What is bill of sale for auto?
Bill of sale is a legal document which is obtained at the time of purchase or selling of a vehicle or vessel. The bill of sale determines that the transaction has been made between the two parties. It is important that the bill of sale be signed by both the seller and the buyer because otherwise you may get involved in to various legal issues. However there are some states that do not require bill of sale but some do therefore you must check about the requirement of bill of sale.
It must be noted that bill of sale is an important document but the ownership of the vehicle or the vessel does not change unless and until there is title transfer done. Only the transfer of title will ensure that you do not get penalized for the vehicle you own no more.
Contents of the bill of sale for auto
- Vehicle description: this includes the registration number of the vehicle, the chassis number etc.
- Warranty applicable on the vehicle or agreed upon
- The price paid by the buyer
- The name of the buyer along with the address of the buyer
- The country and state where the transaction was made
The bill of sale protects the buyer as well as the seller from any legal issues that may ensue later due to the use of the vehicle in future or due to the use of vehicle that was done in the past.