Motor Vehicle Bill of Sale Templates By States:
Alabama | Alaska | Arizona | Arkansas | California | Colorado | Connecticut | Delaware | Florida | Georgia | Hawaii | Idaho
Illinois | Indiana | Iowa | Kansas | Kentucky | Louisiana | Maine | Maryland | Massachusetts | Michigan | Minnesota
Mississippi | Missouri | Montana | Nebraska | Nevada | New Hampshire | New Jersey | New Mexico | New York | North Carolina
North Dakota | Ohio | Oklahoma | Pennsylvania | Rhode Island | South Carolina | South Dakota | Tennessee | Texas | Utah
Vermont | Virginia | Washington | West Virginia | Wisconsin | Wyoming
Motor Vehicle Bill of Sale Explained
Actually, bills of sale work as a kind of sales contract. Yet, they are created to establish the fact of ownership transfer rather than just putting the deal’s conditions in writing as regular contracts do. The applicable scope of the bills goes far beyond transactions with vehicles, covering almost any type of movables, from jewelry and furniture to animals and aircraft. The paper identifies the seller and the buyer, describes the item sold, and specifies the price and other significant details of the transaction. If any warranty is provided, the bill also formalizes it, serving as a receipt in this case.
Deals with motor vehicles are among the most widespread applications of this paper. Many states include it in their lists of documents required to register a car with the local DMV. In this regard, vehicle bills of sale work to report the passing of property, based on which the authorities record a title transfer. So, though a vehicle bill of sale is not equivalent to a car title as to proving ownership over the car, it is accepted by the authorities to establish the proprietary right. Even if a car is not sold but traded or gifted, the document works fine for recording the transaction and registering the new owner.
Other Motor Vehicle Bill of Sale Applications
Obviously, what’s good for a DMV is good for other authorities. Even if you happen to live in a state where a motor vehicle bill of sale is not required, you can still avail of the document. It is acceptable as proof of ownership in courts should any disputes arise. This covers not only litigations over the ownership of a particular automobile. The paper is applicable to lawsuits connected with crimes that were committed with the use of the vehicle. In this vein, a properly designed bill of sale protects both the seller and the buyer by clarifying who is held liable for the car.
Moreover, any disputes between the parties can be settled without going to court thanks to all the deal details sliced and diced within the bill. For example, if the seller specifies that he or she transfers the car “as is,” the person won’t be responsible for any breakage revealed after the car is handed over to the new owner. On the other hand, if there is a certain warranty included in the document, the buyer has a nice chance to get a refund without taking legal action. Vehicle bills of sale can also resolve any other issues related to the transaction, such as payment terms or equipment provided with the car.
In fact, a motor vehicle bill of sale comes in handy in a range of situations when some kind of a title deed is needed. This covers loans, for example. If a person buys a car from another individual with borrowed funds, the lender might require the document as a security. Tax purposes are on the list as well since both the buyer and the seller can submit the bill to prove the deal price. So, registering a car with your local authorities is not the only application of the document, and it makes sense to have it even if it’s not mandatory.