Is a Vehicle Bill of Sale Required in California?
Cars in California are not a luxury but a necessity. Of course, no one lives their entire life with only one vehicle — they are bought and sold, and we do it quite often. To prove such transactions, you can use a vehicle bill of sale. In California, it is necessary not only when buying a car but also for any large purchase over $500.
This form is needed to document the legal transfer of an item from one owner to another. It is also often used for personal accounting and to protect oneself from fraudulent sellers.
When you purchase a vehicle, you have 30 days to register it with the California Department of Motor Vehicles. A bill of sale is one of the required documents that you must submit to the department.
Other documents are:
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Application for Title or Registration (Form REG 343)
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Proof of insurance
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ID with photo
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Smog certificate (not needed if the previous owner renewed it in the last 90 days for two years)
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Registration fees and taxes
In addition to the above, you may need to provide the following:
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Odometer reading (if you are providing the title)
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Safety inspection verification (depends on the age of the vehicle)
When buying or selling a vehicle in California, you should remember to fill out a release of liability and pass smog certification. The Release of Liability (Form REG 138) is a form that the seller completes and submits to the California DMV to notify them that the vehicle has been sold or transferred to a new owner. This form protects the seller from liability arising from the vehicle after its sale.
Smog certification is required for most vehicles in California as part of the vehicle registration process. It verifies that a vehicle's emissions control systems are functioning properly and that the vehicle meets the state's emission standards.
Car Bill of Sale Components in California
California Department of Motor Vehicles (DMV) provides the official bill of sale form and the guidelines for creating it. The bill of sale for a motor vehicle includes the following:
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Information about the parties of the transaction (seller and buyer), their names, and direct contacts
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Vehicle information (type, model, body type, VIN, etc.)
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Sale date
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Purchase amount and payment method
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Signatures of the parties
Before signing the document, ensure that the data entered is correct. Sometimes scammers deliberately make a mistake in a document to invalidate it.
It is also highly recommended to undergo the notarization of the document to avoid emergency proceedings. The seller and the buyer must keep certified copies of the document.
When creating a California vehicle bill of sale, you should clearly state whether the vehicle is being sold "as-is" or if there are any warranties, guarantees, or disclosures about the vehicle's condition.
It's recommended to consult the official California DMV website or legal professionals for the most current information and any updates regarding creating and using a motor vehicle bill of sale. Always ensure that your bill of sale form accurately reflects the details of the transaction and adheres to the state's legal requirements.
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