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A Vermont bill of sale is a document that defines all the key elements of the personal property ownership transfer. In most cases, it includes the following elements:
Mandatory Information
Information about the transferor or seller and the transferee or buyer
Details about the transferred item
Purchase price
Disclosures of the seller and buyer
Signatures of the parties
If you want to title and register a motor vehicle in Vermont, you must submit the bill of sale along with the application and title. You can fill out the state-provided bill of sale form, or you can draft a bill of sale yourself.
For other types of items, however, there is no state-provided bill of sale form, so your best bet would be to use a template.
Vermont Bill of Sale Parties
The main parties to the bill of sale are the transferor, or seller, and the transferee, or buyer. Both parties can authorize a third person to sign the bill of sale on their behalf using a power of attorney.
Seller
A seller is a person who transfers the ownership of their personal property to the buyer in exchange for the purchase price. In the case of co-ownership, more sellers can be listed on the bill of sale.
Buyer
A buyer is a person who obtains ownership of the item and pays the purchase price in exchange. There can also be more than one buyer listed in the bill of sale.
Buyer and Seller Disclosure
If the transferred item is sold as used, the seller should disclose all the damages and flaws in the bill of sale. In addition, the seller should include the “as is” condition. This means that the buyer agrees to buy the item in the current condition with all the damages and that the seller gives no warranty after the purchase
The “as is” disclosure protects the seller from any claims related to the item’s condition after the ownership transfer. However, the seller remains liable for any damages that were not disclosed or were lied about.
Vermont Bill of Sale Description of Goods
This section includes a detailed description of the transferred item. The description has different information and details depending on the type of transferred property.
For example, the motor vehicle description includes the following:
Mandatory Information
Vehicle Identification Number (VIN)
Make, model, and vehicle production year
Vehicle body type and color
Horsepower of the vehicle
Vehicle registration number (for used vehicles)
Odometer disclosure
Description of all the damages and flaws of the vehicle
Information about any additional items that come with the vehicle
In Vermont, the state provides a bill of sale form that the parties can fill out and sign. However, if the parties wish to include any additional information in the bill of sale, they should draft their own bill of sale. The only requirement is that it contains all the necessary elements provided above.
Vermont Bill of Sale Purchase Price
The purchase price section describes the amount and method of compensation due to the seller. There are three methods of compensation mostly used between the parties.
#1. Payment
With this method, the buyer compensates the seller by transferring a certain amount of money in exchange for the purchased item. The payment can be made in cash, using checks, credit or debit cards, or via bank transfer.
#2. Trade
Trade is the compensation method that involves the exchange of items between the seller and buyer. This method is often used with motor vehicle purchases. The buyer will trade in their old car for the seller's new car and pay the difference in price between the two vehicles.
#3. Gift
If the item is transferred as a gift, there is no compensation due to the seller. This method is often used for transferring property between family members.
Vermont Bill of Sale for Motor Vehicles (Cars) Requirements
The bill of sale is a document required by the Vermont Department of Motor Vehicles for vehicle titling and registration.
Out-of-State Vehicles
Everyone who moves to Vermont must register and title their vehicle in Vermont within 60 days. If you purchase a vehicle from an out-of-state dealer, make sure they provide you with:
Out-of-State Vehicles Important Documents
Manufacturer's Certificate of Origin (MCO) or title
Bill of sale or Odometer disclosure statement
Abandoned or Junk Vehicles
Junk vehicles in Vermont can apply for a salvage title or be rebuilt. All the rebuilt vehicles will still have a “branded title,” meaning that the prior condition of the vehicle will be mentioned in the title.
Vehicles Sold by Dealers
When you purchase a vehicle from the dealership, the dealer should issue you a bill of sale that you can use as proof of purchase until you get the registration and title in your name.
Vehicles Sold by Private Parties
Private parties should record their transaction on the bill of sale to secure their deal and prevent any future disputes.
Vermont Bill of Sale for Boats (Vessel) Requirements
Every boat that operates in Vermont must be registered.
When registering a boat, you must submit the bill of sale that contains the following information:
Mandatory Information
Boat make and year
Hull Identification Number (HIN)
Boat purchase price
Date of the bill of sale signature
Signature of seller
Vermont Bill of Sale for Firearms Requirements
According to Vermont gun laws, only licensed dealers can transfer a firearm to another party. This limitation is not implemented in the case of:
Law enforcement officer being one of the parties
Transfers between the immediate family members
Imminent harm, where the transfer can prevent it
Vermont Bill of Sale for Horses Requirements
The horse bill of sale in Vermont should include the following:
Mandatory Information
Information about the buyer and seller
Horse name and breed
Age and gender of the horse
Horse registration number (if applicable)
Details about the health condition of the horse
Information about the additional equipment sold with the horse
Vermont Bill of Sale for Trailers (RVs) Requirements
Trailers with an empty weight of 1,500 lbs. or less don’t have to be titled in Vermont.
However, for the trailer that this exception doesn’t apply to, you must submit a bill of sale with your title application form to the local Vermont DMV office.
Vermont Bill of Sale Other Requirements
A Vermont bill of sale can be drafted in any language both the seller and buyer can understand. However, you should submit the bill of sale in English or attach an official English translation to your bill of sale when applying for the title and registration.
When drafting the bill of sale, make sure each party has at least one copy for themselves. If you need to register your item, provide additional copies that can be submitted to the relevant governmental agency.
Vermont Bill of Sale Taxes
Every motor vehicle transaction in Vermont must be recorded on a bill of sale. In addition, every bill of sale must contain the purchase price. The main reason for this is that the purchase price listed in the bill of sale is used for calculating the sales tax.
The bill of sale should also include a warning about the legal consequences of falsely reporting the purchase price.
A handwritten bill of sale is a legitimate document in Vermont as long as it contains all the necessary information.
Seller and buyer must sign the bill of sale in Vermont. In some cases, they can authorize a third person to sign the bill of sale on their behalf using a power of attorney.
For motor vehicles, the local DMV provides a bill of sale form that can be filled out and signed by the parties. However, for other types of items, you can make your own bill of sale draft or download one of the bill of sale templates available on our website.
All the parties to the bill of sale benefit from signing it.
The buyer can use the bill of sale as proof of ownership instead of the title.
The seller benefits from signing the bill of sale by having proof that the item is no longer in their possession.