A Vehicle Bill of Sale in Massachusetts: What To Know
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If you’re buying or selling a car, you’ll need to know some of the basic steps of the process. It doesn’t have to be overwhelming. It begins with a vehicle bill of sale in Massachusetts. Think of this document like a receipt you get for buying something at the store but with a bit more information. Read on as we go over all the details.
What’s The Purpose of the Vehicle Bill of Sale in Massachusetts?
The primary purpose of a bill of sale is to confirm the terms and provide evidence of the transaction between the seller and buyer. The bill of sale will verify ownership of the car and the transaction amount (so the RMV knows how much tax to assess). And the Massachusetts Registry of Motor Vehicles (RMV) may require this information for a vehicle to be titled and registered.
Massachusetts doesn’t require a bill of sale to be notarized or signed by both parties in front of a witness.
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What Information Is Required On Vehicle Bill of Sale in Massachusetts
Unlike many other states, Massachusetts doesn’t mandate a specific bill of sale form. In fact, the RMV directs consumers to a template form on a third-party website, dmv.org. You’re not required to use this form. Just about anything will do, including a hand-written document. But, at a minimum, the bill of sale for a private-party transaction (no dealer is involved) should include the following:
Seller’s Information
We’re talking about the basic details, such as name and address. It also never hurts to ask for a phone number, too.
Buyer’s Information
This involves similar information but from the buyer. Again, a phone number can be helpful.
Signatures
A vehicle bill of sale must have a place where both the seller and buyer can sign their names. These signatures affirm that both parties consent to the terms of the transaction. Significantly, signing your name to a bill of sale that isn’t accurate could expose you to civil and criminal penalties.
Date of Purchase
This vital information is the actual date when the buyer hands over the funds and takes possession of the car or the car’s title. Including the date sets a precise day when the seller can cancel the car’s insurance and registration and indicates when the buyer becomes responsible for the vehicle.
Purchase Price
Including the purchase price in a vehicle bill of sale in Massachusetts is mandatory as it eliminates any questions about the final agreed-upon price for the car. Plus, this amount determines how much tax the RMV will charge when the buyer registers the vehicle.
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Vehicle Identification Number
Americans have Social Security numbers, and automobiles have vehicle identification numbers (VINs). These are ways of uniquely identifying people and cars. The VIN can be located on the registration and title. In addition, this information can usually be found on top of the dashboard (on the driver’s side), under the windshield, and on a plate or sticker on the driver’s side door jamb. Importantly, having the correct VIN on a bill of sale will ensure a smooth and easy transaction for buyers and sellers.
VIN Tip: Whether you are selling or buying, always confirm the VIN through the multiple sources mentioned above. Determine why there’s a problem before proceeding. Hold off on the transaction to avoid any headaches if you see a discrepancy with the VIN.
Make, Model, and Year
Other must-haves for the bill of sale include the vehicle’s make (Ford or Toyota, for example), model (such as F-150 or Camry), and the model year. Always confirm this information with what’s on the car’s registration or title.
Other Information
While not required for a vehicle bill of sale in Massachusetts, adding extra details can only help increase the peace of mind for both the buyer and seller.
Registration Number
This unique number is located on the registration document and can help identify the vehicle further.
Title Number
The title number is another way of identifying a vehicle. Keep in mind that older vehicles (built before 1980) purchased in Massachusetts before 1990 may not have a title. This information can be located on the title certificate.
Vehicle Color
It’s a minor detail, but it can only help add the car’s color to the bill of sale.
Odometer Reading
Noting the vehicle’s mileage isn’t necessary, but documenting this information is good. If odometer tampering is later suspected, the buyer has a record of what mileage was shown on the car at the time of purchase.
Form of Payment
Including the form of payment (cash, check, electronic, or something else) on the bill of sale can ensure there are no disputes between seller and buyer.
Gift Status
Cars received as a gift from a close relative may be exempt from Massachusetts taxes. If this is the case, be sure to reference this in the bill of sale. The RMV also requires a separate form (MVU-24) to be completed to claim the exemption.
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Why Do I Need a Bill of Sale?
- Legal Requirement: In Massachusetts, a bill of sale may be required to register a vehicle. This is if the car is exempt from titling due to its age.
- Legal Protection: A mutually signed bill of sale frees the seller from responsibility for the vehicle at the transaction time. Also, the buyer has documentation proving that the car now belongs to them.
How Many Copies of the Bill of Sale Do I Need?
At a minimum, there should be two signed copies of the bill of sale—one for the seller and one for the buyer. As the buyer, you may want an extra signed copy to keep in a safe place or to submit to the RMV (although a photocopy of the signed original should be acceptable).
Frequently Asked Questions
What’s a vehicle bill of sale?
A bill of sale document is a legal receipt between the seller and buyer. Thus, a vehicle bill of sale is a receipt for a private car sale. The vehicle bill of sale will contain critical information about the car being sold – including VIN, mileage, purchase price, and signatures.
To be clear, getting a bill of sale doesn’t mean that legal ownership has been transferred to you; that requires a title transfer. Basically, the bill of sale is the document describing the terms of the agreement between the seller and buyer.
Does Massachusetts require a bill of sale for vehicle sales?
The state of Massachusetts doesn’t always require a bill of sale. For instance, if you’re buying a vehicle from a dealer, they will take care of the registration and titling for you. However, if you’re buying from a private party, a bill of sale may be necessary. A good rule of thumb is always to sign a bill of sale when doing a private transaction.
Does Massachusetts require a bill of sale for registration?
Massachusetts only requires a bill of sale for registration if the vehicle is exempted from titling due to its age.
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