How to Draft a Bill of Sale for a Vehicle
Track down your state's laws and regulations regarding bills of sale., Analyze the legal requirements set out in your state's laws and regulations., Draft an introduction., Identify the parties., Detail the date of the sale and the purchase price of...
Step-by-Step Guide
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Step 1: Track down your state's laws and regulations regarding bills of sale.
After you buy a vehicle, you will need to fill out a bill of sale and submit it to the DMV, as part of the vehicle registration process, in order to prove you own the vehicle.If you are choosing to draft your own bill of sale, you will need to make sure it complies with your state's laws and regulations.
States regulate these documents because they are used for official purposes (i.e., to register your vehicle).To find out if your state regulates bills of sale, conduct a general internet search for "bill of sale regulations".
Look for government websites and links to statutes and regulatory guidance documents.
If you do not have permanent access to the internet, you can visit your local law library and ask for help.
Law librarians are well-trained to help you find books and other materials on specific legal topics.
When you get to the library, ask a librarian if they can help you find laws relating to vehicle registration and certificates of vehicle title.
Let them know you are looking for information on bills of sale. -
Step 2: Analyze the legal requirements set out in your state's laws and regulations.
Once you find the applicable laws, look through them to determine what will have to be included in your bill of sale.
This step is important and, if you miss a requirement, your bill of sale could be rejected by the DMV.
While each state will have its own requirements, bills of sale will generally have to have at least the following information:
The date of the sale A description of the vehicle (e.g., make, model, VIN, and manufacture year) Your name and address (as the buyer) The seller's signature and address. , After compiling a list of all the things that need to be included in a bill of sale, you can start drafting.
If at all possible, use a computer.
Start by giving your document a title (e.g., "Bill of Sale").
Directly beneath the title, write an introduction that gives context to the document and presents the transaction that took place.
For example, your introduction might state, "Seller is selling, transferring, and delivering the below vehicle to Buyer."
Within the introduction, or directly after, you need to define who the buyer is and who the seller is.
These are the parties to the bill of sale so they need to be described in as much detail as possible.
While every state will have different requirements, you should always include:
The seller's full name, address, and phone number.
The buyer's (your) full name, driver license number, address, and phone number. , The next sentence of your bill of sale should describe the sale that has taken place.
You need to include at least the date the vehicle was purchased and the price you paid to purchase it.
If the vehicle was gifted to you, you need to state this.
In addition, you should indicate what the parties perceive the value of the gift to be (i.e., how much you think the car is worth)., In a new paragraph, the car needs to be described in enough detail that the DMV can accurately link the particular bill of sale to the vehicle you are trying to register in your name.
If the vehicle description is too vague, the DMV will not be able to process your bill of sale for registration purposes.
While each state will require different information, you should always try to include the vehicle's:
Make Model Vehicle Identification Number (VIN) Model year Year of manufacture Type of body (e.g., pickup, sedan, SUV) Number of cylinders , Federal and state laws require the seller to disclose an accurate odometer reading to you when they transfer ownership of the vehicle.
Because the transfer document is usually a bill of sale, this is where the odometer disclosure usually takes place.
In addition to leaving space for the seller to write in the odometer reading, you should also include a certification for the seller to sign or initial, which will state that the odometer reading is accurate.
For example, you might draft a provision that states, "Seller certifies that the odometer reading is , and that this reading reflects the actual mileage.
Providing a false statement may result in Seller being fined and/or imprisoned."
Depending on the complexity of your transaction, you may choose to include other information in your bill of sale.
Commonly, sellers and buyers will agree to certain warranties, which are promises and assurances about the history of the vehicle and its condition.
In addition, some bills of sale are drafted and provided to a lender as security for a loan.
If you are in this scenario, your bill of sale will need to include language making it clear that it will not become effective unless you default on your loan.
For example, this type of provision might be necessary if you ask a bank for a loan and the bank requires you to use your car as collateral on that loan., At the bottom of the bill of sale, make sure you leave lines where both you and the seller can sign and date the agreement.
While most states only require the seller to actually sign the bill of sale, it is always good practice to have the buyer sign as well., If your state requires you to get bills of sale notarized, you will need to hold off on signing the agreement until you are in front of a notary.Notaries can be found at most banks, law offices, and even a lot of nonprofit organizations.
Once in front of a notary, you and the seller will sign the bill of sale and the notary will acknowledge the signatures. -
Step 3: Draft an introduction.
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Step 4: Identify the parties.
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Step 5: Detail the date of the sale and the purchase price of the vehicle.
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Step 6: Describe the vehicle.
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Step 7: Include an odometer reading.
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Step 8: Draft any other information you want to include in the document.
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Step 9: Leave space for signatures.
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Step 10: Get the bill of sale notarized
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Step 11: if required.
Detailed Guide
After you buy a vehicle, you will need to fill out a bill of sale and submit it to the DMV, as part of the vehicle registration process, in order to prove you own the vehicle.If you are choosing to draft your own bill of sale, you will need to make sure it complies with your state's laws and regulations.
States regulate these documents because they are used for official purposes (i.e., to register your vehicle).To find out if your state regulates bills of sale, conduct a general internet search for "bill of sale regulations".
Look for government websites and links to statutes and regulatory guidance documents.
If you do not have permanent access to the internet, you can visit your local law library and ask for help.
Law librarians are well-trained to help you find books and other materials on specific legal topics.
When you get to the library, ask a librarian if they can help you find laws relating to vehicle registration and certificates of vehicle title.
Let them know you are looking for information on bills of sale.
Once you find the applicable laws, look through them to determine what will have to be included in your bill of sale.
This step is important and, if you miss a requirement, your bill of sale could be rejected by the DMV.
While each state will have its own requirements, bills of sale will generally have to have at least the following information:
The date of the sale A description of the vehicle (e.g., make, model, VIN, and manufacture year) Your name and address (as the buyer) The seller's signature and address. , After compiling a list of all the things that need to be included in a bill of sale, you can start drafting.
If at all possible, use a computer.
Start by giving your document a title (e.g., "Bill of Sale").
Directly beneath the title, write an introduction that gives context to the document and presents the transaction that took place.
For example, your introduction might state, "Seller is selling, transferring, and delivering the below vehicle to Buyer."
Within the introduction, or directly after, you need to define who the buyer is and who the seller is.
These are the parties to the bill of sale so they need to be described in as much detail as possible.
While every state will have different requirements, you should always include:
The seller's full name, address, and phone number.
The buyer's (your) full name, driver license number, address, and phone number. , The next sentence of your bill of sale should describe the sale that has taken place.
You need to include at least the date the vehicle was purchased and the price you paid to purchase it.
If the vehicle was gifted to you, you need to state this.
In addition, you should indicate what the parties perceive the value of the gift to be (i.e., how much you think the car is worth)., In a new paragraph, the car needs to be described in enough detail that the DMV can accurately link the particular bill of sale to the vehicle you are trying to register in your name.
If the vehicle description is too vague, the DMV will not be able to process your bill of sale for registration purposes.
While each state will require different information, you should always try to include the vehicle's:
Make Model Vehicle Identification Number (VIN) Model year Year of manufacture Type of body (e.g., pickup, sedan, SUV) Number of cylinders , Federal and state laws require the seller to disclose an accurate odometer reading to you when they transfer ownership of the vehicle.
Because the transfer document is usually a bill of sale, this is where the odometer disclosure usually takes place.
In addition to leaving space for the seller to write in the odometer reading, you should also include a certification for the seller to sign or initial, which will state that the odometer reading is accurate.
For example, you might draft a provision that states, "Seller certifies that the odometer reading is , and that this reading reflects the actual mileage.
Providing a false statement may result in Seller being fined and/or imprisoned."
Depending on the complexity of your transaction, you may choose to include other information in your bill of sale.
Commonly, sellers and buyers will agree to certain warranties, which are promises and assurances about the history of the vehicle and its condition.
In addition, some bills of sale are drafted and provided to a lender as security for a loan.
If you are in this scenario, your bill of sale will need to include language making it clear that it will not become effective unless you default on your loan.
For example, this type of provision might be necessary if you ask a bank for a loan and the bank requires you to use your car as collateral on that loan., At the bottom of the bill of sale, make sure you leave lines where both you and the seller can sign and date the agreement.
While most states only require the seller to actually sign the bill of sale, it is always good practice to have the buyer sign as well., If your state requires you to get bills of sale notarized, you will need to hold off on signing the agreement until you are in front of a notary.Notaries can be found at most banks, law offices, and even a lot of nonprofit organizations.
Once in front of a notary, you and the seller will sign the bill of sale and the notary will acknowledge the signatures.
About the Author
Kyle Bell
A passionate writer with expertise in crafts topics. Loves sharing practical knowledge.
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