How to Write DMV Bill of Sale Form


After you’ve put your car on the market and found an interested buyer, it is time to conclude the sale. Modern marketplaces demand that you go beyond just handshake the buyer’s hand and say goodbye. Additionally, you’ll have to file your transfer with the state’s motor vehicle department as well as other local agencies. It is necessary to draft a complete bill for sale. These documents and instructions can help you finalize the agreement and prepare your vehicle for its new titling.

A bill for sale is comparable to an invoice. The bill of sale functions like a receipt. It shows that the property’s ownership has changed. It contains information about the terms of sale including price, delivery and the condition. The bill of sale can be used to verify the legal title of a car. Additionally numerous states and counties use these documents to calculate the amount of sales tax owed on the transaction, if there is any.

Related: Using a Vehicle Bill of Sale

If you adhere to the enclosed sample and guidelines and guidelines, you will receive a written acknowledgment of the rights and responsibilities being transferred as part of the sale. This document can help you establish clear title to your property.

2. Dos and Don’ts Checklist

  1. It is essential to confirm the physical and identity of every other person to your deal. It is imperative to contact the person or company if you have any questions regarding title to the property.
  2. After you’ve received your money and completed the transaction, you must present the seller of your vehicle with a signed bill of sale. Because the bill of sale indicates that you have already been paid, it may be difficult to collect any outstanding amount if the buyer does not have proof in writing that their payments are in full.
  3. The bill of sale enclosed assumes that the buyer will pay the full amount of the car’s purchase on the date of sale. The buyer may pay a down payment at time of purchase, or pay the remaining amount over time. To do this, they should execute a promissory Note and then use the bill that permits the deferred payment.
  4. Make two copies of the bill of sale. One for you and the other party.
  5. You can bring an additional person along with you when you sign the bill. If questions arise about the sale, that person could be a reporter of the transaction. Alternatively, you as well as the other person may notarize the signatures of both parties on the form.
  6. After your bill is signed, take it to the local county clerk/tax office for the invoice to be recorded. They will then use the invoice to estimate the amount of sales or use tax you have paid and then note the transaction.
  7. The seller must contact the state Department of Motor Vehicles alaska bill of sale as soon as possible after the sale. Inform them of the vehicle was sold. This protects the seller if tickets are issued or an accident occurs between the sale and renewal of the title.
  8. To complete the transfer of title both the seller and the buyer must submit an original copy of the sale bill to their state’s Department of Motor Vehicles (DMV). Some states require that sellers report the title transfer within five (5) days of the sale, while the buyer must report the title transfer within ten (10).
  9. There may be additional steps to follow in order to transfer your vehicle. For instance, the vehicle’s “pink slip” must be signed over to the purchasing party. Check with your local motor vehicle department and tax authority to determine what documents may be needed.
  10. Before you physically transfer the vehicle, it is necessary to take off the license plate. This is required in a number of states.

3. Instructions for Bill of Sale (Automobile).

These provisions-by-provision instructions will assist you in understanding the terms of your bill. These numbers (e.g. Section 1 Section 1, Section 2 Section 1, Section 2, etc.). are the same as the sections in the enclosed document. Before proceeding with the step-by-step procedure be sure to read the complete document. It will be a good idea to review the entire.

  • The site of the saleWrite down the state name and county in which the sale will take places. If two parties are involved you must use the county and state in which the vehicle is located.
  • Purchase Price.In the first box, type the price of purchase. Include the total cost of the vehicle and any previous down-payments.
  • Names and addresses for parties.Identifies the parties along with the addresses of their streets (not P.O. Boxes Boxes It is important to note that only the person who’s name appears on the title of a vehicle is permitted to offer it for sale. This means that only the spouse that is the owner of the vehicle and not the husband, is able to sign the bill.
  • Description and Location of the Vehicle.These spaces are used to describe the car. It is important to be as detailed as you can to ensure that the vehicle you’re selling can be identified easily from the description. The location, year, make, and VIN must be included.
    • Location:Include the county and state where the vehicle is located.
    • Take:Ford, Chevrolet, Lincoln, BMW, etc
    • Model:Corvette and Mustang M5 and Mustang M5.
    • Body Type:Sedan, Coupe and Convertible, SUV, etc
    • VINThe unique 17-character identification code is called the Vehicle Identification Num (or “VIN”). The VIN is usually located in the dashboard, on the steering wheel, the firewall of your vehicle, the driver side door or the passenger side post. Check the user manual of your vehicle if you can not locate the VIN.
  • Section 1: Seller’s Representations and Warranties.The Seller’s promise to the Seller that it controls and owns the car.
  • Section 2 – Buyer’s Representations & Warranties.The Buyer’s promise that the person signing the sale bill is the power to sign it.
  • Section 3: There are no other guaranteesThis warranty excludes the warranty on title, and the manufacturer’s warranties (if they exist). The vehicle is provided “as is.” The buyer should be aware of this clause: if the car has issues in the future the seller is explicitly disclaiming responsibility in this paragraph.
  • Section 4: Inspection.This is a brief summary of the latest inspections of mechanicals. If your vehicle was last checked within the previous month, you can delete the bracketed words “not” and attach the report. If it is not the case, then remove the sentence in the second.If there are problems with the car the seller should notify the buyer of the issues. Any known defects that are not reported could invalidate the sale and could lead to later charges of fraud. The space that is empty can be deleted if there are not any known problems.
  • Section 5: Delivery of Vehicle.The Buyer should know the exact location and time they need to take the vehicle. You may also indicate the day you’d prefer to have this happen.
  • Section 6: Title conveyance.The Seller will state that the title of the vehicle will be transferred to it at the time it gets it. The section also contains the Seller’s assurance that it will sign all the necessary documents required to complete the transfer of title.
  • Section 7 Section 7: Cancellation of Tags and Insurance Tags.The Seller’s agreement that any remaining insurance or tags it was keeping on the vehicle will be cancelled.
  • Section 8: Additional TermsIn the provided space In the space provided, include any additional conditions that you wish to include in the form. For instance the parties might want to include a requirement that the vehicle be thoroughly cleaned prior to the date of delivery.
  • Signatures.Every party has to be able to sign and print their names. Some states require that each party also give a contact number. While this might not be a requirement in your state, it’s a good idea for all parties to supply as many contact information as possible. The document should be current as there are important deadlines that start at the date of the sale (e.g. transfer of title and registration
    If a witness to the signing was present, that person must sign and date the space. This section can be removed if there were no witnesses to the transaction.
  • Statement on the OdometerState and federal laws require precise information about the mileage of the vehicle to be included in a vehicle bill of sale. Certain states require the disclosure information be included on a separate page in addition to the bill of sale. This is what the enclosed form is.
    Enter the name of the seller as well as the number of miles you traveled. The report of the current readings on the odometer must not exceed tenths of one mile. If the seller is correct do not look at the lines that follow the first paragraph. If the odometer reading is less than five digits, or the reported mileage has not been calculated, look at the first line. If the reading reads “10,000” however the actual mileage is 110,000 then the seller should note this number and verify the accuracy of it.
    The seller should examine the second line of evidence if they are certain that either the odometer number or the odometer are not accurate.