It may look a bit shady to get a car title for a car with a bill of sale. Nevertheless, it’s doable. It’s something worth knowing that your car title holds a lot of importance as far as your registration papers is concerned.
The car title is a document that says that you or another person owns that particular vehicle and without it, the car is as good as stolen. That means, whether you’re buying or selling, you should have it covered before the deal goes down. Regardless, a bill of sale can replace it in the exchange deal.
Your next best option is to get a bonded title and then lay claim on the car as yours. You want to know how to do this? We will show you how to get a car title with a bill of sale.
Bill of sale: What It Is?
We can say a bill of sale is an official deed of transfer record that cedes the right of ownership of a property to a different person for monetary benefits. The paper can record the purchase of vehicles, motorbikes, airplanes, and water cruisers. You could also use it to record the purchase of houses woodworks and pets.
The seller draws the deed for the bill of sale document and adds everything that concerns the business deal. It serves as a guarantee for the seller and the buyer in case of issues.
Contents of A Bill Of Sale
On a universal note, this is how to handwrite a bill of sale. It should contain the following parts
- The buyer and seller’s name
- Payment for the ownership transfer
- Purchase date
- Definition of the property transferred
- A disclaimer that the property was in good shape at the time of sale.
- Signatures of the marketer, buyer, and a witness
When drawing up the deed for a bill of sale, ensure it follows the stipulations of your state laws that concern bills of sale. It differs by state, as some DMVs may request the purchaser to endorse the paper while some will need both the purchaser and marketer. However, other states may include a place for a witness to sign.
Step by Step Guide on How to Get a Title for a Car with Bill of Sale
Step 1: Fulfill the Needs of Your State’s DMV
Find the car’s Vehicle identification number (VIN) and write it down. You will find the VIN at the bottom right of the windshield right in front of the passenger’s seat. The VIN is a set of 17 digits that has numbers and letters that is specific to every car; there are no two cars that have the same VIN.
The car title request has on it, the make and model of the car, the year in which it was manufactured, and also the odometer reading. So endeavor to get this before you begin the process.
Step 2: Go to Your States Department of Motor Vehicles
Every state or region has a different set of things needed if you’re looking for how to reclaim a car title with a bill of sale. You wouldn’t need to get to the DMV in some states because the secretary of state is in charge of it. However, some still insist that the treasury department handle such matters as are concerned with the bill of sale.
In states like Texas, the DMV regulations insist that you must be residing in the state before your bill of sale can get you a car title. Furthermore, the car must have been registered first in Texas initially or belonged to a military official in Texas before that time.
Moreover, the car must not be a part of an ongoing legal procedure, part of a robbery, or initially dumped in a junkyard. Some regions like Wyoming would require you to come physically with the vehicle for inspection to confirm the worth of the car and ascertain the VIN.
When you get the office in charge of the title, collect a form to apply for a change of car title, and input the needed information. Attach the bill of sake document if need be, and also state in the form, that you have not received the title as at the time. Pay the title charge and sign the form with your witness, that’s if your state deems it fit.
Step 3: Purchase a Surety Bond
Immediately you satisfy the state’s requirement for a title with a bill of sales, you will get a notice of insurance by the state DMV. In the letter, they will state the insurance plan or payment you need to make to insurance providers to secure the car.
The bond helps to keep the vehicle free of any debts and issues as it changes ownership. This is essential as no one would want to be roped into problems they know nothing about just because they get a new property. The amount to be paid on the surety bond differs by state.
For example, you have to pay the worth of your car multiplied by one and a half in Texas. In Wyoming, you need a surety bond twice the value of your vehicle, to get a car title, same with Florida.
One may purchase a surety bond from an online company or any around your locality. Online bond companies like Surety Solutions LLC may sell a bond value of $1000 for $15; All States Bond is also a company online surety bond company.
Step 4: Get a Bonded Title
Immediately you get a surety bond, begin a race against time to get a bonded title that states that you own the vehicle. A bonded title is a paper issued to you by the state secretary state. This comes after they confirm that your surety bond corresponds with the letter from the DMV.
It’s not this straightforward in some states, as they will request that you complete a form and pay a bonded title charge. If the state issues you a bonded title, you can go ahead and market the car after you register it and get proper insurance.
Why Do You Need a Surety Bond?
The state believes it needs protection against issues regarding the sale of stolen cars; that’s why they insist you get a bonded title. Also, former owners of the vehicle want to be exonerated from problems that arise with the car in the future.
The state knows issues may arise later with cars changing ownership, so it seeks to guard itself against such unforeseen troubles. They want to be sure they didn’t give out the bonded title to a car that doesn’t merit it.
Although getting a car title with a bill of sale is one very hectic process, it will worth every bit of the stress at the end of the day. You already know that a car title is as important as the car itself because it’s the only thing that certifies you as the owner. That’s why this procedure is an important one to the state, the seller, and the buyer.
As a buyer or seller, you should always ensure to
- Insist on getting a car title with a bill of sale from the state DMV
- Endeavor to get the bonded title immediately you secure a surety bond
- Always ensure your surety bind corresponds with the one in the DMV’s letter given to you
You can always come to us with your questions in the comment section for more clarification.