The importance of automobile bills of sale

The importance of automobile bills of sale

A bill of sale is a document that allows the transfer of ownership of an automobile or any other item from one person to another. This document is useful for transactions that include selling or exchanging goods as gifts or even mortgaging for loan purposes.

An automobile bill of sale is the document that proves that an individual has sold their car or motorcycle. It also provides some information about the terms of the trade and the vehicle number. All states do not require this document. However, it’s a good idea to have one as it can prevent misunderstandings between the seller and the buyer.

Some states provide a bill of sale form. Therefore, if you’re ready to sell your car or motorcycle, it is wise to research and find out if your state provides this form too. The bill of sale form can be found on the state’s motor vehicle department website. You can download and fill in this form.

Another way is to search online using the keyword “automobile bill of sale [name of state].” Always choose the website which ends with “.gov.” You can also check online to see if your state provides a bill of sale as well as if they have any other special requirements.

Some states require a notarized bill of sale to prove its accuracy and authenticity. Hence, it is essential to go online and do some research on your state’s requirements.

The seller can write a bill of sale by themselves if their state does not provide one. There are many sample templates available online, and the seller can use these. Otherwise, the seller can type one up by themselves.

The bill of sale for an automobile must include the following:

  • Date of the sale
  • Vehicle identification number
  • Year, make, and model of the vehicle
  • License plate number
  • Current mileage of the vehicle
  • The price at which the car is being sold: Even if the vehicle is a gift, the owner must create a bill of sale which mentions that it is a gift or a partial gift. It must also mention if any monetary transaction was involved.
  • Warranty information: Most private sales do not have a warranty and are assumed to be “as is.” However, if there is any difference in this, it must be mentioned in the bill of sale.
  • The full names, addresses, and signatures of both the seller as well as the buyer: The names and addresses must have a valid proof like a passport or valid driving license. Also, there must be a declaration which states that “Under penalty of perjury, I declare that the contained statements herein are correct and true to the best of my belief and knowledge.”
  • Below this comes the signature of both parties.

The buyer and seller must retain a copy of this bill of sale after they fill and sign it.

most popular blogs