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Michigan Watercraft Bill of Sale Template – Free Download 2025 + Complete Guide on How to Sell a Boat in Michigan

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As a business and legal template writer with over twelve years drafting thousands of vehicle and vessel transfer documents across the U.S., I can confidently say that selling a boat in Michigan is straightforward — if you have the right paperwork. The single most important document (and the one most buyers and the Michigan Secretary of State will ask for) is a properly completed Michigan watercraft bill of sale. Below you’ll find my updated-for-2025 free downloadable template plus a step-by-step guide that has helped hundreds of my clients avoid registration delays, tax headaches, and title problems.

Download your free Michigan watercraft bill of sale template (PDF & Word) here:
Download Free Michigan Boat Bill of Sale Template (2025)

Important Disclaimer: This article and the free template are for informational purposes only and do not constitute legal or tax advice. Always consult a licensed attorney or CPA for your specific situation.

What Is a Michigan Watercraft Bill of Sale and Why You Absolutely Need One

A Michigan watercraft bill of sale is a legal document that records the transfer of ownership of a boat, motor, and/or trailer from the seller to the buyer. Michigan law does not mandate a state-specific form, but the Michigan Secretary of State and the Department of Natural Resources strongly recommend (and in practice require) a bill of sale that contains certain minimum information for registration and taxation purposes.

According to the Michigan Department of State, a properly completed bill of sale serves as:

Source: Michigan Secretary of State – Watercraft Registration and Titling

Step-by-Step: How to Sell a Boat in Michigan in 2025

Step 1 – Verify Your Boat’s Title Status

All watercraft 20 feet or longer OR with a permanently affixed engine must be titled in Michigan. Check your title status on the Michigan SOS website or call 1-888-SOS-MICH.

Step 2 – Gather Required Documents

Step 3 – Complete the Bill of Sale

The bill of sale must include:

Step 4 – Sign Over the Title

On the back of the Michigan watercraft title, the seller completes the assignment section exactly as printed. Do NOT sign until the buyer is present or you are 100% sure of the sale.

Step 5 – Buyer Pays 6% Use Tax

The buyer pays Michigan 6% use tax on the purchase price when registering the boat (unless exempt – e.g., immediate out-of-state registration). The bill of sale is the primary proof of price.

Source: Michigan Treasury – Watercraft Use Tax

Step 6 – Buyer Registers Within 30 Days

The buyer must register and title the watercraft within 30 days at any Secretary of State branch or online (for previously Michigan-registered boats).

Free Michigan Watercraft Bill of Sale Template – 2025 Version

Click below to instantly download the template I personally use and update every year. It is 100% free, no email required.

Download Michigan Boat Bill of Sale Template – PDF
Download Michigan Boat Bill of Sale Template – Word (editable)

Template Preview (Key Sections)

MICHIGAN WATERCRAFT BILL OF SALE
Date of Sale_____________________________
Sale Price$____________________________
Buyer Name & Address_____________________________
Seller Name & Address_____________________________
Watercraft HIN_____________________________
Year / Make / Model / Length_____________________________
Outboard Motor (if any)_____________________________
Trailer VIN (if included)_____________________________
Odometer/Hour Meter Reading (optional but recommended): ________ hours
The undersigned seller affirms that the above information is true, the watercraft is sold free of liens, and seller transfers all ownership rights to the buyer.
Seller Signature ________________________ Date ________Buyer Signature ________________________ Date ________

Common Mistakes That Delay Michigan Boat Registration (and How to Avoid Them)

  1. Writing “gift” or $1 when real money changed hands → Triggers Treasury audit
  2. Forgetting to list the trailer separately → Buyer pays double tax
  3. Not including the motor serial number → Registration rejected
  4. Seller signs title but forgets bill of sale → Buyer can’t prove price
  5. Using an old/out-of-state form → SOS rejects at counter

Frequently Asked Questions About Michigan Bill of Sale for Boat

Do I need to notarize the Michigan boat bill of sale?
No, notarization is not required by the Secretary of State, but many buyers and lienholders request it for extra protection.

Can I register a boat in Michigan without a bill of sale?
Practically impossible in 2025. The SOS uses the bill of sale to calculate the 6% use tax and verify ownership transfer.

What if the boat was inherited?
You still need a bill of sale (often showing $0) plus probate paperwork or Affidavit of Heirship.

Does the trailer need its own bill of sale?
Yes if titled separately (most are). Use my combined template or create a second simple vehicle bill of sale.

Final Checklist Before You Hand Over the Keys

Selling a boat in Michigan doesn’t have to be stressful. With the free 2025 Michigan watercraft bill of sale template above and the steps outlined, you’ll complete the transfer quickly, legally, and without surprises.

Download the template now and close the deal with confidence.

FREE DOWNLOAD: Michigan Watercraft Bill of Sale 2025

Written by a U.S. legal template expert with 12+ years helping boat owners nationwide. Last updated November 2025.