When you buy or sell a vehicle in Delaware you need to complete a Bill of Sale Form. This serves as a legal receipt from the buyer to the seller documenting both the change in ownership and the purchase price. The State of Delaware has some legal specific requirements about what a Bill of Sale must contain.
The following information should appear on the Delaware Bill of Sale Form:
- Name of the seller.
- Name of the buyer and complete address of the buyer.
- Complete vehicle description, including Vehicle Identification Number (VIN), make, model, year.
- Vehicle odometer reading at the time of sale.
- The sale price.
- Date of sale.
- Signatures of the seller and the buyer.
Delaware Bill of Sale Form
The Delaware Division of Motor Vehicles (DMV) offers the equivalent of a Bill of Sale form: Vehicle Transfer Notification With Buyer Information Form.
Delaware law requires the following vehicles to be titled in Delaware prior to the vehicle being registered to operate on Delaware highways: All motor vehicles, truck tractors, trailers, motorcycles, mopeds, mobile homes and house trailers. Off-highway vehicles and all-terrain vehicles are required to be registered at the Division of Motor Vehicles but not titled.
Delaware law requires all buyers of Delaware-registered vehicles to make application for a new certificate of title immediately following the purchase of the vehicle. You must not exceed more than 30 days after the purchase of the vehicle to apply for a new certificate of title. A penalty fee is charged for the issuance of a new certificate of title when the application is received more than 30 days after the vehicle was purchased.
Selling a Vehicle in Delaware
As a seller after you’ve completed the Bill of Sale you must assign the title to the buyer, pay off any debt remaining on the car, and return your license plates if you aren’t transferring them to a new vehicle.
Because the Bill of Sale is a contract, once you sign it you are bound by what it says. As the seller you may want a third person to witness the signing. A witness can help protect you if the buyer denies the deal.
The Division of Motor Vehicles recommends the seller transfer the title of the vehicle to the buyer at a Division facility. This will ensure the buyer actually obtains a new title on the vehicle. It also ensures the seller’s name is removed as the vehicle owner and allows a Motor Vehicle Title Specialist to review the paperwork. And it also provides the ability to correct any errors with the paperwork. If the seller and buyer cannot meet at DMV for the title transfer, Delaware law requires the registered owner to notify DMV of the sale or transfer of a vehicle.
The seller must complete the Seller’s Report of Sale and registration card. These documents need to be mailed to DMV except when the vehicle is sold/transferred to a dealer. The report of sale is the detachable bottom portion of the Certificate of title. In that case, provide the registration card to the dealer and mail the Seller’s Report of Sale to DMV. All documents presented to DMV, such as, title application, power of attorney, estate executor document, etc. must be the original document. Photocopies are not accepted.
Buying a Vehicle in Delaware
As a buyer the Bill of Sale will be at the beginning of all your DMV steps, starting with temporary tags. You’ll use the Bill of Sale with the inspection, title and registration documents.
Before you can drive your new car, you have to get it insured and registered. But, before can apply for the title transfer your new vehicle must pass the safety inspection and emissions check. For this inspection you will need temporary license plates from any DMV office. And for temporary license plates you’ll need the Bill of Sale, proof of insurance, and proof of identity.
The Bill of Sale is also an important document when it comes to getting financing for your new car to determine your loan amount.
Odometer Disclosure Statement in Delaware
Important to understand, Federal and State Law requires that you state the mileage in connection with transfer of ownership. Failure to complete an ODOMETER STATEMENT or providing a false statement may result in fines and/or imprisonment!
When you sell a vehicle it is important to complete the odometer reading on the title. If you need to make a correction to odometer information incorrectly stated on the title or manufacturer’s statement of origin use this form: Affidavit to correct an Odometer Disclosure – Form MV809
In addition, for your records, you can use this federal form to state the mileage upon transfer of ownership: Delaware Odometer Disclosure Statement Form
How to complete the Delaware Bill of Sale Form
The Delaware Bill of Sale Form – Vehicle Transfer Notification With Buyer Information Form is composed of three sections. Below you’ll see how to complete this form:
The first section contains the seller name and the vehicle information. First complete the full name of the seller. The name must be PRINTED. This means to use only Capital Letters to write SELLER’S NAME. Next complete the Make, Model, Year, VIN or Vehicle Identification Number and Tag number. Lastly complete the Odometer Reading at the time of transfer – use only digits with no tenths:
The second section contains the Buyer information. Complete first the full name of the buyer. The buyer’s name must be PRINTED. This means to use only Capital Letters to write BUYER’S NAME. Next complete buyer’s street address, buyer’s city, state, and ZIP code. Lastly complete the sale date and the selling price:
In the third section complete seller’s and buyer’s signature, buyer’s Drivers License No. and signing date:
Please note that you can complete this Bill of Sale form by hand. However don’t forget to use a pen and not a pencil. If you are filling out this form on your device (phone, tablet, computer) this form is a fillable PDF that works best with Adobe Acrobat Reader.
Discover more about the Delaware Division of Motor Vehicles
For more information go to The Delaware Division of Motor Vehicles
The Delaware Division of Motor Vehicles (DMV) is responsible for serving the residents of the state in four main areas. Specifically these include Vehicle Services, Driver Services, Transportation Services, and Toll Operations.
The Division has four separate motor vehicle facilities with single locations in Kent & Sussex Counties. It also has two facilities in New Castle County. Additionally, there are three main Toll Operations sites in Dover and Biddle’s Corner for State Route 1 and in Newark for Interstate 95. The Division is responsible for collecting over $550 million in revenues annually for the Transportation Trust Fund. The revenue is generated by the hard work and dedication of 625 full-time and part-time employees with an operating budget of $39.5 million.
The Division monitors and processes over 917,000 registered vehicles and over 712,000 licensed drivers. It also manages more than 100,000 ID holders, and more than 72.1 million toll transactions each year.