What Is A Bill Of Sale
A bill of sale is a document that provides proof of a sale and the transfer of property from one party to another. It can be used when selling a variety of items but is most commonly used for vehicle sale transactions.
The bill of sale will identify the parties involved in the transaction, the property being transferred, and the date and price of the transaction. As a result, both parties will have proof of the sale. It can be important to show a release of liability on the part of the seller.
For example, say a car was sold from one private party to another. However, the buyer did not properly register the vehicle and used the car to commit a crime. With a bill of sale, the seller could prove they were no longer in possession of the vehicle.
Sample 3 Bill Of Sale For Car
BILL OF SALE
I, Jonas Smith, the seller, in the County of Franklin, in the State of Ohio, in consideration of dollars, $2,024, to be paid by Karen Coleman, the buyer, the receipt of which is hereby acknowledged, do hereby sell and deliver unto Karen Coleman, buyer the following:
A 2010 Chevy Monte Carlo Limited Edition whose V.I.N number is 2G4T890GPC1234TUA, mileage is 109,458 .
The car is in fair condition and has a salvage title after being in a flood. The car is red in color and has a dent on the drivers right hand door. Car is in running condition at the time of sale.
I, Jonas Smith hereby decree that I am the legal owner of the said vehicle and that it is owned free for all encumbrances.
I have a right to sell the aforesaid vehicle and I will defend the same against any claims made lawfully by any persons. In witness this eighth day of July 2019.
X_____________________
What Information Do I Need For The Bill Of Sale
A bill of sale is more than just saying I sold/bought this car for this amount. You will need to be sure you have some important information before you fill out the bill of sale, including:
- Both the buyers and the sellers full names
- Contact information for both individuals
- The vehicles make, model, and trim type
- The vehicles Vehicle Identification Number and the cars odometer reading
- The price the car was sold for in this exchange
After going through the bill of sale together, both the buyer and seller must sign and date the document. Otherwise the bill of sale is not official.
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What You Should Include On A Bill Of Sale
Though standard form bill of sales are available online and from your local county tax collectors office, its also perfectly acceptable to write your own. If you write your own bill of sale, there is certain information you should include to ensure its completeness and effectiveness. Heres what youll need to include:
- The date of the sale
- The full name and address of both the buyer and the seller
- A general description of the vehicle, including its make, model, and condition
- The vehicle identification and license plate numbers of the car
- The person who owned it before the current seller
Example Of Dealership Complaint
Transmission problem after purchasing
John buys a six year old car for $6,000. Ten days after the purchase, the transmission begins to slip. John thinks the dealer should pay to have it fixed. The dealer says, You bought it ‘as is’, theres nothing I can do for you.
John is outraged. The cost of repairing the transmission will easily run upwards of $1,000. In its present condition, the car cant be driven. John needs his car for work, its the only transportation he has.
Right now, John has nothing good to say about the dealer. He thinks the dealer sold him a defective vehicle. Surely, for $6,000, he can expect it to last longer than ten days!
For his part, the dealer didnt know the transmission was on its last legs. It seemed fine when he took it on trade.
John struck a hard bargain and brought the dealer as low as he could go on the selling price. The dealer told John that for this price he could not give him any warranty on the car. John would be buying it As Is. Not expecting any problems like this so soon, John agreed.
What options does John have? He needs to have the transmission fixed. It would seem that Johns choices are limited. He could pay for the repairs and then go after the dealer in small claims court, but even if John eventually obtains a judgment, and theres no guarantee that he will, it could take a year to come to trial. In the meantime, John is out the thousand dollars it will take to fix the transmission.
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How Do I Get A Bill Of Sale
There are a couple of ways you can get your hands on a bill of sale in California:
- Pick one up at your local DMV office by requesting a printed copy of the form.
- Visit the California DMVs website and . You can then print it out and complete it with the buyer of the vehicle, this will be counted as a valid California vehicle bill of sale.
Writing The Bill Of Sale
Youll need to have the bill of sale ready for the recipient before going to the DMV. If you cant find a bill of sale template on your state DMV website, you should create one. On the bill of sale template, where the dollar amount is listed, write gift in the allotted space. Youll need to note the date of sale, the cars identification number, make, model and the number of miles on the odometer at the time of the transfer. Youll need the current license plate number, and names, addresses and signatures of you and the recipient. Youll also need the title in hand, and both you and the recipient must sign and date the title. Check with your state DMV to see if you need to fill out any other forms. The recipient may then have to pay a title transfer fee. You can decide if you want to pay for this or let the recipient pay this fee. Once the title is transferred, the recipient can enjoy new ownership of the gifted car.
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Who Write A Bill Of Sale
The bill of sale might be written by the seller. In some states, the dealership provides the bill of sale document when it sells a car. However, if there is a private sale, both the buyer and the seller might need to generate a bill of sale document, signed by both parties. In this case, a seller may hire acontracts lawyer to draft a bill of sale.
Some states also use a state-authorized template for bill of sale documents. Others allow individuals to write their own bill of sale documents without a template.
When Is A Bill Of Sale Needed
Customers may use a bill of sale to transfer vehicle ownership in very limited circumstances as outlined below. A bill of sale cannot be used to transfer vehicle ownership for a vehicle that requires a certificate of title by law.
The customer may present a Bill of Sale – State Form 44237 or similar document as proof of vehicle ownership only in the following circumstances:
- A person is voluntarily applying for a certificate of title for a vehicle that is not required to be titled under Indiana law.
- The prior owner was not required to obtain a certificate of title.
- For vehicles purchased with a bill of sale from an out of state seller, the purchaser must contact the motor vehicle agency in the state where they purchased the vehicle to determine if the vehicle was required to be titled.
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Important Terms For A Bill Of Sale
- Seller: The person selling the item is the primary seller. The bill of sale should include their information, such as name and address. The bill may also list additional sellers.
- Buyer: The person taking ownership of the item is the buyer. The bill of sale should include their name and address, along with the information on additional buyers.
- Sales tax: If the sold item is subject to sales tax, the bill of sale should clarify the amount that should be paid and if the tax is included in the price.
- Property: The item thats being transferred is the property. The bill of sale will list the date of sale and a description of the property.
- Property location: This is where the property is located an important detail, particularly if the property is far away from where the transaction will occur.
- Witness information: Some bills of sale must be witnessed to be legally binding. A witness can be a third party or a notary public.
- As-is: If a bill of sale lists the item as being sold as-is, then the buyer agrees to purchase the item in its current state with no holds on the seller.
- Gift: For expensive gifts, a gift bill of sale can help both the giver and recipient file taxes during the next year.
- Certification/Signature: For a bill of sale to be valid, all parties need to sign it. Physical signatures are always accepted. Digital signatures are valid if they are received through a certified digital signature provider such as PandaDoc.
Do I Need A Bill Of Sale
A bill of sale document functions differently in different states. For example, if youre selling your car in Montana and dont have a copy of the car title, the car bill of sale will be needed by the buyer to get the cars title transferred to them. In contrast, in Georgia you need the bill of sale to receive a Georgia title, registration and license plate.
Some states also require sellers to complete a bill of sale to remove the sellers name from the car. This can help the seller avoid liability related to the car after its been sold. That liability risk might be from the car being used in a crime, in a crash or from it being ticketed.
Therefore, the bill of sale document can be important in the buying and selling of properties such as a car, vehicle, trailer, camper, dirt bike, motorcycle, boat, etc.
Here is an article for you about writing your first bill of sale.
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Who Needs A Bill Of Sale For Used Cars
Some states do not require a bill of sale, while others require a notary to validate the document. In Louisiana, Nebraska, Maryland, New Hampshire, West Virginia, and Montana, a notary public must witness the signing of the bill of sale. While it is helpful for both parties, it is also beneficial to your local Department of Motor Vehicles since they document all car sales with a paper trail.
The 16 states below require a bill of sale as part of their state laws:
| No. |
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| § 312103 |
Whether a bill of sale is required in your state or not, create one, so it can protect you as a seller or buyer. The bill of sale can serve as proof of the car’s sale price for sales tax. It can serve as a liability protection document for the seller. Bills of sale are an excellent protective measure, regardless of the state requirements.
Dos & Donts Checklist
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Oregon Firearm Bill Of Sale
The state of Oregon does not require firearms to be registered. However, a bill of sale can be an important safety precaution for both the buyer and the seller.
Its illegal to sell any firearm to anyone under the age of 18 or anyone barred from legal ownership of one. The bill of sale protects both the buyer and the seller from liability because it provides a detailed record of ownership, as well as notarized promises of age and status.
How Do I Fill Out A Title When Selling A Car
The car title, or certificate of title, serves as proof of ownership for a vehicle. The title procedure varies from state to state. Most states, however, allow the titled owner of the car to sign and date the title.
The other states may require additional information, including disclosing the odometer, selling price, or information regarding the lien release. Before any changes, make sure you have checked your title carefully to avoid ordering a replacement title because of a mistake.
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Who Needs A Bill Of Sale For A Car
Its wise to create a bill of sale for all private vehicle sale transactions so there is a record showing both parties agreed on the terms. However, in some states, its required. Several states also require you to use a specific form and/or have the bill of sale notarized.
Heres a detailed look at the bill of sale requirements by state.
| State |
Why Do I Need A Vehicle Bill Of Sale
When buying or selling a vehicle privately, you need a bill of sale to prove that the seller transferred the vehicle to its new owner. The document works much like a receipt and is typically required for:
- Vehicle Insurance
- DMV registration
A vehicle bill of sale also protects the buyer and seller from future disagreements over the vehicles condition or ownership. Because the document describes the vehicles exact condition at the time of sale, the buyer cannot later dispute any damage and demand a refund.
TIP
If the buyer of the vehicle is involved in an accident or gets a speeding ticket, the seller can use the bill of sale to show that the vehicle is no longer theirs and they are not liable.
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Why Sellers Should Use A Bill Of Sale
Even though it is not a legal requirement in Texas, you have every reason to complete a bill of sale when selling your car. If the person buying your car causes an accident with it after the sale, they could potentially deny having purchased it from you, and you could be held at least partially responsible for what the new owner did with your car. A bill of sale provides solid proof that a transfer was made, and therefore all liability now rests with the new owner. It also acts as a receipt for your own personal records.
Oregon Bill Of Sale Requirements
Getting a bill of sale for items is always a good plan. In some cases, its legally required. In Oregon, a bill of sale is needed if youre buying or selling boats or cars. You can use templates or forms provided by the state.
You can also draft your own bill of sale for any property transfer, though you should be aware that there are several requirements the document needs to satisfy in Oregon.
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Find Your States Requirements
Some transactions are regulated by state law, which may require a bill of sale. The most common example of this is the sale of vehicles, motorcycles, and boats. In most states, you need a bill of sale for any type of titled personal property.
However, some state laws provide that the title itself qualifies as a bill of sale, so a separate document isnt needed. This is why its important to check your states laws before going forward with the transaction.
Additionally, states that regulate bills of sale for the transfer of vehicles often have specific formatting and information requirements. For example, your state might require that all bills of sale for motor vehicles be notarized. In other states, a vehicle bill of sale must list out the make and model of the car, as well as its mileage and condition.
To ensure youre protected and fully compliant with the law, research your states requirements for bills of sale. In most cases, you can also find a template approved by the state agency that regulates your type of transaction.
