Updated September 05, 2022
A bill of sale is made between a buyer and seller for the purchase of goods in exchange for cash or trade. It should be signed after the transaction has been finalized (exchange has taken place). If the transaction involves a vehicle, the buyer must keep an original copy for registration purposes.
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Table of Contents |
By Type (24)
What is a Bill of Sale ?
A bill of sale is a legal document that transfers the ownership of property, most commonly vehicles, to someone else in exchange for cash or trade. In most states, a signed bill of sale is required to register a vehicle.
Certificate of Title
A certificate of title is the official record of ownership and lists the current and past vehicle owners. Once the seller signs over the vehicle to the buyer, they will officially be the new owner.
Sample
BILL OF SALE
Date of Sale : [DATE]
1. THE PARTIES .
Buyer’s Name : [NAME] with a mailing address of [ADDRESS] (“Buyer”) and agrees to purchase the Property from the Seller known as:
Seller’s Name : [NAME] with a mailing address of [ADDRESS] (“Seller”) and agrees to sell the Property under the following terms:
2. DESCRIPTION OF GOODS
Property Description : [DESCRIBE]
Hereinafter known as the “Property.”
3. TRADE/PURCHASE PRICE . The Seller agrees to sell the Property in exchange of: (check one)
☐ – Cash Payment . The Seller accepts cash payment in the amount of $ [PURCHASE PRICE] to be paid on: (check one)
☐
– The date of this bill of sale.
☐
– At a future date no later than
[DATE]
☐
– Other.
[OTHER]
☐ – Trade . The Seller accepts trade for the Property in exchange for: [DESCRIBE TRADE]
☐ – Gift . The Buyer is receiving the Property as a gift.
Hereinafter known as the “Exchange.”
4. TAXES.
All municipal, county, and state taxes in relation to the purchase of the Property, including sales taxes, are ☐ included ☐ not included in the Exchange.
5. BUYER AND SELLER DISCLOSURE .
The undersigned Seller affirms that the above information about the Property is accurate to the best of their knowledge. The undersigned Buyer accepts receipt of this bill of sale and understands that the above-described Property is sold on an “as is, where is” condition with no guarantees or warranties, either expressed or implied.
Seller’s Signature
: __________________________________ Date: ______________
Print Name: __________________________________
Buyer’s Signature
: __________________________________ Date: ______________
Print Name: __________________________________
How to Buy or Sell a Vehicle (privately)
- Negotiate the Terms
- Vehicle Identification Number (VIN)
- Gather Vehicle Documents
- Complete the Sale
- Registration
1. Negotiate the Terms
Once you have decided whether to buy or sell a specific vehicle, you will need to enter the terms of the agreement. If the vehicle is being sold for cash, the entire amount will be due at the time of sale. Any financing will have to be done prior with a local bank or credit union. If the vehicle is being sold for cash and trade, both vehicles and the terms of the transaction must be stated (common for vehicles purchased from dealers).
2. Vehicle Identification Number (VIN)
The Buyer should obtain the Vehicle Identification Number (VIN) of the motor vehicle. This number is unique to every automobile, consisting of 17 characters. It’s usually located on the driver’s side windshield or inside where the door meets the vehicle. If you are unable to find the VIN number, you can always find it on the vehicle’s Title or Registration . When obtaining this number, you can see all the repairs that were ever done during its existence including car accidents, water damage, and ownership history.
- CarFax.com – Get a detailed report for $39.99.
- VINcheckpro.com – Get a limited free report.
Private Inspection – Remember, only the damage that gets reported to an insurance company gets mentioned in a VIN lookup. Therefore it is recommended to have a third (3rd) party mechanic inspect a vehicle to ensure it is in proper working condition.
3. Gather Vehicle Documents
Title and Registration – In order to complete the sale, the Seller must provide the Title and Registration to the vehicle. If the vehicle’s title is missing, you can request a new Title from a DMV office which can take about 10 to 14 business days to obtain.
Vehicle Bill of Sale – The legal contract between a Buyer and Seller that details a transaction between the parties. The form should only be signed by the Seller when the funds have been transferred in-person or by via a bank transfer. View Instructions .
Odometer Disclosure bbin电竞官网官方永久ment – According to federal law all vehicles that are under 10 years of age and below 16,000 pounds must have their odometer be verified by the Buyer. The Seller must acknowledge on the form that to the best of their knowledge the reading is accurate and that the mileage has not been defective.
- Download Your bbin电竞官网官方永久’s Version
- Basic Template – Adobe PDF , Microsoft Word (.docx) , Open Document Text (.odt)
Photo ID – Due to the amount of Craigslist and newspaper scams, it is highly recommended to obtain a copy of the Seller’s photo identification (such as a driver’s license). This is to be 100% sure that the person authorizing the bill of sale is able to legally sell the property. The Buyer should make certain that the title and identification match accordingly.
4. Complete the Sale
Document Signing – Once all the necessary papers are drawn up, the sale may be completed. The parties should meet at a mutual location with the Buyer bringing the funds and the Seller bringing the vehicle. At this time the Bill of Sale should be signed by both parties and the Title should be signed over.
Sales Tax – Lookup the sales tax in your bbin电竞官网官方永久. Depending on the laws the Buyer or Seller will be responsible and this must be paid at the time of sale.
5. Registration
After a bill of sale has been finalized, the new owner will take possession and will need to register the vehicle within a certain time frame. In order to properly register a vehicle, the following documents and fee(s) will need to be taken to a DMV Office Location :
- Bill of Sale – The original that was signed by the Buyer and Seller.
- Title – A new Certificate of Title will be issued and sent to the Owner within 30 days.
- Odometer Disclosure bbin电竞官网官方永久ment – If the car is younger than 10 years and under 16,000 pounds.
- Proof of Car Insurance – Usually an insurance card is suitable.
- Identification (such as a Driver’s License or Passport)
- Fee(s) – There is a tax or fee charged in every bbin电竞官网官方永久.
- *Emissions Test (*only required in some bbin电竞官网官方永久s)
Once the vehicle has been registered the buying process is complete.
DMV Offices: By bbin电竞官网官方永久
Key Terms
For as simple and straightforward a Bill of Sale can be, it’s important to familiarize yourself with the language found in your document.
“As-Is” – The term “as-is” is a statement within a bill of sale that states that the item is being purchased with no warranty .
Buyer (Purchaser) – The person in the transaction who pays money in the return for an item.
Gift – The act of giving an item to the “buyer” with no compensation in return.
Notary Public – A disinterested 3rd party public officer who can attest to the signatures of the Buyer and Seller. You can find a Notary Public at your local bank or by using a professional service.
Payment – The money used to pay for an item in a transaction.
Seller – The person or party in a transaction that is offering an item for purchase.
Trade-In – A type of transaction that starts with the buyer offering an item to the seller in equal exchange or at a discount for the Seller’s item. This type of transaction is commonly practiced in the car business when the buyer wants to trade in their used vehicle for another vehicle sold by the seller.
Vehicle Identification Number (VIN) – A unique 17 character code consisting of numbers and letters which is essentially the “serial number” of a vehicle. The VIN must be written into a vehicle bill of sale in order for it to be valid.
FAQ (Frequently Asked Questions)
- Do I need a Bill of Sale when selling my car?
- How do I prevent disagreements from the Purchaser after the sale?
- What is the difference between a Sales Agreement and a Bill of Sale?
- Does the Buyer need to sign the Bill of Sale?
- When do I deliver the Bill of Sale to the Buyer?
- When would I need to use a Promissory Note with a Bill of Sale?
Do I need a Bill of Sale when selling my car?
Depending on which state and sometimes even the County you are located, a Bill of Sale may or may not be required. By adding an extra layer of protection for the Seller, this document should always be included and completed when a vehicle transfers ownership ( View bbin电竞官网官方永久 Requirements ).
How do I prevent disagreements from the Purchaser after the sale?
Preventing future disputes between the Buyer and Seller is mainly a reason for a Bill of Sale, therefore it’s important to input as many details as possible to maximize the effectiveness of your Bill of Sale. Adding and completing a Certificate of Acknowledgment will further strengthen the power of your Bill of Sale.
What is the difference between a Sales Agreement and a Bill of Sale?
A Sales Agreement is categorized as a contract and allows you to enter more detailed information pertaining to the sale of goods and services. A Bill of Sale acts more like a receipt (proof of purchase) and does not necessarily hold any contractual bearings.
Does the Buyer need to sign a Bill of Sale?
It’s recommended but not required in most bbin电竞官网官方永久s. Due to the varying laws within each state pertaining to this issue, it’s important to check your local laws if you decide to not have the Buyer sign. Although when possible, it’s always best to have the Buyer sign the Bill of Sale.
When do I deliver the Bill of Sale to the Buyer?
Typically after paying for an item, you receive a receipt showing proof of your purchase. A Bill of Sale should work in the same way, by only delivering the Bill of sale after payment has been received by the seller.
When would I need to use a Promissory Note with a Bill of Sale?
The only time a Promissory Note should be used is when the Buyer does not have enough funds to pay for the Seller’s item in full at the time of purchase. By issuing a Promissory Note, the Buyer promises to pay over a period of time for the Seller’s item.
Video
How to Write
This example shows you how to fill out and complete a motor vehicle bill of sale. If your state requires a bill of sale but does not provide it for you, this is the form you would need when buying or selling your car.
Download: Adobe PDF , MS Word (.docx) , or OpenDocument (odt)
I. The Parties
(1) County Of Transaction. The County and bbin电竞官网官方永久 whose laws govern this transaction must be supplied to the opening of Section I. Begin by documenting the County of this sale on the first available line.
(2) bbin电竞官网官方永久 Of Transaction. The second line in Section I requires that the bbin电竞官网官方永久 governing this transaction is produced.
(3) Transaction Effective Date. In addition to the location of this transaction, the date when it is placed in effect must be presented. Utilize the formatted lines available to report this calendar date.
(4) Buyer Identity. The Party purchasing the vehicle through this bill must be established in the First Section. Produce his or her name on the first line of the “Buyer” statement, then continue by placing a record of his or her mailing address on the second line displayed in this statement. Should the Buyer be an Entity such as a Company or a Corporation, its formally registered legal name should be placed on the first line of this section.
(5) Seller Identity. The Seller’s name and mailing address are required to close Section I. Locate the “Seller” statement then produce the full name of the Seller as well as his or her mailing address. It should be noted that if the Seller is a Business rather than a Private Party, then the legal name of the Business should be supplied to the first line of the “Seller” statement.
II. Vehicle Description
(6) Make. The vehicle whose ownership is being transferred through this document’s execution must be properly defined. To this end, locate the line labeled “Make,” then present the name of the Manufacturer that has produced the vehicle. This information can be obtained from the title of the vehicle, the owner’s manual, and the body of the car. Examples of vehicle Manufacturers include companies such as Ford or Toyota.
(7) Model. The “Model” of the vehicle will also be found on the body or in its paperwork. Identify the vehicle’s “Model” on the adjacent line in Section (2). For instance, Ford manufactures Broncos while Toyota produces Corollas.
(8) Body Type. Document the “Body Type” of the vehicle on the third line in Section II. This can be found by inspecting the vehicle or its paperwork.
(9) Year. In addition to some of its physical aspects, the “Year” when the Manufacturer first completed production on the concerned vehicle should be obtained from its body or its paperwork then dispensed to the “Year” line in Section II.
(10) Color. Report the color of the car at the time of this paperwork where requested. It should be mentioned that if the car has more than one color, it should be documented in this area.
(11) Odometer. The number of miles shown on a vehicle’s odometer also aids in its identification. Reproduce the vehicle’s odometer reading to the space between the label “Odometer” and the unit “Miles.” If it is known that the odometer is inaccurate, do not estimate the number of miles the vehicle has driven since only the precise number of miles displayed on the odometer of the vehicle should be furnished to this area.
(12) Vehicle Identification Number. The VIN of the vehicle is a primary method of identifying an automobile since each one will have a unique number. The vehicle identification number can be found in its title, its registration, the Driver’s side door jamb, just where the windshield on the driver’s side meets the dashboard, or on the engine. It should be noted that this entry must be an alphanumeric value containing 17 digits.
III. The Exchange
Select And Complete Item 13 Or Item 14 Or Item 16 Or Item 17
(13) Cash Payment. The basis for the Seller’s transfer of vehicle ownership to the Buyer must be solidified in Section III. One of the four options presented in this section should be selected by a check mark placed in the appropriate checkbox to accomplish this goal. The first reason listed for transferring ownership of a vehicle describes a sale where a cash payment is submitted by the Buyer to the Seller in exchange for vehicle ownership. Thus, if the Seller is selling the vehicle to the Buyer for (only) a sum of money, then select the “Cash Payment” statement from Section III. The blank line displayed in this option requires the production of the full dollar amount the Seller is collecting in exchange for releasing the vehicle to the Buyer reported as its content.
(14) Trade. In some cases, the Buyer will be required to submit a dollar amount and relinquish ownership of his or her current automobile to the Seller. If this type of transaction is the basis for the Seller’s release of the purchased vehicle to the Buyer, then place a check in the checkbox labeled “Trade.” Additionally, supply the dollar amount the Buyer has paid the Seller to the blank line of this option then continue to review the vehicle information it will require from the Buyer.
(15) Trade Details . After the Buyer’s payment has been defined, continue through this statement then document the “Make,” “Model,” “Body Type,” “Year,” “Color,” and the “Odometer” reading of the vehicle being released by the Buyer on the blank spaces provided.
(16) Gift. Occasionally, a vehicle’s ownership will be transferred because the Seller is gifting the vehicle to the Buyer thus releasing the Buyer from any obligation of payment. In such a case, the “As A Gift” checkbox should be selected, and the current value of the vehicle should be submitted to the space following the dollar sign.
(17) Other. If the previous statements do not accurately represent the reason behind the Seller’s release of the vehicle to the Buyer, then submit a check in the “Other” checkbox and submit a report on the requirements for the transfer of the concerned vehicle’s ownership. For instance, the Seller may be transferring ownership of the vehicle to an Employee as part of a payment for work or a severance package.
IV. Taxes
Select Item 18 Or Select Item 19
(18) Buyer. In nearly every transaction, taxes will be owed. Since a vehicle is often considered to be worth a significant sum of money, it is likely that taxes will need to be calculated and paid according to the laws governing this transaction. If the Buyer will be responsible for paying the taxes owed on this transaction and the value of such taxes are not defined by the selling price of the vehicle then, mark the “Buyer” checkbox in Section IV.
(19) Seller. If the Seller shall pay for the taxes owed for the transaction and has included the tax amount that will be owed in the payment he or she requires of the Buyer (as defined in the previous section), then the “Seller” checkbox in Section IV should be selected.
VI. Authorization
(20) Buyer Signature And Name. Since vehicle ownership carries a certain amount of responsibility, this bill should be acknowledged by the Buyer once it is complete. If he or she will accept ownership of the vehicle and satisfies the transaction requirements, then the Buyer must sign the “Buyer Signature” line provided in the Sixth Section and print his or her name on the space provided.
(21) Signature Date Of The Buyer . The calendar date defining when the Buyer formally executes his or her signature should be documented when he or she signs this paperwork.
(22) Seller Signature And Name . The Seller must sign this paperwork to formally release the vehicle to the Buyer once the transaction requirements have been met. To this end, the Seller should review the above information for accuracy, then sign and print his or her name to the “Seller Signature” and “Print Name” lines (respectively). In a case where the Seller is a Company or a formal Business, then a Signature Representative that is formally authorized to enter this agreement on its behalf should sign and print his or her name to the “Seller Signature” and “Print Name” lines as acknowledgment on behalf of the Entity acting as the Seller.
(23) Seller Signature Date . The Seller must date the signature he or she provided to this document where requested.
Odometer Disclosure bbin电竞官网官方永久ment
(24) Seller Identity. As mentioned, the vehicle’s odometer reading is a valuable factor in identifying the vehicle at the time this bill is executed. Since this may not accurately define how far the vehicle has driven since its year of production, the odometer reading’s validity must be discussed. The statement made requires some preparation before it is signed therefore produce the name of the Seller on the first available space displayed by the “Odometer Disclosure bbin电竞官网官方永久ment.”
(25) Odometer Reading . Document the precise number of miles displayed by the vehicle’s odometer. If this is the number of miles that the vehicle has driven since production, then this statement may be executed without attending to either choice provided below. However, if this is not the case and the number of miles displayed on the odometer is not an accurate measurement of the exact distance driven by the vehicle then one of the two check box statements displayed below this statement must be selected.
Select Item 26 Or Item 27
(26) Excess Mileage . If the odometer measures mileage accurately but the vehicle has driven beyond the maximum number of miles that can be displayed forcing the odometer to return to zero before continuing its measurement then select the first statement. This will indicate that the odometer may measure mileage accurately even after it has “turned over” to zero but, the number of miles displayed should be considered inaccurate.
(27) Odometer Discrepancy . If the Seller is aware that the odometer reading does not accurately display the number of miles driven by the vehicle since its production because the odometer does not accurately measure miles driven at the time of this paperwork’s execution or has been inoperable for a significant period of time before its repair, then choose the second option by supplying a check mark to the appropriate box.
Odometer Disclosure bbin电竞官网官方永久ment Acknowledgement
(28) Buyer Signature And Printed Name. The Buyer must acknowledge the information presented regarding the odometer reading on the vehicle by signing the “Buyer Signature” line, then printing his or her name directly below. This statement must be signed by the Buyer even if the Buyer is a Business Entity. In such a case, an authorized Representative of the Buying Entity may sign and print his or her name to acknowledge this statement on its behalf.
(29) Buyer Signature Date . Once the Buyer has read through the disclosure statement and signed his or her acknowledgment, he or she must document the current date.
(30) Seller Signature And Name. The Seller must attest that the information provided by the disclosure statement above is accurate. To this end, he or she must sign the “Seller Signature” line, then present his or her full name in print to the space provided underneath. If the Seller is a Business, then a Signature Representative elected by its managing body may sign and print his or her name on behalf of the Selling Entity.
(31) Seller Signature Date . The calendar date when the Seller provides his or her signature as a testimony to the disclosure statement should be reported immediately upon signing.
Notary Acknowledgement Of Seller’s Signature
(32) Notarization. The Seller should have the signature he or she must submit for this paperwork’s execution notarized at the time he or she signs it. Once the Notary Public has overseen the signature notarization process, he or she will complete the final area of this document, titled “Notary Acknowledgment (Seller Only) by citing the location of the signing, the date, and the Seller’s identity in addition to providing his or her own credentials and seal.
