Most of the boat paperwork content out there is written for buyers. But sellers have their own checklist, and skipping steps has real consequences. If you don’t notify SCDNR after selling, property tax bills keep showing up in your name. If you don’t certify taxes are current, you could be liable for three times the damages. Here’s what to do, in order.
What You’re Legally Required to Do
Under SC Code Title 50, Chapter 23, a seller must:
- Be the titled owner (SC prohibits selling a boat without a valid title in the seller’s name)
- Sign over the title on the back of the certificate
- Certify that property taxes are paid and current as of the sale date
- Provide a notarized bill of sale (Section H of the BTR-1 form, signed before a notary with both parties present)
- Notify SCDNR of the sale within 30 days
Miss any of these and you’re either breaking the law or leaving yourself exposed to liability after the sale.
Before You List: Get Your Documents Together
Find your title. If you have an outboard motor rated 5 HP or more, it has its own separate title. You need both the boat title and the motor title to sell.
Check for liens. If a lien is recorded on your title, you cannot transfer ownership until the lien is satisfied. Call your lender and get the exact payoff amount before you list.
Confirm property taxes are current. At the time of sale, you must sign a certification that all property taxes due on the vessel have been paid. If they haven’t been paid, handle that with your county auditor’s or treasurer’s office first.
Locate your registration card. Not strictly required for the buyer to complete the transfer, but a buyer will want to see it and it makes the process smoother.
How to Sign the Title Correctly
The back of your SC boat title has an assignment section. This is where you sign ownership over to the buyer.
If the title lists multiple owners with “AND”: Every listed owner must sign. No exceptions. A single missing signature and SCDNR sends the application back to the buyer.
If the title lists owners with “OR”: Any one owner can sign independently.
The assignment includes a warranty that the title is subject only to liens and encumbrances you’ve disclosed. If there’s a hidden lien you didn’t mention, you’re on the hook.
The Notarized Bill of Sale
Section H of the BTR-1 form serves as the official bill of sale. Both buyer and seller must sign it in front of a notary public. This means you and the buyer need to be at the same place at the same time with a notary present.
Common places to get this done: banks, UPS stores, or mobile notary services. Some people handle this at the boat ramp. That works if you bring a mobile notary.
The bill of sale must include the purchase price. The buyer needs this to calculate their 5% casual excise tax (capped at $500).
Notifying SCDNR After the Sale
This is the step most sellers skip. Don’t.
The form: BM-400, titled “Request for Boat and/or Motor Status Change”
Where to get it: SCDNR website
What to include:
- Check the box indicating you sold the boat/motor
- Registration number and title number
- Make, year, and serial numbers
- Buyer’s name and contact information
- Your signature certifying the information is true
Mail it to: SCDNR, Attn: Status Change P.O. Box 167 Columbia, SC 29202-0167
Deadline: 30 days from the date of sale.
Keep a copy. You’ll want proof you filed this if the county sends you a property tax bill six months later.
What Happens If You Don’t File the BM-400
Three things, all bad:
- Property tax bills keep coming to you. The county doesn’t know you sold. You remain the owner of record, and the assessments keep generating in your name.
- You stay legally responsible. Until SCDNR updates ownership, the boat is still “yours” in the state system.
- You’re violating state law. Section 50-23-20 requires notification within 30 days. Penalty: misdemeanor, $25-$500 fine or up to 30 days in jail.
Handling a Lien Payoff at Sale
If your title shows a lien, you have a few options:
Pay it off before the sale. Cleanest approach. Get the lien satisfaction form from your lender (SCDNR has a form at dnr.sc.gov), submit it, get a clear title, then sell.
Use escrow. The buyer’s payment goes into escrow. The lien is paid from those funds. Once the lender signs a release, the title transfers.
Marine closing service. For higher-value boats, a closing service or marine attorney handles the coordinated payoff and transfer.
SCDNR will not process a title transfer if a lien exists without a signed satisfaction or release.
Penalties for Getting It Wrong
| Violation | Penalty |
|---|---|
| Selling with unpaid property taxes | Misdemeanor, up to $1,000 fine or 30 days |
| False certification that taxes are current | Liable to buyer for 3x damages + attorney’s fees |
| General Chapter 23 violations | $25-$500 fine or 30 days |
The triple-damages provision in Section 50-23-295 is the one that catches people off guard. If you sign that taxes are paid when they’re not, and the buyer gets hit with the back taxes, they can come after you for three times the amount plus their legal costs.
Quick Summary: What Not to Do
- Don’t hand the boat over without completing the notarized title exchange
- Don’t forget to file the BM-400 (you stay on the hook for property taxes until you do)
- Don’t forget about the motor title if you have an outboard 5+ HP (separate document, separate transfer)
- Don’t accept payment without meeting at a notary to sign Section H of the BTR-1
BoatForms auto-fills the BTR-1 and walks both buyer and seller through the paperwork for their specific situation. Free to use.