Automobile Bill of Sale (1)

8/2/2019 Automobile Bill of Sale (1)

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Bill of Sale (Automobile) 1

BILL OF SALE (AUTOMOBILE) & GUIDE 2011 LightwaveLaw.com

Included:

* Overview

* Dos and Donts Checklist

* Bill of Sale (Automobile) Instructions

* Sample Bill of Sale (Automobile)

1. Overview

Youve marketed your car and youve found a buyer - its time to close the deal. Inthe modern marketplace, your transaction cant be completed with a simplehandshake and a wave goodbye. Youll need to file documents with your statesmotor vehicle department and other local agencies, and this process starts with acomplete, 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 newtitling and registration.

A bill of sale is like a receipt. It proves that ownership of a piece of property haschanged hands. It also details the terms of the sale, including information aboutprice, delivery, and condition. Bills of sale can help prove the identity of a vehiclestrue legal owner. Moreover, many states and counties use these documents todetermine the amount of sales or use tax owed on the transaction.

If you follow the enclosed sample and guidelines, you will have a writtenacknowledgment of the rights and responsibilities being transferred as part of yoursale. This will provide essential documentation of ownership and liabilityobligations and you will be well on your way to establishing a clear record of title for

your automobile.


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2. Dos & Donts Checklist

Getting the correct name and physical address of the other party to your dealis essential. If questions emerge, youll need to contact that person orcompany directly.

The enclosed bill of sale should be used only if the seller is a privateindividual seller and not a car dealer. Although each state has differentdefinitions 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 requirementsthan those contemplated in the attached document.

If you are the seller, give the buyer the completed bill of sale only after youhave received your money and the transaction is complete. The bill of salestates specifically that you have already been paid: it will be difficult tocollect 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 infull on the sale date. If the buyer intends to make a down payment at the timeof purchase and pay the remainder over time, do not use the encloseddocument. Draft and sign a promissory note, and use a bill of sale thatprovides 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 canserve as a reporter of the transaction. Alternatively, you and the other partycan have your signatures notarized.

Generally, you mustnotarize your automobile bill of sale in the followingstates:

o Louisianao Marylando Nebraskao New Hampshireo West Virginia

Once your bill of sale is complete and signed, visit your county clerk or taxoffice to record the document. The bill of sale will be registered and used toestimate applicable sales (or use) taxes. In many states, the Department ofMotor Vehicles will require a buyer to pay this tax when the cars title istransferred.


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The seller should contact its local DMV office immediately after the sale iscompleted and inform them that the vehicle has been sold and to whom. Thiswill protect the seller if a ticket is issued or an accident occurs in the periodbetween the sale and the re-titling of the car.

To complete the title transfer, both the seller and the buyer should notifytheir states DMV. Some states require that the seller report the transferwithin five days of the sale, and the buyer within ten days.

Additional steps may be required to complete your vehicle transfer. Forexample, 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 beneeded in your area.

Make sure the license plate is removed before the car is physicallytransferred to the buyer. In many states, this is required by law.


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3. Bill of Sale (Automobile) Instructions

The following provision-by-provision instructions will help you understand theterms of your bill of sale.

The numbers below (e.g., Section 1, Section 2, etc.) correspond to the provisions inthe enclosed form. Note that in the bill of sale, red is used to designate places whereyou need to make a selection among choices or to signal that the language in thatcolor 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 thatyou will need to add your own information to the document. Make sure you changeall 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 wherethe sale will take place. If the parties are from different counties, usethe county and state in which the car is located.

Purchase Price.ADD INFORMATION: Enter the purchase price in the first blankprovided. Be sure to include the full price, including any downpayments 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 streetaddresses (not P.O. Boxes).

Note that each party is given a name (for example, the Seller) that will beused throughout the agreement. In the bill of sale, the selling party is calledthe Seller and the buying party is called the Buyer.

NOTE: Only the individual whose name is on the title of a vehicle ispermitted to sell it. This means that if a married couple is selling thecar but that car is titled in the wifes name, only the wife should signthe bill of sale.

Vehicle Location and Description.ADD INFORMATION: Describe the vehicle in detail, making sure thatthe 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 iscurrently 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 17-

character unique identifier. Generally, the VIN is located in one ofthe following places: dashboard; steering column; firewall; driverside door; or passenger side post. Review the cars user manual ifyou cant locate the VIN in the vehicle.

Section 1: Sellers Representations and Warranties. Promises that theSeller is, in fact, the owner of the car it is selling and that no third partieshave any liens or other interests in the car. This section allows the Buyer topurchase the car without fearing that any third party will assert anownership interest down the road.

OPTIONAL LANGUAGE: There is some optional language in thisSection 1, which should be used if there are liens on the car. If, forexample, the Vehicle is being used as collateral for a separate loan, theSeller 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 notan individual (in other words, if a company is buying the car). If theBuyer is a company, this section is the Buyers promise that theperson signing the bill of sale on its behalf has the authority to do so. Ifyou remove this section, correct the section numbers and thereferences in the document.

Section 3: No Other Warranties. Disclaims any warranties other than thosespecifically provided in Section 1 and the manufacturers warranty (if any).This Vehicle is being offered as is. The Buyer should know the impact ofthis provision: if the car has problems in the future, the Seller will not beresponsible for fixing them.

Section 4: Inspection. The Seller can use this space to provide a summary ofrecent inspections or service appointments for the Vehicle.


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OPTIONAL LANGUAGE: If the vehicle has been inspected within thelast month, delete the word not and attach a report of thatinspection to the bill of sale. If it has not been inspected within the lastmonth, 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 somestates, 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 saleand get a refund. The buyer may even be able to bring charges offraud.

ADD INFORMATION: If there are defects in the car, describethem in detail in the space provided. If there are no knowndefects in the car, delete the blank space and the optionallanguage in red.

Section 5: Delivery of Vehicle. Explains where and when the vehicle shouldbe picked up by the Buyer.

ADD INFORMATION: Enter the date on which the Buyer will pick upthe car.

NOTE: This language of this section indicates that the Buyer will pickup the car from the address the Seller indicated in the first paragraphof the document. If you want the Buyer to pick up the car from adifferent location, you can alter the language of this section to say so.

Section 6: Conveyance of Title. This section describes when the ownershipof the car actually changes hands. Under the terms here, title to the vehiclewill 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 additionaldocuments needed to complete the title transfer.

Section 7: Cancellation of Insurance and Tags. The Sellers agreement tocancel any remaining car insurance or tags.

Section 8: Additional Terms of Sale.OPTIONAL SECTION: Use this optional section to include additionalrepresentations, warranties, or other provisions that relate to youragreement. For example, the Buyer may want to include therequirement that the car be cleaned thoroughly before the Delivery


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Date. If you remove this section, correct the section numbers and thereferences in the document.

Signatures.ADD INFORMATION: Enter the name of each partys business incapital letters at the top of their signature block. If a party is anindividual, delete this area. Write in the name of the person signingwhere it says Name. If this is a business, enter the name of the

person signing on the companys behalf. Enter the title of the personsigning 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 anumber 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 numberson the bill of sale. Although this may not be a requirement in yourstate, its a good idea for both parties to give as much contactinformation as possible.

If a third party witnessed the signing, ask that person to sign and datethe space provided. If there was no witness to your transaction, youcan delete this segment.

Odometer Disclosure Statement. Federal and state laws require anaccurate report of a vehicles mileage on its bill of sale. Some states requirethis 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 ofmiles on the car. Do not include tenths of a mile. Do not check any ofthe boxes below the initial paragraph if the odometer reading is, to theSellers knowledge, correct.

FIRST BOX: Check the first box if the odometer goes to fivedigits, and the reported mileage is incorrect because the

odometer has rolled over after passing 99,999 miles. Forexample, if the reading is 10,000 but the actual mileage is

110,000, the Seller should record the number 10,000 andcheck this box.


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SECOND BOX: If the Seller knows the odometer number isincorrect or the odometer itself is broken, check the secondbox.


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BILL OF SALE

(AUTOMOBILE)

STATE OF GeorgiaCOUNTY 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 PATRICKCARTER (the Seller), 613 Greenbriar Rd Apt 8, Warner Robins, county ofHouston,state ofGeorgia, the receipt of which is acknowledged, the Seller hereby sells,assigns, and transfers to the Buyer and her heirs, executors, administrators, andassigns forever, the following-described motor vehicle (the Vehicle):

Location: Houston County, GeorgiaMake: Chevrolet

Model: Cavalier

Body Type: Sedan

Year: 2003

Vehicle I.D. No.

(VIN):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 rightand 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 ofevery nature and description whatsoever.

(c)the Seller will fully defend, protect, indemnify, and hold harmless the Buyerfrom any lawful adverse claim to the Vehicle and

(d)to the best of the Sellers knowledge, the information and facts disclosedherein with regard to the Vehicle and its title are true and correct in allmaterial respects.


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2. BUYERS REPRESENTATIONS AND WARRANTIES.The individual signing this agreement on behalf of the Buyer hereby represents tothe 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 herebynotifies the Buyer, and the Buyer acknowledges and agrees, that the Vehicle is beingsold as is, without further warranty of any kind, whether express or implied,regarding the condition of the Vehicle. The Buyer must satisfy herselfas to what isoffered for sale, and by purchasing will be held to have satisfied herselfthat theVehicle is satisfactory in all respects. Any defects and all repairs are the soleresponsibility of the Buyer. The Seller neither assumes, nor authorizes any otherperson or entity to assume on his behalf, any liability in connection with the sale ofthe Vehicle. The Sellers disclaimers of warranty do not affect the terms or

applicability of any warranty from the Vehicles manufacturer that may beapplicable to the Vehicle.

4. INSPECTION.The Vehicle has notbeen inspected by an independent and licensed mechanic withinthe last month.To the best ofhis knowledge, the Seller believes that the Vehicle is being sold ingood 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 theVehicle, at the Sellers address as listed above, on or before 15 FEBRUARY, 2012 (theDelivery 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 theBuyers last inspection (or, if no inspection was conducted, as of the effective date).The Buyer, either himselfor through a third party, shall appear at the Sellersaddress 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 isdelivered to the Buyer. The Seller shall execute all documents presented by theBuyer 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 thatshe]willcancel any insurance coverage, license, tags, plates, or registration maintained bythe 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 partyssignature.

________________________________________________________

Date: ___________________

BUYER NAME, if not an individual

By: ___Name:______________________________________________

Phone No.:

SHAWN PATRICK CARTER___________________________

Date: ___________________

SELLER NAME, if not an individual

By:Name:SHAWN PATRICK CARTER

Phone No.:478 201 7235

Witnessed By: _______________________________________ Date: _____________________Name:BETTY CHRISTINE OGLESAddress:613 Greenbriar Rd Atp 8Warner 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, theodometer read ____________________ miles. To the best of the Sellers knowledge, thatodometer reading reflects the actual mileage of the Vehicle, unless one of thefollowing statements is checked:

The odometer reading reflects the amount ofmileage in excess of itsmechanical limits.

I hereby certify that the odometer reading is NOT the actual mileage.WARNING: ODOMETER DISCREPANCY

Make: Chevrolet

Model: Cavalier

Body Type: Sedan

Year: 2003

Vehicle I.D. No.

(VIN):1G1JF52F837167843

Sellers Information:

Name: SHAWN PATRICK CARTERAddress: 613 Greenbriar Rd Apt 8City: Warner RobinsState: GeorgiaZip Code: 31088

Buyers Information

Name: _______________________________________Address: ____________________________________City: _________________________________________State: ________________________________________Zip Code: ____________________________________

Signatures:

____________________________________ ______________________________________Seller Buyer

Witnessed By: __________________________ Date: _______________________________Name:BETTY CHRISTINE OGLESAddress:613 Greenbriar Rd Apt 8Warner Robins, Ga 31088

Automobile Bill of Sale (1)

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