Kentucky Bill of Sale Form – Download Free Template
A bill of sale isn’t just a record of a transaction; it protects buyers and sellers from legal disputes and fraud. Without it, you may struggle to prove ownership, face fraud risks, or run into legal issues.
What is the Kentucky Bill of Sale?
A bill of sale is a written record documenting the transaction process of a vehicle or vessel between a buyer and seller. The bill of sale should include details such as the name and address of the seller and buyer, the sales date, and the price.
In Kentucky, a bill of sale is particularly useful for:
- Private Vehicle Sales: It helps document the sale when buying or selling a used vehicle without a dealership.
- Title Transfers: If the title is missing or does not have space for the sale price, a bill of sale can be used.
- Tax Purposes: It proves the actual purchase price when calculating state taxes and fees.
- Legal Protection: It provides legal evidence of the transaction, reducing the risk of disputes.
Why Do Sellers and Buyers Need a Bill of Sale in Kentucky?
Sellers and buyers need to have a bill of sale to protect themselves against disputes in the future and to have solid proof of the transaction of the items.
For Seller
- Proof of Sale: The bill of sale shows the exact sale date of the vehicle, boat, or trailer, which protects the seller from liability after the transaction.
- Tax Documentation: In Kentucky, the seller may need a sale price record for tax purposes. The bill of sale helps in reporting income and deductions accurately.
- Avoiding Future Liability: Once a vehicle is sold, the seller is no longer responsible for accidents, tickets, or damages. A bill of sale proves that the ownership has successfully transferred to the buyer.
For Buyers
- Proof of Ownership: When registering a newly purchased vehicle, trailer, or boat in Kentucky, buyers may be required to present a bill of sale and other documents.
- Vehicle Registration Assistance: When registering a newly purchased vehicle, trailer, or boat in Kentucky, buyers may be required to present a bill of sale and other documents.
- Financing/Loan: By showing that the sale happened, it can prevent future troubles, like being held responsible if the seller doesn’t report the transfer to the DMV.
The Types of Bill of Sale in Kentucky
In Kansas, bills of sale are used for different items, including motor vehicles, boats, and other personal property. While not always legally required, creating a bill of sale is recommended to document the transaction and protect both the buyer and seller.
By Item Type
- Motor Vehicle Bill of Sale: Used for cars, trucks, and motorcycles. It records ownership transfer and includes important details like vehicle information and sale terms.
- Boat Bill of Sale: Optional but recommended for selling boats. It provides legal proof of the transaction.
- Personal Property Bill of Sale: A general form for items like furniture, livestock, or equipment. It can cover a wide range of goods.
By Transaction Type
- Standard Bill of Sale: A simple document that records a straightforward sale at an agreed price.
- “As-Is” Bill of Sale: Used when the item is sold with no warranties. It clearly states that the buyer accepts the item in its current condition.
- Notarised Bill of Sale: While not required, notarising the bill adds extra authenticity and legal protection for both parties.
What Should Be Written on a Kentucky Bill of Sale?
To keep the Kentucky bill of sale legally binding, it typically contains the following details:Â
Buyer and Seller Information
The name and address of the buyer and seller should be written on the bill of sale along with their signature.Â
Vehicle Description
The complete information of the vehicle, including the year, make, model, VIN, and body type, should also be included.
Purchase Date and Price
The transaction date and the agreed price should be included on the bill of sale.
Odometer Reading
For vehicles, the bill of sale may include the mileage at the time of purchase, which is important for legality and tax purposes.
How to Register a Vehicle in Kentucky?
After purchasing a vehicle in Kentucky, you need to register the vehicle with the Kentucky Transportation Cabinet. The registration process ensures the vehicle is legally documented and registered for road operation. Here are the steps to follow to register a vehicle in Kentucky:
Obtain a Signed Title
The seller must provide the buyer with a properly signed title. This is the most important document needed to complete the ownership transfer. If the title is missing or incorrect, the registration process may be delayed.
Complete the title Transfer Application
The buyer must complete the necessary form to apply for the title and registration. These forms are available at local county clerk offices and may also be accessed online.
Pay the Required Fees
Vehicle registration fees in Kentucky depend on factors such as the vehicle’s type, weight, and age. Buyers are also responsible for paying applicable state taxes.
Submit Proof of Insurance
Kentucky requires all registered vehicles to have valid insurance coverage. Proof of insurance must be submitted as part of the registration process.
Receive License Plates and Registration Card
Once the application is processed, the new owner will receive a registration card and Kentucky license plates. These must be displayed properly to comply with state regulations.
Kentucky 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 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!
Kentucky Bill of Sale Frequently Asked Questions
Can someone else register my car in my car?
No, someone else cannot register your car in their name unless they are the owner and have the title in their name. To allow them to register and insure it, you must transfer ownership by signing the title over to them
What documents do you need to register your car in Kentucky?
To register a car in Kentucky, bring proof of current Kentucky liability insurance, a valid photo ID, the vehicle title (or Manufacturer’s Certificate of Origin if it’s a new car), and a completed Application for Title/Registration (Form TC96-182). In some cases, you may also need your Social Security number, a lien statement, or proof that you’ve paid the sales tax.
How much will it cost to register your vehicle in Kentucky?
In Kentucky, registration costs depend on the type of vehicle. For new registrations, expect to pay around $21 for license plates, $9 for the title, $6 for the clerk, and possibly other fees such as $22 for lien recording and a 6% usage tax on the retail price.
Does the Kentucky bill of sale need to be notarised?
Yes, a Kentucky bill of sale must be notarised when transferring a vehicle title if the seller is from out of state or if the title was issued before February 2000. For other vehicle transfers, notarization is usually required on the back of the title and on certain forms, such as the TC 96-182.
How to write the bill of sale in Kentucky?
A Kentucky bill of sale should include the sale date, the buyer’s and seller’s information, and a detailed description of the item being sold. You must also write the sale amount and any payment conditions agreed upon.
