4 Documents a Michigan Boat Title Transfer Falls Apart Without
You shake hands on a used boat, pay the seller and start planning your first trip out on the water.
In Michigan, the deal may not feel as done to the state as it does to you.
A few key documents have to be in order first.
Here are the four documents a Michigan boat title transfer falls apart without.
Note: This is general information, not legal or tax advice. Titling rules and fees are subject to change, so confirm the current requirements with the Michigan Secretary of State.
1. Signed-Over Title
Your boat title is the first paper the seller signs over to you.
If the state has ever issued a title for the boat, Michigan’s watercraft title law generally says your application has to arrive with that title, signed over to you.
That assignment also carries the seller’s warranty that no mortgage, lien or encumbrance is on the boat, except as noted on the face of the title.
Read the face of the title before you pay, since that is where the warranty says any exception is noted.
2. WR-11L Application
As the buyer, you apply for the boat title on the Application for Michigan Watercraft Title, form WR-11L.
The purchase price or retail value, whichever is greater, goes on WR-11L.
Under penalty of perjury, you confirm everything on WR-11L is true.
You also certify on the form that you examined the hull identification number (HIN) on the boat.
If two buyers share the title, WR-11L has signature lines for a first owner and a second owner.
The application goes to the Secretary of State with a $5 title fee.
Michigan’s watercraft title law requires you to file the application within 15 days after the date of purchase or transfer.
Use Tax on a Private Boat Sale
A boat title transfer from a private seller in Michigan carries 6 percent use tax on the total price.
The Michigan Department of Treasury says the use tax should be paid to the Secretary of State prior to the transfer of the registration.
The Secretary of State’s watercraft page lists the 6 percent tax due, or proof of tax already paid, among the registration requirements.
Michigan exempts transfers between close relatives, including spouses, parents, children and siblings.
For that exemption, WR-11L warns that the department may request documentation proving the relationship.
3. Lender’s Lien Release
A lender’s lien release applies only to a financed boat, one with a lender shown on its title.
The Secretary of State’s dealer manual says a boat’s ownership can’t be changed or transferred while a lender is shown on the title, unless the lender releases its claim.
If you’re buying from a private seller who still owes on the boat, you’ll want that release in hand before you pay.
The manual accepts a lender’s signed and dated “paid” stamp on the title.
A letter from the lender authorizing the transfer of ownership works as well.
So does the lender’s original finance contract, marked “paid” and signed.
A photocopy, true copy or facsimile of a lender’s release is fine too.
4. Manufacturer’s Certificate of Origin
The manufacturer’s certificate of origin (MCO) is what a brand-new boat uses in place of a title.
The Secretary of State’s dealer manual lists the MCO as properly assigned to the new owner, with no photocopies.
Because photocopies are ruled out, the original certificate is the one you file.
Under state law, if a title wasn’t previously issued in Michigan, your application comes with a manufacturer’s or importer’s certificate or another proof of ownership the law lists.
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Which Michigan Boats Need a Title?
Michigan requires a boat title for any boat 20 feet or longer, plus any boat with a permanently affixed engine, regardless of length.
Those titles come from the Secretary of State.
The Secretary of State's dealer manual says a boat documented by the U.S. Coast Guard isn't eligible for a title.
If your boat doesn't need a title, you can still title it to add a lienholder to the record.
If your boat isn't required to be titled, Michigan's watercraft page says you can cancel its previous title at a Secretary of State office.
The one condition: There can be no lien on the boat.
What Other Papers Prove You Own a Michigan Boat?
When you register the boat, the Secretary of State's watercraft page accepts a bill of sale, or the previous registration with the seller's signature.
A bill of sale covers you when you have lost the registration.
That bill of sale lists the year, make and hull identification number (HIN).
Your name and address go on it, along with the seller's.
The registration can do the same job once the seller completes the back of it.
Michigan's watercraft title law covers a boat you bring in from another state.
For that boat, the application has to come with that state's certificate of title, bill of sale or other evidence of ownership.
How Do You Transfer a Boat Title in Michigan When Paperwork Is Missing?
When paperwork is missing, a duplicate title or a surety bond can fill the gap.
You can order a duplicate title online through your Secretary of State account, or by mail if you live outside the state.
The seller and buyer can appear together at a Secretary of State office instead, with proof of the hull identification number (HIN).
For a lost title, the watercraft page also lists a record of the current title on the state's computer system as a condition.
If the seller's paperwork has gone missing, one state transfer page says a court order or surety bond would be needed to transfer ownership.
For a boat valued at more than $2,500, a surety bond counts as proof of ownership.
A boat valued at $2,500 or less uses a self-certification procedure instead.
The state's surety bond form (TR-121) sets the bond amount at twice the value of the boat.
The bond is issued for three years.
FAQ
Quick answers to common questions about boat title transfers.
What documents do you need to transfer a boat title in Michigan?
For a boat the state has already titled, you need the seller's signed title and a completed title application, form WR-11L. If a lender is listed on the title, you also need a lien release or the lender's letter authorizing the transfer.
A new boat uses a manufacturer's certificate of origin, while a boat with no title can use its seller-signed registration or, if that's lost, a bill of sale.
Does a boat under 20 feet need a title in Michigan?
Not unless it has a permanently affixed engine.
Boats 20 feet or longer, and boats with a permanently affixed engine of any length, need a title.
How much does a boat title cost in Michigan?
The title fee is $5.
The same $5 applies to a duplicate title.
Processing an application on an expedited basis costs another $5 under state law.
How long do you have to transfer a boat title in Michigan?
State law says the application has to be filed with the Secretary of State within 15 days after the date of purchase or transfer.
What if the seller lost the boat title?
You can order a duplicate title through a Secretary of State account.
The seller and buyer can also appear together at a Secretary of State office with proof of the hull identification number.
If a new boat title hasn't arrived within 60 days, the title application says to call the Michigan Department of State's Information Center.
The Information Center's number is 888-767-6424.
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