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How to Complete a Bill of Sale in Virginia: A Step-by-Step Guide

Learn about the bill of sale Virginia, its importance in vehicle sales, and essential requirements for a smooth transaction in the state.

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Buying or selling a car is one of the most expensive transactions you will make, so it's important to make sure it's done right. To ensure that the car is officially yours, you will want a bill of sale. This guide will help you get a complete vehicle bill of sale in Virginia, providing the buyer and seller with legal protection.

Overview of the Virginia Bill of Sale

A bill of sale is a legal document that serves as both a sales receipt and a contract showing proof of purchase. It's commonly used for high-value items like vehicles, aircraft, and watercraft, but can also be used for other property.

Importance of a Bill of Sale in Motor Vehicle Transactions

Unlike many other states, a bill of sale is not legally required in Virginia. However, it is highly recommended that you keep one on file. It is a legal record that proves the transaction took place, provides proof of ownership, and can help resolve any future disputes.

A bill of sale can provide sellers with liability protection. For example, if the buyer gets into an accident and claims the car is not theirs, the seller can prove they are not responsible for any liabilities.

For buyers, it shows transfer of ownership. For example if the seller claims that they never sold the car, the buyer can prove that they officially purchased the vehicle and it has been transferred to them. It can also speed up the vehicle registration and title transfer process with the Virginia Department of Motor Vehicles (DMV).

Although a vehicle bill of sale is not legally required in Virginia, it is a good idea to get one to document the change of ownership from the seller to the buyer. The seller is responsible for creating the bill of sale, but both the buyer and seller should keep a copy for their records.

A Virginia bill of sale can be a formal agreement like a Vehicle Price Certification, a digital document, or a handwritten statement, as long as it has the necessary information and is signed by both parties. Many buyers and sellers choose to have the bill of sale notarized, adding an extra layer of security, especially for high-end vehicles.

Essential Components of a Virginia Bill of Sale

A Virginia bill of sale should include the following information:

Item Description

The bill of sale should have a detailed description of the sold item. For vehicles, it should include the make, model, year, VIN, and any other unique identifiers.

Sale Price

The agreed-upon purchase price should be clearly stated to provide proof of purchase price. The payment method and any deposits or installment payments for the transaction should also be listed.

Buyer and Seller Information

Include the full names, contact information, and addresses of both the buyer and seller. This will help ensure that both parties can be easily contacted if necessary.

Date of Sale

The transaction date should be clearly stated, which is important for insurance and tax purposes.

Signatures

A bill of sale must be signed by both the buyer and seller to be valid. While not legally required, having a third-party witness can provide additional security.

Importance of Updating Car Insurance

Once the bill of sale is completed, the next step is to update your Virginia car insurance. Maintaining proper insurance is vital during the sales process. Buyers must get a new auto insurance policy when the car is legally theirs.

Sellers should cancel their policy to avoid any continued liability for the car. However, they should not cancel it before the car is officially transferred to the buyer. An insurance policy protects both the buyer and seller, so there is continuous coverage of the vehicle with no gaps.

Compare Car Insurance Quotes for Best Coverage

Comparing quotes from different providers can help identify policies that offer comprehensive coverage at competitive prices. This helps you get the right amount of insurance and save money with cheap car insurance in Virginia.

Visit EverQuote to find the best coverage that meets your needs without breaking the bank. It's free and takes just minutes to fill out, so you can provide proof of insurance in a timely manner.

FAQs

Is a Bill of Sale Required in Virginia?
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The Virginia DMV does not require a Bill of Sale for vehicle registration. However, it's highly recommended that one be on file. A bill of sale is a legal document showing the official transfer of an item from one party to another. It can protect the seller from liability and provide proof of ownership for the buyer. It can also help resolve any future disputes over the transaction.
How to Write a Bill of Sale for a Car in Virginia?
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When writing a bill of sale in Virginia, you should include the vehicle’s description, such as the make, model, color, VIN, and other car details. The document must also include the date of the transaction, the agreed-upon sale price, and the names and addresses of both parties. Both the buyer and seller must sign the document for it to be valid.
How to Transfer a Car Title in Virginia?
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To transfer a car's certificate of title in Virginia, you must visit a Virginia DMV office and submit the required vehicle documents, such as proof of residency and certificate of origin, with Form VSA 17A - Application for Title and Registration. After you pay the $15 titling fee, any registration fees, and the Sales and Use Tax, you must record the odometer reading. You can then choose to receive a paper or electronic vehicle title.
Do You Need a Bill of Sale to Register a Car in Virginia?
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You do not need a bill of sale to register your car in Virginia. When transferring ownership, you can provide a Vehicle Price Certification (SUT-1) to show the sales price. If you don't have a bill of sale or the SUT-1, Virginia may use the NADA market value to determine the Sales and Use Tax of the vehicle.

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