What is an Alabama Bill of Sale?

4DMV.com provides you with all of the information you need about obtaining an Alabama motor vehicle bill of sale.

If you are interested in buying or selling a vehicle in your state, a bill of sale is a legal document that validates the transfer of ownership from the seller to the purchaser. The form can be a generic document that creates a contract between the buying and selling parties, or your state may have specific guidelines and specifications. Some states require a specific form, also known as a motor vehicle bill of sale, to be completed through the Division of Motor Vehicles.

A bill of sale is necessary for a variety of practical and legal reasons. Mainly, this document provides the new owner of the car proof that the specific vehicle was purchased from the previous owner or dealership. Many states require a DMV bill of sale to obtain a title for the vehicle, as well as a registration in the new owner’s name. However, this document does not take the place of a car title. Some states also use the motor vehicle bill of sale to determine state and use taxes based on information contained in the sale document, such as make, model, year and mileage.

Is a Motor Vehicle Bill of Sale Necessary in Alabama?

Each state has different regulations regarding a motor vehicle bill of sale and the information contained in the document. When buying or purchasing a vehicle in Alabama, the state requires both private sellers and dealers to provide this document that contains specific information about the vehicle and the ownership transfer. A DMV bill of sale must be obtained before a vehicle can become titled and registered in the name of the new owner.

Alabama Bill of Sale Specifics

Generally, the bill of sale should contain basic information about the vehicle, purchaser and seller. While there are generic forms available online, Alabama requires that every motor vehicle bill of sale contain the following:

  • Date of sale
  • Purchaser name
  • Complete address of the purchaser; a P.O. Box may not be used
  • Vehicle Identification Number (VIN)
  • Make, model, year, series number, body type
  • Accurate odometer reading at time of sale
  • If applicable, lien holder at the time of the reselling and date of lien
  • Seller name and complete address; a P.O. Box may not be used
  • If the seller is a dealer, the licensed name and address must appear on the document, as well as the dealer’s state and county business license number.
  • Any seller that is a licensed dealer must have the statement, “Penalty of $1.50 if not transferred within 10 days,” stamped or imprinted on the document
  • Signature of seller and purchaser, or authorized representatives
  • Notary public seal that identifies the seller and their signature

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