A New York bill of sale is a legal document that records the purchase of motor vehicles, trailers, vessels, and animals between the seller and the buyer.
This important document protects both parties' rights and interests and allows the transaction to proceed smoothly.
Although this document is frequent in private and business life, you may still encounter some misunderstandings and difficulties when compiling it due to the requirements prescribed by state law. That’s why it’s best to use free online templates.
New York Bill of Sale Parties
The main parties in the bill of sale are the seller and the buyer.
Seller
Whether a private person or an official dealer, the seller transfers the ownership of a certain item to the buyer.
Buyer
The buyer is the person who pays the price to become the owner of an item, such as a vehicle, vessel, or trailer.
Buyer And Seller Disclosure
To avoid potential disputes, the seller and the buyer should disclose the following:
Mandatory Disclosures
Odometer reading disclosure. Breaks down the miles driven by the vehicle.
Damage disclosure. Indicates whether the vehicle has any flaws or defects.
“As-is” clause. Implies that the buyer is aware of all defects and has agreed to buy the item in such condition.
New York Bill of Sale Description of Goods
This bill of sale section contains the specification of the purchased item so that it can be distinguished from others of the same type.
The details that are required or optional to enter in this section vary from country to country and from item to item.
However, always keep in mind that a precise description of the purchased item will limit the liability of the parties and prevent possible misunderstandings.
New York Bill of Sale Purchase Price
The purchase price is the compensation the buyer gives to the seller in return for the transferred item. Let’s see the three most common payment methods:
#1. Payment
In this case, the buyer pays the purchase price in cash, checks, or credit and debit cards.
#2. Trade
At the trade, the buyer transfers the item as compensation for the item bought from the seller. Traded goods should have equivalent value, but the buyer can add a certain amount of money to the full value of the purchased item.
#3. Gift
The seller can transfer the item as a gift without the obligation of the buyer to pay the price to the seller or do something in return. New York law requires that the bill of sale specify that the transaction is a gift and that the purchase price is "$0."
New York Bill of Sale for Motor Vehicles (Cars) Requirement
To register a vehicle in New York, you must have proof of ownership. A typical proof used for this is a bill of sale. However, note that the bill of sale is not sufficient on its own and will be acceptable only with additional proof.
In any case, a bill of sale must include the following information:
Mandatory Information
Names and addresses of the buyer and seller
Year and make of the vehicle
Vehicle identification number (VIN)
Date of sale and purchase price
Signatures of both parties
Out-of-State Vehicles
For all motor vehicles, including those purchased outside New York territory, a bill of sale is required as proof of transfer of ownership.
Abandoned or Junk Vehicles
For the purchase of a rebuilt salvage (junk) vehicle, the buyer and seller should draw up and sign a bill of sale.
However, before purchasing such a vehicle and signing the bill of sale, it must first pass a rescue vehicle inspection and get permission for reuse.
The second step is registration and getting the title. On the back of the title must be a notation stating it is a rebuilt salvage vehicle, which will represent disclosure that both the buyer and seller must sign.
Vehicles Sold by Dealers
When you purchase a vehicle from a dealer, they will provide you with a bill of sale, which you both sign. The bill of sale is mandatory because it affects the sales taxes.
Vehicles Sold by Private Parties
As in previous cases, to purchase a motor vehicle from a private person and transfer ownership, the parties must complete a bill of sale with all mandatory elements.
New York Bill of Sale for Boats (Vessel) Requirements
New York law requires boat owners to register and title their boat. To do this, they must use a bill of sale.
Buyers and sellers must ensure to provide the following details in the bill of sale:
Mandatory Information
Names and addresses of the buyer and seller
Make and year of the boat
Hull identification number (HIN)
Purchase price date of sale
Signatures of both parties
Notice that simply providing a bill of sale is insufficient to prove ownership without additional evidence.
New York Bill of Sale for Firearms Requirements
Although it is not required by New York law to complete a bill of sale when purchasing or selling a firearm, it is advisable to do so. It ensures compliance with state regulations on background checks and licensing.
By completing a bill of sale, both the buyer and the seller can confirm that all necessary steps have been taken and protect their interests.
New York Bill of Sale for Horses Requirements
Horses and other livestock have a high market value and are frequently traded. Although a bill of sale is not mandatory for their purchase, it is a good idea to provide one.
New York Bill of Sale for Trailers (RVs)
According to the New York DMV, trailer registration and a title certificate are mandatory. To prove ownership transfer and complete the registration process, you need to provide a bill of sale with the following mandatory elements:
Mandatory Information
Names and addresses of the buyer and seller
Model, make, and year of the trailer
Purchase price
Date of purchase
Signatures of both parties
Note that a bill of sale alone cannot be considered a valid proof of ownership unless it is accompanied by other supporting documents.
New York Bill of Sale Other Requirements
The parties are free to draft the bill of sale themselves in any language as long as they understand it. But to be used in court or at the DMV, the bill of sale must be in English, and if a copy is used, it must be notarized.
Parties should make copies for their records. However, for DMV registration purposes, the new owner must submit the original bill of sale.
New York Bill of Sale Taxes
When registering a vehicle in New York, you must either pay sales tax, prove that sales tax was paid, or prove that the vehicle is exempt from paying sales tax.
If the vehicle was bought from a New York State dealer or an out-of-state dealer that can collect New York State sales tax, a bill of sale and a dealer's bill of sale (for NY State dealers) or a completed sales tax exemption (for out-of-state dealers) is required.
The tax can be paid to the dealers in this case, as the DMV will not collect the tax when the vehicle is registered.
If the vehicle was bought from a private seller, both the buyer and the seller must complete the statement of transaction form and bring it to a DMV office for sales tax calculation and collection.
New York Bill of Sale FAQ
A New York bill of sale can be legitimately handwritten as long as it contains all the mandatory elements.
Both the buyer and the seller must sign the bill of sale.
The best way to get your bill of sale for any type of item transferred in New York is to download one of the many templates available on our website.
A bill of sale can be advantageous for both the seller and the buyer, as it serves as evidence of ownership transfer for the buyer while also reducing the seller's exposure to potential liability.