Download Iowa Bill of Sale Templates [PDF]

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:

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:

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:

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:

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