A New Jersey bill of sale is a part of the vehicle exchange process. A bill of sale form should be used by car buyers and sellers to substantiate purchases and when vehicle titles are unavailable. While a vehicle bill of sale can benefit buyers and sellers in multiple ways, the form is not always required. A bill of sale for car types such as commercial vehicles and personal vehicles will not differ in terms of the information they must contain. A bill of sale template will have spaces for buyers and sellers to list pertinent vehicle details. To learn more about how to fill out a DMV bill of sale in NJ, review the sections below.
What is a New Jersey Bill of Sale?
A bill of sale form outlines the vehicle exchange process and ensures that buyers and sellers give and receive each other’s contact information and endorsements indicating that a sale is final. Additionally, a new or used car bill of sale should list any other agreements or conditions the buyers or sellers have made such as return policies or extra gear included with the vehicle purchase. Because the form requires notarization and witnesses, it may be used to prove the vehicle has been purchased, but vehicle ownership cannot be determined by the form. To prove ownership of a vehicle, you must provide a valid car title along with a certificate of ownership. While a vehicle bill of sale cannot replace a car title, it can still be very valuable for your personal records. Not only does a bill of sale for cars include all parties involved in the vehicle sale, but it also gives a detailed description of the vehicle at the date of purchase.
Like a vehicle bill of sale, a motorcycle bill of sale is an important document that facilitates the buying and selling process. You are responsible for completing the form and ensuring all the required information is included. Simply, an NJ bill of sale form is a receipt for a property exchange and should be stored with the transferred title and certificate of ownership form. A bill of sale is especially useful during private sales and can even be used to record unofficial purchases such as donations and gifts.
You may find a bill of sale online to use during transactions or get a comprehensive bill of sale package here that lists all required information.
When to Use a New Jersey Bill of Sale Form
Because a bill of sale template includes essential information related to a vehicle sale, you are encouraged to utilize it whenever a property exchange takes place. However, a bill of sale is required when titles or previous car registrations are unavailable. If you cannot access a valid title and perform a title transfer with permission from the previous owner, then the Motor Vehicle Commission (MVC) may accept a bill of sale form as proof that you purchased the vehicle.
A DMV bill of sale may also be used to obtain a vehicle title for vehicles that have been purchased without existing titles. An NJ bill of sale is also required to document the exchange of major car parts during salvage vehicle reconstruction. While a bill of sale document is only required in certain circumstances, it is always recommended. Get a bill of sale package to help with your vehicle sale or purchase here.
How a New Jersey Vehicle Bill of Sale Helps Car Buyers
A bill of sale for car buyers is beneficial in several ways. First, a standard bill of sale provides information about the condition of the vehicle they are purchasing. This information can be checked against a vehicle history report and ensures that any damages other than the ones mentioned on the form will be corrected. Therefore, the bill of sale contract guarantees that car buyers will receive the exact vehicle described on the form. Additionally, a New Jersey bill of sale agreement can inform car buyers on when future vehicle inspections are due and help them predict how long they should expect the car to last.
Bills of sale also benefit car buyers by listing lienholders and any other financial encumbrances for the vehicle. Because vehicles cannot be easily sold with a lienholder, having evidence, in the form of a vehicle bill of sale in NJ, that all lienholders and encumbrances are, or will be, removed from the vehicle is valuable. Not only will car buyers avoid the complication of obtaining a title for a financed vehicle, but they will also prevent potential repossessions since financed vehicles are not legally owned and require additional steps to be sold properly.
Another financial benefit of a bill of sale for car buyers is the inclusion of the purchase price of the vehicle. If the purchase price of the vehicle is printed on a bill of sale form, sellers cannot change the asking price or charge buyers a different amount.
New Jersey Bill of Sale for Car Sellers
A bill of sale for car sellers is also beneficial. While a New Jersey bill of sale document does not verify the legitimacy of a vehicle like it does for buyers, the document can protect sellers. For instance, the form denounces all previous vehicle rights and proves an exchange occurred. If the new car owners attempt to claim that the sellers still possess the vehicle and fails to title or register the vehicle within the required 10 days following a purchase, a bill of sale may be used to indicate the seller does not owe penalty fees because they do not have the vehicle.
Required Information for a New Jersey Bill of Sale
A standard bill of sale in NJ will include the following information:
- The date of the sale
- Buyers’ and sellers’ information
- Vehicle’s description such as the body type, make and model
- Purchase price
- Payment method
- Lienholders (if applicable)
- Vehicle’s condition
- Any extra terms of the sale
The vehicle bill of sale must be endorsed by all buyers and sellers, be completed in the presence of witnesses and be officiated by a notary. Order your New Jersey bill of sale package here to get started.