Bill of Sale - Vehicle/More Info


Bill of Sale - Vehicle
Additional Information 
Missing Title 
If you are a buyer, be wary of any seller that does not have a title.  In those cases, the vehicle may be stolen or there may be a lien that the seller is trying to hide (see below).  If the title has simply been lost, each state has a process for reissuing a new replacement title.  Check with your state's motor vehicle department to find out what you will need to do.  Do not simply accept the Bill of Sale without first finding out if you need anything else to get the replacement title. 

Liens 
A "lien" is an interest in property taken by a bank or other lender when that property is used as collateral for a loan.  If the seller borrowed money to buy the vehicle, there may be a lien on the vehicle when it is sold with this Bill of Sale.  The buyer should make sure any liens are removed before the sale is completed.  Otherwise, that lender could repossess the vehicle from the buyer, even though the buyer had no knowledge of the lien. 
 
Liens on vehicles are commonly discovered at the time of purchase because they are noted on the title.  In that case, the seller must take the title to the lienholder and pay any remaining debt.  The lender will then note that the lien is released by writing on the title.  In other states, the title document is physically held by the lender until the debt is paid.   

Odometer Disclosure 
Remember that federal law requires anyone selling a car or other motorized vehicle to supply the buyer with a statement about the mileage.  The application also has an Odometer Disclosure Statement in this package. 

Keep Good Records 
Buyers should keep the original bill of sale with their certificate of title.  Sellers should keep a copy with their important records.