General meaning of a bill of sale
A bill of sale, also known as “Purchase and sale” is a document that is used to record the sale of automobiles, trailers, motorcycles, boats, aircrafts etc. It can be also used when selling personal property, e.g.: furniture etc. So, a bill of sale is drafted by the seller to legally transfer the ownership of the selling object to the buyer in exchange for certain amount of money.
In case of any disagreement arises, this document protects both the seller as well as the buyer. A bill of sale serves as a receipt that shows and certifies the purchase. When it comes to motor vehicle selling, it helps the Department of Motor Vehicles (DMV) to keep track the car sale, so that everything is documented to conclude the registration process. It means that buyer will certainly need the above-mentioned form. The document must be signed after the buyer pays fully fort the object for sale.
Basic parts of a generic bill of sale are: Date of purchase; address and name of seller and buyer; amount paid for the ownership transfer; transferred assets’ description; guarantee that selling object is free from all claims; warranties/representations; signature of seller, buyer and if necessary of public notary.
Bill of sale for motor vehicle
Bill of sale for motor vehicle is a legal document that sets the terms of sale of the motor vehicle between seller and buyer. Creating a bill of sale for motor vehicle is a crucial part of the transaction because it is an evidence of transferring a car to the buyer. Completed form of the mentioned document can be used as a certificate that sale took place. Afterwards, it can be also presented at the local Department of Motor Vehicles (DMV). Take into the consideration that not all the states require a motor vehicle bill of sale, but it is a good idea to have one when selling a used car.
Bill of sale for motor vehicle by state
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
For your consideration:
- Because of the diverse laws within each state and sometimes even within the County pertaining to this issue, it’s important to check your local laws if you decide to not have the Buyer sign the document. Although, when possible, it is always best to have the Buyer sign the Bill of Sale.
- When signing a bill of sale, any certificate of title should also be transferred to the new owner.
- Each side must get copies of finalized bill of sale for the vehicle for their personal records. Some states require a notarized version of bill of sale for motor vehicle, make sure to check with the particular state.
What should bill of sale for motor vehicle include in it?
Information about seller and buyer: Name, address, city, state, zip code.
Description of vehicle being sold: Year, make, color, model description, body style, VIN number, number of cylinders, state title number, odometer reading in miles.
Disclosure and warranty: The seller certificating that the odometer reading of this vehicle is correct to their knowledge, and that the seller has not modified the odometer during their ownership. That the vehicle is being sold without the warranty for any damage and all repairs are the responsibility of the buyer unless the seller indicates any repairs for which they will pay for.
Payment: The seller certificating to the buyer that the seller has the authority to sell the vehicle and transfer the title to the buyer. That the seller further certifies that the title is free of liens. That the seller acknowledges receiving the subsequent payment from the buyer to transfer possession of the vehicle.
Signatures: Of the seller and the buyer.
Below you can find free, downloadable forms of a bill of sale for vehicle in PDF and Word formats