When it comes to purchasing or selling a car, the bill of sale plays a crucial role in making the transaction legally binding. A bill of sale is a document that records the transfer of ownership of a vehicle from one party to another. It serves as a proof of purchase and includes important details such as the price, date of sale, and the signatures of both parties. But what should you do with the bill of sale once the transaction is complete? In this article, we will discuss everything you need to know about what to do with a bill of sale for a car.
Keep It Safe
The first thing you should do with the bill of sale for your car is to keep it safe. This document serves as a legal record of the sale, and you may need it in the future for various purposes. For example, if you decide to sell the car again, you will need the bill of sale to prove that you are the legal owner of the vehicle. Additionally, if you need to register the vehicle or renew its registration, you may need to present the bill of sale as proof of ownership.
Review The Document Carefully
Before you put the bill of sale away, it is essential to review it carefully to ensure that all the information is correct. Check the names of the parties involved, the VIN number, the sale price, and the date of sale. If you notice any errors, contact the other party immediately to make the necessary corrections. It is much easier to correct mistakes right after the sale than to try to fix them later.
File It Properly
Once you have reviewed the document and made any necessary corrections, it’s time to file it properly. You could keep the bill of sale in a safe place at home, or you could choose to store it digitally. Regardless of how you decide to store the document, make sure that it is easily accessible and that you can find it quickly when you need it.
Use It As Evidence
In the event of a dispute, the bill of sale can serve as valuable evidence. For example, if the buyer claims that you did not disclose certain defects with the vehicle, you can use the bill of sale to prove that you did inform them of any issues. Similarly, if the buyer refuses to pay for the vehicle or claims that they paid more than they actually did, you can use the bill of sale to prove the agreed-upon sale price.
Notify The DMV
If you are selling a car, it is essential to notify the DMV of the sale. This will ensure that you are not held responsible for any tickets, accidents, or other incidents that may occur after the sale. To do this, you will need to complete a Notice of Transfer and Release of Liability form and submit it to the DMV. You will also need to provide a copy of the bill of sale to the DMV as proof of the sale.
In conclusion, the bill of sale is an essential document that should not be overlooked when purchasing or selling a car. It serves as proof of ownership and can be used as evidence in the event of a dispute. Make sure to keep the bill of sale safe, review it carefully, file it properly, and use it as evidence when necessary. By following these simple steps, you can ensure that your car transaction is legally binding and hassle-free.
- Do I need a bill of sale to sell my car?
Yes, a bill of sale is an important document that serves as proof of ownership and the terms of the sale.
- Is it necessary to file the bill of sale with the DMV?
No, it is not necessary to file the bill of sale with the DMV, but you should submit a Notice of Transfer and Release of Liability form to the DMV.
- Can I use a bill of sale for a car that was gifted to me?
Yes, you can use a bill of sale for a car that was gifted to you, but the sale price should be listed as $0.
- Can I create my own bill of sale or do I have to use a standard form?
You can create your own bill of sale, but it is advisable to use a standard form to ensure that all the necessary information is included.
- How long should I keep the bill of sale for my car?
You should keep the bill of sale for as long as you own the car and for a few years after you sell it, just in case you need to refer to it in the future.