A bill of sale (BOS) is a document that transfers ownership of an item from one person to another. People use it for all kinds of deals, from vehicles to heavy equipment.
A bill of sale for a trailer is a legal document that shows the transfer of ownership from one party to another. Individuals can use a Bill of sale form for all types of trailers, including utility trailers, boat trailers, camper trailers, etc.
This vital document is required in almost all states, and without it, there can be legal repercussions. In this blog, I will explain the importance of a bill of sale for a trailer and the steps to creating one.
Trailer Bill of Sale Template
Templates By State
A bill of sale is a document that transfers ownership of goods from one person to another. For example, if you buy a used trailer from a private seller, you will receive a bill of sale as proof that you are now the legal owner.
A BOS is especially useful when the seller or buyer may need to prove that a sale took place or that payment has been made for a particular item.
Bills of sale are also sometimes referred to as sales invoices.
A trailer bill of sale is a legal document that transfers ownership from one party to another. One can also use it to prove that a deal has occurred and that all parties agree on the terms of the transaction. Individuals can then use the document for both parties’ record-keeping purposes, tax purposes and future ownership disputes.
Every state has its laws when it comes to bills of sale. In most cases, the person selling the vehicle completes the top half of the bill of sale and then hands the document to the buyer to complete the bottom section and sign.
The buyer should always ensure that they receive a valid bill of sale for their records. This can come in handy if there are any problems with the vehicle in later years, such as if someone steals it or one of the parties discovers an outstanding lien on the trailer.
Most states require that certain information be included in the trailer bill of sale. Although most states will have similar requirements, there are varying requirements from state to state.
The bill of sale for the trailer should include the following elements:
“Bill of Sale” on the top center of the paper. The names and addresses of both parties involved in the transaction. The date on which the transaction took place in DD/MM/YYYY format.
It should also include the price at which one party sold the trailer. In many cases, the parties may use a price they agreed upon instead of a market price. Make sure that this is stated in the bill of sale.
Description of the trailer, including its model and make, year made, VIN if available, registration number, and license plate number. Signature lines for both parties involved in buying and selling trailers and their printed names and current dates.
When you buy a trailer, some states may require you to notarize and file the bill of sale with your local Department of Motor Vehicle (DMV) office. It should contain the following information:
The name, address and signature of the seller and buyer. The date the sale took place. Any unique details that apply to your transaction, such as liens or encumbrances on the property.
A description of the item being sold, including make, model, year, color, and serial number. The purchase price of the item or trailer. Any trailer tax imposed by your state jurisdiction.
1. Write “Bill of Sale” at the top of the page.
2. Write your full name, legal mailing address, and phone number under “Seller.” Officials will use this information if there are any disputes or legal issues related to the transaction in the future.
3. Write your full name, legal mailing address, and phone number under “Buyer.” Authorities might use the information to contact you if there are any disputes or problems related to this transaction in the future.
4. Enter the current date under “Date.” The DMV will use this to determine when the transaction took place.
5. Write in a description of what is being sold, including its year, make and model, color, license plate number (if applicable), serial number (VIN) and general condition under “Description.” It is essential to include as much information as possible, so no one is confused about what you purchased or sold between you and the buyer.
Here is a sample form, but also consider this one for the state of Michigan.
Seller (Seller Name) _______________________________________________
City_________________________________ State_________ Zip____________
Buyer (Buyer Name) ___________________________________________________
City_________________________________ State_________ Zip_____________
As part of the closing process, you may need to make sure your Bill of Sale for the vehicle is complete and accurate. The trailer manufacturer’s date and serial number (VIN) should be included on the bill of sale. You will also want to have the trim level and options installed on the trailer.
The buyer fills out his information, including name, address, contact details, driver’s license number and Social Security number.
If the trailer is new, enter your dealer’s license number. The seller fills out his information, which is similar to the buyer’s and includes the bank account number for receiving payment.
Both buyer and seller sign and date the bill of sale before you file it with your DMV office.
Two copies of the Bill of Sale are required; one copy stays with the seller (the original copy). The other document goes to the buyer.
You should be able to obtain a bill of sale from any DMV office. You probably need to bring in the trailer and proof of ownership. Some states require an inspection of the trailer before a new title is issued, but that is done at the DMV office.
If you do not have a title, you will have to provide whatever documentation you can find from the last owner and go through a process to prove it is yours. It may be more trouble than it is worth, especially if the trailer has been unregistered for more than a few years. I would suggest trying to sell it without a title. Just explain that in your advertisement. Then, if you sell it, you can give them the bill of sale, registration and keys and let them deal with all paperwork.
When buying a trailer, the law requires the seller to give you a title with a bill of sale. However, you do not have to carry this with you while transporting the trailer.
Also, some states do not require an official bill of sale or title; so long as there is a record of your purchase, it is legal.
These laws differ from state to state and may change over time. Be sure to check with your local DMV for any current changes in trailer registration laws.