Vehicle title in very simple words is a legal document that offers proof of ownership of the vehicle. It is imperative for all vehicle owners to acquire a title immediately after buying the vehicle so that the purchase is authenticated and approved by legal authorities. One of the most common questions that buyers ask is whether they can use Motor vehicle bill of sale to acquire vehicle title.
The answer is yes, there are a number of pre conditions that need to be fulfilled so that the process can be concluded smoothly and without possible hassles. Some of these core pre conditions can be mentioned as follows…
Firstly, it is required in many states that you are a resident of the particular state from which you are buying the vehicle and applying for the title from. This is followed by depositing the bill of sale along with other mentioned requirements with the DMV
Secondly, it is important that your vehicle is without any liens. This is mostly applicable for pre used vehicles that have gained several hundred miles on road. Motor vehicle bill of sale may or may not state details of liens associated with the vehicle, which makes it very necessary for buyers to make all necessary checks before making their purchase.
You can take a look at car bill of sale template of the respective states to determine if there are sections for such information.
Thirdly, you need to make sure that there are no pending lawsuits against the vehicle. At the same time, the vehicle should not be stolen or junked as well.
Fourthly, buying a surety bond is a must. The amount of surety bond is usually decided by the DMV and communicated via mail to the owner of the vehicle. The value of the bonds usually ranges from 1.5 times to 2 times the value of the vehicle depending upon the state rules and regulations set by the DMV.
After acquiring the surety bond, you will have limited time to apply for and receive bonded title from the office of the secretary of the state. Once you receive the bonded title, you become the new legal owner of the vehicle. You may download any kind of legal forms here.