How to buy a boat in the USA

1. Decide what you’re actually buying

Before you write an offer, get clear on two questions that determine the entire downstream process:

• Is this boat federally documented or state-titled?Vessels of 5 net tons or more (loosely, most boats 27′+ in fiberglass, smaller in steel) are eligible to be documentedwith the U.S. Coast Guard’s National Vessel Documentation Center (NVDC). Smaller boats are titled by the state, like cars. A boat can be one or the other, never both. Documented vessels travel with a Certificate of Documentation (COD); state-titled vessels have a state title and a registration number painted on the hull.
• Are you taking delivery in a state where you’ll owe sales/use tax?Some states (Florida, Rhode Island, Oregon and others) cap or eliminate sales tax on boats; others (California, Washington, New York) charge full rate. Where the boat physically changes hands and where you keep it afterward both matter. Don’t guess — call the state’s revenue department before closing, or have your broker do it in writing.

2. Make a written offer

Verbal offers don’t bind anyone. The instrument is a Purchase & Sale Agreement(PSA), sometimes called an Offer to Purchase. The broker’s standard form is usually fine — but read it. The clauses that actually matter:

• Subject to survey and sea trial, with a defined acceptance period (typically 10–14 days) starting after the last contingency event completes. This is your escape hatch.
• Subject to financing, if applicable. Marine financing takes longer than auto financing — give yourself 21–30 days.
• Subject to clear title / unencumbered transfer. The seller warrants the boat is free of liens at closing. You’ll verify this independently (see step 5).
• Deposit and escrow: typically 10% of the purchase price held by the broker in a separate escrow trust account, not the broker’s operating account. If the deal falls apart inside the contingency period, the deposit is fully refundable to you.
• Inventory list. Anchor, dinghy, outboard, electronics, sails, tools, spares — anything you’re assuming stays with the boat needs to be on a written inventory attached to the PSA. “I thought the tender was included” arguments at closing are common and tedious.

3. Survey and sea trial

Once the offer is accepted and the deposit is in escrow, you schedule the survey and sea trial. You pay for the survey — and you choose the surveyor.Never accept a surveyor recommended only by the listing broker. Get a SAMS Accredited Marine Surveyor (AMS) or NAMS Certified Marine Surveyor (CMS), and pick one with experience in the type of vessel you’re buying. A surveyor who does small sportfishers full-time may not be the right call for a 50′ cruising sloop.

The survey day typically runs in this order:

1. Haul out for bottom and underwater gear inspection (you pay the yard fee, usually $300–$800 depending on size).
2. Out-of-water survey: hull moisture readings, gelcoat condition, keel/rudder bearings, through-hulls, prop, shaft.
3. Splash and sea trial: run the engine through its full RPM range, check max RPM at WOT (a big diesel that won’t make rated WOT is often telling you it’s tired or the bottom is fouled), test all systems, sail trial if applicable.
4. In-water inspection: rig, electrical, plumbing, electronics, safety equipment.
5. Engine survey: often a separate engine surveyor (especially for diesels). Oil sample analysis ($30–$50 per engine) catches metals and coolant intrusion the surveyor can’t see.

Expect a written report within a few days, ranging from 30 to 100+ pages. It will categorize findings — typically Now, Soon, and Futureor similar. The “Now” items are your negotiation leverage.

4. Acceptance, renegotiation, or walk

Inside your acceptance period (the clock started when the survey/sea trial finished), you have three choices:

• Accept the vessel as-is at the agreed price.
• Renegotiatebased on survey findings — either a price reduction or a credit/escrow holdback for the seller to fix specific items. Pick one path per item: either it gets fixed before closing, or you take money. Don’t do both, and don’t accept verbal promises.
• Rejectthe vessel and walk. Your deposit must be returned in full. You’re out the survey fees and haul-out cost — that’s the price of due diligence, and it’s cheap.

Rejecting after the acceptance period expires is much harder. Watch the calendar.

Lien check and title work

Before you wire money, verify the boat is free of debt. For a documented vessel, order an Abstract of Titlefrom the USCG NVDC (a few dollars, about a week by mail or faster online via authorized vendors). The abstract lists the chain of ownership and any recorded mortgages or liens. For state-titled boats, search the title at the state titling office and run a UCC search in the state(s) where the seller resides or where the boat is moored — non-mortgage liens (mechanic’s, marina, fuel) can hide there. See our separate guide on checking a U.S. boat for liens for the detailed procedure.

5. Closing, escrow, and the bill of sale

At closing, the broker (or a marine documentation agent) acts as the disinterested third party. The flow is usually:

1. You wire the balance of funds to the broker’s escrow trust account.
2. The seller signs the Bill of Sale— for documented vessels, on USCG Form CG-1340 (Bill of Sale) or an equivalent acceptable to NVDC. For state-titled vessels, on the state’s bill-of-sale form, plus signing over the title.
3. The seller delivers the original Certificate of Documentation (for documented vessels) or original title (for titled vessels), along with the keys, manuals, maintenance records, and the inventory items listed in the PSA.
4. The broker disburses funds to the seller, pays off any recorded mortgage directly to the lienholder, and releases the deposit.
5. You take possession.

If you’re financing, your lender will record a Preferred Ship Mortgage with the NVDC simultaneously with the transfer.

6. Documentation, registration, and tax

You have three paperwork tracks to handle after closing:

• USCG documentation transfer or state title transfer.For a documented vessel, file a new Application for Documentation in your name (CG-1258) along with the bill of sale and the prior owner’s COD. For a state-titled vessel, take the signed-over title and bill of sale to the state titling office. A marine documentation service ($300–$600) is a reasonable use of money on a first-time documented purchase.
• State registration. Even a federally documented vessel usually must be registered(not titled) by the state where it’s principally used, and display a state-issued decal. Documented vessels don’t carry the “CF”-style numbers on the hull — only the decal and the documentation number engraved interior to the hull.
• Sales/use tax. Due to the state where you take delivery and/or where the boat is principally moored. Pay it on schedule — states are aggressive about catching unpaid use tax via marina registration records.

7. Insurance, moorage, and after-sale

You can’t close without insurance in most cases — your lender will require it, and any marina will. Get a binder in place before closing so coverage starts the moment title transfers. Marine insurance underwriters will almost always ask for a copy of the recent survey; this is one of the reasons a clean survey report has value beyond the negotiation.

Confirm your moorage well before closing. Slip waitlists in popular ports run 1–5 years. If you don’t have a slip waiting, plan for transient moorage ($1.50–$4.00/foot/night in most U.S. marinas) until you do.

Common pitfalls

• Skipping the engine survey. A general marine surveyor will identify obvious engine issues, but a dedicated engine surveyor or oil analysis catches the expensive stuff (worn bearings, head gasket seepage, coolant in oil) earlier and cheaper.
• Letting the seller’s broker pick the surveyor. Even honest brokers have professional relationships that can soften reports. Pay for your own, every time.
• Wiring the deposit to a non-escrow account.Reputable brokers hold deposits in a segregated escrow trust account; this is required in some states (Florida and California, for example). If the broker is “just holding it in operating,” walk.
• Closing without an abstract of title.Recorded mortgages and liens survive the sale. The seller’s warranty in the PSA is little comfort if the bank that holds the mortgage shows up after you’ve moved aboard.
• Underestimating sales/use tax. A 10% tax on a $200,000 boat is $20,000. Where you take delivery and where you keep the boat are both legally relevant — get an answer in writing from the state revenue department, not a forum post.
• Trusting verbal “included with the boat” claims.If it’s not on the inventory list attached to the signed PSA, assume the seller will remove it. They usually do.

Buying a boat in the United States is a longer transaction than most people expect — typically 4–8 weeks from offer to keys, more if you’re financing or the boat needs work. The structure protects you only if you use it. Don’t skip a step because the seller is in a hurry. Their urgency is not your problem.