When it comes to private sale of a vehicle in California, CA bill of sale is a document that serves as an evidence of a transaction, and it is useful for the seller as well as for the buyer of a vehicle. In the state of California this legal document is required if a private party sold the motor vehicle at a price exceeding 500.00 USD. You will need a bill of sale to make re-registration of a vehicle and to transfer the title of it. Here, you may pose a question whether it is possible to register a motor vehicle, e.g.: a car without a bill of sale, the answer is yes, you can register in California a car without a bill of sale, but the seller must submit to the Department of Motor Vehicles (DMV) a notice of transfer and release of liability within five days of the vehicle ownership release. You can submit Notice of Transfer and release of Liability to the California Department of Motor Vehicles (DMV) online. Mentioned form should include:
- The buyer’s full name
- The buyer’s Address
- The vehicle’s sale information
Find out more free templates here.
Here are some in depth details to take into consideration when registering a car without CA bill of sale
Within 10 days of the sale, the car buyer should go to the California Department of Motor Vehicles (DMV) to complete transfer of ownership. It is necessary to disclose the odometer reading according to California law if you first transfer ownership, if the motor vehicle is less then 10 years old and if you first register a motor vehicle. If the motor vehicle is a diesel-powered and model was made in 1998 or after, if a motor vehicle is gas-powered and if motor vehicle weighs more than14,000 pounds, in this case you will have to get a smog certificate. You may give limited power of attorney with the above-mentioned document to other person who you want to sell the motor vehicle, if you are resident of California, but happen to be out of the state.
For your information:
In California a bill of sale is not a legal requirement, but it is more reasonable to have one if you decide to sell or purchase a motor vehicle. Though, California Department of Motor Vehicles (DMV) has a form bill of sale DMV CA, there is no particular form requirement.
Below you can download free template of California vehicle bill of sale:
It is also possible to make a vehicle bill of sale in California on your own. The general information that should be included in the document is as follows:
- Motor vehicle sale date
- Full name and address of the seller
- Full name and address of the buyer
- Amount of purchase
- Year, make and model of the motor vehicle
- The Vehicle Identification Number (VIN)
- Odometer reading (the mileage on an odometer)
- If applicable, motor vehicle warranty information
- Signatures of the both sides
Things to pay attention to:
- The buyer should keep an original version of California bill of sale. After signature is made by both parties, it is recommended that copy of the bill of sale is done.
- Make certain to call your car insurance company straight away upon selling your motor vehicle to notify the company that the car does not belong to you anymore. This will let you avoid unexpected expenses.
Benefits of California vehicle bill of sale for the seller
Although the bill of sale CA is not a legal requirement in California, it is always very thoughtful to make such a document because after the sale is completed, as a seller, you will have a proof that vehicle was really sold and it is not yours anymore, should the buyer get into, for example, car accident and they deny that they have ever bought the vehicle from you. So, CA bill of sale, serves as a proof that you are not liable and responsible for anything that happens to the motor vehicle after the completed sales procedures. Therefore, it is important that you, as the seller, keep a copy of the bill of sell CA as well.
Benefits of California vehicle bill of sale for the buyer
It is very much possible that after buying a motor vehicle the seller denies the fact of ever selling their motor vehicle to you, or in the process of purchase, they may not inform you of the damages that the motor vehicle has and you discover them later. To prevent yourself from above-said it is highly recommended to have a bill of sale, so, there will be no chance of above to happen.
Tips for the buyer:
As the buyer, you will have to register the motor vehicle and in the state of California, it is necessary to possess completed vehicle bill of sale before registration. You will need to present a copy of CA bill of sale to the California Department of Motor Vehicles (DMV). Bill of sale is also needed when transferring the motor vehicle title.
Below you can download for free, form of the California motor vehicle-vessel bill of sale PDF and Notice of Transfer and Release of Liability PDF: