The New Jersey bill of sale is a document that provides legal protection for the buyer and seller and records a completed transaction.
It is mostly used to transfer ownership of valuable goods, such as vehicles, vessels, animals, etc. When registering a vehicle and transferring title, state authorities frequently use the bill of sale as a legal document.
A bill of sale can also be useful for keeping track of important details about the sale, such as the purchase price, date of sale, and condition of the item being sold.
New Jersey Bill of Sale Parties
The seller and buyer are the parties involved in the transaction. The bill of sale should include their names, addresses, and contact information.
Seller
The seller can be a private person, dealer, or legal entity, and they transfer ownership of the item to the buyer.
Buyer
In a transaction, the buyer is the individual who pays the seller for the item.
Buyer and Seller Disclosure
This section is very important because it contains information about the condition of the purchased item and affects the legal liability of both parties.
Therefore, the seller of a motor vehicle must disclose to the buyer how many kilometers have been driven (odometer disclosure).
The “as-is” clause, which is frequently used, states that the buyer is aware of the item's problems and defects and that they accept to buy it in such condition.
New Jersey Bill of Sale Description of Goods
This section is a crucial part of the New Jersey bill of sale document. It includes a detailed description of the item being sold, including its make, model, year, color, and any other unique identifying features.
It's important to provide an accurate and comprehensive description to avoid any confusion or disputes in the future. This section serves as evidence of the transfer of ownership and should be carefully reviewed by both parties before signing.
New Jersey Bill of Sale Purchase Price
The equivalent of the seller's obligation to deliver the item in the agreed condition is the buyer's obligation to pay for the purchased goods. There are three most used methods.
#1. Payment
This is the most common method. The buyer pays the seller in cash or using a check, credit card, or bank transfer.
#2. Trade
This method involves the exchange of goods instead of cash or other forms of payment. The buyer transfers the item to the seller as compensation for the purchased item.
#3. Gift
This method is mostly used to transfer ownership of certain goods between family members. In this case, the buyer has no obligation to pay anything in return. For tax purposes, it is often required to note on the bill of sale that the item is a gift and provide its estimated worth.
New Jersey Bill of Sale for Motor Vehicles (Cars) Requirements
For motor vehicle ownership transfer and its registration, the New Jersey Motor Vehicle Commission (MVC) provides a specific procedure and defines which documents the parties must submit.
For this purpose, the bill of sale can be used and should contain the following information:
Mandatory Information
Sellers' and buyers' names and addresses
Date of sale
Purchase price
Odometer reading
Vehicle identification number (VIN)
Signatures of both parties
Additionally, the bill of sale must be notarized when the vehicle is purchased at auction.
Out-of-State Vehicles
The New Jersey Motor Vehicle Commission provides instructions to title and register out-of-state purchased vehicles. However, for both parties' legal protection, a bill of sale should be drawn up and properly completed.
Abandoned or Junk Vehicles
A junk vehicle can be repaired, made ready for reuse, and later sold. But first, it needs to go through a certain MVC procedure, after which it will be noted on the title that it is a salvage vehicle.
Among other mandatory details, the bill of sale for the purchase of a salvage vehicle should disclose that vehicle's previous state.
Vehicles Sold by Dealers
If you acquire a vehicle from a New Jersey dealership, they take care of your registration and title paperwork. In addition, the dealer usually offers a bill of sale to the buyer to document the purchase.
Vehicles Sold by Private Parties
When purchasing a vehicle from a private individual, it is a good idea to use a bill of sale to avoid potential disputes and have transaction confirmation .
New Jersey Bill of Sale for Boats (Vessel) Requirements
There are certain exceptions, but all motor-powered boats and those larger than 12 feet must be registered and titled, according to the New Jersey MVC.
In that case, you should submit a notarized bill of sale for initial title and registration procedures with the following information:
Mandatory Information
Buyer's and seller's data
Make, model, and year of the vessel
Hull identification number (HIN)
Purchase price
Purchase date
Signatures of both parties
New Jersey Bill of Sale for Firearms Requirements
Although a bill of sale is not required for the purchase of firearms, it is strongly advised to provide one in order to limit the legal liabilities of the buyer and seller.
In addition, to possess and use a firearm, you must pass security checks and obtain a certificate of eligibility.
New Jersey Bill of Sale for Horses Requirements
The parties should draw up a bill of sale to document the purchase of horses or other high-valuable livestock and reduce the possibility of possible misunderstandings.
New Jersey Bill of Sale for Trailers (RVs) Requirements
The New Jersey MVC says that trailers, whether manufactured or homemade, and semi-trailers weighing less than 2,500 pounds must be registered but not titled. On the other hand, if a trailer weighs more than 2,500 pounds when it is not carrying any load, it must be titled.
To effectively complete the title and registration procedures, you need a bill of sale that includes the trailer's model, year, serial number, and price.
New Jersey Bill of Sale Other Requirements
The bill of sale can be written in any language that both the buyer and seller agree on, but both must be able to understand what it outlines. However, in court and at the NJ MVC, the only valid bill of sale is in English, so the parties should provide an official translation as an addition to the bill of sale.
It is advised that both parties involved in the sale of a vehicle create three copies of the bill of sale. Each party should keep one copy for their records, and the third copy should be used to obtain the title and register the vehicle.
New Jersey Bill of Sale Taxes
The New Jersey sales tax rate for major personal property, including vehicles, boats, trailers, and horses, is 6.62 percent.
In New Jersey, a handwritten bill of sale is a legitimate and legally binding document as long as it meets legal requirements.
Both the buyer and seller should sign the bill of sale.
You can create a bill of sale yourself, or you can simply download professional bill of sale templates from our website.
The benefits of having a bill of sale benefit both the buyer and the seller, as well as the New Jersey MVC.
The buyer and seller possess evidence of the transaction and its details, while the MVC has access to title and registration-relevant information.