What to Include in a Bill of Sale?
Why a Bill of Sale is Important
A Bill of Sale states that a vehicle (or other item) has been sold. This is a useful document when you're buying or selling a car privately, when there isn't as much of a paper trail as there is at a dealership. A Bill of Sale is one more way of verifying a sale has taken place, and in some cases this may be useful in proving you are no longer liable for the vehicle.
Who Needs a Bill of Sale?
For the most part, the seller just needs a Bill of Sale for his own records, but on the other side of the equation, the buyer might need the form in order to complete the title transfer and register the vehicle. If you show up to the DMV or your local vehicle registration branch without a Bill of Sale, the attendant might turn you away until you can show the proper paperwork with the car’s purchase price.
Another important reason why a Bill of Sale is so necessary during title transfers is because some motor vehicle agencies use this document to calculate the vehicle’s license fee.
Your Bill of Sale will generally include information about the transaction, including:
- A description of the vehicle and its vehicle identification number (VIN).
- Any warranty that may have been agreed upon (or mentioned sold as is)
- The final sale price of the vehicle.
- The name of the buyer and the seller.
- The county and state in which the vehicle was sold.
- Date of transaction
- Signature and addresses of both parties
Bill of Sale vs. Title Transfer
While a Bill of Sale is an essential part of the sale process, it generally does not prove ownership; only a title transfer proves ownership of a vehicle. In order to fully complete the sale, remember to transfer your title right away.
Bill of Sale Forms
A Bill of Sale is an important part of any vehicle sale; however, it is not the only thing you'll need to consider.
- No sale is final until you complete a title transfer. Without this step finalized, the seller may be liable for fines and violations associated with the car.
- As a buyer, BE SMART. Don't get saddled with a lemon. Order a History Audit to know for certain you're buying a gem.
Depending on the state you live in, your state's motor vehicle department may require you to obtain a Bill of Sale. A Bill of Sale can be an important part of any vehicle transaction for both the buyer and the seller.
History Audit: Don't Sign Without It!
You should NEVER go into a sale transaction without knowing the history of the vehicle for both parties. If you neglect to learn about a vehicle's history prior to selling or buying, you could get stuck with a lemon or legal issues down the road that will drain your money and time for years.
History Audit reveal information about a vehicle's past, including details about:
- Previous owners.
- Previous states where it was registered.
- Past accidents and damages.
- Full mileage history from the DMV
- Market value (Based on mileage condition *estimates from industry averages)
- Vehicle use records (commercial, lease)
- Title & Problem verifications
- Safety Recalls
- Over 60 checks included in every vehicle report
Before you even consider signing a Bill of Sale, you must make sure your purchase will be a good one. To obtain details on a potential purchase, run a history report and conduct a safe transaction today History Audit/VIN checks.