How to transfer a boat title in Michigan
To transfer a boat title in Michigan, the seller signs the title over to the buyer, and the buyer applies for a new title within 15 days of the purchase. Michigan requires a watercraft title for boats 20 feet or longer and for any boat with a permanently affixed engine, regardless of length. Smaller boats are registered only, and ownership moves on the registration or a bill of sale.
Which boats need a title in Michigan?
The Michigan Department of State (MDOS), which runs the Secretary of State offices, lists two groups of watercraft that must be titled. The first is any watercraft 20 feet or longer. The second is any watercraft with a permanently affixed engine, such as an inboard motor, no matter how short the boat is.
There is one exception. MDOS says no title is required for vessels issued a U.S. Coast Guard (USCG) Certificate of Documentation. A documented vessel uses that federal certificate as proof of ownership, so its sale follows the Coast Guard's documentation process instead of the state title.
Which boats only need registration?
Most other boats are registered without a title. MDOS says all watercraft must be registered except for a short list: boats 16 feet or shorter that are moved by oars or paddles and not used for rental or commercial purposes; nonmotorized canoes and kayaks not used for rental or commercial purposes, along with rafts, surfboards, sailboards, and swim floats of any length; and boats registered in another state and used only temporarily in Michigan.
The temporary-use exception has a limit. The MDOS FAQ says owners of watercraft registered in another state may use Michigan waterways for up to 60 days, after which a Michigan registration is required if the boat is kept and used only in Michigan.
So a 14-foot fishing boat with a clamp-on outboard is registered but not titled, because it is under 20 feet and the motor is not permanently affixed. A 17-foot boat with an inboard engine must be titled, because the engine rule applies regardless of length.
Where do the seller and buyer sign a Michigan boat title?
For a titled boat, MDOS says the seller will need to sign the title to transfer ownership. Fill in the assignment section on the title completely, including the buyer's name and the sale date, and have every owner listed on the title sign it. Do not hand over a title that is signed but otherwise blank.
The buyer then signs the application for a new title. Michigan law, MCL 324.80308, says the owner or purchaser of the watercraft signs the title application, which includes a certification. Under MCL 324.80307, the application goes in with the old title "duly assigned," meaning signed over by the seller.
If a lender is listed on the title, the lien has to be released before the buyer can get a clean title. When a title is lost and the buyer and seller visit an office together, MDOS lists a lien termination statement among the items to bring.
What should a Michigan boat bill of sale include?
For a titled boat, a Michigan boat bill of sale is a backup record of the price and terms. For a boat that is registered but not titled, it can be the main proof of ownership. MDOS accepts a bill of sale as proof of ownership for registration when it includes the watercraft's year and make, the hull identification number (HIN), the buyer's name and address, and the seller's name and address.
The MDOS FAQ adds one more item. If the boat is not titled, the seller assigns ownership by completing the back of the watercraft registration. If that registration is lost, the FAQ says to write a bill of sale with the year, make, HIN, MC registration number if available, and the names and addresses of the buyer and seller.
Beyond those basics, add the sale price, the date, the outboard's make and serial number, and the trailer's details if it is part of the deal. Michigan handles trailers separately from watercraft, so describe the trailer as its own item. MDOS describes the HIN as a unique 12-digit number assigned by the manufacturer, so compare the number on the paperwork with the one on the hull before you sign.
How long does the buyer have to apply for a new title?
Michigan gives the buyer 15 days. MCL 324.80307(1) says the application for a watercraft certificate of title must be filed with the Secretary of State within 15 days after the date of purchase or transfer. The buyer applies at a Secretary of State office and pays the title fee and any sales tax due, unless the buyer shows proof that the tax was already paid.
Fees change, so check the MDOS watercraft page for the amounts in effect when you apply. Dealers handle the title and registration paperwork for boats they sell, so these steps mostly apply to private sales between individuals.
What happens to the registration and decal?
Michigan issues watercraft registrations for three years, and they expire March 31 of the third year. The MDOS FAQ describes the registration as transferable, and the buyer handles the transfer into their own name at a Secretary of State office.
MDOS says to place the registration decal about three inches to the right of the MC numbers and in line with them. The placement on the port side of the bow is a mirror image of the starboard side. Later renewals can be done by mail up to 45 days in advance.
What if the seller lost the boat title?
MDOS offers two options. The seller can order a duplicate title online through their Secretary of State account, or by mail if they do not live in Michigan. Or the seller and buyer can appear together at a Secretary of State office with proof of the HIN and a lien termination statement, as long as a record of the current title is in the state's computer system.
Do not accept a bill of sale alone for a boat that Michigan requires to be titled. MCL 324.80305 says a person acquiring a watercraft does not acquire any right, title, claim, or interest in it until a certificate of title is issued to them or a manufacturer's or importer's certificate is delivered.
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Frequently Asked Questions
Does every boat in Michigan need a title?
No. Michigan requires a title only for watercraft 20 feet or longer and for watercraft with a permanently affixed engine, regardless of length. Vessels issued a U.S. Coast Guard Certificate of Documentation do not need a Michigan title.
How long does a buyer have to title a boat in Michigan?
The buyer must file the application for a watercraft certificate of title within 15 days after the date of purchase or transfer, under MCL 324.80307. The seller's signed title must accompany the application at the Secretary of State office.
How do you sell an untitled boat in Michigan?
Complete the back of the watercraft registration to assign ownership. If the registration is lost, write a bill of sale with the year, make, hull identification number, MC registration number if available, and the names and addresses of the buyer and seller.
Jill Stradley writes about private sales, title transfers, and the paperwork that trips people up when buying or selling cars, boats, and everything in between. She got interested in the topic after a used car sale gone wrong taught her more about DMV requirements than she ever wanted to know. Now she breaks down what each state actually requires so other people don't have to learn the hard way.
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