How to Prepare a Bill of Sale

April 10, 2018

Know the major sections of a bill of sale. A bill of sale should include the seller’s information, buyer’s information, item description, warranty information, payment information, and signatures.

The Seller and Buyer’s Information. Needs to include their name, address, city, state, and zip code. Phone numbers and emails may be helpful to exchange during the buying process but are not necessary to include in the bill of sale.

Item Description. For a car, this includes the year, make, color, model description, body style, cylinders, vehicle identification number (VIN), title number, and odometer reading. Prior to purchasing a car, ask the seller for a copy of the title. Doing this makes acquiring the needed information easy for you but the information still needs to be included in the bill of sale.

Payment. The seller has the authority to sell and transfer the title of this vehicle. The seller acknowledges receiving or agreeing to payment from the buyer in one of the following ways: 1) Paid the purchase price in full. 2) X number of dollars as a down payment with the following balance to be paid in X number of days. 3) X number of dollars as a down payment with a promissory note established for the balance of the purchase price.

Warranty Information. For "AS-IS", the following information can be used: The vehicle is being sold "AS-IS." This means there is no warranty for any defects, and the buyer now holds all financial responsibility for the vehicle. The seller acknowledges the odometer has not been tampered with, and there are no fake airbag covers. Notice that even an "AS-IS" purchase includes the odometer disclosure statement and airbag safety agreement. "AS-IS" will typically be used unless the vehicle is still under a manufacturer’s warranty.

Signatures. At the top of this section should read something saying: according to the seller and buyer, all of the information provided in this bill of sale is true. Now the buyer, seller, and witness should sign and date.

Title Transfer. If you are buying a new or used car from a dealership, the title transfer will typically be taken care of for you. If you are buying from a private party, the following website will help you find information for registering your vehicle: http://www.dmv.org/.

 

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