Iowa Bill of Sale Form – Download Free Template
A Bill of Sale is an important document you should get after purchasing a vehicle or boat in Iowa. As of 1st January 2022, the bill of sale has become mandatory for registering the vehicle before you can drive it on the road in Iowa.
What is an Iowa Bill of Sale?
The bill of sale is an official transaction record required when buying or selling a vehicle, trailer, or boat. It provides legal proof that ownership has been transferred and is often required for title transfers, tax calculations, and registration with the Iowa Department of Transportation (DOT).
This legally binding document helps protect buyers and sellers by properly documenting the sale. It’s also useful for keeping accurate records of private transactions, especially when the sale does not go through a dealership. The bill of sale lists key details such as the buyer’s and seller’s names, sale price, date, and item description, helping both parties avoid misunderstandings later on. In addition, it may be used to verify payment or calculate taxes during registration, ensuring that every part of the transaction is recorded clearly and legally.
Why Do You Need a Bill of Sale in Iowa?
The bill of sale is a document that legitimises the title transfer from the seller to the buyer, meaning that whatever happens to the vehicle after the transaction is no longer the seller’s responsibility.
For Seller
- Protects Against Future Liability: Once the vehicle or boat is sold, the bill of sale proves that ownership was transferred, protecting the seller from any future legal or financial responsibility.
- Serves as Proof of Ownership Transfer: The bill of sale acts as a clear official record of the sale, if any disputes about the ownership of the vehicle or boat arise.
- Assists with Tax Documentation: Sellers may need to use a bill of sale when reporting the sale for tax purposes, especially if state authorities request it.
- Prevents Fraudulent Claims: In the event of a legal dispute, a bill of sale is an official document that confirms the legitimacy of the entire transaction.
For Buyers
- Provides Proof of Purchase: The bill of sale is a crucial document that confirms a legal purchase, helping the buyer prove they are the rightful owner.
- Assists with Title Transfers: Some counties in Iowa may require a bill of sale when the buyer applies for a title transfer or vehicle registration.
- Ensures Transparency: By listing the vehicle’s condition, the price, and the seller’s details, the bill of sale helps to prevent fraud and misrepresentation.
Bill of Sale Types in Iowa
In Iowa, bills of sale generally fall into two categories: general bills of sale and vehicle bills of sale. While the state does not issue an official general bill of sale form, a properly completed document is required when transferring vehicle ownership. Iowa also allows handwritten bills of sale, provided they include all essential details to make them legally valid.
General Bill of Sale
- Purpose: Used for the private sale of personal property such as livestock, equipment, or other goods.
- Requirements: Must list the full names and contact details of both the buyer and seller, along with an accurate description of the item sold.
- Template: You may create your own version or use a downloadable template, as long as it includes all required information.
Vehicle Bill of Sale
- Purpose: A mandatory document for transferring ownership of a vehicle in Iowa.
- Requirements: Must include the vehicle’s year, make, and VIN, the buyer’s and seller’s names and signatures, the date of sale, and the purchase price.
- Template: Templates are often available through county offices, or a general version may be used if it includes all required vehicle details.
- Notarization: Notarization is typically not required, though it may be needed in cases involving document errors, corrections, or ownership disputes.
What Should Be Written on the Iowa Bill of Sale?
The bill of sale should have written the detailed information of the seller and the buyer, and the information about the vehicle sold. If you plan to handwrite your bill of sale, here’s what should be included:
- The name and address of the buyer and the seller
- The contact information of the buyer and seller
- The vehicle’s year, make, model, and VIN
- The sale price and date of the transaction
- Buyer’s and seller’s signatures to legitimise the document
How to Register a Vehicle in Iowa
After purchasing a car, truck, or trailer, buyers must register it with the Iowa DOT before driving it on the public road. Registering your vehicle is mandatory. Otherwise, you’ll get a penalty if you don’t register your vehicle within 30 days after the purchase date. To register your vehicle, follow these steps:
Get the Vehicle Registration Title
Buyers must fill out the required forms to apply for a new title and register the vehicle under their name. These forms can be obtained from the Iowa DOT website or a local office.
Provide a Bill of Sale
As of January 1, 2022, Iowa requires a bill of sale for vehicle transfers. This document records essential details, such as the buyer’s and seller’s names, the vehicle description, and the sale price.
Pay the Registration and Title Fees
The registration cost depends on the vehicle’s weight, age, and type. Additional fees, such as county taxes or special plate charges, may apply.
Submit Proof of Insurance
Iowa law requires all vehicle owners to carry insurance that meets the state’s minimum coverage. Proof of insurance must be submitted during the registration process to complete the application.
Receive License Plates and Registration Card
Once all documents and fees are processed, the Iowa DOT will issue license plates and a registration card. The vehicle is now legally registered and ready for the road.
Iowa VIN Check – Verify Vehicle History Before You Buy
Plan to buy a used vehicle? Be sure to check the VIN and get the report before you decide to purchase the vehicle. Check the specifications and the past records, like auction, recalls, past usage, and more.
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
Each state has its requirements for an auto bill of sale. Click below to find the template for your state!
Frequently Asked Questions About the Iowa Bill of Sale
What makes a bill of sale legitimate?
A bill of sale is legitimate when it includes essential information like the date, names, and addresses of the buyer and seller, a description of the item sold, the price, and signatures of both parties, as well as potential notarization, depending on the state.Â
How long can you drive with just a bill of sale?
Although you may drive the car for 30 days with the proof of sale and a portion of the title, full ownership and insurance require the official title to be in your possession.
Is a bill of sale good without a title?
No, the bill of sale is not a substitute for the title. Although a bill of sale documents a transaction and offers some protection, the title remains the definitive proof of vehicle ownership.
Do the Iowa bill of sale need to be notarized?
No, an Iowa bill of sale usually doesn’t need to be notarised. However, it must clearly include key details about the vehicle and the sale for it to be considered valid.Â
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Notarization may only be required in special situations, such as when there are mistakes, missing details, or concerns about the authenticity of the documents.
