Just Sold My Boat in Alabama — What’s Next? (2026)
Need Alabama bill of sale documentation?
If you haven’t generated a Alabama-compliant bill of sale yet, do it now — your proof-of-sale window closes the moment the buyer leaves.
Start My Alabama Boat Bill of Sale →Alabama boat sale facts
| Titling agency | Alabama DMV ↗ |
| Title transfer deadline | 20 days from sale |
| Release of liability | File with Alabama DMV within 5 days |
| Buyer’s sales / use tax | 2% (Private sales taxed at 2% (reduced from dealer rate)) |
| Bill of sale notary | Not required |
| Title fee (buyer pays) | $18 |
| Boat identifier | HIN (Hull Identification Number) |
Your Alabama boat post-sale checklist
- 1
Keep your signed Alabama bill of sale
This is your proof that you sold the boat on the sale date. If the buyer gets a ticket, is in an accident, or fails to transfer the title within 20 days from the sale date, the Alabama bill of sale shields you from liability. Keep both your copy and a scan for at least 5 years.
- 2
File a release of liability with Alabama DMV
Most Alabama sellers file this online through Alabama DMV within 5 days of the sale. Filing removes you from records as the registered owner so any post-sale tickets, tolls, or accidents become the buyer's responsibility, not yours. Alabama requires the buyer to title the boat within 20 days — your release filing protects you if the buyer misses that deadline.
- 3
Cancel or transfer your boat insurance
Contact your insurer the same day you hand over the keys. Alabama does not require you to maintain insurance on a vehicle you no longer own, but you must not cancel before the sale is complete. If you are replacing the boat with another, transfer the policy instead — many insurers offer a short grace period to bind coverage on the new vehicle.
- 4
Remove your registration decal and registration decal
In Alabama, the registration decal stays with the seller, not the boat. Remove the decal before handover and return any current registration to the Alabama boating authority. The buyer will register the vessel in their name and receive new decals.
- 5
Verify the 20-day title transfer window
Alabama requires the buyer to retitle the boat at Alabama DMV within 20 days of the sale date. If you have not received confirmation that the title has been transferred by day 25, contact Alabama DMV with your bill of sale and release-of-liability filing number to confirm the change of ownership.
- 6
Confirm your Alabama tax obligations (seller's side)
Alabama charges 2% sales/use tax on private-party boat sales — the buyer pays this at Alabama DMV when titling. Private sales taxed at 2% (reduced from dealer rate). Sellers generally do not owe Alabama sales tax, but if the boat sold for more than your original purchase price you may owe federal capital gains tax. Consult a tax advisor.
- 7
Watch for liens or loan payoff confirmation
If you had a loan on the boat, confirm the lender received the buyer's payoff and has released the lien on the Alabama title before you deliver the title. Alabama uses MVT 5-13 as the lien release form — your lender will file this with Alabama DMV to clear the title record.
Boat-specific note
Boats use a Hull Identification Number (HIN) instead of a VIN — confirm the HIN on the transom matches the title and bill of sale. If the vessel is U.S. Coast Guard documented (5+ net tons, typically 26ft+), file an abstract-of-title transfer with the National Vessel Documentation Center in addition to state registration.
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.
Frequently Asked Questions — Alabama
How long do I have to file a release of liability in Alabama?▾
Alabama sellers should file a release of liability with Alabama DMV within 5 days of the sale. Most Alabama sellers can file this online directly through Alabama DMV. Filing removes you from records as the registered owner so any post-sale tickets, tolls, or accidents fall on the buyer.
What is the Alabama title transfer deadline for a boat?▾
Alabama requires the buyer to title the boat within 20 days of the sale date. Missing the deadline can trigger late fees and back-dated registration penalties.
Do I owe Alabama sales tax on the boat I just sold?▾
Alabama charges 2% sales/use tax on private-party boat sales. Private sales taxed at 2% (reduced from dealer rate). The buyer typically pays this at Alabama DMV when titling — sellers generally owe no Alabama sales tax on the proceeds. You may owe federal capital gains if you sold for more than the original purchase price.
Does Alabama require a notary on the boat bill of sale?▾
No. Alabama does not require notarization for a private boat bill of sale. A signed bill of sale with both parties' full names, addresses, signatures, and the date is sufficient for Alabama DMV.
How does the buyer register the boat in Alabama?▾
The buyer brings the signed bill of sale and endorsed title to Alabama DMV, pays the title fee (~$18) plus 2% sales/use tax, and receives a new Alabama title in their name. Transfer must be completed within 20 days of the sale date.
What is U.S. Coast Guard documentation and do I need to file anything with the USCG?▾
USCG documentation is a federal title for vessels 5+ net tons (typically 26ft+) used in commerce or international waters. Recreational boats under 26 feet usually do not need USCG documentation — state registration and a bill of sale are sufficient. If your boat IS USCG-documented, file an abstract of title transfer with the National Vessel Documentation Center in addition to state registration.
Where do I find the HIN on my boat?▾
The Hull Identification Number (HIN) is a 12-character serial stamped on the starboard side of the transom (back of the boat) above the waterline. It is also recorded on the title. Confirm the HIN on the transom matches your bill of sale and title before the buyer pulls away on the trailer.
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Source: Alabama DMV ↗ · Last verified 2026-05-07