If you're buying or selling an item in South Dakota, you will probably need a bill of sale to record your transaction.
The South Dakota bill of sale is a document that outlines all the relevant details about the ownership transfer between the buyer and seller.
The bill of sale has a free form, and it can contain all the details the parties decide to include. It is often used as a supplementary document to the item’s title, providing information that is not included in it.
A bill of sale can also be used as proof of the purchase price and submitted to the tax authorities for calculating the sales and use tax.
South Dakota Bill of Sale Parties
The parties to the bill of sale are the seller and buyer.
A seller is a party to the bill of sale that transfers the ownership of the personal property to the buyer in exchange for the purchase price.
A buyer is a bill of sale party that obtains ownership over the seller’s item and pays the purchase price.
Buyer and Seller Disclosure
If the item is sold as used, the bill of sale should include a detailed description of all the damages and flaws. In addition, the document should have the “as is” condition. This means that the buyer agrees to buy the item with all its damages and flaws.
These disclosures protect the seller from any type of claim related to the condition of the item. However, the seller will still be liable for the damages that were not disclosed in the bill of sale or that were lied about.
When transferring the motor vehicle, the seller must disclose the odometer reading and include it in the title or bill of sale.
South Dakota Bill of Sale Description of Goods
This section includes all the relevant details about the transferred item. They help the parties individualize the transferred item.
The description of goods for the motor vehicles will usually include the following:
Make, model, and production year of the vehicle
Vehicle identification number (VIN)
Body type and color of the vehicle
Registration number (if applicable)
Description of the vehicle condition
Details about the additional equipment that is sold with the vehicle
For other types of items, the “description of goods” section should include all the information that will differentiate the transferred item from other items of the same kind.
South Dakota Bill of Sale Purchase Price
A purchase price is the compensation due to the seller for transferring ownership of the item. Below are the three most commonly used methods of compensating the seller.
With this method, the buyer gives a certain sum of money to the seller to transfer ownership of the item. The payment can be made in a lump sum or in installments.
A trade is a method where the buyer transfers the item from their possession in exchange for the seller’s item. This method is often used with motor vehicle purchases, where the buyer trades in their old vehicle and pays a certain amount in exchange for the new vehicle.
This method is often used between family members for transferring ownership without compensation. Regardless, the parties should enter the estimated price of the item for tax reasons.
South Dakota Bill of Sale for Motor Vehicles (Cars) Requirements
Every motor vehicle transfer in South Dakota must be recorded on the bill of sale, which must later be submitted for the title application at the local County Treasurer’s office.
All out-of-state vehicles brought to South Dakota must be titled and registered within 90 days. You are not obliged to pay any additional taxes if the out-of-state tax you’ve already paid is higher than South Dakota’s 4%.
Abandoned or Junk Vehicles
If the removal agency notices an abandoned or junk vehicle, they will issue a notice to the owner. In the event that the owner fails to claim and remove the vehicle within 30 days, the county treasurer’s office will issue a title to the removal agency.
Vehicles Sold by Dealers
A dealership usually issues a bill of sale to the buyer that can be used as proof of purchase until the buyer gets a title in their name.
Vehicles Sold by Private Parties
If you are buying a car from a private party, make sure you provide all the details about the purchase in the bill of sale to prevent any misunderstandings and disputes in the future.
South Dakota Bill of Sale for Boats (Vessel) Requirements
Every boat owner in South Dakota must apply for registration within 45 days of purchase. However, non-motorized boats under 12 feet in length are exempt from titling.
If the dealer’s price certification is not provided in the application for new boats, the applicant must provide the ownership documents, which can be in the form of:
Forms of Proof of Ownership
Manufacturer’s statement of origin
Bill of sale
South Dakota Bill of Sale for Firearms Requirements
South Dakota doesn’t require firearm registration. However, the parties should always record the firearm transfer on the bill of sale. This will protect them from any disputes or liabilities.
For example, if it is used in illegal activities, the seller can use the bill of sale to prove that they have transferred ownership of the firearm.
South Dakota Bill of Sale for Horses Requirements
A horse bill of sale in South Dakota should include the following:
Details about the seller and buyer
Horse’s name, breed, gender, and age
Registration number (if applicable)
Description of the horse’s condition
Details about the additional equipment that is sold with the horse
South Dakota Bill of Sale for Trailers (RVs) Requirements
If you own a trailer in South Dakota, you must submit the application for motor vehicle title and registration. The application is submitted at the local county treasurer’s office, according to the applicant’s residence.
The bill of sale for the trailer should also include the trailer's dimensions and its maximum gross weight.
South Dakota Bill of Sale Other Requirements
The bill of sale should be made in at least two copies, one for the seller and one for the buyer. If you are transferring the boat or motor vehicle, you should provide at least one additional copy that should be submitted to the titling agency.
If you are drafting the bill of sale in any other language than English, you should provide an official English translation of the bill of sale to the government agency in charge of titling and registration.
South Dakota Bill of Sale Taxes
A bill of sale can be used as valid proof of the purchase price before the tax authorities. Therefore, a bill of sale should include a warning about the legal consequences of falsely reporting the purchase price.
Yes, you can use a handwritten bill of sale in South Dakota as long as it contains all the necessary elements.
Both the buyer and seller should sign the bill of sale. In specific cases, an authorized agent of the seller or buyer can also sign the bill of sale after presenting a valid power of attorney.
You can obtain a bill of sale form from the local county treasurer’s office, make your own bill of sale, or download one of the bill of sale templates available on our website.
The seller can use the bill of sale as a way to limit their liability after they’ve transferred the item to the buyer.
The buyer can benefit from signing the bill of sale by having valid proof of ownership for the items that are not titled.