An Indiana bill of sale is a document indicating a change in ownership of a vehicle. A bill of sale form is often used in place of a title when one is not available and can be presented as proof of vehicle ownership if notarized and accompanied by an affidavit of vehicle ownership. While car owners may use a bill of sale to legitimize any purchase, a vehicle bill of sale is necessary for car buyers and sellers to ensure they receive essential information. A bill of sale for car buyers and sellers can expedite the exchange. Obtain a bill of sale template and learn more about the document before buying or selling a car.
What is an Indiana bill of sale?
A bill of sale in Indiana is an agreement between a buyer and a seller. A vehicle bill of sale indicates the amount of money charged for a vehicle and both the buyer and seller must endorse it for validity. Although dealerships will complete a bill of sale form automatically, maintain a copy of the form for their records and provide a copy upon request, other situations may warrant buyers and sellers to fill out a form on their own. For instance, private sellers may find a used car bill of sale useful during the exchange process. Additionally, car owners may use the form to document the exchange of vehicles within a family (i.e., a vehicle given to a relative as a gift) or vehicles exchanged in private sales.
Comparable to a vehicle bill of sale, a motorcycle bill of sale is used to record the transfer of motorcycle ownership. However, for vehicles and motorcycles with active lienholders or loan providers with a claim on the property, applicants must complete a lien release to authorize the sale. Buyers and sellers may find an Indiana bill of sale online through the BMV’s website. Additionally, they may get a comprehensive bill of sale package here that satisfies the requirements of IN sale forms.
When is an Indiana bill of sale required or recommended?
An IN bill of sale is required in place of vehicle titles if the buyer or seller cannot obtain a valid title. For instance, a motorists may use a bill of sale form to help register a vehicle in the state, verify ownership and obtain a new title. However, a DMV bill of sale is not required if vehicle titles are obtainable or if residents can use other documents to prove vehicle ownership. All vehicle buyers and sellers are encouraged to complete a bill of sale document to substantiate their purchases and guarantee that a purchase is legally binding, accurate and properly executed. Car buyers and sellers should use a standard bill of sale to assist in all vehicle purchases not supervised by licensed dealers or car sellers. For example, residents should file a bill of sale when buying a vehicle from a friend or selling a vehicle to a family member. Residents may find a standard bill of sale package here.
How does an Indiana bill of sale help car buyers?
A bill of sale for car buyers is advised due to the benefits the form can offer them. Since a bill of sale provides information that anyone can check in a vehicle history report, car buyers can check the conditions of the vehicles they have bought and ensure they have received the vehicle they had agreed upon. Additionally, a bill of sale contract grants buyers the ownership of the vehicle and any assets or extra features, such as motorcycle safety equipment or transporting gear, like hitches and trailers that the contract states buyers will receive. If sellers do not deliver all promised features or change the price of the vehicle or motorcycle, then buyers can employ the bill of sale form to encourage sellers to abide by the terms the form established.
Motorists may also use an Indiana bill of sale agreement together with an affidavit of vehicle ownership to register and insure their vehicles. Although a seller should provide a valid vehicle title to car buyers on the date of purchase or within 31 days with an affidavit, car owners may use a bill of sale to register their vehicles before receiving titles or if titles are unavailable. Car buyers can find a comprehensive Indiana bill of sale package here.
Note: Car buyers should show caution when buying vehicles without titles. Buyers may search for vehicles history reports online through the BMV website.
How does an Indiana bill of sale help car sellers?
Bills of sale for car sellers are also beneficial. While a bill of sale protects buyers from fraudulent purchases, the form can protect sellers from any claims of ownership. Additionally, a bill of sale form may formally relinquish a seller’s rights from the vehicle, which means that all penalties, offenses and fines associated with the vehicle will not harm the seller once the vehicle is sold. However, no sale is considered final until a title transfer has been completed, so sellers must understand how to transfer their titles to the buyers.
What information is required to complete an Indiana bill of sale?
Since a bill of sale in Indiana serves as an official document verifying a vehicle purchase, buyers and sellers must provide necessary information. All bill of sale agreements must contain the following information:
- Vehicle identification number (VIN) or hull number
- The make, model and manufacturing year of the vehicle
- The date of the sale
- The purchasing price of the vehicle
- The signatures of all sellers and buyers involved
- Current addresses of the buyers and sellers
Many residents may choose to notarize their bill of sale forms and include additional contact information, such as phone numbers. A vehicle bill of sale must clearly state that sellers completely transfer all rights for the vehicle to the new buyers and warn participants against making false statements or intentionally providing incorrect information. If buyers choose to use the bill of sale document to register their vehicles or obtain proper vehicle titles, then they must provide other information on an affidavit of ownership form. Residents can find a complete IN bill of sale package here.