In the transfer of ownership of real items from a seller to buyer, a document that serves as a receipt of the transaction and also a witness of the sale is employed. This document, called the bill of sale, serves the place of a receipt. Unlike a receipt, it is more detailed and more reliable. It contains all the basic and secondary data of the item of sale and the parties involved.
When used for the purchase of a vehicle, it is known as a vehicle/car bill of sale.
What is a Vehicle Bill of Sale?
A Vehicle Bill of Sale is a legal document drafted to record an agreement between two parties involved in the transfer of ownership of a vehicle. It is a document that stands as evidence that a transfer of full ownership to the new owner was made on a said date. It states the terms on which the vehicle ownership is transferred from the seller to the buyer.
When and Where is a Car Bill of Sale Used?
A bill sale of a car is necessary paperwork needed for the sale of a car. It is mostly employed in the sale of private cars without the presence of a dealer. It involves a maximum of three persons. The document serves as a witness and legal aid.
A car bill of sale also called an auto bill of sale is used in three places: where the transaction takes place, as evidence of the transaction, and proof of ownership at a vehicle regulatory office. In some countries, such a document is used by the authorities to determine sales tax on such transactions. This is majorly due to the nature of the settings a bill of sale is used in; they are used in settings not covered by legal provisions or a union yet. The buyer also uses this document to register him/herself as the new owner of the vehicle.
Components of an Auto Bill of Sale
The following are components of a bill of sale for a car:
- Names and Addresses of the Parties: in a clear font, the names and addresses of the parties should be correctly spelt. These precautions are necessary to avoid potential future misunderstandings.
- Purchase Price and Date: in clear terms, the price of the vehicle that both parties have agreed on should be documented as well as the date when the transaction takes place.
- Location of Sale: the country, state and precise location where the transaction takes place should be recorded.
- Vehicle Description: the properties of the vehicle and its present condition at the point of sale should be recorded. The descriptions to note include the make of the vehicle, its model, body type, year of production, VIN that is, Vehicle Identification Number, license plate number, vehicle’s last date of inspection before the date of sale.
- Warranty: the warranty date agreed upon by the parties and other noteworthy terms on which the vehicle is sold should be documented in the bill of sale.
- Signature of Both Parties: this marks a consolidation of the agreement so it is very important.
- “As Is”: if the item is not sold on warranty, the buyer is to provide a statement that the vehicle is being sold just as it is and that there are no underlying conditions. The condition of the odometer and brakes should be stated too.