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.
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.
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:
Make, model, and production year of the motor vehicle
Vehicle body type and color
Description of any damages or flaws
Vehicle identification number (VIN)
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.
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.
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.
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.
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:
Information about the seller and buyer
Make, model, and caliber of the firearm
Firearm serial number
Disclosures of the seller and buyer
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:
Details about the seller and buyer
Horse breed, name, sex, and date of birth
Description of the horse’s condition
Horse registration number
Signatures of the seller and buyer
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
Yes, your bill of sale can also be handwritten as long as it has all the necessary elements.
A bill of sale in Hawaii should be signed by the seller and the buyer. In some special cases, a witness, or a certain number of witnesses, must also sign it.
You can simply download one of the bill of sale templates available on our website and have a customizable bill of sale for any kind of item you are buying or selling.
The seller benefits from the bill of sale by limiting their liability for the item after the purchase. The benefit for the buyer is that the bill of sale can be a valid proof of ownership for the items that don’t have a title.