It is a legal document although it is not as formalized as a title or deed. Legal ConsiderationsĪ bill of sale represents a record of a sold vehicle. Verify the VIN on the title to make sure it matches the actual VIN and that there are no liens. The seller may remain liable for any fines/violations associated with the car. Until this document has been completed, a sale cannot be considered final. Title TransferĪ title transfer proves ownership of a vehicle. It could be a separate form or part of the state’s bill of sale form. Check with your local department of motor vehicles for verification.ĭepending on the state, an odometer disclosure statement may be needed.
Some states have specific requirements as to what must appear on a bill of sale form for it to be accepted. In some cases, a bill of sale alongside a registration certificate can prove ownership. While a bill of sale provides a legal proof of the sale agreement, it generally does not prove ownership of the vehicle.
Having a bill of sale helps sellers with reporting taxes and provides “as-is” protection if no warranty is agreed upon.įor buyers, a bill of sale can help determine the Vehicle Registration Fee in some states. The county and state in which the sale occurred.A description of the vehicle, including vehicle identification number (VIN).The buyer’s form will show specific information about the vehicle. The seller’s bill of sale form will show the date the vehicle was sold and the buying party’s information. Local requirements will vary, so be sure to check with your local department of motor vehicles.Ī bill of sale document lines out the details of a transaction between a buyer and seller of the vehicle. The bill of sale combined with a registration certificate may be enough to prove ownership, if a valid title isn’t available. This will help prevent any problems that may arise later on. Buying or selling a vehicle? Make sure you have a copy of a bill of sale signed by both parties at the time of the sale. That includes the names and addresses of both buyer/seller, date of sale, price, and vehicle information. The bill of sale acts as a receipt or record of necessary information. It is a legally binding document that is commonly used when the former owner transfers possession of the goods to a new owner. A bill of sale is a document that transfers ownership from one person (the Seller) to another (the Buyer).
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