The auto bill of sale is a document that will help the seller and the buyer save from having hassles down the road When selling a car. In an auto sale to a private person it is necessary to prepare an auto bill of sale for the buyer to sign. The seller should keep a copy as well for one's own records. This record of the auto bill of sale may be required to prove the date that the ownership of the vehicle was transferred to the buyer.
The auto bill of sale must set forth the description of the vehicle being sold and should also include the year, make, model and vehicle identification number (VIN) as well as how many miles that vehicle had traveled up to the sale date. The auto bill of sale should also specify that the vehicle is being sold in "as is" condition which will help to protect the seller against any claims made in the future from the buyer with respect to the condition of the vehicle. There are some states in the US that consider the title of the vehicle as being the auto bill of sale and therefore it is necessary for the seller
to retain a copy of the title for personal recordkeeping purposes. To ascertain whether there are any other forms that need to be used one can check with the Department of Motor Vehicles and the Department of Licensing in their respective state. In addition, make sure that when selling a vehicle, the seller has notified the Department of Motor Vehicles regarding the sale of the vehicle.
In some states, they may also require a
form with the title to be detached and mailed to the state to serve as notice of sale. Another alternative open to the seller and buyer is to have the buyer accompany the seller to the Department of Motor Vehicles and submit the necessary paperwork in order to affect transfer of the title at that time, after the seller has received payment to his or her satisfaction in the form of a cashier's check or money order.
The auto bill of sale is the document in which it is stated that the transference of title held to the automobile, from the seller to the buyer, takes place. It acts as a sales receipt which contains vital information about the car as well as about each party to the agreement. The auto bill of sale acts as a clear and precise way of documenting the sale of a car. The document not only protects the seller but also provides the buyer protection by letting him or her know how many miles the car had traveled and will provide recourse in case the seller denies selling the car and accuses the buyer of having stolen it. The document is a permanent record that can be used to protect oneself from trouble in the future.
Most of these forms are customizable and simple to find and one can easily obtain one from any of the various vendors selling them and are especially useful when needing to make a quick sale. All the legal terminology (if necessary) has been done beforehand and these pre-formatted documents are cheap and readily usable and can also be altered to suit individual needs as required.
Author Resource:-
Wade Anderson is a CPA and operates DigitalWorkTools.com. Click to view an Auto Bill Of Sale
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