Just as you do with other vehicle sales, you need to create a bill of sale when you buy or sell a motorcycle. Before you can cruise down winding roads or blaze down a straightaway, you’ll need the bill of sale to make your ownership official.
Using a Motorcycle Bill of Sale
Bills of sale are important records for motorcycle and vehicle sales. First, most states require the filing of bills of sale for the new owner to register the vehicle. These bills are usually required to transfer title as well. You have to hold the title in your name in order to legally own a vehicle, so without filing the bill with the DMV, you won’t be the legal owner of the vehicle. You may need the bill of sale to obtain an insurance policy as well.
Second, the motorcycle bill of sale should record personal information of the buyer and seller as well as details about the bike itself. This information could be useful if you need to contact the seller, for example, to obtain a history of the motorcycle’s repairs or simply advice about maintenance or performance.
More importantly, the bill of sale can protect the new owner from any legal obligations the previous owner incurred with warranties stating that the bike is free from encumbrances and that the new owner will become the full legal owner of the motorcycle with rights to its full value and to sell it. This will indemnify the new owner against any claims a third party has to the previous owner’s property.
Other than that, the information on the bill of sale will serve to identify the motorcycle and record its condition (using the VIN, make and model descriptions, and odometer readings).