BILL OF SALE (AUTOMOBILE) & GUIDE

2011 LightwaveLaw.com

Included:
* Overview * Dos and Donts Checklist * Bill of Sale (Automobile) Instructions * Sample Bill of Sale (Automobile)

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Overview

Youve marketed your car and youve found a buyer - its time to close the deal. In the modern marketplace, your transaction cant be completed with a simple handshake and a wave goodbye. Youll need to file documents with your states motor vehicle department and other local agencies, and this process starts with a complete, well-drafted bill of sale. With the enclosed documents and instructions, you can firm up the terms of your arrangement and prepare for your cars new titling and registration. A bill of sale is like a receipt. It proves that ownership of a piece of property has changed hands. It also details the terms of the sale, including information about price, delivery, and condition. Bills of sale can help prove the identity of a vehicles true legal owner. Moreover, many states and counties use these documents to determine the amount of sales or use tax owed on the transaction. If you follow the enclosed sample and guidelines, you will have a written acknowledgment of the rights and responsibilities being transferred as part of your sale. This will provide essential documentation of ownership and liability obligations and you will be well on your way to establishing a clear record of title for your automobile.

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Dos & Donts Checklist Getting the correct name and physical address of the other party to your deal is essential. If questions emerge, youll need to contact that person or company directly. The enclosed bill of sale should be used only if the seller is a private individual seller and not a car dealer. Although each state has different definitions of dealer, the general rule is that a person who sells more than 4 cars in a calendar year is a dealer, and is subject to different requirements than those contemplated in the attached document. If you are the seller, give the buyer the completed bill of sale only after you have received your money and the transaction is complete. The bill of sale states specifically that you have already been paid: it will be difficult to collect additional amounts if you give written evidence that the buyers payment obligations are complete. The enclosed bill of sale assumes that the cars purchase price will be paid in full on the sale date. If the buyer intends to make a down payment at the time of purchase and pay the remainder over time, do not use the enclosed document. Draft and sign a promissory note, and use a bill of sale that provides for deferred payment. Sign two copies of the bill of sale, one for you and one for the other party. Although not strictly required, consider bringing a third party with you when the bill of sale is signed. If questions arise about the sale, that person can serve as a reporter of the transaction. Alternatively, you and the other party can have your signatures notarized. Generally, you must notarize your automobile bill of sale in the following states: o o o o o Louisiana Maryland Nebraska New Hampshire West Virginia

Once your bill of sale is complete and signed, visit your county clerk or tax office to record the document. The bill of sale will be registered and used to estimate applicable sales (or use) taxes. In many states, the Department of Motor Vehicles will require a buyer to pay this tax when the cars title is transferred.
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 The seller should contact its local DMV office immediately after the sale is completed and inform them that the vehicle has been sold and to whom. This will protect the seller if a ticket is issued or an accident occurs in the period between the sale and the re-titling of the car. To complete the title transfer, both the seller and the buyer should notify their states DMV. Some states require that the seller report the transfer within five days of the sale, and the buyer within ten days. Additional steps may be required to complete your vehicle transfer. For example, the cars pink slip must be signed over to the purchasing party. Check with your local DMV and tax authority to see what documents may be needed in your area. Make sure the license plate is removed before the car is physically transferred to the buyer. In many states, this is required by law.

Bill of Sale (Automobile)

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Bill of Sale (Automobile) Instructions

The following provision-by-provision instructions will help you understand the terms of your bill of sale. The numbers below (e.g., Section 1, Section 2, etc.) correspond to the provisions in the enclosed form. Note that in the bill of sale, red is used to designate places where you need to make a selection among choices or to signal that the language in that color is optional (in other words, its your choice whether or not you include it, depending whether its useful for your arrangement). Blue is used to indicate that you will need to add your own information to the document. Make sure you change all colors back to automatic or black before printing your document. Please review the entire bill of sale before starting your step-by-step process. Location of Sale. ADD INFORMATION: Enter the name of the county and state where the sale will take place. If the parties are from different counties, use the county and state in which the car is located. Purchase Price. ADD INFORMATION: Enter the purchase price in the first blank provided. Be sure to include the full price, including any down payments that have already been made. Names and Addresses of Parties. Identifies the parties and their addresses. ADD INFORMATION: Enter the names of the parties and their street addresses (not P.O. Boxes). Note that each party is given a name (for example, the Seller) that will be used throughout the agreement. In the bill of sale, the selling party is called the Seller and the buying party is called the Buyer. NOTE: Only the individual whose name is on the title of a vehicle is permitted to sell it. This means that if a married couple is selling the car but that car is titled in the wifes name, only the wife should sign the bill of sale. Vehicle Location and Description. ADD INFORMATION: Describe the vehicle in detail, making sure that the car being sold can be identified clearly from the description. You
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must include the location, make, model, body type, year, and VIN, examples of which are listed below: Location: Enter the county and state where the vehicle is currently located. Make: For example: Ford, Chevrolet, Lincoln, BMW Model: For example: Corvette, M5, Mustang Body Type: For example: Sedan, Coupe, Convertible, SUV Year: Enter the year the car was manufactured. VIN: The Vehicle Identification Number (or VIN) is your cars 17character unique identifier. Generally, the VIN is located in one of the following places: dashboard; steering column; firewall; driver side door; or passenger side post. Review the cars user manual if you cant locate the VIN in the vehicle. Section 1: Sellers Representations and Warranties. Promises that the Seller is, in fact, the owner of the car it is selling and that no third parties have any liens or other interests in the car. This section allows the Buyer to purchase the car without fearing that any third party will assert an ownership interest down the road. OPTIONAL LANGUAGE: There is some optional language in this Section 1, which should be used if there are liens on the car. If, for example, the Vehicle is being used as collateral for a separate loan, the Seller should say so here and describe who holds the lien. Section 2: Buyers Representations and Warranties. OPTIONAL SECTION: Include this optional section if the Buyer is not an individual (in other words, if a company is buying the car). If the Buyer is a company, this section is the Buyers promise that the person signing the bill of sale on its behalf has the authority to do so. If you remove this section, correct the section numbers and the references in the document. Section 3: No Other Warranties. Disclaims any warranties other than those specifically provided in Section 1 and the manufacturers warranty (if any). This Vehicle is being offered as is. The Buyer should know the impact of this provision: if the car has problems in the future, the Seller will not be responsible for fixing them. Section 4: Inspection. The Seller can use this space to provide a summary of recent inspections or service appointments for the Vehicle.

Bill of Sale (Automobile)

OPTIONAL LANGUAGE: If the vehicle has been inspected within the last month, delete the word not and attach a report of that inspection to the bill of sale. If it has not been inspected within the last month, delete the second sentence. OPTIONAL LANGUAGE: If the Seller knows of any defects in the car, those problems must be disclosed in the space provided. In some states, if a buyer discovers a defect that impairs a cars safety or use and can prove the seller knew about it, the buyer can cancel the sale and get a refund. The buyer may even be able to bring charges of fraud. ADD INFORMATION: If there are defects in the car, describe them in detail in the space provided. If there are no known defects in the car, delete the blank space and the optional language in red. Section 5: Delivery of Vehicle. Explains where and when the vehicle should be picked up by the Buyer. ADD INFORMATION: Enter the date on which the Buyer will pick up the car. NOTE: This language of this section indicates that the Buyer will pick up the car from the address the Seller indicated in the first paragraph of the document. If you want the Buyer to pick up the car from a different location, you can alter the language of this section to say so. Section 6: Conveyance of Title. This section describes when the ownership of the car actually changes hands. Under the terms here, title to the vehicle will be given to the Buyer on the day the Buyer picks up the vehicle. This section also includes the Sellers promise that it will sign any additional documents needed to complete the title transfer. Section 7: Cancellation of Insurance and Tags. The Sellers agreement to cancel any remaining car insurance or tags. Section 8: Additional Terms of Sale. OPTIONAL SECTION: Use this optional section to include additional representations, warranties, or other provisions that relate to your agreement. For example, the Buyer may want to include the requirement that the car be cleaned thoroughly before the Delivery

Bill of Sale (Automobile)

Date. If you remove this section, correct the section numbers and the references in the document. Signatures. ADD INFORMATION: Enter the name of each partys business in capital letters at the top of their signature block. If a party is an individual, delete this area. Write in the name of the person signing where it says Name. If this is a business, enter the name of the person signing on the companys behalf. Enter the title of the person signing only if they are signing on behalf of a business. Make sure each person writes in the date on which they are signing. Remember: this is the date your agreement becomes effective and a number of important time periods start to run on that date (e.g., transfer of title and registration). Several states require that the parties each provide phone numbers on the bill of sale. Although this may not be a requirement in your state, its a good idea for both parties to give as much contact information as possible. If a third party witnessed the signing, ask that person to sign and date the space provided. If there was no witness to your transaction, you can delete this segment. Odometer Disclosure Statement. Federal and state laws require an accurate report of a vehicles mileage on its bill of sale. Some states require this disclosure statement to be on a page separate from the bill of sale itself. The enclosed form has made this separation. ADD INFORMATION: Write in the Sellers name and the number of miles on the car. Do not include tenths of a mile. Do not check any of the boxes below the initial paragraph if the odometer reading is, to the Sellers knowledge, correct. FIRST BOX: Check the first box if the odometer goes to five digits, and the reported mileage is incorrect because the odometer has rolled over after passing 99,999 miles. For example, if the reading is 10,000 but the actual mileage is 110,000, the Seller should record the number 10,000 and check this box.

Bill of Sale (Automobile)

SECOND BOX: If the Seller knows the odometer number is incorrect or the odometer itself is broken, check the second box.

Bill of Sale (Automobile)

BILL OF SALE (AUTOMOBILE) STATE OF Georgia COUNTY OF Houston BE IT KNOWN, that for the consideration of $ 1900 (the Purchase Price), paid by ______________________________________________________________ (the Buyer), of _______________________________________________________________(Buyer Street Address), county of ____________________________, state of ________________ to SHAWN PATRICK CARTER (the Seller), 613 Greenbriar Rd Apt 8, Warner Robins, county of Houston, state of Georgia, the receipt of which is acknowledged, the Seller hereby sells, assigns, and transfers to the Buyer and her heirs, executors, administrators, and assigns forever, the following-described motor vehicle (the Vehicle):
Location: Make: Model: Body Type: Year: Vehicle I.D. No. (VIN): Houston County, Georgia Chevrolet Cavalier Sedan 2003 1G1JF52F837167843

1. SELLERS REPRESENTATIONS AND WARRANTIES. The Seller represents and warrants to the Buyer that: (a) the Seller has good and marketable title to the Vehicle, with full legal right and authority to enter into the transactions contemplated hereby and to sell, transfer, and convey the Vehicle in accordance with the terms hereof; (b) the Vehicle is free of all liens, encumbrances, liabilities, and adverse claims of every nature and description whatsoever. (c) the Seller will fully defend, protect, indemnify, and hold harmless the Buyer from any lawful adverse claim to the Vehicle and (d) to the best of the Sellers knowledge, the information and facts disclosed herein with regard to the Vehicle and its title are true and correct in all material respects.

Bill of Sale (Automobile)

2. BUYERS REPRESENTATIONS AND WARRANTIES. The individual signing this agreement on behalf of the Buyer hereby represents to the Seller that she has the power and authority to do so. 3. NO OTHER WARRANTIES. Except for the warranties expressly identified in Section 1 above, the Seller hereby notifies the Buyer, and the Buyer acknowledges and agrees, that the Vehicle is being sold as is, without further warranty of any kind, whether express or implied, regarding the condition of the Vehicle. The Buyer must satisfy herself as to what is offered for sale, and by purchasing will be held to have satisfied herself that the Vehicle is satisfactory in all respects. Any defects and all repairs are the sole responsibility of the Buyer. The Seller neither assumes, nor authorizes any other person or entity to assume on his behalf, any liability in connection with the sale of the Vehicle. The Sellers disclaimers of warranty do not affect the terms or applicability of any warranty from the Vehicles manufacturer that may be applicable to the Vehicle. 4. INSPECTION. The Vehicle has not been inspected by an independent and licensed mechanic within the last month. To the best of his knowledge, the Seller believes that the Vehicle is being sold in good operating condition, except for the following defects: Passenger side mirror missing, passenger side headlight out, minor paint damage, minor engine maintenance required. 5. DELIVERY OF VEHICLE. The Seller shall deliver the Vehicle, and the Buyer will take possession of the Vehicle, at the Sellers address as listed above, on or before 15 FEBRUARY, 2012 (the Delivery Date). If delivery will be made after the effective date of this bill of sale, the Seller shall ensure that the Vehicle is delivered in the same condition as the Buyers last inspection (or, if no inspection was conducted, as of the effective date). The Buyer, either himself or through a third party, shall appear at the Sellers address during standard business hours on the Delivery Date to remove the Vehicle. If the Buyer fails to appear at the Sellers address on the Delivery Date to remove the Vehicle, the risk of loss of the Vehicle passes to the Buyer.

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6. CONVEYANCE OF TITLE. The Seller shall convey title to the Vehicle to the Buyer when that Vehicle is delivered to the Buyer. The Seller shall execute all documents presented by the Buyer that are necessary to finalize transfer of title and registration of the Vehicle to the Buyer. 7. CANCELLATION OF INSURANCE AND TAGS. Unless prohibited by applicable law, the Buyer hereby acknowledges that she]will cancel any insurance coverage, license, tags, plates, or registration maintained by the Seller on the Vehicle when the Vehicle is delivered and accepted by the Buyer. 8. ADDITIONAL TERMS OF SALE. The Seller and the Buyer hereby agree to the following additional terms: Describe any additional terms to which the parties have agreed

[SIGNATURE PAGE FOLLOWS]

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Each party is signing this bill of sale on the date stated opposite that partys signature. ________________________________________________________ BUYER NAME, if not an individual

Date: ___________________

By: ___ Name: ______________________________________________ Phone No.: SHAWN PATRICK CARTER___________________________ SELLER NAME, if not an individual By: Name: SHAWN PATRICK CARTER Phone No.: 478 201 7235

Date: ___________________

Witnessed By: _______________________________________ Date: _____________________ Name: BETTY CHRISTINE OGLES Address: 613 Greenbriar Rd Atp 8 Warner Robins, Georgia 31088

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ODOMETER DISCLOSURE STATEMENT Federal law (and state law, if applicable) requires that you state the mileage on transfer of ownership. Failure to complete or providing a false statement may result in fines and/or imprisonment. The Seller hereby discloses to the Buyer that at the time of the transfer, the odometer read ____________________ miles. To the best of the Sellers knowledge, that odometer reading reflects the actual mileage of the Vehicle, unless one of the following statements is checked:

The odometer reading reflects the amount of mileage in excess of its

mechanical limits.

I hereby certify that the odometer reading is NOT the actual mileage.
WARNING: ODOMETER DISCREPANCY
Make: Model: Body Type: Year: Vehicle I.D. No. (VIN): Chevrolet Cavalier Sedan 2003 1G1JF52F837167843

Sellers Information: Name: SHAWN PATRICK CARTER Address: 613 Greenbriar Rd Apt 8 City: Warner Robins State: Georgia Zip Code: 31088 Signatures: ____________________________________ Seller

Buyers Information Name: _______________________________________ Address: ____________________________________ City: _________________________________________ State: ________________________________________ Zip Code: ____________________________________

______________________________________ Buyer Date: _______________________________

Witnessed By: __________________________ Name: BETTY CHRISTINE OGLES Address: 613 Greenbriar Rd Apt 8 Warner Robins, Ga 31088
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