Buying a Used Boat in Florida, Part 2: Hull Damage, “As Is” Sales, and Sales Tax

This is Part 2 of our guide to what the Florida Statutes say about buying a used boat. Part 1 covered yacht brokers, deposits, titles, and liens. This part covers three things that commonly turn a boat purchase into a dispute after closing: hull damage nobody mentioned, a contract that said “as is,” and a tax assumption that turned out to be wrong. With the Fort Lauderdale International Boat Show running October 28 to November 1, 2026, a lot of used boats are about to change hands in South Florida. Read this before you sign.

Where the statute is silent, we say so. How any of this applies to your deal is a question for a consultation, not a blog post. Already have a problem with a boat you bought? Start a free case review or call (561) 455-4455.

Hull damage must be branded on the title

Florida requires disclosure of hull damage, as the statute defines it, through the title itself. At or before the time an owner of record transfers an ownership interest in a hull-damaged vessel covered by a Florida certificate of title, if the damage occurred while that person was an owner and the person has notice of the damage at the time of the transfer, the owner must either apply for a new certificate carrying the title brand “Hull Damaged” or indicate on the certificate that the vessel is hull damaged and deliver it to the transferee. Fla. Stat. 328.045(1). An insurer transferring a hull-damaged vessel must apply for the branded certificate. Fla. Stat. 328.045(3).

“Hull damaged” means compromised with respect to the integrity of a vessel’s hull by a collision, allision, lightning strike, fire, explosion, running aground, or similar occurrence, or the sinking of a vessel in a manner that creates a significant risk to the integrity of the vessel’s hull. Fla. Stat. 328.0015(1)(n).

An owner of record who fails to comply, a person who solicits or colludes in that failure, or an insurer that fails to comply commits a noncriminal infraction with a penalty of $5,000 for a first offense, $15,000 for a second, and $25,000 for each subsequent offense. Fla. Stat. 328.045(4). That penalty is an infraction under the boating chapter, not a payment to the buyer. Whether a seller who hid hull damage owes you anything depends on your contract, what was said, and what you relied on. The branding statute does not address it.

Found hull damage the seller never disclosed? Tell us what happened. The review is free and there is no obligation.

“As is” and the survey you skipped

Most used boat contracts say “as is.” Florida’s version of the Uniform Commercial Code gives those two words real effect. Unless the circumstances indicate otherwise, all implied warranties are excluded by expressions like “as is” or “with all faults” or other language which in common understanding calls the buyer’s attention to the exclusion of warranties and makes plain that there is no implied warranty. Fla. Stat. 672.316(3)(a).

The next paragraph is the one to read before deciding whether to pay for a survey. When the buyer, before entering into the contract, has examined the goods as fully as he or she desired, or has refused to examine the goods, there is no implied warranty with regard to defects which an examination ought in the circumstances to have revealed. Fla. Stat. 672.316(3)(b). Skipping the survey can cost you the implied warranty argument for anything an examination should have revealed.

What “as is” does not reach

Subsection (3) of section 672.316 is about implied warranties.

Express warranties are created differently: any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates an express warranty that the goods shall conform to it, and so does any description of the goods made part of the basis of the bargain. A statement that is merely the seller’s opinion or commendation does not. Fla. Stat. 672.313(1)(a), (b), (2). And words or conduct relevant to the creation of an express warranty and words or conduct tending to negate or limit warranty shall be construed wherever reasonable as consistent with each other, but, subject to the chapter’s parol or extrinsic evidence provisions in section 672.202, the negation or limitation is inoperative to the extent that such construction is unreasonable. Fla. Stat. 672.316(1).

Separately, Florida’s Deceptive and Unfair Trade Practices Act declares unfair methods of competition, unconscionable acts or practices, and unfair or deceptive acts or practices in the conduct of any trade or commerce unlawful, and a person who has suffered a loss as a result of a violation may recover actual damages, plus attorney’s fees and court costs as provided in section 501.2105, with an exception for a retailer who in good faith disseminated a manufacturer’s or wholesaler’s claims without actual knowledge of the violation. Fla. Stat. 501.204(1), 501.211(2). Whether a particular seller’s conduct fits those words, and whether an “as is” clause changes that answer on your facts, is exactly what we review in a consultation.

Pro tip: get the listing, the broker’s emails, and the seller’s texts in writing and keep them. Section 672.313 turns on what was actually said and whether it became part of the basis of the bargain. Paper is far better evidence of that than memory.

Boat is not what you were told it was? Request a free case review or call (561) 455-4455.

Sales tax: the $18,000 cap and the nonresident exemption

Florida caps the sales and use tax collected on each sale or use of a boat in this state at $18,000, and on each repair of a boat at $60,000. Fla. Stat. 212.05(5). Private party sales are not tax free. Each occasional or isolated sale of a boat of a class or type which is required to be registered, licensed, titled, or documented in Florida or by the United States Government is subject to the tax. Fla. Stat. 212.05(1)(a)1.b.

For buyers who live out of state, the statute carves out a sale by or through a registered dealer under the sales tax chapter to a purchaser who, at delivery, is a nonresident, does not make his or her permanent place of abode in Florida, and is not engaged in carrying on in Florida any employment, trade, business, or profession in which the boat will be used. A registered dealer acting as broker for the seller or for the nonresident purchaser may be deemed the selling dealer.

The exemption comes with conditions. Among them: unless the buyer intends to remove a boat of 5 net tons or larger within 10 days of purchase (or 20 days after repairs), the buyer applies to the selling dealer for a decal authorizing 90 days for removal, and may apply within 60 days of purchase for an extension decal allowing an additional 90 days, but not more than 180 days in total; a non-qualifying boat must leave within 10 days, or 20 days after completion of repairs or alterations; within 90 days after departure the buyer must give the Department of Revenue written proof that the boat was licensed, registered, titled, or documented outside Florida (or, if that proof is unavailable, proof of having applied for it); and within 30 days after removal the buyer must furnish proof of removal in the form of out-of-state fuel, dockage, slippage, tie-down, or hangaring receipts.

If the buyer misses those conditions, or brings the boat back to Florida within 6 months (subject to an exception the statute cross-references), the buyer owes use tax on the cost price plus a penalty equal to the tax. Fla. Stat. 212.05(1)(a)2.

This is a tax statute with its own compliance traps. We are not tax advisers. We handle the disputes that follow when a deal built on a tax assumption collapses. If that is where you are, start a free case review.

The Part 2 checklist

Before you sign:

• Look for the “Hull Damaged” brand on the title, and ask in writing whether the hull has ever been compromised. Fla. Stat. 328.045.
• Get a survey and a sea trial, and keep the report. Fla. Stat. 672.316(3)(b).
• Get every representation about the boat in writing. Fla. Stat. 672.313.
• If you are buying as a nonresident, read the removal and documentation conditions in Fla. Stat. 212.05(1)(a)2. before you rely on the exemption.

Missed Part 1 on brokers, deposits, and title? Start there. Our firm handles contract, fraud, and maritime disputes for boat owners across South Florida. Learn more on our maritime law and business litigation pages, read about Florida’s rules for defective new boats, or start a free case review today.

Frequently Asked Questions

This article describes Florida statutory text as of October 2026 and is general information, not legal advice. Statutes change and how they apply depends on the facts. For advice about your situation, contact Ludwin Law Group.