Writing a Motor Vehicle Bill of Sale

Buying or selling a used car privately has many advantages. Selling through a broker or dealership means they take a cut of the sale price. A private party sale means you will get more money. The buyer will also pay less money because there are no third parties. Still, creating a legal motor vehicle bill of sale is vital to protect the buyer and seller’s interests.

Be careful about using a standard bill of sale from the internet. If you want to know more about ensuring a legally binding vehicle sale, talk to a consumer protection attorney for advice. A local consumer protection lawyer can provide a bill of sale that is valid under state law.

Do You Need a Bill of Sale for a Used Car?

A bill of sale documents the transfer of ownership from one person to another. For a car, the bill of sale is evidence that the prior owner is transferring ownership to the new owner. Bills of sale can be used for other types of transactions, but most consumers encounter them when transferring ownership of a motor vehicle.

In many states, you need a bill of sale to transfer car ownership. The Department of Motor Vehicles (DMV) may also require a bill of sale to obtain a new vehicle registration and a new title.

A bill of sale protects both the buyer and seller. With it, the seller has evidence that the vehicle is no longer theirs. So, they aren’t liable for tickets or accidents involving the car. The bill gives the new owner proof of ownership.

How Do You Write a Motor Vehicle Bill of Sale?

You can usually write a motor vehicle bill of sale without a lawyer’s help. Preprinted forms or online templates can provide information to include in your bill of sale. However, using a form specific to your state is essential. Different states have different legal requirements for a bill of sale.

You can also check with your local DMV about what you need for your own bill of sale. The DMV may offer a bill of sale template that you can use to complete the transfer of ownership. Generally, motor vehicle bill of sale requirements include information about the following:

• Vehicle
• Buyer and seller
• Conditions of the sale

Information About the Vehicle

The bill of sale should be specific to the vehicle involved. Information about the vehicle can include:

• Vehicle identification number (VIN)
• Year, make, model, and color
• Odometer reading
• License plate number
• Payment information

Information About the Buyer and Seller

Sales information can include the date of the sale and the selling price or purchase price. If the car title transfer is a gift, you may have to include the gift value and relationship.

The bill of sale should include information about who is buying and selling the vehicle. This includes the buyer’s and seller’s names, phone numbers, and contact information. The form may also require the seller’s signature to certify that the bill of sale document information is correct.

Special Sale Conditions

If your sale involves special conditions, you should include them in the written bill of sale. Examples of special conditions can include:

• Down payment due on a specific date
• Balance due within a certain number of days
• Buyer has the right to have the car inspected by their own mechanic
• Buyer has the right to return the car within a certain number of days

A car bill of sale might also contain a warranty by the seller. This includes an odometer disclosure statement, a statement that the owner has a legal vehicle title, or that the vehicle has no known defects. The seller can also sell the vehicle as-is with no warranties.

How To Execute a Motor Vehicle Bill of Sale

Once you draft a motor vehicle bill of sale, it’s time to execute the document and finalize the sale. In many states, both the seller and buyer must sign the document and have their signatures notarized to execute a bill of sale. The notary may also need to sign the document and affix a seal or other information relating to their legal authority.

If you’re in the market to buy or sell a car, carefully review the general requirements above. Check the specific requirements for your state to ensure the sale is legally binding and enforceable. You may also want to keep a copy of the bill of sale if the buyer doesn’t register the proof of purchase. If you have questions about transferring a vehicle to a new owner, ask a consumer protection lawyer in your state for legal advice.