How to Write a Bill of Sale for a Car

A bill of sale is an important document in that it provides proof of ownership of an asset and, if you are the seller, removes the risk of liability over the asset. It is, therefore, important to know how to write a bill of sale for a car correctly to ensure that your document is, in fact legal. Follow these important steps to ensure that you can create an accurate, and legal, bill of sale.

> Gather the Personal Information of both the Seller and the Purchaser

It is very important that you identify clearly the identity of both the buyer and the person to whom you are selling the vehicle. This is normally done by an official sentence such as “I, the undersigned seller, (seller’s name) sell to the undersigned buyer, (buyer’s name) …”

It is always a good idea to include means of identifying both parties with the car bill of sale along with their address.

> Verify and Accurately Records the Details of the Vehicle

It is very important to accurately identify the vehicle being sold. It is therefore essential that you include the following details of the vehicle:

  • A description of the vehicle
  • The make, model and color of the vehicle
  • The vehicle VIN and license plate number
  • Any distinguishing aspects (include improvements and damage or other defects)
  • The mileage of the vehicle

The more information you provide about the vehicle being sold the better, but always make sure that the data you provide is relevant.

> Include the Amount you are Selling the Vehicle for

The next thing to record is the agreed upon price that you are selling the vehicle for. Make sure that you mention that the vehicle is being sold “as is” as this releases the seller from any future liability as a result of defects with the vehicle. Be sure, however, that you have disclosed any defects that you are aware of.

> The Legal Stuff

You must always remember that the bill of sale is a legal document and, as such, two very important clauses must be included in the bill. The document must, first of all, relinquish all rights of the seller to the vehicle and, second of all, it must state that the buyer assumes all liability of the vehicle when the sale is completed.

> The Buyer and Seller’s Signatures

Without the signatures of both the buyer and seller the bill of sale is effectively useless. Make sure that each signature is clearly legible and includes the date on which the document was signed. It is also a good idea to have the signatures notarized. Whilst this step is not required by law it is always a good idea to have legal documents signed and notarized.

> Check and Double Check

The bill of sale can prove to be a very important document if anything unfortunate were to happen. Many people have regretted not having a clear and legal bill of sale. Once you have completed the document you should check all the information twice. Ensure that the spelling is correct (especially of the buyer and seller’s names), check that the vehicle details have been entered correctly and make sure that all of the information, especially the signatures of both parties, is clear and legible.

Now that you know how to write a bill of sale for a car you should have no problems in writing a clear and legal bill of sale. Always ensure that you gather together all documents pertinent to the sale. This includes all licensing or registration papers as well as ownership papers. Make sure you make a copy of all of these documents and keep these, along with a copy of the bill of sale, for your records.

by Irshad Shaik

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