like to get the Seller''s phone number, in case you need to contact the seller later.

If the boat is titled, you will get a title from the Seller''s state. In some states, the Seller needs to sign the certificate in the presence of a notary public. In other states a notary is not required. There should be a notation on the certificate that tells you whether a notary is required. You''ll have to register the title in that state, and then take it to the registrar in your home state and get a local certificate of title. Tell the foreign state registrar that you''re taking the boat out of state, and you shouldn''t have to pay sales taxes in the foreign state. You should pay taxes in your home state.

If there''s only a bill of sale, you only need to take it to the registrar in your home state and register the boat and pay any taxes.

When you pay the taxes, you should break out the separate values of the boat and trailer, because you will probably be taxed on each, and if you paid the total on the boat, you may have to pay a second time on the trailer.

Usually the Buyer pays for the boat with a certified or cashier''s check from the bank.