Bill of Sale for a Car in Massachusetts​

If you’re a driver in the Bay State buying or selling a used car, there are certain legal requirements. Along with proof of insurance and vehicle inspection, you’ll need an auto bill of sale. More than a receipt, this document serves important legal functions to protect both buyer and seller.

Here’s a look at everything you need to know about a bill of sale for an automobile in Massachusetts, from why you need it to how to create and submit it to the Massachusetts Registry of Motor Vehicles for a safe and legal sale.

Why a Bill of Sale Matters in Massachusetts

A bill of sale for a car in Massachusetts is a legally binding document as well as the official record of a major transaction. It serves as proof of the secure and legal transfer of a vehicle’s ownership. A bill of sale also proves that the seller owned the car prior to the sale, that the vehicle has changed hands, and that the new owner is in legal possession of the vehicle.

By proving they no longer own the car, the bill of sale protects the seller from liability for any accidents, parking tickets, or other issues after the date the car changed hands. For the buyer, it’s proof of legal ownership as well as an acknowledgement of legal liability.

An automobile bill of sale in Massachusetts documents the exact terms of the transaction. It records the purchase price both parties agreed to, the condition of the vehicle, and any other important details.

Without a bill of sale, you’ll be unable to complete the ownership transfer process and will not be able to drive the car legally. The state Registry of Motor Vehicles requires a bill of sale for an automobile in Massachusetts for a Massachusetts application for title. Processing the Massachusetts car registration includes collecting sales tax from the new owner and issuing a new certificate of title in the new owner’s name.

What To Include in a Massachusetts Bill of Sale

To be valid, a vehicle bill of sale has to contain specific details. Any inaccurate or missing piece of information could cause delays at the RMV or require a new bill of sale to be submitted.

Required Vehicle Information

• The make, model, and year of the vehicle
• The vehicle’s exterior color
• The Vehicle Identification Number (or VIN), a unique, 17-character code stamped on the vehicle. It’s the most critical identifier, and because of its complexity, should be double-checked. You’ll also need this information to meet Massachusetts car insurance requirements.
• The vehicle’s current mileage. The RMV stringently enforces this requirement, and for most vehicles newer than 10 years, a separate, specific Odometer Disclosure Statement form needs to be submitted with the title.

Buyer and Seller Details

Contact information for both the buyer and seller must be clearly stated on the document. Be sure to include:

• The full legal names of both the buyer and the seller
• The current legal residential addresses of both parties
• Signatures of both the buyer and the seller

Notarization on the bill of sale isn’t legally required in Massachusetts, but a notarized signature can provide an extra layer of security.

Sale Terms and “As-Is” Clauses

This section of an auto bill of sale in Massachusetts formally details the financial and legal aspects of the agreement. Carefully note and record:

• The total purchase price that the buyer is paying for the vehicle. The amount of sales tax will be calculated based on this amount, so be sure it’s accurate.
• The exact date of sale. This includes the day, month, and year the transaction took place.
• Most used car sales between private parties are “as-is” transactions, which means the buyer is purchasing the car in its current condition. An “as-is” statement in the bill of sale limits the seller’s liability for any mechanical issues that might arise after the sale.

Step-By-Step Instructions To Complete the Form

1. Review all applicable information

When completing a used car sale, both buyer and seller should give proof of their full legal names and addresses. The seller should also have all of the vehicle’s salient information, including the VIN and current mileage.

2. Use a template

Although it’s not a legal requirement, using a template for a vehicle bill of sale in Massachusetts helps guarantee you’re including all of the necessary details. Handwritten documents are legal, but if any information is hard to find, omitted, or inaccurate, the RMV may reject the bill of sale.

3. Go slow and double-check

Use clear, easily legible handwriting when filling out a bill of sale, or better yet type it out. Make sure the buyer’s and seller’s names and addresses are accurate and current, double-check the VIN, and state the exact purchase price.

4. Complete the Odometer Disclosure

If the car changing hands is 10 years old or newer, you’ll need an Odometer Disclosure Statement on the back of the certificate of title or a separate RMV-provided form.

5. Sign and date the bill of sale

For the bill of sale to be legal, both the buyer and seller must sign and date it.

Submitting the Bill of Sale to the Massachusetts RMV

Once the transaction is complete, it’s the new owner’s responsibility to take the bill of sale to a Massachusetts RMV office to finalize the Proof of Ownership transfer. The new owner should be sure to have:

• A signed Certificate of Title from the seller
• The completed bill of sale for an automobile in Massachusetts
• A completed Registration and Title Application
• Proof of valid Massachusetts car insurance
• Sufficient payment for all required registration fees and sales tax

You’ll have 10 days after the sale to bring these documents to an RMV service center. The RMV will review your Massachusetts driver’s license status, process the paperwork, and issue Massachusetts license plates and a new title in your name, officially completing the process.

Compare Car Insurance Quotes for Massachusetts Drivers

Now that you have a new-to-you motor vehicle, you’ll want to make sure it’s protected. Massachusetts insurance options can vary significantly based on your driver profile, the car you drive, and even your specific ZIP code. Shopping around by comparing quotes is the best way to make sure you’re getting the right Massachusetts car insurance coverage at a great price.

Getting a custom comparison is always free with EverQuote. It only takes a few minutes to find the best car insurance for your needs. Why not check right now?