I live in mn and bought a boat from a private party in north dakota. Do I still pay sales tax in mn or does something else take place. I’m dreading the line at the dmv. They have reduced hours and are only taking a couple people in at a time. Lines are all day long waiting to get in there due to covid.
Not a lawyer but this is what I understand. If your boat has a title then when you transfer the title to MN you’ll need to pay MN sales tax. If your boat has no title but is longer than 16′ you’ll need to request a title in order to register it. Registration for boats is done though the DNR so you might find the shitty government service at the DNR may be marginally less shitty than at the DMV.
I’ve always registered my boats at the dmv, never heard of doing it at the dnr. The boat is 17 ft and has a title. Thanks that’s interesting
You bet. And congrats on your new boat!
The two most satisfying days for a boat owner is the day you buy it and the day you sell it. 
Thanks , it sounds like he is delivering it to me on Tuesday from fargo. I’m a little nervous been that I’ve only seen pictures. 2018 175 competitor 90 hp yamaha, only twenty hours on it. Sure hope it’s as good as it sounds, hate to tell him to take it back home.
ND doesn’t title the boat. I don’t think they title the trailer either. It can be a PITA to get everything you need to get a title in MN. You will only pay sales tax on the trailer, so they will ask how much you paid for the trailer. That will be something you will need with your bill of sale. Make sure you break out the boat and the trailer. You will need pictures of the serial number plates off the trailer and the boat. You will need the ND registration card from the seller for the boat. You will need to have the trailer weight rating, so they can issue a lifetime license or a yearly plate. Seems like I am forgetting something but that is close to what you will need.
Sale tax will only be on the trailer.
DT
He told me his bank holds the title. I guess I’ll have to ask him.
He told me his bank holds the title. I guess I’ll have to ask him.
I’m sorry, but I don’t see this sale going well. If his bank holds the title they have interest in the boat. You can’t transfer the title without the lien release and he can’t get that without the note paid off. Do not make the deal without the title an lien release in your possession.
DT
So you think I should go there and make the deal at his bank, or what ? If he delivers the boat and I pay him cash and he doesn’t pay off the lean were would I be at ?
So you think I should go there and make the deal at his bank, or what ? If he delivers the boat and I pay him cash and he doesn’t pay off the lean were would I be at ?
Court. But it would be extremely dumb for him not to pay off his loan…bank wants their money as well.
So you think I should go there and make the deal at his bank, or what ? If he delivers the boat and I pay him cash and he doesn’t pay off the lean were would I be at ?
Happened to my mother once with a motorhome. It was being sold on consignment and the dealer (small independent) didn’t pay the owner so mom didn’t get the title.
Years in court chasing the guy & title.
Go to his bank. Meet and inspect the boat in the bank parking lot. Go into the loan officers office and pay the balance of the loan & get the release & title. Turn to the seller and hand him the balance of the money on the deal if there is any left over.
It’s only a good deal if it’s legit & goes smoothly, otherwise it’s a nightmare waiting to happen.
If the seller is happy you are coming to him it’s a good sign, if not it’s a red flag.
But if he brings the title everything should be fine correct?
As was stated earlier, North Dakota does not title boats. I know this because my boat was bought and registered in North Dakota. I have a loan from a mn based credit union and it completely threw them off that there was no title for them to hold on to. If this is truly a ND boat and the guy is saying the bank has the title I’d be concerned. Why doesn’t he know His boat doesn’t have a title? In ND you just register the boat with the Hull ID number and motor information, slap a sticker on and your good to go.
You need the lien release.
As was stated earlier, North Dakota does not title boats. I know this because my boat was bought and registered in North Dakota. I have a loan from a mn based credit union and it completely threw them off that there was no title for them to hold on to. If this is truly a ND boat and the guy is saying the bank has the title I’d be concerned. Why doesn’t he know His boat doesn’t have a title? In ND you just register the boat with the Hull ID number and motor information, slap a sticker on and your good to go.
I was not sure that that was correct information. I’m starting a conversation with him now
He’s talking to his banker in the morning to find out what must be done . He has a loan on it and wants it to go smoothly too.
I have met people at the bank that holds the title before. The bank may not release the title immediately with depositing a personal check. Depositing cash or a certified check should release the title on the spot.
With the boat being delivered without a title, I’d be reluctant to use cash. Money Orders are usually only good up to $1000. I would use a certified check and have him sign a promissory note to deliver the title in 2 weeks or maybe 30 days at the most. A personal check could add a couple weeks delay in getting the title.
Also I’d like too thank you guys for raising concerns and questions. This is a big purchase for me and I’m a bit nervous to say the least!
I think best advice was given to meet him at bank holding title. Look over the boat and then go into bank and finalize the transaction. IMO you are opening yourself up to the possibility of a lot of frustration with paper work.
I think best advice was given to meet him at bank holding title. Look over the boat and then go into bank and finalize the transaction. IMO you are opening yourself up to the possibility of a lot of frustration with paper work.
. I agree , I don’t believe he will be able to bring the boat and paper work with out having his loan paid off. I believe I will have to go there to his bank. I don’t think he realized that when he offered to deliver.
I’m in MN and bought a boat in WS 2 years ago. Bank held his title. I showed up with a cashiers check at his bank. I left with lien release and boat. I then transferred title in my name once I got home and registered the trailer. My DMV asked for a bill of sale for the trailer so make sure you have that or you won’t be able to register it.
Congrats on the purchase!
Man, these threads get so confusing, somebody needs to make a how to video on how to buy a used boat in MN.
Gino, everybody wants this to go well for you, but there are a lot of complications in this deal. There’s also a lot of well-meaning misinformation out there.
Just to summarize:
1. What ND does as far as title is irrelevant. You aren’t registering the boat in ND. In MN, you need a title and you need evidence that there is no loan (security interest) against that title.
2. There are THREE separate things that are needed as far as legal ownership of a boat in MN. 1. Title 2. DNR registration 3. Trailer registration. All of these can be accomplished through the DMV. The DNR can ONLY do item 2, so they are not the go-to place for a complete transfer of ownership.
Note that in some cases there CAN be a 4th item. Some trailers have a title of their own which also needs to be transferred. I won’t go into detail on that here as it is relatively rare, but it DOES happen, especially on 2-3 axle trailers.
3. Sales tax in MN on a used boat/trailer combo is paid ONLY on the value of the part that touches a public road–the trailer. You need to provide a seperate valuation for the trailer and it needs to be reasonable of the DMV will assign a value.
4. There is no end-run around a boat title that has a security interest listed on it. You cannot transfer ownership without proof the loan has been paid. That comes in the form of a clean title with no security interest listed OR in a letter from the lender saying the loan on the named asset has been satisfied. NO, a bill of sale or a letter from the seller won’t substitute for the above.
I’ve bought and sold a few used boats. This is a complex deal and the paperwork has to be right or you’ll have issues.
Grouse
Thanks grouse, all that does sound correct. I have sold some boats in my day also that have turned into nightmares, even police showing up at my door when a boat I sold was never transferred to the new owners name and was seen on camera backing into a new boat at a dealership and fleeing. It’s always an adventure!
Tiller?
So if North Dakota has no title would I just take the lean release to to dmv and use that to make an application for title?
Wow, what a sweet rig. Good luck with everything, make sure to post pics.
Wow, what a sweet rig. Good luck with everything, make sure to post pics.
. Will do if I ever stop pucking ! Lol jk
Well I am meeting him at his bank on Friday morning to inspect the boat and sit down with his banker to make the deal. I have printed off dmv forms to title / register a vehicle for the trailer and a form to title and register a watercraft. Both of these forms require the seller and purchaser to sign. Am I missing anything ? Hope this goes good! I’m getting a little anxious to get back on the water.
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