If you are selling or buying any item of higher value, especially if that item needs to be registered at a governmental agency like the DMV, you will probably need a bill of sale.
A bill of sale is a document that outlines all the relevant details about the ownership transfer of a certain item. The bill of sale usually contains the following elements:
Mandatory Information
Information about the parties
Details about the transferred item
Purchase price
Disclosures of the seller and buyer
Date and place of the bill of sale signature
Signatures of the relevant parties
Governmental agencies like the DMV would often provide a bill of sale form that could be filled out by the seller and the buyer. However, parties draft their own bills of sale when they want to include the clauses not included in the bill of sale form.
Iowa Bill of Sale Parties
The main parties to the bill of sale are the seller and the buyer.
Seller
The seller of the transferor is a person who transfers the ownership of their personal property to the buyer. There can be more than one buyer listed in the bill of sale.
Buyer
This person obtains ownership of the transferred item and pays the purchase price. In the bill of sale, they are also referred to as the transferee.
Buyer and Seller Disclosure
The seller must disclose all the damages and flaws known to them in the bill of sale.
In addition, the bill of sale should include the “as is” condition. It protects the seller from any claims regarding the items’ damages and flaws after the purchase. The "as is” condition will not protect the seller from hidden damages or damages that were lied about.
The Truth in Mileage Act provides that every seller of a motor vehicle must disclose the odometer reading in the bill of sale.
Iowa Bill of Sale Description of Goods
This section includes all the relevant information about the transferred item. The description of goods largely differs depending on the type of transferred item. The rule of thumb is to include all the information that differentiates the transferred item from other items of the same kind.
For example, the motor vehicle description of goods should contain the following:
Mandatory Information
Make, model, and production year
Vehicle identification number
Body type and color of the vehicle
Description of any damages and flaws
Odometer disclosure
For other types of items, you should include a short description that individualizes the item, and any serial number, if applicable.
Iowa Bill of Sale Purchase Price
Below are the three most commonly used methods of compensating the seller for transferring the item to the buyer.
#1. Payment
Payment is the most commonly used method for compensating the seller. The payment can be made in cash, using a check, credit or debit cards, or via bank transfer.
#2. Trade
This method is mostly used for the purchase of motor vehicles. For example, the buyer will trade in their old car and add some money in exchange for the new car.
In such a case, the bill of sale includes the estimated value of the buyer's item, the value of the seller's item, and eventually the amount due to the seller for covering the difference in value between the two items.
#3. Gift
This method is commonly used for transferring the item between members of the same family. If the item is transferred as a gift, there is no compensation due to the seller.
Iowa Bill of Sale for Motor Vehicles (Cars) Requirements
The motor vehicle bill of sale in Iowa is part of the documentation that must be submitted to the Iowa Treasurer's Office when registering a vehicle.
Out-of-State Vehicles
You have 30 days from the moment you bring the out-of-state vehicle to Iowa to register it. You should also submit the application for a certificate of title.
Abandoned or Junk Vehicles
If you want to sell the junk vehicle, you should apply for the junking certificate at the Iowa treasurer's office. The junk certificate will serve as proof of ownership for the person holding it.
However, you can use a general bill of sale for the additional clauses not included in the junking certificate.
Vehicles Sold by Dealers
The dealer must apply for the vehicle's title and registration within 30 days from the purchase. In the meantime, you can use the bill of sale as proof of ownership.
Vehicles Sold by Private Parties
There are no customer protection laws in the case of vehicle transactions between private parties. Therefore, the buyer can use the bill of sale as proof of their rights in case of any dispute with the seller.
Iowa Bill of Sale for Boats (Vessel) Requirements
The Iowa boat/vessel bill of sale should include the following:
Mandatory Information
Information about the buyer and the seller
Make, model, and year of boat/vessel
Hull identification number (HIN)
Registration number (for used boats/vessels)
Description of any damages and flaws
Information about any additional equipment, trailer, or motor that comes with the boat/vessel
After signing your boat or vessel bill of sale, you should submit it to the Iowa Department of Natural Resources for registration.
Iowa Bill of Sale for Firearms Requirements
You don’t have to register a firearm in Iowa. However, you should still have the bill of sale when transferring the firearm.
After signing the bill of sale, the seller will not be liable if the firearm is used in illegal activities. On the other hand, the buyer will have valid proof of ownership in the form of a bill of sale.
Iowa Bill of Sale for Horses Requirements
A horse bill of sale in Iowa should include the following elements:
Mandatory Information
Names, addresses, and ID numbers of the buyer and the seller
Horse name, breed, gender, and age
Registration number
Description of the horse
Purchase price
Date and place of the bill of sale signature
Signatures of the seller and buyer
Iowa Bill of Sale for Trailers (RVs) Requirements
Trailers in Iowa must be registered the same way as motor vehicles.
When drafting the Iowa bill of sale, you should include the trailer weight when empty since the Iowa Treasurer's Office charges a different registration fee for trailers weighing more than 2,000 pounds.
Iowa Bill of Sale Other Requirements
Parties can draft their bill of sale in any language both parties can understand. However, when submitting the bill of sale to the governmental office for the item registration, make sure you submit the bill of sale drafted in English or attach an official English translation.
You should make at least two copies of the bill of sale (one for each party) plus additional copies if you must register the item.
Iowa Bill of Sale Taxes
For tax purposes, the seller and the buyer should provide the purchase price in the bill of sale. Even if you transfer the item as a gift, you should enter the estimated purchase price.
Iowa Bill of Sale FAQ
Your handwritten Iowa bill of sale is valid if it contains all the necessary elements.
The seller and the buyer must both sign the bill of sale. In special cases, parties can choose to include the signatures of the witnesses, which increases the bill of sale's authenticity.
You can fill out the bill of sale form from the Iowa Treasury’s office or make your own bill of sale. However, the easiest way to get your professional bill of sale used in Iowa is to download one of the templates available on our website.
The seller benefits from signing the Iowa bill of sale by limiting their liability over the transferred item after the item leaves their possession.
The bill of sale can also serve as proof of ownership for the buyer if no title is issued for the item.
