Having a bill of sale also protects the buyer if the seller denies the sale at any point. This way, not only do you have proof of ownership for the vehicle, but if you find any damages that the seller never disclosed, you can take them to task. How Does a Bill of Sale Benefit the Buyer?Ī motor vehicle bill of sale is beneficial for the buyer because it documents the car's condition at the time of purchase. It also means that if the buyer claims they never purchased the motor vehicle from you, you have proof of the transaction. How Does a Bill of Sale Benefit the Seller?Īs the seller of the used car, the bill of sale acts as a receipt, proving you no longer have ownership of the vehicle. Louisiana, Nebraska, Maryland, New Hampshire, West Virginia, and Montana are the states which require a notary public to witness both parties signing the bill of sale.Ī bill of sale forms part of state law for the states listed below:Įven if a bill of sale for a car isn't a legal requirement in your state, create one so you have protection as the seller or insist on one so you have protection as the buyer. Not all states legally require a bill of sale, while others need the document notarized to be recognized as valid. In this case, the lender will need the bill of sale for the vehicle if the borrower defaults on their loan agreements. There are instances when a bill of sale for a car may be used as security for a loan this is when someone pledges a car as collateral for a loan. While a motor vehicle bill of sale is essentially a sales agreement, it can get complicated. While it is beneficial for both parties, it helps your local department of motor vehicles (DMV) keep track of all car sales, so everything is documented with a valid paper trail. It is a hybrid legal document between the car buyer and the seller detailing the sale of the vehicle between the parties and records the transfer of ownership. A vehicle bill of sale is a record of the sale of a motor vehicle that acts as a receipt and invoice for the transaction. What is a Bill of Sale for a Car?Ī bill of sale confirms the sale of personal property or assets. Whether you are the buyer or seller, we share some helpful information below on a bill of sale for a car. In the same breath, a bill of sale is also necessary when buying a used car privately, as you will need proof of purchase for your local DMV. If you are planning on selling your car privately, it is wise to ensure you have a bill of sale form ready for your buyer to complete, even if it isn't state law where you reside. A motor vehicle bill of sale details the terms of the transaction and serves as written evidence that the vehicle was sold. It is the responsibility of the new owner to obtain either license plates or a temporary registration.A bill of sale is a legal document used to record a transfer of ownership when selling your car, aircraft, motorcycle, watercraft, or any other asset in exchange for money. The plates are not to stay with the vehicle. Lastly, the seller of the vehicle should always keep their license plates. Vehicles are exempt emissions if purchased during the first 7 model years of the vehicle. Vehicles 1981 and older will receive a test valid for 1 year. Vehicles 1982 and newer will receive a test which is valid for 2 years. In addition to the properly signed and notarized title, you, as the seller, should give the buyer a bill of sale which contains the perjury clause.Ĭhange of Ownership requires a new passing emissions certificate supplied by the seller at the time of sale. The buyer then must present the title to the motor vehicle office in order to complete the transfer. The first name written first, then the last name: John Smith.Īfter the seller's signature has been notarized (if necessary), have the buyer enter their name on the "convey to" portion of the title exactly as they want their name to appear on the title. If the title reads Smith, John, then the signature must be made on the title in the normal written order.If the title reads John Albert Jones, Jr., then the signature on the title must read: John Albert Jones, Jr.Jones, then the signatures on the title must read: John and Mary A. If a selling party's name has been signed off by a power of attorney, that document is also required. The signature of the seller must match the name of the owner exactly as it is printed on the title. If you are unsure about the need for notarization, please call the motor vehicle office at (970) 498-7878. Some states use titles which require notarization of the seller's signature. You, as seller, and any other party listed on the title as owner, must sign on the "signature of seller" portion of the title. Codes, Policies, Ordinances & ResolutionsĪ title is required to sell a vehicle in Colorado.
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