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A boat bill of sale is a legal document that records the transfer of ownership of a vessel. Depending on the state, it may be necessary for state-run permit applications, regardless of where the boat will be docked. It serves as proof of transaction for both parties and provides documentation for tax purposes. A proper bill of sale should include the identities of the buyer and seller, the sale price, and the date the transaction becomes official. It is also advisable to note the location of the transaction, especially if the buyer and seller are in different states, as the relevant laws will apply to the state where the boat will ultimately be registered.