A Bill of Sale is one of the documents used to transfer ownership from the owner of a vehicle, vessel or motorcycle to the buyer. Bill of Sale forms are required by each state's Department of Motor Vehicles, along with the Certificate of Title. The Bill of Sale is not only used as an official receipt but is typically used for sales tax determination.

Responsibility

The seller is responsible for providing the buyer with the Bill of Sale. The buyer will need to present the Bill of Sale when he transfers the title to his name at the DMV.

Sale Information

On the Bill of Sale document, you generally will need to print the date, purchase price, names and contact information for the buyer and seller. The buyer and seller will need to sign the document. Vehicle information, including the year, make, model and VIN number, also is required.

Notary Public

The Bill of Sale must be signed and sealed by a Notary Public. At this point, the seller acknowledges that he is the lawful owner of the vehicle and that the vehicle is free of liens, security agreements, encumbrances, claims, demands and charges.

Forms

Forms for the Bill of Sale are available through each state's DMV but can be created by the seller if they include the required sale information.

State Requirements

Requirements for information required by each state's DMV vary. It is a good idea to check your state's requirements to ensure all necessary documentation is included.

Gift Vehicles

If the vehicle was a gift, you may need to indicate so on the Bill of Sale. Include the relationship of the person who gifted the vehicle and the value of the gift.

Source:

Department of Motor Vehicles: Nebraska

Department of Motor Vehicles: California

More Information:

Department of Motor Vehicles: The Unofficial DMV Guide