But that written note won’t actually suffice to prove that Jim is the legal owner of the car if the titled owner comes forward. She writes a bill of sale detailing how she came to own the car, the make and model of the car, and the fact that Jim has paid her for it. For example, Pam sells Jim an abandoned vehicle from her property.

With that said, people will often rely on a bill of sale to prove rightful ownership. It’s sometimes legal to buy a car without a title. If Bob sold the car to someone else, the bill of sale may not suffice if Jim were to argue rightful ownership of the car.

That sort of agreement holds a minimal amount of legal value. Maybe Jim needs to get the money together or perhaps Bob needs to use the car until that day. For example, Jim drafts a bill of sale saying that Bob will sell a car to him on Friday. People will often use an automotive bill of sale to “lock in” a sale date ahead of time. That doesn’t stop people from using them incorrectly.

A bill of sale can also be used to stipulate future events, such as requiring the seller to change or fix certain things about the car before the sale is finalized.Ģ Ways People Use a Bill of Sale Incorrectlyīy itself, an automotive bill of sale does not convey legal ownership of a car unless other factors are in place. It should also define the sale’s conditions (as is, warranty yes/no, and so forth). Its purpose is to protect both parties by acting as a receipt for the transaction and providing additional details when needed.Īn automotive bill of sale should contain information about the vehicle, the buyer and seller, and the date and location of the sale. It indicates liens and salvage status, but it does not define the conditions of the sale.Ī bill of sale is a legal document completed by the buyer and seller of a car. What Does a Written Bill of Sale Mean?Ī car title is a document used by the DMV to assign legal ownership of a vehicle. A bill of sale can come in handy, but don’t rely on it to guarantee ownership. In short: Always get a title whenever possible. While you should obtain a bill of sale every time you buy or sell a car, this infamous document probably doesn’t have as much legal power as you might think. You might think that a bill of sale will protect you from trouble when buying a car. An automotive bill of sale is the written equivalent of a handshake agreement.

Simple automobile bill of sale