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A boat bill of sale is a legal document that facilitates the transfer of ownership of a vessel or watercraft. Depending on the state, it may be required for permit applications regardless of docking location. The bill of sale serves as proof of transaction and provides documentation for tax purposes. It should clearly state the identities of the buyer and seller, the sale price, and the date the transaction occurs. Additionally, it’s advisable to record the transaction's location, especially if the buyer and seller are in different states or if the boat is located elsewhere, as local laws will apply accordingly.