California Boat Title Transfer: Certificate of Ownership Guide (2026)

How California Boat Title Transfer Works

California DMV handles undocumented vessel ownership through a Certificate of Ownership/title and a Certificate of Number (the CF registration record). If you buy or sell a California-registered boat, the ownership record must be transferred through DMV paperwork rather than only by handing over a bill of sale.

The seller normally provides the California Certificate of Ownership and the current Certificate of Number. The buyer uses those documents, a bill of sale or transfer document, and the DMV vessel application path to put the boat in the buyer's name.

Required Forms for California Vessel Transfer

California uses several DMV forms to process vessel ownership transfers. Having the correct paperwork prepared before visiting the DMV or mailing your application will save you significant time. Here is a breakdown of each form and its purpose:

California Certificate of Ownership: This is the core ownership document for a California-titled undocumented vessel. The seller signs the release/transfer section, and the buyer uses it to support the DMV transfer.

REG 138 — Notice of Transfer and Release of Liability: The seller should complete and submit this form to the DMV within 5 days of the sale. This filing notifies DMV that the vessel was transferred and helps protect the seller from being associated with later use, citations, or records tied to the vessel.

BOAT 101 — Application for Vessel Certificate of Number: The buyer uses this form to register the vessel under their name and receive a new or transferred CF number. This is essentially the registration application for the new owner.

BOAT 227 — Application for Replacement or Transfer of Title: This vessel form is used when the original Certificate of Ownership is lost, damaged, or unavailable for transfer. If the seller cannot provide the ownership certificate, resolve this path before closing.

Bill of Sale or transfer document: A bill of sale records the purchase price, date, buyer, seller, HIN, CF number, and vessel description. It supports tax calculation and the ownership chain.

REG 256 — Statement of Facts: This supplemental form is required in specific situations, such as claiming a use tax exemption for family transfers, explaining discrepancies in documentation, or providing additional context when a standard document is unavailable.

Step-by-Step: How to Transfer a Boat in California

Follow these steps to complete a vessel ownership transfer in California. The entire process should be completed within 30 days of the purchase date to avoid late fees and penalties.

Step 1: Seller Prepares Documentation

Before the transaction, the seller should gather the California Certificate of Ownership, current Certificate of Number (registration card), and a written Bill of Sale that includes the date of sale, names and addresses of both parties, the vessel description (make, model, year, Hull Identification Number, and CF number), and the agreed purchase price.

If the seller has lost the Certificate of Ownership, use the DMV replacement/transfer title path before completing the sale. A missing ownership certificate can delay transfer or expose an ownership-chain problem.

Step 2: Complete the Sale and Sign the Ownership Documents

At the time of sale, both parties should complete the Certificate of Ownership transfer section and the bill of sale or transfer document. Make sure the seller name matches the DMV ownership record and that the HIN and CF number match the physical boat.

The purchase price listed on the transfer documents will be used to calculate use tax owed by the buyer. Be accurate because DMV or CDTFA may review a declared value that appears inconsistent with the vessel.

Step 3: Seller Files REG 138 Within 5 Days

Within 5 days of the sale, the seller should submit form REG 138 (Notice of Transfer and Release of Liability) to the DMV. This can be done through DMV-supported channels. Filing this form is the seller's most important post-sale DMV notice because it records that the vessel left the seller's possession.

Step 4: Buyer Submits Registration Application

The buyer must submit the required DMV packet within 30 days of the purchase date: the completed BOAT 101 application, signed ownership certificate or BOAT 227 replacement/transfer paperwork if needed, bill of sale or transfer document, valid photo ID, and payment for the transfer fee, registration fees, and use tax.

Documents can be submitted through the DMV channel allowed for your transaction. Processing time depends on the channel, missing documents, tax review, and whether a duplicate or replacement ownership document is needed.

Step 5: Receive Your New Registration

After the DMV processes your application, you will receive a new Certificate of Number (registration card) and vessel year tags (stickers). The CF number assigned to the vessel is permanent — it stays with the boat through ownership changes. You must display the CF number and current registration stickers on both sides of the bow in block letters at least 3 inches high, with colors that contrast against the hull.

Fees for California Boat Ownership Transfer

The total cost of transferring boat ownership in California includes several components. Here is a summary of the fees you should expect to pay as of 2026:

The use tax is typically the largest expense. California has no general vessel sales/use tax cap like some capped-tax states, so verify the local rate and any exemption or credit before closing. For a detailed breakdown, see our guide on California boat sales tax.

Family Transfers and Tax Exemptions

California provides a significant use tax exemption for vessel transfers between qualifying family members. If you receive a boat as a gift or purchase it from a qualifying relative who is not a licensed vessel dealer, you are generally exempt from paying use tax on the transaction.

Qualifying family relationships include: parent, grandparent, child, grandchild, spouse, and registered domestic partner. Sibling transfers qualify only if both siblings are minors and related by blood or adoption. Stepparents, stepchildren (unless legally adopted), and ex-spouses after a divorce decree do not qualify for this exemption.

To claim the family transfer exemption, you must submit supporting documentation to the California Department of Tax and Fee Administration (CDTFA), such as a birth certificate, marriage license, or adoption certificate. You may also need to complete a REG 256 (Statement of Facts) explaining the nature of the transfer. The DMV may process the exemption directly, or you may be asked to obtain a use tax clearance certificate (CDTFA-111) from the CDTFA.

Buying a Boat from a Dealer vs. Private Seller

The transfer process differs slightly depending on whether you purchase from a licensed dealer or a private seller:

Dealer Purchase: Licensed boat dealers in California handle most of the paperwork on your behalf. The dealer collects the sales tax at the point of sale, completes the transfer forms, and submits them to the DMV. You typically receive your registration documents within a few weeks. The dealer may also provide a temporary operating permit so you can use the vessel while the permanent registration is processed.

Private Sale: When buying from a private individual, the responsibility for completing and submitting transfer forms falls on the buyer and seller directly. The buyer pays use tax (equivalent to sales tax) to the DMV at the time of registration rather than to the seller. This is the scenario where mistakes are most common — incomplete forms, missing signatures, and unreported transfers can all delay the process. Double-check every document before visiting the DMV.

Common Mistakes to Avoid

Based on common issues reported by California boat owners, here are the most frequent mistakes during the transfer process and how to avoid them:

Missing the 30-day deadline: California requires the buyer to apply for transfer within 30 days of the purchase date. After 30 days, late penalties are assessed. Mark your calendar and submit paperwork promptly.

Seller forgets to file REG 138: If the seller does not file the Notice of Transfer and Release of Liability, they remain legally associated with the vessel. Sellers should file REG 138 online immediately after the sale — it takes less than 5 minutes.

Underreporting the purchase price: The DMV may compare your declared purchase price to the vessel's fair market value. If the declared price is significantly below market value, the DMV may assess use tax based on the fair market value instead. Always report the actual transaction amount.

Not verifying the Hull Identification Number (HIN): Before finalizing any purchase, physically verify the HIN on the vessel matches the number on the registration documents. Discrepancies can indicate a stolen vessel or clerical error that will need to be resolved before transfer.

Assuming a Bill of Sale alone is sufficient: In California, a Bill of Sale is an important supporting document, but it does not by itself transfer ownership. The DMV ownership and registration packet is required to officially change the record.

How California Compares to Other States

California's DMV vessel system can feel different from states that use a simpler title-and-registration handoff. In California, the Certificate of Ownership, Certificate of Number, DMV vessel forms, and CDTFA tax treatment all need to line up.

For boat owners who move to California from another title state, the out-of-state title is used as proof of ownership during the initial California process. If you later move to another state, keep your California Certificate of Ownership, Certificate of Number, bill of sale, and tax records so the receiving state can evaluate the transfer.

For details on registration in neighboring states, see our guides for Oregon, Nevada, and Arizona boat registration.