Bill of Sale of Motor Vehicles Instructions
To watch a video on how to fill out a Bill of Sale, click on the link below.
First Paragraph: Enter the date of the sale, enter it as the day, then the month and then the year. For example, 5th day of May, 2023.
Next enter the Buyer’s name and the address of the Buyer after the words “residing at.” Next, do the same for the Seller’s name and address. Make sure to use the Buyer’s and Seller’s full legal name. If the Buyer or Seller is a corporation, use the incorporated name of the company.
Section I – Motor Vehicle Details: Enter the details about the car that is being sold. The Vehicle Identification Number, or the VIN, is a unique, vehicle identification number that it is usually located on the driver’s side windshield. In some model cars, it may be found in the door frame of the driver’s side. Every vehicle has a specific VIN that is a combination of letters and numbers. The VIN is used for identification purposes of the car, and helps in tracking recalls, car registrations, car warranty and car thefts. Vehicles manufactured since 1980 have a VIN that is 17 characters long.
Section II – Purchase Price: Enter the Purchase Price for the car. Then state how the buyer will pay the Purchase Price to the Seller. Examples may include: internet banking, check, cash, money order, Venmo etc.….
If you are transferring the vehicle as a gift to someone, then enter a nominal amount for the purchase price such as $1.00 or $10.00.
Section III – Seller’s Representations: If there is a loan or lien of some sort on the Motor Vehicle you should identify it in subsection ii. Enter the amount of the lien and who it is held by and then state whether or not the Seller will pay the lien at the time of the sale. For example, except for a $300 lien held by Morton Stanley that the Seller will pay at the time of the transfer.
You can transfer some liens or loans to the Buyers, however some types of loans-like a bank loan is not typically transferable. If a loan or a lien is passed on to the Buyer, usually the purchase price is reduced by the amount of the lien or loan.
Section VI – Inspection: Initial by the correct statement of whether the vehicle was or was not inspected. If the vehicle was inspected, attached the inspection report to the Bill of Sale.
Section VII – Delivery of the Motor Vehicle: Here the details of the delivery of the vehicle are identified. Enter the location (address), date and approximate time which ownership of the vehicle will be transferred.
Section XI – Additional Terms: Here you may enter any additional information or clauses, though most times no additional terms are needed. In order to reduce confusion, write your clauses with plain language and limit them to one paragraph in length. Also, use any predefined terms such as Seller, Buyer, etc. in your clauses.
Section XII – Governing Law: Enter your state here. You should pick the state where the item you are selling is located, which is usually where the Seller is located.
Signature Section: Here the Seller and Buyer must sign.
Notary Acknowledgment: In the following states: Louisiana, Maryland, Montana, Nebraska, New Hampshire and West Virginia a Bill of Sale to transfer title MUST BE notarized. Other states do not require notarization, but it may be a good idea to do notarize the Bill of Sale in case the parties ever end up suing one another regarding the sale.
If you do not live in the above-named states and do not want to Notarize the Bill of Sale, remove the notarization page.
**It is important to note if you are taking title to a vehicle from another state than where you reside it is a good idea to have your Bill of Sale notarized. In fact, in such situations many state DMV offices require a notarized Bill of Sale.
Odometer Disclosure Statement: Federal and State Laws requires that the Seller state the mileage on a transfer of ownership for a vehicle. Failure to complete or provide a false statement may result in fines and/or imprisonment
An odometer is the display of numbers that indicates the number of miles a vehicle has traveled. An odometer reading is one of the key factors in determining the worth of a vehicle and it is usually also listed on the titles when a sales transaction is completed.
On this page enter the number of miles/odometer reading on the first blank line. Then select which of the three statements is true to the best of your knowledge. If the odometer reading is the actual mileage and is correct initial by that statement and put a line through the other statements. If the odometer reading is not the actual mileage of the vehicle select one of the other two statements that is correct and initial by that statement, then put a line through the other non-applicable statements.
In the next section enter the make, model, year and VIN of the vehicle.
Next, enter the Seller’s and Buyer’s information, sign and date in front of a notary, as this Odometer Statement should be notarized.