Alabama Bill of Sale – Download Free Template
A Bill of Sale in Alabama proves the transfer of ownership for vehicles, boats, or trailers. The bill of sale protects both buyer and seller and is required for registration, title transfer, and tax purposes.
What is an Alabama Bill of Sale?
An Alabama Bill of Sale is a document that shows a vehicle, boat, or trailer has been sold and ownership has been transferred. It includes details about the buyer and the seller, the vehicle’s information, such as the VIN and model, and the final sale price. This paper helps prove that the deal happened and can protect both sides if any problems or disagreements come up later.
In Alabama, this document is often used when the title of a vehicle is not available. Even though it is not always required by law, it is a good idea to have one. A Bill of Sale helps protect your purchase, proves that you are the legal owner, and makes it easier to register or transfer the vehicle later on.
Why An Alabama Bill of Sale is Crucial?
For Seller
- Release from Liability: The seller is no longer responsible for parking tickets, accidents, or legal issues related to the vehicle after the sale date.
- Proof of Ownership Transfer: It clearly proves that the seller is no longer the legal owner. This is key if a buyer fails to promptly transfer the title or register the vehicle with the state.
- Documentation of Sale Terms: It records the sale price and condition, helping to resolve any disputes that may arise after the item has been transferred.
For Buyers
- Proof of Legal Ownership: It is the buyer’s primary documented evidence of purchase, which is crucial for legally proving ownership, especially if the title transfer is delayed.
- Aids in Tax Assessment: Some counties in Alabama specifically require a bill of sale to accurately assess the sale price and calculate the required taxes, particularly when the title is unavailable.
- Resolves Disputes: It documents the exact sale price and terms of the agreement, which helps protect the buyer and resolve any future disagreements with the seller.
- Required by the County: It is often a necessary piece of documentation when registering the vehicle with the local county license plate issuing office.
Types of Alabama Bill of Sale
Alabama has specific types of bills of sale used to record vehicles, vessels, and general bills of sale to record any transactions.Â
Vehicle Bill of Sale
Needed for registering a vehicle, especially if no title is available or during private sales. It must list the VIN, year, make, model, odometer reading, sale price, date, and the buyer’s and seller’s names and signatures.
Boat Bill of Sale
Used to document boat ownership transfers and complete registration. It includes details similar to a vehicle bill of sale, tailored to the boat, such as make, model, year, hull identification number, and sale information.
General Bill of Sale
A flexible document for selling personal property like equipment, livestock, or other goods. It records the buyer’s and seller’s names and addresses, a description of the item, the sale price, and the date of the transaction.
What Does the Bill of Sale Contain?
A standard Alabama bill of sale should include key details to ensure a legal transaction. The data you can expect to find in this document includes
- Buyer and seller information: Names and addresses of both parties.
- Vehicle details: Make, model, year, VIN, and description.
- Purchase price and payment method: The agreed sale amount and how it was paid.
- Date of sale: The exact date the transaction took place.
- Odometer reading: Required for cars to meet federal disclosure laws.
- Notarization (if needed): Some sales, like boats, may require a notarized bill of sale for extra security.
How to Register a Vehicle in Alabama?
You must register your vehicle within 20 days of the purchase date to avoid penalties. To register, you need to visit your local county license plate issuing office with all required documentation.
Required Documents and Information
- Proof of Ownership: You will typically need an Application for Title and a sales invoice (bill of sale). If transferring ownership, the original title with both parties’ information correctly filled out is required.
- Proof of Alabama Insurance: Current proof of valid Alabama auto insurance is mandatory.
- Driver’s License: A valid driver’s license is required for everyone listed on the title. New residents must obtain an Alabama license within 30 days of moving.
- Proof of Residency: If you do not have an Alabama license, you may need to provide two current proofs of residency (e.g., utility bill, lease agreement).
How to Register?
- Gather Documents: Collect all of the necessary documents and information listed above.
- Visit the Office: Go to your local county license plate issuing office.
- Submit Application: Submit the “Application for Title” and all other paperwork.
- Pay Fees: Pay all required fees.
- Receive Registration: You will receive your official registration and new license plate or decal at the office.
Alabama VIN Check – Verify Vehicle History Before You Buy
When you run a VIN check with Detailed Vehicle History, you can get all the detailed information about the vehicle. Here’s what you’ll be getting in the report.
Mileage History
Title Brand
Ownership History
Warranty Status
Sales History
Salvage Title
Usage History
Repair Cost
Auction History
Hail Damage
Ownership Duration
Recalls History
Accident History
Flood Damage
Lien & Loans
Maintenance Schedule
Get a Vehicle Bill of Sale by State
Frequently Asked Questions About Alabama Bill of Sale
What voids the bill of sale?
A Bill of Sale can become invalid due to missing crucial details like vehicle specifications, dates, or signatures, or if the car itself has legal issues preventing its sale, such as failing emissions or existing liens, or if the bill of sale is improperly completed, lacks notarization when needed, or isn’t filed with the DMV promptly.
How do I notarize the bill of sale?
To properly notarize a bill of sale, follow these steps: create the document, locate a qualified notary, provide valid identification, sign the document in the notary’s presence, have the notary acknowledge your signature, pay the required fee, and clarify who retains the original document.
Does DMV keep the original bill of sale?
No, the DMV does not usually keep the original bill of sale; it is a document that both the buyer and seller must keep for their records. The DMV mostly uses the vehicle’s title as the official proof of ownership. You might be able to get a copy from your state’s DMV by completing a form and paying a fee.
Can you write your own Bill of Sale in Alabama?
Yes, you can create your own Bill of Sale in Alabama, which helps protect both the buyer and seller. While a statewide Bill of Sale isn’t always legally required for every transaction, it is often necessary for vehicles and strongly recommended for other personal property.
Is a bill of sale a legally binding document?
Yes, a bill of sale is legally binding. It serves as official proof of the transfer of ownership between a buyer and a seller, whether for personal items or commercial goods.
Can you register a car in Alabama without the bill of sale?
No, you typically can’t register a car in Alabama without proper ownership documents. A bill of sale is one of the accepted proofs of ownership, along with documents like a court order or a properly assigned certificate of origin, which are required during vehicle inspection and registration after a change in ownership.
Do I need witnesses for a bill of sale?
Generally, witnesses are not legally required to make a bill of sale valid. However, this can change based on the asset and the jurisdiction. A witness (or a notary) is often required to make the document legally binding for high-value assets or real estate transactions. Always check the specific laws of your state or locality to ensure compliance and help prevent fraud.
