How to Complete a Vehicle Bill of Sale in Alabama: A Step-by-Step Guide
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If you’re buying or selling a vehicle in Alabama, you will need a bill of sale to detail the purchase. Alabama has specific requirements for what needs to be included on a bill of sale.
Our guide to completing an Alabama vehicle bill of sale can help you get started. Then, use EverQuote to find Alabama auto insurance and ensure you’re prepared for your registration application.
Overview of the Alabama Vehicle Bill of Sale
An Alabama motor vehicle bill of sale is a legal document that records the transfer of ownership of a vehicle. It outlines the sale agreement and acts as a receipt for the buyer. It includes all the important information the buyer needs to take full legal ownership of the vehicle. If you’re thinking of selling or buying a car, it’s important to know how to fill out a bill of sale and what details must be included.
When Is a Bill of Sale Legally Required in Alabama?
An Alabama bill of sale for a vehicle is legally required for all car purchases, and it’s even more crucial if the vehicle does not have a title. While the term “bill of sale” is typically referred to during vehicle sales, they are also legally required for boat sales and personal property sales. However, the requirements will vary depending on the item being sold.
Other documents may serve as a bill of sale, such as an invoice or other sales receipt. However, it must include all the information that would be on a traditional bill of sale.
Required Information on the Bill of Sale
A vehicle bill of sale in Alabama must include the following information:
- Buyer’s name, address, and signature
- Seller’s name, address, and signature
- Date of sale
- Vehicle information, including vehicle identification number (VIN), year, make, model, and body type
- Purchase price
Vehicles that are less than 10 years old and weigh less than 16,000 pounds also need an odometer disclosure statement with the vehicle’s current odometer reading.
The state of Alabama doesn’t have a standard bill of sale form. Each county sets individual rules for what needs to be included on a bill of sale. Some counties may require that the bill of sale be signed in front of a notary public. However, others are satisfied with the seller and buyer’s signature. You should check your county’s requirements to make sure you’re getting valid proof of ownership during a sale.
Why an Alabama Bill of Sale Is Necessary
A bill of sale for vehicles in Alabama is crucial for documenting the details of a sale. Not only does it provide legal proof of ownership, but it protects both parties when coming to a sales agreement. It can also reduce disputes about the condition of a vehicle or payment terms.
How to Complete the Bill of Sale
Completing the bill of sale is a relatively straightforward process:
- Identify the names and addresses of the buyer and seller, as well as any witnesses to the sale.
- Gather vehicle details, like the VIN, make and model, and odometer reading.
- Work with the other parties to determine the sale price and payment plan.
- Draft or download a bill of sale template. This can be as simple as a handwritten note or a template you purchase online and print.
- Both parties sign the bill of sale. Make copies of the bill of sale so that both parties retain proof of the transaction.
Tips on How to Finalize the Sale
After the buyer has paid for the vehicle and the bill of sale has been completed, the buyer has 20 calendar days to register the vehicle in their name. As the buyer, you must go to your county’s license plate issuing office to register the vehicle. You should bring the following:
- The title with assignment completed
- Bill of sale
- Proof of insurance
- Proof of residency
- Driver’s license
Vehicles that are more than 35 years old are not required to have a title in Alabama. If the vehicle you purchase does not have a title, it will need to be inspected by a licensing official to complete your registration.
When purchasing Alabama car insurance, make sure that your provider is licensed to do business in Alabama and that your policy meets the state’s minimum coverage requirements.
Helpful Alabama Bill of Sale Resources
If you need more help with Alabama vehicle bills of sale, government websites are your best bet for accurate guidance. While the Alabama Department of Revenue has some basic information, you may find more details by visiting your county’s website.
Stay Covered: Compare Car Insurance Options Today!
In addition to your bill of sale, you’ll need valid car insurance to register your new vehicle. Policy options and rates will vary by ZIP code. Comparing custom options is one of the best ways to find cheap car insurance in Alabama. Enter your ZIP code into EverQuote’s free online quote comparison tool to see policies from multiple insurance companies quickly and easily.