Create a Vehical Bill Of Sell With Template!

So, you have listed your car and found your buyer. Now is the time to finish your deal. In today’s marketplace, your transaction cannot be finished with just a simple handshake and a goodbye wave. Your vehicle transfer requires you to file it with your state’s motor vehicle department and with other local agencies.

This process calls for a complete and well-drafted vehicle bill of sale. A bill of sale showcases the terms of your arrangement and prepares for your car’s new title and registration.

A bill of sale is precisely like a receipt. It proves that the original owner of the vehicle has changed his property. It also showcases the terms and conditions of the sale, including information about the price, delivery, and condition of the car.

Bill of sale can help prove the identity of a vehicle owner. Moreover, many states can use these documents to determine the amount of sales tax owed on the vehicle transaction.

Buyer and Seller Responsibilities

Make Sure that the Contact Information is Correct: It is crucial to acquire the correct information about the names and physical addresses of the parties involved in your transaction. This transparency helps you contact the person in case an emergency arises concerning the ownership of the vehicle.

Only Handover Bill of Sale After Receiving The Sum: If you are selling the vehicle, give the buyer a finished bill of sale only after you have received your money and the transaction is over. Since the bill of sale states that you have already paid, it might be difficult to collect any of the outstanding amounts if the buyer has written a piece of evidence that its payment obligation has been completed.

Execute a Promissory Note: A signed bill of sale means that the payment of a vehicle is finished and on the sale date. If the buyer tends to make a down payment at the time of purchase and pay the remaining balance on time, the parties should execute a promissory note and use a bill of sale that examines the deferred payment.

Make Copies To Sign: Sign two copies of the bill of sale, one for you and one for the other receiving party.

Involve the Third Party (If Required): Though not required, consider involving the third party when the bill of sale is signed. If the question concerns the sale, that person can serve as the reporter of the transaction.

Record the Bill: Once your bill of sale is complete and signed, you should visit the local county clerk’s office to record it. They will use the bill of sale to estimate the sales taxes and record the transaction.

Confirm the Sale With The State DMV: A seller should contact its state Department of Motor Vehicles immediately after the sale is completed and let them know the vehicle has been sold and to whom. This will protect the seller if a ticket is issued if an accident occurs in the period between the sale and the re-titling of the vehicle.

Finish Any Extra Requirements: Some additional steps might be required for your vehicle transfer. Check your local motor vehicle agency and tax authorities to see what documentation might be needed.

Separate the Old License Plate: Remove the vehicle registration plate before physically transporting the vehicle to the buyer. In most states, this is required by law.

Main Components of a Vehicle Bill of Sale

The following instructions will help you in understanding the terms of your vehicle bill of sale:

Location of Sale: Write the name of the state and county where the vehicle sale will be taking place. If the parties are from different countries, use the state and country where the vehicle is located.

Price of Purchase: Ensure that you include the full paid price of the vehicle, including any previous down payments made to secure the vehicle.

Name and Address of the Parties: Provide the details of the involved parties. In a bill of sale, the party that will sell the vehicle is known as the seller, and the one who buys it is known as the buyer. Only the individual whose name appears on the title of the bill is permitted to sell the vehicle.

Vehicle Location and Description: Be as specific as possible, ensuring that the automobile is being sold and can be identified clearly from the description. You must include the location, make, model, body type, year, and vehicle identification number (VIN). For example:

• Location: Includes the countries and states where the vehicle is located.
• Make: The Name of the vehicle company, such as Ford, Lexus, BMW, etc.
• Model: M5, Mustang.
• Body Type: Sedan, Convertible, SUV.
• VIN: It is a vehicle’s 17-character unique identifier. Similarly, it is located in one of the following places: the dashboard, steering column, vehicle’s firewall, and driver-side door. If you can’t post this number in these locations, you can find it in the user manual.

Seller’s Representations and Warranties: It is the seller’s responsibility to ensure that he/she owns the vehicle and that no other party holds interest in it.

Buyer’s Representations and Warranties: Buyer promises that the person signing the document has the authority to do it.

No Other Warranties: This states that the vehicle is being sold as it is. The buyer should note that if the car shows signs of any issues in the future; the seller is explicitly disclosing the responsibility in this part.

Inspection: A summary of the vehicle’s current inspections should be mentioned here. If the seller knows of any damage to the vehicle, those issues should be disclosed here. Any known defects that are not reported can be indicated during the sale, and in the sale process, it can lead to charges of fraud.

Delivery of the Vehicle: Mention where and when the vehicle should be picked up by the purchaser.

Conveyance of the Title: This indicates that the vehicle will be provided to the buyer on the day it receives that vehicle. This column also showcases the seller’s promise that it will be signed in every document needed to effect the title transfer.

Cancellation of Insurance & Tags: The seller agrees to cancel any remaining insurance that was maintained on the vehicle.

Additional Terms of Sale: You can add additional terms to your agreement here.

Signatures: Every party must sign and print their name. Various states require that each party provide a phone number as well. Though it might not be a requirement in your state, it is a good idea for both parties to provide as much information as possible. Ensure to give a date to this document, as various number of crucial deadlines start to run on the sale date.

Odometer Disclosure Statement: State and Federal laws require an accurate report of the vehicle’s mileage on its bill of sale. Some states require the odometer disclosure statement to be on a page separate from the bill of sale itself.