Selling a boat in New Hampshire involves not just the transfer of ownership but also ensuring that all necessary paperwork is meticulously completed to protect both the buyer and seller. Understanding the legal requirements can streamline the transaction process, minimize potential legal issues, and ensure compliance with state regulations.
Types of Documents Required
When you are ready to sell your boat in NH, here’s a list of essential documents you’ll need:
- Bill of Sale: This document acts as a receipt and proof of the transaction, detailing the sale amount, the boat’s Hull ID, and details about both the buyer and seller.
- Title or Title Application: Depending on the size of the boat, you’ll either need to provide the title or apply for one if it hasn’t been issued yet.
- Release of Lien: If there are any outstanding liens on the boat, you must provide proof that these have been satisfied or paid off.
- NH Boat Registration: Current registration must be surrendered, and a transfer of registration form must be completed.
Step-by-Step Process for Selling Your Boat
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Prepare the Boat for Sale:
- Ensure the boat is in good condition or repaired if needed.
- Collect all related documents like maintenance logs, registration certificates, and any manufacturer’s manuals.
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Obtain or Prepare a Bill of Sale:
The bill of sale is crucial in the boat selling process:
- It should include the boat’s hull identification number (HIN), the sale price, any conditions of sale, and the names, addresses, and signatures of both parties.
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Secure the Title:
Boats over 16 feet in length require a title. If you don’t have a title:
- Visit a marine title service or the NH DMV to apply for a title.
- You’ll need to provide a photo ID, proof of ownership, and pay the title fee.
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Release Any Liens:
Before you can sell:
- Obtain a release of any liens from your lender if the boat was financed.
- Include this document with your title when transferring ownership.
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Transfer Registration:
Once the sale is agreed upon:
- Complete a transfer of registration form.
- The buyer will need to re-register the boat under their name, which includes paying any applicable fees.
💡 Note: If the boat has been sold, ensure you get a receipt from the buyer for your records as proof of the sale date.
Common Mistakes to Avoid
- Incomplete Documentation: Missing signatures or incorrect information can invalidate your documents.
- Not Notarizing Required Documents: Some documents like the Bill of Sale may need to be notarized.
- Failing to Release Liens: Selling without clearing any existing liens can lead to legal complications.
- Neglecting to Transfer Registration: This can result in fines for both parties if the boat continues to be registered under the seller’s name.
Finalizing the Sale
After all paperwork has been completed:
- Ensure both buyer and seller keep copies of all transaction documents.
- Notify your insurance provider about the sale to terminate your policy on the boat.
- Remove all personal items and property from the vessel.
The process of selling a boat in New Hampshire, although seemingly straightforward, involves several steps to ensure legal compliance. From preparing your boat for sale to transferring ownership and registration, each step must be handled with care. Proper documentation ensures a smooth transaction, protects both parties from future liabilities, and provides a clear record of ownership. Remember, being thorough with paperwork might seem tedious, but it's worth it to avoid any legal entanglements down the road.
Do I need to register my boat with the state of NH to sell it?
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If your boat is over 16 feet in length, it should be registered with the state for you to legally transfer the ownership.
How long does it take to get a boat title?
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The processing time can vary, but it generally takes about 4-6 weeks for the title to be issued after application.
What happens if the boat I am selling has a lien on it?
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First, obtain a release of lien from the lienholder confirming that the loan has been paid off. Include this document with the title at the time of sale.
