Alabama Bill of Sale Template for Cars, Trucks, Trailers, and Boats
A bill of sale is an essential document for sellers and buyers who have conducted vehicle, boat, and trailer transactions in Alabama. Sometimes, the bill of sale is not legally required. However, getting one is completely fine, as it is a proof of ownership transfer that protects both the buyer and the seller.
Alabama Bill of Sale Form
If you are buying a used car in Alabama, ensure you always get the bill of sale in hand to protect both parties. A bill of sale can be useful for registration and tax purposes. Sometimes, it might be required when the vehicle’s title is missing.
What is the Bill of Sale For?
The purpose of a bill of sale is to record the transfer of ownership when selling a vehicle, boat, or trailer. The document includes the buyer and seller information, the vehicle’s specifications, and the sale price. Having this document can protect you in case of future disputes and establish a legal basis for the vehicle’s transaction.
In Alabama, a bill of sale is needed when the title of a certain vehicle is unavailable. Although a bill of sale is not mandatory, we advise getting one to safeguard your investment.
Get a Vehicle History Report in Alabama
Before buying a used car in Alabama, you must do a background check on the vehicle you are looking for. Remember to check the VIN to get details about what happened in the car’s past, such as past accidents, previous owners, and potential risks such as title fraud, flood damage, and more; by checking the VIN, you may save a thousand dollars on the car’s maintenance.
In addition, sellers can display their vehicles’ original factory specifications and features with window stickers. A window sticker shows the standard and optional features, packages, MSRP, safety ratings, and more.
Display accurate vehicle specs to all buyers easily with our window sticker lookup tool!
What Information Can You Find in the Vehicle Report?
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 on the report.
- Mileage
- Ownership History
- Sales History
- Usage History
- Accident History
- Lien & Loans
- Recalls History
- Flood Damage
- Title Brand
- Warranty Status
- Salvage Title
- Repair Cost
- Hail Damage
- Ownership Duration
- Accident History
- Maintenance Schedule
In addition, sellers can display their vehicles’ original factory specifications and features with window stickers. A window sticker shows the standard and optional features, packages, MSRP, safety ratings, and more.
Display accurate vehicle specs to all buyers easily with our window sticker lookup tool!
What's Included in a Window Sticker?
Our window sticker lookup provides all original factory details for your vehicle.
- MSRP & Pricing
- Optional Equipment
- Warranty Details
- Engine Specs
- Exterior Features
- Color Codes
- Standard Features
- Safety Ratings
- Fuel Economy
- Interior Features
- Packages & Options
- Manufacturing Info
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.
Why You Need a Bill of Sale?
Why do Sellers Need a Bill of Sale?
A bill of sale provides legal protections for sellers after completing the transaction. After the vehicle has been sold, the seller is not responsible for ticket parking, accidents, or legal issues related to the vehicle. If a buyer fails to transfer the title or register the vehicle, the bill of sale proves that the seller is not the vehicle’s legal owner.
Why do Buyers Need a Bill of Sale?
For buyers, having a bill of sale is like having legal protection for the vehicle they have purchased in Alabama. Additionally, some countries in Alabama require a bill of sale for the tax assessment, especially when the title is unavailable. Without having the bill of sale, buyers might have a hard time legally proving the ownership.
What to Check Before Buying a Car!
Aside from getting the bill of sale, you may check the background of the vehicle you are about to buy by utilizing these tools.
Check the vehicle history
Avoid costly mistakes by verifying past accidents, title issues, and undisclosed damages.
Look for flood damage
Some areas have a high risk of water-damaged vehicles. A flood damage check helps identify unsafe cars.
Verify the odometer reading
Odometer fraud is common, with sellers rolling back mileage to increase value.
Be informed about the title
Checking the title is important before you decide to buy the car, as nobody wants to buy a car with salvage records.
Check for theft records
You don’t want to be stuck with a stolen vehicle. Check for theft records and avoid legal issues.
Get the service record
Buying a used car means you need to check the service record to ensure that past owners regularly serviced the car.
How to Register a Vehicle in Alabama?
After you purchase a vehicle in Alabama, you must register the vehicle with the Alabama Department of Revenue (DoR). Here’s the simple step to register your vehicle online.
Apply for an Alabama Title
Begin by applying to obtain an official Alabama title for your vehicle. This is a necessary step before registration.
Show Proof of Alabama Car Insurance
Registering your vehicle must present valid proof of Alabama auto insurance that meets the state’s minimum coverage requirements.
Submit the Required Documents
Gather and provide all necessary paperwork, including your title application, proof of insurance, and any additional required forms.
Complete a VIN Inspection
Your vehicle must undergo a VIN inspection to verify its identity and ensure it matches the provided documentation.
Pay the Registration Fees
All applicable fees, including title and registration costs, must be paid to proceed with the registration process.
Receive Your License Plate and Sticker
Once your registration is finalized, you will be issued your vehicle’s Alabama license plate and registration sticker.
How to Register a Vessel in Alabama?
The Alabama Marine Petrol Divisions handle boat registration in Alabama. To register a newly purchased boat, the owner must submit:
Get the Bill of Sale
A bill of sale is required to document the transfer of ownership. This ensures a legal transaction record, protecting both the buyer and seller in case of disputes.
Proof of Ownership
Buyers must provide proof of ownership, such as a manufacturer’s statement of origin (MSO) or previous title. This confirms that the boat is legally obtained and eligible for registration.
A Completed Registration Form
Owners must submit a completed boat registration form through the Alabama Marine Patrol Division. This step ensures the vessel is legally registered and can operate on public waters.
The laws in Alabama require the vessel to be registered before operating on public water, and it has to be renewed every one to three years. New boat owners should check with the local Marine Patrol office for specific requirements.
Get a Vehicle Bill of Sale by State
Each state has its own requirements for an auto bill of sale. Click below to find the template for your state!
Frequently Asked Questions
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?
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.
The buyer should keep the original bill of sale, which is necessary for registering the vehicle at the DMV and contains important warranty information.