If you have ever bought a car or know someone that has sold a vehicle, you have probably heard the term "bill of sale." That term is frequently used during any vehicle sale. But what exactly is a bill of sale, and how do you get one in Ontario? Keep reading to learn the answers and more.
What is a Bill of Sale?
Can a Bill of Sale be Handwritten?
Yes. In Ontario, you can write out the bill of sale by hand, or you could type it on your computer and print it out. While this is a legal document, it does not have to be too formal to be recognized by the law. As long as it has all of the required information, the bill of sale will be accepted as a way to prove the transfer of ownership.
How Do You Write a Bill of Sale?
If you are selling a vehicle, you will be responsible for providing a bill of sale. There are two ways that you can go about this: you can write it yourself, or you can have someone else write it up for you. If you choose to have someone write it for you, you may want to consider hiring a notary public or another professional that understands what information is required for a bill of sale.
Deciding who writes it is not as important as deciding what is on it. After the bill of sale is complete, you need to make sure that all of the necessary information is included and that the handwriting is legible.
What is Included in a Bill of Sale?
A vehicle bill of sale should include the following information:
• Name and signature of the buyer
• Buyer's address
• Name and signature of the seller
• Seller's address
• VIN number on the vehicle
• Date of sale
• Location of sale
• Purchase price
• Condition of the vehicle
In Ontario, you have six days to register a new car. For this reason, it is important that the date of sale is included in the bill of sale.
What is a UVIP?
UVIP stands for Used Vehicle Information Package. As the name suggests, it is a package that includes information about a used car. Everyone who sells a used car in Ontario is required to provide a UVIP to the buyer.
Information that is found in the UVIP includes:
• Details about the vehicle
• Tax history information
• Vehicle lien information
• Value of the vehicle
• Safety standards certificate
• Bill of sale
Should You Get a Bill of Sale if You have a UVIP?
A bill of sale is included with the UVIP, which means you will not have to get a separate bill of sale when purchasing a used vehicle.
What Items Can a Bill of Sale be Used For?
A bill of sale is used when purchasing any type of vehicle. This includes RVs, boats, ATVs, motorcycles, trailers, and snowmobiles.
Bill of Sale vs Sales Agreement
Some people have been known to use the terms "bill of sale" and "sales agreement" interchangeably. This is incorrect because these two terms have two completely different meanings.
Unlike a bill of sale, a sales agreement does not transfer ownership of a vehicle. Instead, it lays out different terms and stipulations that must be met in order to transfer ownership. It will also specify the date when ownership of the vehicle should transfer from the seller to the buyer.
For example, when you finance a vehicle, you will sign a sales agreement that states when you will make payments on the vehicle. The agreement will also list the date of your last payment. Once you have made all payments, the ownership will officially transfer to you.
Where Do I Find a Printable/Downloadable Bill of Sale Template?
If you do not want to write out a bill of sale, you could use one of the many available bill of sale templates. The internet has quite a few options to choose from. However, if you are wanting a free template to download, you look at the templates available at Law Depot or True Help.