A bill of sale for a vehicle is a paper that must be filled out according to the law when selling a car. When a car is transferred from one individual to another, this form is needed to confirm the transfer of ownership officially. In addition, you may need a new car registration in the Department of Motor Vehicles, depending on the local laws of your state.
You can create a personalized Motor Vehicle Bill of Sale Form using a specialized document builder that will get you through the process step by step:
You can also download a free Motor Vehicle Bill of Sale Form template as a PDF file to fill and print it out yourself:
When to Use a Motor Vehicle Bill of Sale?
In general, there is only one case in which you may need a bill of sale of a car. If you are selling your car to another owner, then you will need to fill out this form. Subsequently, it may be useful for obtaining a registration number by the new owner, registration of insurance, or registration of tax invoices.
Another important function of this document is to directly record the sale transaction in the smallest details. It includes data from both sides, all information about the car, its technical characteristics, shortcomings, and so on. Thus, the buyer officially confirms that he has been acquainted with all the characteristics of the car that he is purchasing. Everyone wins from signing this form and receives a guarantee that nobody will dispute the amount of the transaction or its validity in the future.
From the moment of signing this form by both parties, the new owner officially receives the car into ownership. They officially confirm with a state document that they are now responsible for the maintenance of cars. They will receive fines and warnings in cases of violations. And the seller fully transfers their authority regarding the vehicle.
Why Is It Important to Sign a Vehicle Bill of Sale?
This is necessary in order to notarize both parties in case of disagreements after the completion of the purchase and sale transaction. It often happens that the seller can hide the real mileage of the car, the history of accidents, previous paintings of the car, its repairs. Obviously, all such trifles can actually greatly affect the cost of the vehicle being sold.
If the buyer fails to find out all the unpleasant details before the transaction is concluded, they will make claims and demand compensation after it. This situation is controversial, so it is better to avoid it. With the help of a bill of sale, you can officially certify the transaction and the condition of the car so that the relationship between the buyer and the seller is clearly regulated throughout the transaction.
What Should Be Included in a Vehicle Bill of Sale?
Both parties should think about filling out a bill of sale when buying and selling a car, but officially the responsibility lies with the seller.
- The first thing that must be reflected in the official paper is the financial side of the transaction. All stipulated terms of payment, collateral as a guarantee of purchase, and the method of transferring money must be confirmed by both sides in advance and approved when signing the bill of sale;
- The personal data of both sides must also be filled in;
- Then the characteristics of the vehicle are filled in. It is crucial to remember that the fields to fill in are not the same in all states.
Most likely, you will need to record information on these items:
- car model;
- year of manufacture;
- vehicle identification number;
- the price for which the car is sold;
- a detailed description of the condition of the car;
- body style;
- warranty;
- tax and payment details;
- an application for disclosure of information about the odometer.
How to Sell a Vehicle
In order for the transfer of ownership rights to enter into force, the seller must provide his certificate of title. It will be faster if the seller has this official paper at hand. But in case of loss of the document, you can get it again by submitting a request to the DMV. The disadvantage of this method is a long wait for the paper, which might take up to two weeks. As a result, the purchase and sale transaction may be postponed until confirmation of ownership is received.
In order for the bill of sale to enter into force, both parties must sign the document. At the same time, both the seller and the buyer receive their copies of the form, which they will refer to later if legislative issues arise. The need for notarization of the document by a third party depends on your location. In most states, this is optional, but there is a number of exceptions: Montana, West Virginia, Maryland, Nebraska, Louisiana.
After the signing of the bill of sale by both sides and the notarial certification, which is necessary for some states, the car can be transferred to a new owner. Only after signing the bill of sale, the buyer transfers the necessary amount of money to the seller. At the same time, the buyer officially enters the status of the owner and receives a certificate of ownership. If everything is done correctly, the seller will not receive notifications and fines about his previous car since it no longer belongs to him.
The final stage
The last thing that is included in the process of buying and selling a vehicle is getting a new registration number in the DMV. The new owner submits a request for registration of the car after signing the bill of sale and completing the transaction. Pay attention to the fact that the period during which you must submit an application with the necessary documents is strictly regulated and limited. You have ten days. If you do not meet these deadlines, you will be issued a fine.
What documents do you need to provide? You will be asked to provide a bill of sale that you have recently signed, insurance for the vehicle, a certificate of ownership, a driver’s license, or a passport. Don’t forget to check which state fees are mandatory in your state.
Please specify separately whether you will need to check for emissions since this procedure is also not common in all states.