In the state of Ohio when you sell or buy a vehicle, complete a Bill of Sale Form though it is not required. This serves as a legal contract from the seller to the buyer documenting the change in ownership and the purchase price. The State of Ohio doesn’t provide an official Bill of Sale because it’s not mandatory but it is recommended for your safety.
The following information should appear on the Ohio Bill of Sale Form:
– Name and address of the seller.
– Name and address of the buyer.
– Complete vehicle description, including Vehicle Identification Number (VIN), make, model, year.
– Vehicle odometer reading at the time of sale.
– Date of sale.
– Signature of the seller and the buyer.
When selling a vehicle the seller must complete the “assignment of ownership” portion on the back of the title including:
– Purchase price;
– Buyers’ information;
– Date of transfer;
– Current mileage in the presence of a deputy clerk or notary public. The deputy clerk or notary public will verify all fields are properly completed, witness the seller’s signature and notarize the document. Upon completion, the seller can present the title to you to finalize the transfer.
Prior to completing the title transfer, the transferor and transferee must verify the accuracy of the odometer listing and all other information on the certificate of title. Any alterations or omissions may void your title.
Ownership of the vehicle will remain in the transferor/seller’s name as it appears on the front of the title until the title is completely transferred to the transferee/buyer’s name and a new title is issued with the new owner’s name.
When buying a vehicle:
– The buyer will pay sales and use tax on the purchase price of the vehicle;
– Title transfers must take place within 30 days of the date of sale, otherwise a late fee will be assessed;
– Dual ownership requires both parties to be present unless a notarized power of attorney is provided. Social Security numbers for all parties are required. Photocopies of title are not accepted;
– If you choose to have a 45-day temporary tag issued, it must be obtained before you transfer the vehicle title into your name. Once an Ohio title is established, you will only be able to purchase permanent Ohio license plates;
– If you have a lien holder, it must be noted on the assignment portion of the title.
Buying a car or any other motor vehicle is a taxable transaction.
Buying a car may be done through a car dealer or from a private seller. These are two different types of transactions when it comes to paying the sales tax. When buying from a car dealer, the transaction is fairly simple. The car dealer will calculate the taxes and title fees into a total amount that you will pay for the vehicle, and the title work will be completed for you.
This changes when purchasing a vehicle from a private seller. You would come to an agreement for the purchase price of the vehicle with the private seller, and when the payment is made, the seller will sign the title of the vehicle into your name. Sales tax is charged every time a vehicle is bought or sold regardless of sales tax paid by a previous buyer.
If you are selling your vehicle to a car dealer, just as in purchasing from one, all of the taxes and title fees will be taken care of by the dealer. If you are selling to another individual, then you would agree to a purchase price and transfer the vehicle into that individual’s name at the local county title office. Taxes would be the responsibility of the purchaser and are based on the agreed upon purchase price. It may be wise to complete a Bill of Sale form, or a purchase agreement that you and the purchaser can each keep for your records.
For more information go to Ohio Department of Public Safety – Ohio Bureau of Motor Vehicles.
The Ohio Bureau of Motor Vehicles, which oversees driver and motor vehicle licensing and registration, continues to make services more convenient, efficient and cost-effective. A good example of BMV’s strong commitment to improving customer service is the creation of OPLATES.com – a website that hundreds of thousands of Ohioans use each year to renew their vehicle registrations and perform other business transactions with the BMV.