A North Dakota bill of sale is a legal document that records the transaction and transfer of ownership of various types of personal property between the seller and the buyer.
It is essential when buying or selling a vehicle, boat, trailer, firearm, or any other valuable item. Most importantly, a bill of sale protects the rights and interests of both parties and provides important information like the price, the date of sale, and the item's condition.
A bill of sale also ensures that both parties can avoid disputes and ensure a smooth transaction.
North Dakota Bill of Sale Parties
The main parties to the bill of sale are the buyer and the seller. A bill of sale should include both parties' full names, addresses, ID numbers, and contact information.
A seller transfers the ownership of their personal property. Two people may appear on the seller’s side when they are co-owners of the purchased item.
A buyer is a person who is purchasing an item from a seller.
Buyer and Seller Disclosure
The purpose of this section is to provide all the details about the condition of the item being sold and to prevent a potential dispute between the parties.
When selling a vehicle, the seller discloses the miles the vehicle has traveled, known as an “odometer reading disclosure.” If the vehicle is older than 9 years, the seller should make a statement about any visible or hidden defects that the vehicle may have, called a “damage disclosure statement.”
The bill of sale also contains an "as is" clause, which means that the buyer is aware of all defects that the item has and has agreed to purchase it in such condition.
North Dakota Bill of Sale Description of Goods
This section outlines the details of the property being sold or transferred. It contains information such as the name and description of the item, its condition, make, model, year, and serial number, if applicable.
It is crucial to provide an accurate description of the property to avoid any confusion or misunderstanding between the buyer and the seller.
In addition, the precise specifications of transferred items help distinguish them from other things of the same type.
North Dakota Bill of Sale Purchase Price
The purchase price can be paid in several ways, and the three most commonly used are:
Payment is the most frequently used method of fulfilling the customer's obligation and can be made in cash, by credit card, checks, or bank transfers.
In a trade, the buyer transfers ownership of their item to the seller in exchange for the sold item. If the value of the sold item exceeds the value transferred from the buyer to the seller, the buyer will make an additional payment to cover the difference.
This method entails that the seller transfers ownership of their item to the buyer, who is not required to transfer any value to the seller. However, the parties are required to include the item's estimated price in the bill of sale for tax purposes.
North Dakota Bill of Sale for Motor Vehicles (Cars) Requirements
When registering a motor vehicle, the North Dakota Department of Motor Vehicles (DMV) requires specific information and documentation, but not a bill of sale.
In any case, it is advised that the buyer and seller draft and sign a bill of sale for their own records and as valid proof of the transaction.
If you are purchasing an out-of-state car, you do not need to submit a bill of sale to properly transfer ownership from another state to North Dakota.
Abandoned or Junk Vehicles
To restore and operate a damaged vehicle, one must obtain a salvage vehicle title from the North Dakota DMV. Once the vehicle passes inspection, the new title will indicate that it was previously salvaged.
Although a bill of sale is not required for the subsequent sale of a salvage vehicle, a general bill of sale can confirm that both the seller and buyer are aware of the vehicle's condition and agree to the sale.
Vehicles Sold by Dealers
If you are buying a new vehicle from the dealership, they will issue a bill of sale to you as proof of vehicle purchase.
Vehicles Sold by Private Parties
North Dakota does not require a bill of sale for private-party car sales. However, it is always a good idea to provide a bill of sale to legally protect the interests of the parties.
North Dakota Bill of Sale for Boats (Vessel) Requirements
In North Dakota, registering a vessel is necessary for every boat owner.
Whether the boat is being purchased from a dealer or a private individual, it is important to have proof of transfer of ownership for the registration process. In this case, you should use the bill of sale.
North Dakota Bill of Sale for Firearms Requirements
North Dakota law does not require parties to complete a bill of sale for the sale or purchase of firearms. However, selling firearms to minors or individuals who are prohibited from possessing firearms, such as convicted felons, is explicitly prohibited.
Nevertheless, including relevant personal information about the parties and the subject of the transaction can serve as proof that the purchase was made in accordance with legal regulations.
This can help prevent potential disputes or misunderstandings about the transaction.
It is important to note that while a bill of sale can provide evidence of a legal transaction, it does not substitute for following all applicable laws and regulations related to the sale and possession of firearms.
North Dakota Bill of Sale for Horses Requirements
Although it is not mandatory, every horse sale should be documented on the bill of sale, especially when taking into account the high market value of horses and other livestock.
In that case, the bill of sale contains the following information:
Names and addresses of the parties
Horse’s breed, color, age, and gender
Chronic diseases, if any
Cost and purchase date
Both the buyer's and seller's signatures
North Dakota Bill of Sale for Trailers (RVs) Requirements
Although North Dakota does not require a bill of sale for recreational vehicle purchases, it is recommended that you have one as it is the preferred form of ownership verification when purchasing trailers and is therefore recommended.
On the other hand, all North Dakota trailers must be registered, which is an additional reason to submit a bill of sale when purchasing one.
North Dakota Bill of Sale Other Requirements
You can draft a bill of sale in any language that all parties understand. But when you submit the bill of sale to government authorities or use it in court as evidence, it must be in English, or you must attach a translation from an official translator.
Each party should keep one copy of the bill of sale and supply an additional one in the case that the item must be registered with a local government agency.
The document may be notarized by the parties for additional validation and legality.
North Dakota Bill of Sale Taxes
For the purchase of a vehicle in North Dakota, the tax is 5%.
In addition, the vehicle purchaser will pay additional fees for registration, title, and plates.
North Dakota Bill of Sale FAQ
The handwritten bill of sale is also a legitimate form in North Dakota as long as it contains all the required elements.
Both the buyer and the seller must sign each copy of the bill of sale.
If you want to save time and get a bill of sale according to your requirements and North Dakota law, you can download one of the bill of sale templates available on our website.
A bill of sale is useful for both the buyer and the seller. The buyer has proof that they have paid the price and that the transfer of the purchased item has been completed. On the other hand, the seller's liability for defects that appear after the item has been transferred to the buyer is limited.