Use the New Mexico bill of sale to document your transaction and the terms of the agreement reached regarding the purchase of a specific good.
The bill of sale has the following elements:
Mandatory Information
Information about the people involved in the transaction
Details of the purchased items
Price of the items
Date and location of the purchase
Signatures of the parties
Not only is the bill of sale a legally binding document for both parties if it has all the important information about the purchase and their signatures, but for many purchases, it is also required to be submitted for registration.
New Mexico Bill of Sale Parties
The parties involved in the transaction are referred to as the seller, or transferor, and the buyer, or transferee.
Seller
The seller, also known as the "transferor," transfers ownership of certain goods to another party.
Buyer
The buyer accepts ownership of an item in exchange for money, another item, or as a gift. This person is also called the transferee.
Buyer and Seller Disclosure
At the time of sale, the seller must disclose the exact number of miles traveled by the vehicle being sold (odometer disclosure).
The mileage disclosure statement must follow federal regulations. This means that the odometer disclosure should be made in one of the following ways, depending on the situation:
Actual (AM). Indicates that it is the actual mileage.
Exceeds mechanical limits (EL) - If the actual mileage is not visible by sight due to the limited number of digits on the counter.
(NM). A warning that it is not actual mileage.
Exempt (EX). If the vehicle is exempt from the requirement to disclose the mileage.
Additionally, the bill of sale can include an “as is” disclosure, which implies that the buyer is aware of all item flaws and has agreed to buy it in such a condition.
New Mexico Bill of Sale Description of Goods
To make a certain item the property of the other party, it must first be individualized, which is accomplished by providing a detailed description of its appearance and characteristics.
In the transaction, it is important to identify the condition of the item being sold (whether it is a new item or an old item, with or without defects).
This is significant because the seller cannot be held liable for defects discovered after the sale unless there were certain hidden defects they did not disclose to the buyer.
New Mexico Bill of Sale Purchase Price
Check out the three most common options for making a purchase in the section below.
#1. Payment
Payment is one of the most common types of transactions that involves the purchase of goods. There are a variety of payment options available, such as mobile payments, online platforms, or cash and credit cards.
#2. Trade
If the transaction involves the exchange of goods, detail the description and value of the exchanged goods.
#3. Gift
If you choose to make a gift instead of a purchase, you don’t pay any sales taxes as long as you notarize your gift-giving statement.
New Mexico Bill of Sale for Motor Vehicles (Cars) Requirements
The New Mexico Motor Vehicle Division (MVD) provides all the information about motor vehicle registration and titling requirements.
To guarantee a smooth and successful transaction, you should obtain a detailed bill of sale that clearly establishes ownership and outlines the terms of the sale.
Out-of-State Vehicles
To complete the titling procedure for a vehicle purchased from out of state, you must provide either the original or a notarized copy of the bill of sale or the dealer's invoice.
Abandoned or Junk Vehicles
Before selling a trashed or abandoned vehicle, you must obtain confirmation from the official authorities that the vehicle has not been reported stolen.
We also recommend creating a bill of sale to document the transfer.
Vehicles Sold by Dealers
When a purchase is made from a dealer, a bill of sale is required to complete the transaction if the transfer on the back of the certificate of title is incomplete or cannot stand.
Vehicles Sold by Private Parties
Private individuals need a bill of sale if the transfer on the back of the certificate of title is not complete.
New Mexico Bill of Sale for Boats (Vessel) Requirements
Purchasing a boat is a significant investment that requires careful consideration and planning. As a result, it is advised that you draft a bill of sale, in which you should include information regarding the parties involved in the transaction and the vessel itself.
Once completed, both parties are required to sign the bill of sale.
Note that the New Mexico MVD is in charge of registering the boat and getting a boat title.
New Mexico Bill of Sale for Firearms Requirements
A bill of sale is not legally mandated to acquire a firearm. As long as it is not specifically against the law, anyone can purchase a firearm (NM Stat. 30-7-16 (A)). However, it is advisable to maintain a record of the purchase by having a bill of sale.
It is mandatory for the seller, who has a federal license for firearms, to conduct a federal background check on the buyer. If the seller does not possess a license, they are obligated to find an authorized person to perform the background check (NM Stat. 30-7-7.1 (2)).
New Mexico Bill of Sale for Horses Requirements
It is recommended to create a bill of sale when purchasing a horse, as it serves as an important document to confirm ownership. The bill of sale should include the following important information:
Mandatory Information
The buyer's and seller's names, addresses, and phone numbers
Horse information (e.g., name, breed, age, etc.)
Purchase price
Signatures of the parties
New Mexico Bill of Sale for Trailers (RVs) Requirements
If you purchased an old trailer, a bill of sale is a required part of the documentation for its registration.
Note that you should register your trailer within 30 days of purchase, as delaying could result in expensive late fees and registration penalties.
New Mexico Bill of Sale Other Requirements
In addition to the above-mentioned requirements for the bill of sale and its necessary parts, we also point out the requirements for language and the number of copies.
The language you used to fill out the bill of sale is valid as long as both parties understand it. However, regardless of the language used, the state of Mexico and its institutions require it to be submitted in English. As a result, if it is not written in English, it must be translated for this purpose.
Furthermore, it is necessary to keep a copy of the bill of sale as proof of the transaction, and it is highly recommended to have an additional copy for institutions that may request it.
New Mexico Bill of Sale Taxes
Every sale of a motor vehicle that must be registered imposes a 4% sales tax.
When you purchase a vehicle from a dealer, the 4% is deducted from the vehicle's purchase price, less any trade-in credit.
When purchased from a private person, if the declared purchase price is less than 80% of the N.A.D.A. value, $4 is deducted from the N.A.D.A. value.
No sales tax is required when giving a vehicle or vessel as a gift, but both parties to the transaction must present a certified declaration attesting to the gift-based transfer of ownership.
There are digital types of bills of sale that include all the necessary terms, but you can always write one yourself. Make sure to include all the necessary elements (e.g., parties, item, price, and signatures) for it to be legally binding.
Both parties should sign the bill of sale as proof of their agreement on the agreed-upon terms.
Download a template from our website, customize it to your specifications, and complete the transaction safely.
A well-written bill of sale benefits both parties equally. A bill of sale can provide both parties peace of mind and legal protection throughout the transaction by precisely detailing their rights and responsibilities.