Are you planning to buy a pre-owned car from a friend or other private person? You would need to get a bill of sale to register the vehicle.
BOS or the bill of sale is a legal document showing the transfer of ownership of the motor vehicle. It contains the personal information of the buyer and the seller, description of the vehicle, details of the price, and other terms of sale. It is usually drafted by the seller.
While the format of the BOS varies from one state to the other based on the local rules, it may need to be notarized too. Some require that it includes odometer reading. You can easily find the bill of sale template for Utah at Forms. Legal.
Purpose of Bill of Sale
Evidence of Contract. The bill of sale serves as evidence of the agreement. It’s proof that the original owner of the vehicle transferred the possession to another person and got the price paid for it. Thus it works as the invoice and a receipt for those involved in the transaction.
Legal Transfer of Ownership. The seller can use the BOS to show that he or she sold the car without a warranty, and legal issues after the sale will be the responsibility of the buyer. On the other hand, the buyer can use it to prove that he or she has made full payment to the seller to get the legal ownership of the vehicle.
Record of Sale and Transaction. BOS acts as a written record of the sale price and date on which the sale concluded. It can be used by the buyer and seller for tax purposes.
Ascertaining Liability. If the vehicle violates traffic or becomes involved in an accident after BOS is signed, the seller can prove that he was no longer the owner of the vehicle and therefore is not liable for it.
Insurance. If the buyer wants to get insurance for the vehicle, he or she can use BOS to prove that he or she has the ownership rights of the vehicle.
Elements of BOS
Bill of sale template Utah is available at Forms. Legal. It needs the following details.
Information about the parties in the transaction. The names, addresses, phone numbers, of the buyer, and the seller are required.
Details of the automobile being sold are also provided. Most states need that the bill of sale identifies the vehicle’s make, model, year, and vehicle identification number (VIN). The reading of odometer at the time of sale also needs to be provided.
Amount paid for the transfer of ownership of the vehicle and the date of sale. If some loans and liens will not be paid by the seller and will be the responsibility of the buyer, their details should be part of the BOS.
BOS can also contain the disclosures made by the seller. It includes the statement that the seller acknowledges the sale of the vehicle as detailed and for the amount mentioned. Seller also certifies that the information in the bill is accurate to the best of his knowledge. There is a statement that the buyer accepts the receipt of bill-of-sale and understands that the vehicle is sold on an as-is basis.
BOS must be signed by the buyer and seller and need to be notarized.
Create BOS @ Forms. Legal
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