A bill of sale is done for the best interests of the vehicle buyer and the seller. Buying or selling a car without this agreement is not legally valid. Fraud occurs often during vehicle transactions and becomes unnecessarily complicated without this document.
The Purpose of a Bill of a Sale
A vehicle bill of sale is similar to a receipt that you get at a store. It’s a document that proves a transaction between the seller and the buyer. The seller no longer owns the item and transfers the vehicle and title to the buyer. However, this bill is not to be used in place of a title transfer.
There is additional information that is not found on a receipt. These terms may include the condition of the product being sold or a warranty that guarantees its quality. These additional terms give more legal rights to the purchaser.
This document is written proof that is valid in court. Sellers are removed from any liability that occurs after the car is sold.
Procedure to Complete a Sale
Creating this document is required as the final step to buying or selling a vehicle. Using a pre-made template is recommended because certain information must be included in this document. Some websites provide templates that you can fill out online.
An official form is provided by the state’s Department of Motor Vehicles. Another option is to contact the local DMV office and request a form by mail or in person.
A bill of sale must have basic information about the vehicle like the VIN, odometer and title number. There must be informed about the sale and the parties involved, including their names, the sale date, the price and all of their signatures. The DMV recommends that you notarize the bill, but it’s not required.
The state version of this form is also a notice of sale. Only the seller completes this section and requires the buyer to sign it. After the sale, you’re required to submit the notice of sale form to the local tax office. This submission is needed for the DMV to update its records. Not submitting this form is punishable under the law.
A bill of sale works like a receipt that proves a sales transaction. It’s required to buy or sell a vehicle. Buyers are protected from fraud, and sellers are no longer liable for problems that involve the vehicle. The more details you include on the form, the more legal protections you have in court. Overall, this bill is the first and most important document to have for the sale and purchase of a vehicle.