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A boat bill of sale is a legal document that records the transfer of ownership of a vessel, and its requirements can vary by state. It may be necessary for state-run permit applications regardless of docking location. Bills of sale serve as proof of transaction and documentation for tax purposes. Essential elements of a boat bill of sale include the identities of the buyer and seller, the sale price, and the official date of the exchange. Additionally, it's advisable to indicate the transaction's location, particularly if the buyer and seller are in different states or if the boat is in a different state at the time of sale, as the relevant laws will depend on the boat's final location.