Alabama Personal Watercraft Bill of Sale

Use this Alabama personal watercraft bill of sale for private-party transfers. The document records the transfer of ownership, sale price, signatures, and the information both parties need for title records.

Required information

In Alabama, a bill of sale is a strong seller protection record for private personal watercraft transactions. Include accurate party details, VIN, sale terms, and signatures before the vehicle changes hands.

• Buyer legal name
• Seller legal name
• VIN (Vehicle Identification Number)
• Sale price
• Date of sale

Alabama fees, taxes, and transfer rules

In Alabama, vehicle sales are subject to 2% of purchase price for private sales. The title transfer fee is $18. Alabama does not require notarization for most private-party vehicle transfers.

• Bill of sale must include VIN and odometer reading
• Title must be notarized by the seller for transfer
• Buyer has 20 days to transfer the title

Does Alabama require a bill of sale?

Alabama sellers should keep a signed bill of sale for private transfers and title records.

Keep a signed bill of sale, complete title transfer promptly, and retain seller records in case of post-sale disputes.

Official DMV guidance: Alabama DMV title transfer information

State requirements for Alabama

In Alabama, a vehicle bill of sale is required for private-party transfers. The state charges 4% sales tax on vehicle sales, calculated on the sale price. Complete the title transfer at your local DMV promptly after the sale.

Additional Alabama requirements:

• Bill of sale must include VIN and odometer reading
• Title must be notarized by the seller for transfer
• Buyer has 20 days to transfer the title

Common mistakes to avoid

Private-party personal watercraft sales in Alabama go wrong when paperwork is rushed or incomplete. Avoid these costly errors:

• Incorrect or missing VIN. A VIN is exactly 17 characters with no letters I, O, or Q. Transcribing it wrong is the most common reason Alabama DMV offices reject title paperwork.
• Forgetting the odometer disclosure. Federal law requires an odometer disclosure on the title for vehicles under 20 years old. Leaving it blank — or writing "exempt" when the vehicle qualifies — can void the sale or trigger fines in Alabama.
• Missing or incomplete signatures. Both the buyer and seller must sign the bill of sale. In Alabama, an unsigned document has no legal weight. If there are co-owners, every owner listed on the title must sign.
• Not obtaining a lien release. If there is an outstanding loan on the personal watercraft, the seller must obtain a lien release from the lender before the title can transfer. Buyers should verify the title is clear before handing over payment.
• Not notifying the Alabama DMV of the sale. Sellers who skip the DMV sale notification remain liable for parking tickets, tolls, and even accidents involving the personal watercraft after it changes hands. File a release-of-liability form with Alabama as soon as the sale closes.
• Accepting personal checks or informal payment. Personal checks can bounce days after the sale. Use a cashier's check, money order, or verified electronic transfer for the full amount. Document the payment method on the bill of sale.

What happens after the sale

After the sale is complete, the seller should notify the Alabama DMV of the transfer to release liability for the personal watercraft. The buyer must register the personal watercraft and transfer the title within the deadline set by Alabama — failure to do so can result in late fees or penalties. Both parties should keep signed copies of the bill of sale and any supporting documents (odometer disclosure, lien release, etc.) for at least five years. The seller should cancel or transfer their insurance policy on the sold personal watercraft, and the buyer must obtain valid insurance before driving or operating the personal watercraft.