How to Sell a Boat Privately in Alabama (2026)
| Titling agency | Alabama DMV |
| Transfer deadline | 20 days from sale |
| Sales / use tax | 2% (Private sales taxed at 2% (reduced from dealer rate)) |
| Bill of sale notary | Not required |
| Lien release form | MVT 5-13 |
How to Sell a Boat Privately in Alabama — 8 Steps
- 1Locate the HIN — the 12-character hull identification number is stamped on the starboard (right) transom on all boats manufactured after 1972. Alabama requires this on every bill of sale.
- 2Determine registration class — boats under 26 ft register with Alabama DMV only. Boats 26 ft+ may need USCG documentation (federal title) in addition to state registration. Check vessel length and use.
- 3Clear any liens — if the boat was financed, request a payoff and lien release letter. Alabama uses MVT 5-13.
- 4Gather documentation — current Alabama registration card, state title (if titled), USCG documentation (if applicable), trailer title, engine serial number records.
- 5Price the vessel — check NADA Guides (boats), BUCValu, or recent Alabama dealer comps. Factor in trailer condition, engine hours, and recent service.
- 6Complete the bill of sale — HIN, vessel make/year/length, engine make/model/serial, trailer VIN (if included), sale price, sale date, both parties' full legal names and addresses.
- 7Sign the title or registration — endorse the back of the Alabama registration or title. For USCG-documented vessels, complete Form CG-1340 (notarized).
- 8Notify Alabama DMV — buyer must register within 20 days of the sale. Seller files release of ownership with Alabama DMV to remove liability for future fines.
Alabama lien release procedure
- Obtain Form MVT 5-13 from the Alabama MVD or the lienholder.
- Lienholder completes and signs MVT 5-13 releasing the lien.
- Submit MVT 5-13 with the existing title and title application at your county probate court.
- Pay the applicable title fee and receive a clean title by mail.
Generate your Alabama boat bill of sale
Compliant with Alabama DMV requirements. From $9 — instant PDF, no signup.
Start My Alabama Boat Bill of Sale →Frequently Asked Questions — Alabama
Do I need a bill of sale to sell a boat in Alabama?▾
Yes. Alabama requires a written bill of sale for private boat transfers to document the hull identification number (HIN), engine details, sale price, and both parties' signatures. The buyer needs the bill of sale to register the vessel with Alabama DMV.
What is the Alabama boat title transfer deadline?▾
Alabama requires the buyer to transfer registration within 20 days of the sale date. Missing the deadline can trigger late fees and back-dated registration penalties.
Is sales tax owed on a private boat sale in Alabama?▾
Alabama charges 2% sales/use tax on private boat sales. Private sales taxed at 2% (reduced from dealer rate) The buyer typically pays tax at the registration office when registering with Alabama DMV.
Do I need a notary for a Alabama boat bill of sale?▾
Alabama does not require notarization for a private boat bill of sale. However, USCG-documented vessels (26+ feet) require notarization on Form CG-1340 regardless of state.
How does a buyer register a boat purchased privately in Alabama?▾
The buyer takes the signed bill of sale and endorsed title (or prior registration) to Alabama DMV and pays the registration fee plus 2% sales/use tax. Transfer must be completed within 20 days of the sale date.
Source: Alabama DMV ↗ · Last verified 2026-05-07