Bill of Sale in Delaware
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A Bill of Sale summarizes the deal you have agreed to, as either the buyer or seller of a vehicle. Delaware doesn't offer a specific form for a Bill of Sale; however, the DMV does require a Sellers Report of Sale, which is available online using the free Adobe Reader.
If you are the seller of a vehicle, once you've completed the Bill of Sale you have more work to do. You must assign the title to the buyer, pay off any debt remaining on the car, and return your license plates if you aren't transferring them to a new vehicle.
If you are the buyer, the Bill of Sale will be at the beginning of all your DMV transactions, starting with temporary tags. Get organized and keep your Bill of Sale close by with all your inspection, title, and registration documents.
First note that if you don't carefully read what you sign, change your habit when transferring a title and signing a Bill of Sale because it is an important binding document.
Check over the Bill of Sale to be sure it includes all the necessary information. You'll want to look for a detailed description of the vehicle, including make, model, year, and Vehicle Identification Number (VIN).
The Bill of Sale should include any warranty information; sometimes there is a factory warranty remaining or you might be getting a 30-day warranty from the car dealer. If you are entering into a private sale you might not get any warranty, in which case the Bill of Sale should read "As Is."
The price you agreed to pay or sell at must be on the Bill of Sale. If there are additional costs being tacked on, like inspection or repairs, you'll want to take a moment to be sure you understand all the fees.
Because the Bill of Sale is a contract, once you sign it you are bound by what it says. In Delaware, you do have some rights under the Lemon Law for newer vehicles only. It is always a good idea to have a second set of eyes review the Bill of Sale before it is executed; ask your partner, wife, or husband to proofread the paper before you sign.
Another optional but protective component of the Bill of Sale is a witness. The Bill of Sale is binding without a witness signature, but if you are the seller you may want a third person to witness the signing. A witness can help protect you if the buyer reneges on the deal.
Before you can drive your new car, you have to get it insured and registered. But, before you are able to apply for the title transfer your new vehicle must pass the safety inspection and emissions check.
So, the challenge to you is how can you bring your car to the DMV inspection lane without a valid registration? Temporary license plates are the answer.
You can apply for a temporary plate at any DMV office. The fee is just $10 and the plates are usually good for 30 days. All you need is the Bill of Sale, proof of insurance, and proof of identity.
The Bill of Sale is also an important document when it comes to getting financing for your new car. Perhaps you need to borrow some money for the purchase; a bank or lender will rely on the Bill of Sale to determine your loan amount.
And of course, any warranty you are entitled to will be proven by the Bill of Sale. So, keep the Bill of Sale handy, maybe even in your glove compartment, and be sure to make a copy for safe keeping at home.
If you have trouble downloading the Delaware Bill of Sale form, we provide links to generic forms from our sponsors.
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