How to Transfer a Boat Title in Texas
The Short Answer
In Texas, boat titles are handled by the Texas Parks and Wildlife Department (TPWD), not the Texas Department of Motor Vehicles that handles cars. To transfer a boat title, the seller signs the existing Texas title over to the buyer. The buyer then submits a completed vessel title application, the signed title, proof of the sale and the required fees and taxes to TPWD or a participating county tax assessor-collector office. The state then issues a new title in the buyer's name. A title is the legal ownership record for the boat. Registration is separate: it is the permit that lets the boat be operated on public water.
Three situations change this basic process. The first is a lien on the title, which must be released before ownership can pass cleanly. The second is a boat coming from another state. The third is a transfer that is not an ordinary sale, such as an inheritance or a lost title. Each is covered below.
Key Terms
Title: the state document showing who legally owns the boat and whether any lender holds a lien on it. Registration certificate: the document showing the boat is registered for use on public water, along with the decals and registration number displayed on the hull. Registered owner: the person or business listed in state records as the boat's owner. Hull identification number (HIN): a unique code, usually stamped on the transom (the flat back of the hull). It serves the same purpose for a boat that a vehicle identification number (VIN) serves for a car. Lien: a lender's legal claim against the boat, usually from a loan used to buy it. Lienholder: the bank, credit union or other lender holding that claim.
What Needs a Texas Title
Texas titles motorboats and outboard motors, and some larger sailboats. The outboard motor can carry its own title, separate from the hull. If you are buying a boat with an outboard, check whether the motor has its own title and transfer it too. If the boat comes with a trailer, the trailer is a road vehicle. It is titled and registered through the Texas DMV system at a county tax office, so it needs its own transfer. Whether a particular small or non-motorized boat needs a title depends on its type and size under current TPWD rules. Check those rules if you are unsure.
Before the Sale: What to Check
Match the HIN on the hull to the HIN printed on the title. A mismatch, or a missing or altered HIN, is a reason to stop and resolve the problem before any money changes hands. If there is an outboard motor title, match the motor's serial number to that title as well. Confirm the seller's name matches the owner name on the title. If the title lists more than one owner, find out whether every owner must sign. Look for a lienholder listed on the title. If one appears, you will need a lien release from that lender, or the loan must be paid off as part of the sale. Check that the title is the original document, not a photocopy, and that it has no alterations, erasures or correction fluid in the transfer fields. Altered titles can be rejected. You can ask TPWD to confirm the boat's current ownership record and lien status before you buy.
Step-by-Step: Transferring the Title
Step 1: Seller completes the title assignment
The seller fills in the transfer section on the back of the Texas title. This includes the buyer's name, the sale date and the sales price, followed by the seller's signature. Every owner whose signature the title requires must sign. Write carefully: mistakes on the title can create problems at the office. If the seller is a business, the person signing should be authorized to sign for it.
Step 2: Handle any lien
If the title shows a lienholder, the buyer needs proof that the lien has been satisfied. This is usually a signed release of lien from the lender. If the seller still owes money, buyers often pay the lender directly at closing so the lender releases the lien. Do not complete a purchase on a title with an active lien unless you have a clear, documented plan for releasing it. Without a release, the new title may be issued with the old lien still on it, or the transfer may be refused.
Step 3: Get a bill of sale
A bill of sale is not always required when the title is properly assigned, but it is good practice for both sides. It should list the buyer and seller, the sale date, the sales price, the HIN, and the outboard motor serial number if the motor is included. Both parties should sign it. It supports the sales price used to calculate tax and gives both sides a record of the deal.
Step 4: Complete the vessel title application
The buyer fills out TPWD's application for a Texas certificate of title and registration for a vessel or outboard motor. This form is commonly referenced as PWD 143; confirm you have the current version. The application asks for the boat's details, the HIN, the buyer's information and the sale details. Depending on the transaction, the seller may also need to sign certain sections.
Step 5: Gather the application documents
Original Texas title, properly signed over by the seller. Completed vessel or outboard motor title application. Release of lien, if a lien appears on the title. Bill of sale, if you have one. Government-issued photo identification for the buyer. Payment for title and registration fees and any sales or use tax due.
Step 6: Submit the application and pay fees and tax
Submit the documents to a TPWD office or a participating county tax assessor-collector office. Some transactions can also be handled by mail. Texas charges tax on boat and outboard motor purchases, generally based on the sales price, along with title and registration fees. Fee amounts and filing deadlines are set by the state and can change, so confirm the current figures with TPWD before you go. File promptly after the sale. Late filing can bring penalties, and until the transfer is recorded, the seller remains the owner of record.
Step 7: Transfer the trailer separately
If a titled trailer is part of the sale, the seller signs over the trailer title. The buyer completes the motor vehicle title application process at a county tax office. This is a separate transaction from the boat.
What the Seller Should Do
After the sale, the seller should keep a copy of the signed title, the bill of sale and the buyer's contact details. Reporting the sale to TPWD, where the state offers a way to do so, helps protect the seller from liability if the buyer delays the transfer. The seller should also remove the registration decals or confirm with the buyer how they will be handled, and cancel or adjust insurance on the boat.
Special Situations
Situation | What changes; Boat titled in another state | The out-of-state title is surrendered with the Texas application. Some states do not title boats. In that case, expect to provide the prior registration certificate, a bill of sale and possibly extra proof of ownership. Lost or damaged title | The registered owner should apply for a certified copy of the title before the sale. Buying without a title makes the transfer much harder. Inherited boat | The paperwork depends on how the estate is handled. Expect documents such as letters testamentary, an affidavit of heirship or a small estate affidavit in place of the deceased owner's signature. Gift or family transfer | Tax treatment can differ from a sale. A gift affidavit or similar statement may be required. Boat with no title or HIN | Older or homemade boats may need extra steps, such as a hull identification number assigned by the state, before a title can be issued. Buying from a dealer | The dealer usually prepares and submits the title paperwork. Confirm this in writing.
How to Confirm the Transfer Is Complete
The buyer receives a new Texas title showing the buyer as owner. Any released lien should no longer appear, and any new financing lender should appear as lienholder. The buyer has a current registration certificate and decals for the boat. The registration number and decals are displayed on the hull as Texas requires. If an outboard motor or trailer was included, each has its own title in the buyer's name. The HIN and motor serial number on the new documents match the equipment exactly.
If the new title does not arrive within the expected time, or any detail is wrong, contact TPWD with your receipt and copies of the documents you submitted. Errors are easier to fix soon after filing.
A Note on Jurisdiction
This guide covers boats titled and registered in Texas. If the boat was documented with the U.S. Coast Guard rather than titled by the state, or if you are moving the boat to another state, different rules apply. Requirements, forms and fees can change, so check the current version of each form and any open questions with TPWD before filing.
