It is very important that you educate yourself when it comes to legal matters. At dmvbillofsales.net you will find information that will help you understand what the DMV bill of sale is and why is it important and when will you need it? All such questions are important and we are here with all the answers you are looking for. It is always better to start with the basics and hence let us start with knowing more about what is exactly a bill of sale?
What is a Bill of Sale?
It is a legal document that could be helpful to you in many situations. This legal document needs to be prepared when there is a sale between two parties. This document will help you to act as proof of that particular sale. So in case there the buyer gets into trouble with your vehicle after the sale then you have the bill of sale as proof that you are not liable for that incident.
Although it is not compulsory in every state to draw up a bill of sale we still recommend you to draw up a bill of sale, well because extra precaution can never hurt anyone. A bill of sale is used for a variety of assets most commonly a motorcycle. That is also our focus here. DMV bill of sale, this suggests how you will need to visit the DMV of your state and use the bill of sale for the title transfer of your purchase. Here is an example of a DMV bill of sale form.
Quitclaim Bill of Sale
This is one of the types of bill of sale. How does it differ from DMV bill of sale? Well, this type of bill of sale has just one major alteration. When you are signing a quitclaim bill of sale, it suggests that the seller of the asset is not giving you any guarantee that they own this asset or that they have the right to transfer it. So, this type of bill of sale will cause a problem for you if you get into any kind of trouble. We also recommend that you do not draw up a quitclaim bill of sale when dealing in real estate.
In Case The Vehicle Was A Gift
There could be a situation where your vehicle was a gift from someone and now you are going to the DMV to transfer the title. In this case, there is a special mention of this on the bill of sale. The situation can be different as well. Sometimes the vehicle is in your name and now you want to transfer the title to your friend’s name as a gift. In such cases you mention the purchase price “$0” and then you either tick the gift option or mention it where it is asked for.
There is a form called DTF-802, now if you are gifting a vehicle to someone or selling the vehicle below the market value then you need to fill this form as well unless the buyer is your:
How To Use A DMV Bill of Sale
The use of a bill of sale is immense. You have this proof that this asset is or was yours from or for a particular time period. It can help you in many situations. The Bill of sale is a document acting as proof of the transaction. Now just a basic example of this could be. In case a day after selling the vehicle, your vehicle was found to be involved in a legal case. At that point of time, the bill of sale will prove that you are not the true owner of the vehicle you are completely out of the case as you will be found ineligible.
This works both ways hence it is an important document for both the buyer and the seller. Bill of sales when taken to the DMV can help you to transfer the title of the asset so you can understand the importance of this document. Also, remember to have your copy of the bill of sale. Not all but some states require the bill of sale to be notarized and therefore check it with your state whether you need to do so or not.
Few Tips For Buyers & Sellers
The DMV bill of sale is an important document and in this section, we would like to give out a few tips for both the buyer and the seller. These pointers will help you to not miss out on important aspects while signing the bill of sale. Your signature is everything and one signature and it will mean you agree to all the terms and conditions on the paper.
- Usually, the seller draws up the bill of sale.
- Both the buyer and the seller should get a copy of the bill of sale.
- The payment method must be indicated on the bill of sale, only if the full payment is not made up at once.
- The buyer should check that the ownership is with the seller only.
- The buyer can ask the seller to mention his rights on the bill of sale.
When you are signing a bill of sales, you should take care of these points to ensure there are no problems later on that could get you stuck in a legal matter. Once you have read and all your doubts are clear and the bill of sale is drawn up perfectly as both the buyer and seller need it, then both of them should sign the document and make the content in the document legal.