Now that you have put your car on the market and have found a buyer for it, it is time to conclude the sale. Your transaction cannot be done with a single handshake or goodbye. Additionally, you’ll have to file your transfer with the motor vehicle department of the state as well as other local agencies. This requires a well-drafted bill to sell. With the enclosed documents and instructions, you can firm up the conditions of your agreement and get your car’s new titling and registration.
A bill of sale could be considered an invoice. It proves that the ownership of a specific piece of property has changed hands. It outlines the conditions and terms of the sale, including the cost as well as the delivery and conditions. The bill of sale is a way in proving the identity of a vehicle’s true legal owner. Additionally, these documents are used by many counties and states to calculate the value or, if applicable, the state and county sales tax.
Related: Kansas Vehicle Bill of Sale Form
Follow the guidelines and create a written acknowledgment that you have accepted the rights and responsibilities that you are transferring in the course of selling. This will enable you to create an accurate record of your property’s title.
2. Dos & Don’ts Checklist
- Finding the exact name and address of the person who is not a party to your deal is essential. It is imperative to immediately reach out to the other partner to your deal in case there is any question about the property title.
- If you decide to sell your vehicle, you must present it to the buyer in the form of a bill of sale. This is only after you have received the cash and the transaction has been completed. It may be difficult for you to recover any outstanding amount if the buyer did not give written proof of its payment obligations.
- The bill of sale included presumes that the buyer will be paying the entire car’s purchase price at the time of sale. The parties should sign a promissory note to defer payment of the down amount.
- Sign two copies of your bill of sale, one for yourself and one for the other.
- It is possible to bring a third party along with you when you sign the bill. The third party can be the reporter of the transaction if there are any questions. The other person and you may also notarize your signatures.
- After the bill of sale is completed and signed, go to the local tax office or county clerk to record the bill. They will then use the invoice to estimate the amount of sales tax or use tax you’ve paid and then note the transaction.
- The seller must immediately contact the state DMVBILLOFSALE.NET and inform them that the car was sold. This protects the seller from a ticket or accident occurring between the sale and re-titling.
- In order to finish the transfer of title, both you and the buyer must submit a copy of your bill of sale (bill of sale) to your state’s Department of Motor Vehicles. Certain states require that sellers reports the transfer of title within five days after the sale and the buyer must report it within ten (10).
- There may be additional steps required for the transfer of your car. In order to transfer the car, you will need to give the “pink slip” of the vehicle. For more details, contact your local tax or motor vehicle department. authority.
- Before physically transferring the vehicle to the buyer, remove the license plate of the vehicle. This is required by law in many states.
3. Instructions for the Bill of Sale (Automobile).
This guide to section-by-provision will assist you to comprehend your bill of sale. The numbers below (e.g. section 1, section 2, etc.). These numbers are the contents of the form enclosed. Please review the document in its entirety before starting your step-by-step process.
- Location of Sale.Enter the name of the county and state where the sale will be made. If the parties are from different counties, please use the name of the county or state in which the vehicle is located.
- Purchase Price.Enter the purchase price in the first blank provided. Include the total cost of the car and any prior down-payments.
- Names and Addresses of Parties.Identifies the parties and their street addresses (not P.O. Boxes). Boxes Only the owner of the title can sell it. This means that the bill of sale has to be signed by only the spouse if the vehicle is being sold by a couple who are married.
- Vehicle Description and LocationThese spaces allow you to detail the car you’re selling or buying. Be as specific as possible, making sure that the car that is being sold is clearly identifiable from the description. The location, year, make, and VIN must be listed.
- Location:Input the name of the county or state in which the vehicle is located.
- Make:Ford, Chevrolet Lincoln Lincoln, BMW
- Model:Corvette, M5, Mustang, and many other models.
- Type of Body:Sedans, Coupes, Convertibles SUVs, Sedans, Convertibles,
- VIN:The unique 17-character identification code is called the Vehicle Identification Num (or “VIN”). The VIN is located in the following locations: the dashboard, the steering column, firewall, driver’s side door, and passenger side posts. If you’re unable to locate the VIN, you should consult the user manual.
- Section 1 – Seller’s Representations, Warranties.The seller’s guarantee that it owns the car and that no other party holds an interest in the vehicle.
- Section 2: Warranties and Representations of BuyersThe buyer guarantees that the person who signs a bill of sale is authorised to do so.
- Section 3: There are no other guaranteesAny warranty, other than the warranty mentioned in Section 1 or the manufacturer’s warranty (if applicable), is disclaimed. The vehicle is offered “as is.” The buyer should note this provision: if the car has issues in the future the seller is explicitly not claiming any responsibility in this paragraph.
- Section 4: Inspection.Here is a overview of the latest mechanical inspections. Attach a report detailing the inspection if the vehicle was examined in the past month. If not, remove the second sentence.If the seller is aware of any defects in the vehicle, they have to disclose them in the provided space. Any defects that are not reported could cause the sale to be invalidated, and may bring subsequent accusations of fraud. If there are no known defects, the empty space may be removed.
- Section 5 Deliver.Please indicate when and where the vehicle has to be picked up. In the note, write down the date the day you wish this to occur.
- Section 6: Title of ConveyanceThe Seller will state that the title of the vehicle will be transferred to the Seller at the time it receives it. This section also includes the seller’s guarantee that it will sign all the necessary documents required to complete the title transfer.
- Section 7: Cancellation Insurance TagsThe Seller was willing to cancel any tags or insurance it was carrying on the vehicle.
- Section 8: Additional Conditions of Sale.If there are additional terms you’d like to include in the form, enter those in the space that is provided. The parties may decide to include a requirement that the vehicle is cleaned before the delivery date.
- SignaturesEvery party has to sign and write their name. Many states also require each party to provide a telephone number. This may not be required by your state however it is a good idea for all parties. Be sure to mark the document with a date, since a number of crucial deadlines begin to expire at the time of sale (e.g. Transfer of title and registration
If the third party witnessed the signature of the document, ask to sign and date the area. This section could be removed if there are no witnesses to the transaction.
- Odometer Disclosure Statement.State and federal laws require an accurate report of a vehicle’s mileage on its bill of sale. Some states require that this disclosure statement be included on a separate document of the bill. This has been done by the enclosed form.
Input the name of the seller and the miles. You should not mention the miles traveled in the report. Do not look at any blank lines below the initial paragraph, if the reading of the odometer is according to the knowledge of the seller, accurate. If the odometer reads five digits but the mileage report is not accurate then you must examine the first line. The reason why the odometer stopped functioning after 99,999 mile is that it must be moved. For instance when the mileage is “10,000,” but the actual mileage is 110,000, the seller must record the amount “10,000” and check this line.
If the seller knows the odometer’s number is not correct or the odometer itself is broken It should examine the second line.