When Should You Use One? We recommend always having a document prepared for a major transaction like this, even if you live in a state where a vehicle bill of sale is not required. Requirements differ between states.
How to Properly Write a Bill of Sale to Make it Legal January 27, Knowing how to write a bill of sale is important in the event you ever want to sell your used car to a private party. There are certain steps that must take place in order to make a bill of sale a legal document.
So what can you do to protect yourself and ensure the document you are creating is a binding agreement that will hold up in a court of law?
Simple, follow these steps when creating your standard bill of sale. Step One Prior to writing the bill of sale you should gather all of your pertinent information such as the title to the vehicle and registration papers you may have. Step Two With that out of the way, the next step is to begin writing the bill of sale.
First you need to establish the identity of both the seller of the car, whether that is you or the person you are buying it from. Step Three With the identity of the seller established you now to need to verify the details of the vehicle, using the title and the registration papers if necessary.
This information should include all of details of the vehicle being sold, including the year, make, model, odometer reading, Vin and any other distinguishing features the vehicle may have. Without those two words you could potentially be sued from problems that were unknown at the time of sale that pop up later.
Step Five Since you are interested in this being a legal document, you need to include several other things. Step Six Lastly, the bill of sale must be signed by both the buyer and the seller and, in order to make it official, it is a great idea to have these signatures notarized.
In addition, you should have each person date the signature at the time of signing. Once the bill of sale is finished and signed and the sale has been completed you can have the title transferred and you are all done. Make sure you provide a copy of the bill of sale to each party.
If a problem should arise, your bill of sale can prove an important document in a court of law and it is imperative that if you make one, you make it legal.A bill of sale can also be used as a simple loan contract to protect the seller if the buyer defaults on payments.
When using a bill of sale for this purpose, include the amounts and due dates of expected payments and any agreement about late fees and interest rates.
What Is a Bill of Sale? A bill of sale is a document recording a transaction between two parties. For the seller, a bill of sale shows the date the vehicle was sold and information about the buyer. For the buyer, it gives specific information about the vehicle that can be checked against a Vehicle History Report.
Writing a used car bill of sale need not be complicated.
Just use the information from your motor vehicle title and follow some simple steps. Make sure you describe the vehicle being sold and the terms of the contract.
Jul 24, · To write a bill of sale, start by writing “Bill of Sale” at the top of the page. On the next line, state that you are the owner of the item and give your name and address. Then, include the make, model, and registration number, along with any other pertinent information about the item%(8).
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. Having a bill of sale gives the car buyer proof of purchase, helps the seller in cases where liability may come into question and details how and when the buyer will make the payments.
Write the title "Bill of Sale" at the top of the paper.