A Hawaii bill of sale is a document that records the ownership transfer between the seller and the buyer. It is often used as an additional document to the title and can benefit the parties in many ways, namely:

• It serves as the record of the purchase price, used for calculating taxes.

• By signing it, the seller limits the liability over the item after the ownership transfer.

• The buyer can use the bill of sale as the proof of ownership for the items without the title or until the governmental office issues the title.

• It is often required by the DMV for vehicle registration.

Hawaii Bill of Sale Parties

The main parties to the bill of sale are the buyer and the seller. In some cases, additional witness signatures are required for the bill of sale's authenticity.

Seller

A seller is a person who transfers ownership of their personal property to a buyer. In the bill of sale, the seller is often referred to as the transferor.

Buyer

A buyer is a person who obtains personal property from the seller. They are also called the transferee. In some cases, there can be more than one buyer or transferee listed in the bill of sale.

Buyer And Seller Disclosure

Most of the bills of sale include the “as is” condition. That means that the buyer agrees to purchase the item with all of its flaws and damages. 

The parties should include a brief description of all the damages and flaws of the item to prevent any disputes in the future. The seller is liable for any damages that were hidden or lied about.

Hawaii Bill of Sale Description of Goods

This section includes all the important information about the personal property that is transferred between the parties.

Depending on the type of item that is being transferred, this section will include different information. For example, if you are transferring a motor vehicle, you should include the following:

For other types of items, you should include all the important information that will individualize the transferred item. If applicable, you should always include the serial number of the item. Otherwise, a detailed description of the item should also be sufficient.

Hawaii Bill of Sale Purchase Price

In this section, the parties define the compensation due to the seller for transferring ownership of the item. Below are the three most common ways of compensating the seller.

#1. Payment

The purchase price is defined as a certain amount of money the buyer must give the seller. The payment can be made in cash, using credit or debit cards, checks, or via bank transfer.

#2. Trade

The parties can define the purchase price as the value of the item that the buyer needs to give to the seller in exchange for the seller’s item. The buyer will often have to pay an additional sum to cover the difference in value between the two items.

#3. Gift

If the item is transferred to the buyer as a gift, there is no compensation that is due to the seller. However, the parties should include the estimated price of the item for tax purposes.

Hawaii Bill of Sale for Motor Vehicles (Cars) Requirements

You should submit your Hawaii bill of sale to the local office of the Hawaii Department of Transportation and complete your motor vehicle registration. Keep in mind that each county has different requirements and procedures for vehicle registration.

Out-of-State Vehicles

If the certificate of title is not released from the seller, you should submit the notarized bill of sale to the local DMV within 30 days from the day you made the purchase.

Abandoned or Junk Vehicles

If your vehicle is not in a usable condition, you should cancel the registration and title. Later, you can apply for the Hawaii junk vehicle program or sell your vehicle using the general bill of sale.

Vehicles Sold by Dealers

Dealerships can apply for the vehicle title on your behalf. In the meantime, they will issue a bill of sale that the buyer can use as proof of ownership until the title is released.

Vehicles Sold by Private Parties

Honolulu County recommends that the buyer always check the ID of the private seller to make sure it matches the title and bill of sale.

Hawaii Bill of Sale for Boats (Vessel) Requirements

If you bought a boat or vessel in Hawaii, register it at the nearest Vessel Registration and Titling Office.

Note that all the vessels in Hawaii must be titled and registered before September 30, 2022. Therefore, the parties will no longer use the bill of sale for the ownership transfer since an official title must be used. 

However, the parties can use the bill of sale as an attachment to the title for any additional disclosures and information that are not provided in the title.

Hawaii Bill of Sale for Firearms Requirements

A bill of sale is required for firearm registration in Hawaii. The firearms bill of sale should include the following:

Note that the firearm bill of sale must also be notarized and signed by two witnesses.

Hawaii Bill of Sale for Horses Requirements

Although not required, every transfer of horse ownership should be recorded on the bill of sale. This way, the seller will limit their liability for the horse after the purchase is made. The benefit for the buyer is that they will have proof of ownership for the horse they’ve purchased.

When drafting a bill of sale for the horse purchase, you should include the following:

Hawaii Bill of Sale for Trailers (RVs) Requirements

The trailer or RV must be registered in Hawaii. Honolulu County provides that the bill of sale must be submitted when registering an out-of-state trailer that doesn’t provide the details about the ownership transfer in the certificate of title.

Hawaii Bill of Sale Other Requirements

The bill of sale form is quite flexible, so the parties can draft it in any language that is understood by both of them. However, when submitting the bill of sale to the government agency, it should be drafted in English, or an official English translation should be attached.

The seller and the buyer should get at least one copy of the bill of sale for their records. If the item needs to be registered, an additional copy should be submitted to the governmental agency in charge of registration.

Hawaii Bill of Sale Taxes

The bill of sale should include a warning of the legal consequences of entering a false purchase price in the bill of sale. The reason is that the bill of sale is often submitted to the tax authorities as proof of purchase price for calculating the sales tax.

Hawaii Bill of Sale FAQ