I'm surprised that renters don't do this normally. It's not a complicated process. Perhaps some of the details are not here like DMV issues. And of course, sales tax. So ya, probably less hassle to rent a boat from a boat rental.
Meh, my father in law is a lawyer so who knows how this all worked in detail. I never bothered/cared to ask about the details. For all I know, when he said sold to them it could have meant "Cash held in escrow with signed option to buy boat"
I doubt it was a sale, then a sale back. Are we talking a little john boat worth $1000 or so? Or a boat you can take a family on/a bass boat? The tax, in NY, on a $15,000 boat (fairly cheap) is $1200. And, there are two sales - so, $2400 just to "rent" a boat for a week, goes to the state. And, that's with no "rental" fee. Further, the buyer and seller would have to come to an agreement on the value of the boat. You'd be a fool to sign a contract indicating you'd pay $20k for the boat, only to find that the "renter" could decide to screw you over and not buy the boat back for some reason you overlooked in the paperwork. There is paperwork with renting a boat, I think it's something to do with the registration - not something to do with actually selling the boat - that the buyer needs to carry while in the boat. (At least, in NY.) But, paying the tax on the sale of a boat, twice, just to get around insurance issues would be insane, and would, many times over, exceed the cost of boaters insurance for a week or two.