A bill of sale
is used to officially record the sale of a vehicle by giving information about the car, each party, and the general transaction. This document is not required in every state, but it must be completed when privately selling any vehicle in Utah
. What is a bill of sale?
A bill of sale is the most basic proof of purchase for any vehicle transaction. In most states, the completed document will include a vehicle's makes, model, year, current odometer reading, addresses for both the buyer and seller, and an outline of the agreement.
To make a bill of sale official, you’ll also need to include notarized signatures from both parties. Your local DMV may ask to see the document when you register your vehicle.
A bill of sale does not transfer ownership: Only a title transfer
can officially transfer ownership of a vehicle from one person to another. Is a bill of sale required in Utah?
While each state has different requirements surrounding a bill of sale, Utah mandates that both parties sign this document when completing any vehicle transaction. This means that if you plan on privately selling a vehicle, you’ll need to complete a bill of sale before officiating a transfer.
What is required in a Utah bill of sale?
Utah makes it easy to complete a bill of sale by providing its residents with a standard bill of sale
form—but it’s equally acceptable to draft your own document. If you plan on writing your own bill of sale, make sure to include the following.
Name and address of the buyer
Name, address, and signature of the seller
Description of the vehicle (VIN, make, model, year, odometer reading)
Description of the trade-in vehicle (if necessary)
Trade-in allowance and net purchase price (if applicable)
Space for both parties to place their signatures
A bill of sale can be handwritten or typed, but only ink is acceptable.
What should I do after I get a bill of sale?
Once you’ve completed a bill of sale, the next step is to finalize your title transfer—which officially transfers the ownership of a vehicle—and begin the process of registration
. The DMV might request a bill of sale when you register your new vehicle, but as a seller, you may also want to keep a copy of the document on hand. A bill of sale can be useful protection if disputes arise over payment or the legality of a transaction, as it will prove the sale was handled correctly.
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