BillOfSaleNow

Just Sold My Boat in Delaware — What’s Next? (2026)

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Reviewed against state DMV requirementsLast reviewed: May 20266 min readEditorial policy
You just sold a boat in Delaware. The sale is not legally complete until you file a release of liability with Delaware DMV and the buyer titles the boat within 30 days. Delaware exempts private-party boat sales from state sales tax.

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Delaware boat sale facts

Titling agencyDelaware DMV
Title transfer deadline30 days from sale
Release of liabilityFile with Delaware DMV within 5 days
Buyer’s sales / use taxPrivate-party exempt (No state sales tax, but a 4.25% Document Fee applies to vehicle transfers)
Bill of sale notaryNot required
Title fee (buyer pays)$55
Boat identifierHIN (Hull Identification Number)

Your Delaware boat post-sale checklist

  1. 1

    Keep your signed Delaware 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 30 days from the sale date, the Delaware bill of sale shields you from liability. Keep both your copy and a scan for at least 5 years.

  2. 2

    File a release of liability with Delaware DMV

    Most Delaware sellers file this online through Delaware 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. Delaware requires the buyer to title the boat within 30 days — your release filing protects you if the buyer misses that deadline.

  3. 3

    Cancel or transfer your boat insurance

    Contact your insurer the same day you hand over the keys. Delaware 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. 4

    Remove your registration decal and registration decal

    In Delaware, the registration decal stays with the seller, not the boat. Remove the decal before handover and return any current registration to the Delaware boating authority. The buyer will register the vessel in their name and receive new decals.

  5. 5

    Verify the 30-day title transfer window

    Delaware requires the buyer to retitle the boat at Delaware DMV within 30 days of the sale date. If you have not received confirmation that the title has been transferred by day 35, contact Delaware DMV with your bill of sale and release-of-liability filing number to confirm the change of ownership.

  6. 6

    Confirm your Delaware tax obligations (seller's side)

    Delaware does not impose state sales tax on private-party boat sales (No state sales tax, but a 4.25% Document Fee applies to vehicle transfers). The buyer typically pays a flat title fee (~$55) at Delaware DMV. If you sold the boat for more than your original purchase price, you may owe federal capital gains — most private boat sales are at a loss and not taxable.

  7. 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 Delaware title before you deliver the title. Delaware uses MV-275 as the lien release form — your lender will file this with Delaware 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.

Delaware lien release procedure

  1. Obtain Form MV-275 from the Delaware DMV or the lienholder.
  2. Lienholder completes and signs MV-275 releasing the lien.
  3. Submit MV-275 with the existing title and title application at a DE DMV office.
  4. Pay the title fee and receive a clean title.

Frequently Asked Questions — Delaware

How long do I have to file a release of liability in Delaware?

Delaware sellers should file a release of liability with Delaware DMV within 5 days of the sale. Most Delaware sellers can file this online directly through Delaware 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 Delaware title transfer deadline for a boat?

Delaware requires the buyer to title the boat within 30 days of the sale date. Missing the deadline can trigger late fees and back-dated registration penalties.

Do I owe Delaware sales tax on the boat I just sold?

Delaware does not impose state sales tax on private-party boat sales. No state sales tax, but a 4.25% Document Fee applies to vehicle transfers. Sellers generally owe no Delaware sales tax. You may owe federal capital gains tax if the boat sold for more than your original purchase price — most private sales are at a loss and not taxable.

Does Delaware require a notary on the boat bill of sale?

No. Delaware 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 Delaware DMV.

How does the buyer register the boat in Delaware?

The buyer brings the signed bill of sale and endorsed title to Delaware DMV, pays the title fee (~$55) plus any applicable use tax, and receives a new Delaware title in their name. Transfer must be completed within 30 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.

Used BillOfSaleNow for your sale?

Quick review helps other Delaware sellers find a tool that protects them.

Source: Delaware DMV · Last verified 2026-05-07

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