Just Sold My Boat in California — What’s Next? (2026)
Need California bill of sale documentation?
If you haven’t generated a California-compliant bill of sale yet, do it now — your proof-of-sale window closes the moment the buyer leaves.
Start My California Boat Bill of Sale →California boat sale facts
| Titling agency | California DMV ↗ |
| Title transfer deadline | 10 days from sale |
| Release of liability | File with California DMV within 5 days |
| Buyer’s sales / use tax | 7.25% (Use tax applies to private party purchases at the same rate) |
| Bill of sale notary | Not required |
| Title fee (buyer pays) | $23 |
| Boat identifier | HIN (Hull Identification Number) |
Your California boat post-sale checklist
- 1
Keep your signed California 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 10 days from the sale date, the California 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 California DMV
Most California sellers file this online through California 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. California requires the buyer to title the boat within 10 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. California 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 California, the registration decal stays with the seller, not the boat. Remove the decal before handover and return any current registration to the California boating authority. The buyer will register the vessel in their name and receive new decals.
- 5
Verify the 10-day title transfer window
California requires the buyer to retitle the boat at California DMV within 10 days of the sale date. If you have not received confirmation that the title has been transferred by day 15, contact California DMV with your bill of sale and release-of-liability filing number to confirm the change of ownership.
- 6
Confirm your California tax obligations (seller's side)
California charges 7.25% sales/use tax on private-party boat sales — the buyer pays this at California DMV when titling. Use tax applies to private party purchases at the same rate. Sellers generally do not owe California 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 California title before you deliver the title. California uses REG 227 as the lien release form — your lender will file this with California 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.
California lien release procedure
- Obtain REG 227 from the DMV or lienholder.
- Lienholder completes and signs REG 227.
- Submit REG 227 with title application at DMV or by mail.
- Receive new title without lien notation (allow 4–6 weeks by mail).
Frequently Asked Questions — California
How long do I have to file a release of liability in California?▾
California sellers should file a release of liability with California DMV within 5 days of the sale. Most California sellers can file this online directly through California 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 California title transfer deadline for a boat?▾
California requires the buyer to title the boat within 10 days of the sale date. Missing the deadline can trigger late fees and back-dated registration penalties. CA does not require notarization of the bill of sale, but the title transfer (REG 262) must be signed by both parties.
Do I owe California sales tax on the boat I just sold?▾
California charges 7.25% sales/use tax on private-party boat sales. Use tax applies to private party purchases at the same rate. The buyer typically pays this at California DMV when titling — sellers generally owe no California sales tax on the proceeds. You may owe federal capital gains if you sold for more than the original purchase price.
Does California require a notary on the boat bill of sale?▾
No. California does not require notarization for a private boat bill of sale. CA does not require notarization of the bill of sale, but the title transfer (REG 262) must be signed by both parties. A signed bill of sale with both parties' full names, addresses, signatures, and the date is sufficient for California DMV.
How does the buyer register the boat in California?▾
The buyer brings the signed bill of sale and endorsed title to California DMV, pays the title fee (~$23) plus 7.25% sales/use tax, and receives a new California title in their name. Transfer must be completed within 10 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: California DMV ↗ · Last verified 2026-05-07