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Fillable Form Bill of Sale for Car

A vehicle bill of sale is a legal document transferring ownership of a car from one person (seller) to another person (buyer).

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What is a Vehicle Bill of Sale?

A vehicle bill of sale is a document that covers the details of the sale of a vehicle between the seller and the buyer. This document may be used as proof to inform a local Department of Motor Vehicles that a sale has occurred.

The buyer or the new owner of the vehicle must present this form in order to complete registration of the vehicle. The bill of sale must be signed only when the buyer has paid the agreed amount in full and the seller or the former owner of the vehicle has transferred the certificate of title to the buyer.

What are the uses of a vehicle bill of sale?

The main use of a vehicle bill of sale is to show proof of purchase and contains the information and agreement between the seller and the buyer.

A vehicle bill of sale is also a valuable document for both the buyer and seller. The buyer can present a copy of this document to the Department of Motor Vehicles when registering for a transfer of the title of ownership because many states require a bill of sale when submitting a title transfer.

For the seller, a bill of sale can be used as proof the vehicle is no longer in his or her possession. This is important if the new owner experiences some sort of legal complications regarding the vehicle. The seller is the one who makes the vehicle bill of sale before proceeding to the transaction.

Some states require a bill of sale to be notarized.

How to fill out a vehicle bill of sale?

When filling out a vehicle bill of sale, make sure to provide specific facts and do not enter false or misleading information that may result in complications. If you enter false information, the buyer may use this against you should legal actions be considered.

Seller

Enter your full legal name.

Year

Provide the year when the vehicle was manufactured.

Make

Provide the make and model of the vehicle to be transferred.

VIN number

Provide the vehicle identification number of the vehicle to be transferred.

Buyer

Enter the full name of the buyer of the vehicle.

Amount

Enter the amount to be paid by the buyer. The amount provided must be agreed upon by both you and the buyer.

Date of sale

Enter the date when the transaction and the transfer of the vehicle will be made.

Seller’s signature

Provide your signature.

After filling out the document, consult or contact your local Department of Motor Vehicles if the bill of sale needs to be notarized before transferring it to the buyer.

Review the information provided on the document before transferring it to the buyer. If possible, provide a written document containing the conditions and agreements that should be met by both you and the buyer.

How does a vehicle bill of sale work?

The complexity of a vehicle bill of sale depends on the type of transaction that the buyer and seller will engage in. A common retail receipt of purchase can be considered as a bill of sale because it details the specific product that has been sold to the buyer and the specific amount that was paid to acquire the product.

When engaging in a transaction where a huge amount of money is involved, it is important to complete the bill of sale properly and obtain it at the time of sale.

Types of a bill of sale

A bill of sale usually takes the forms of the following:

  • Absolute bill of sale. This type of document does not guarantee any form of security, it is only a simple document that shows assignment, transfer, and other assurances of personal belongings, which are significant contracts of sale governed by the common law of contract and the sale of goods law. An absolute bill of sale may be used when a full payment will be made.

  • Conditional bill of sale. This type of bill of sale refers to any type of transfer or assignments for the payment of money. This legal document gives the seller a sense of security. For instance, the vehicle can remain in the possession of the buyer if he or she makes regular payments and honor the terms of your agreement before the transaction. If the buyer does not meet such terms and does not pay the amount discussed, you may repossess the vehicle from the buyer.

What are the benefits of creating a bill of sale?

Like many transactions where a receipt is given to a buyer as proof of purchase to avoid any complications, a bill of sale has certain benefits to both the seller and the buyer.

  • Presenting a bill of sale provides the buyer a sense of security that the vehicle is legally and properly transferred.

  • A bill of sale also gives the buyer proof that the money used to purchase the vehicle is safe and well-received by the seller.

  • A bill of sale presents the agreements made by both the buyer and the seller. Should any of these agreements be violated, either the buyer or seller can use this document as evidence if legal actions take place.

  • If the document is an absolute bill of sale, and both the seller and the buyer agree, the seller is guaranteed to receive the full payment of the agreed amount of the transaction at the time of the sale.

  • If the document is a conditional bill of sale, the buyer has enough time to arrange his or her finances in order to pay for the amount agreed at a specific time period.

  • As for the seller, a conditional bill of sale guarantees him or her to receive payment either in full or parts of the amount at a specific time period.

  • By completing and meeting the arrangements made in the bill of sale, the seller can use it as an advantage for future transactions as proof that he or she is a reliable seller. But he or she cannot show the exact document, as it is disclosed between him or her and the previous buyer.






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