Are you looking for a Free IowaMotorcycle Bill of Sale template? There might be a motorcycle that you want to sell or buy in Iowa. Whatever is the event, you will need the Bill of Sale of the motorcycle you are buying or selling to document the transfer of ownership of the bike to the buyer from the seller. While a motorcycle bill of sale can be easily searched online, you can write your own if you are not able to find a relevant bill.
The bill of sale of motorcycle is the document that verifies you have sold the motorcycle and consists of basic information about the motorcycle as well as the terms of sale. In the state you are living in, it may not be compulsory to have the bill, but it is always a good idea to make one because it can prevent misunderstandings between the two parties involved in the transaction. Furthermore, you will possess the evidence of disclosing all the critical information about your motorcycle. If the state you are living in does not provide motorcycle bill of sale form, you can draft it on your own the details mentioned below.
Importance of Motorcycle Bill of Sale in Iowa
Proper documentation of motorcycle ownership is essential so that you can register the bike with the DMV of the state you are living in.
Another reason for doing so is that a motorcycle’s price can vary from a few hundred to multiple thousands of dollars based on the year, model, condition, made, miles of the bike. Additionally, whether you are the seller or the buyer, you want the transaction’s proof of in case another person claims the ownership of the newly purchased motorcycle or if someone is injured by the bike that you recently sold.
Motorcycle bill of sale functions as a contract between the buyer and the seller of the motorcycle. Each state has varying rules for what it accepts as the valid bill of sale. However, the contract needs to have these things:
- Amount: It is the total money that would be exchanged, and is generally in either written or numeric form.
- Legal intent: The two parties that are involved in motorcycle’s exchange should be competent, which means the will, mental capacity, and age of the buyer and seller should meet legal requirements. Additionally, the contract is taken to be valid only if it is lawful.
- Signature and date: Motorcycle bill of sale is valid only if it is signed by both parties and has date of transaction.
- Offer: It is the agreement to sell and buy the motorcycle for a certain amount of money as well as terms and conditions of the exchange, if any.
What Should Your Motorcycle Bill of Sale Have?
Bill of sale is important as it is a legal proof of the true ownership of the vehicle. You can draft your own bike bill of sale keeping some things in mind. The procedure is not at all complex and with these things mentioned, there is nothing else you have to cover.
- The date of sale
- Location of sale
- Purchase price: The purchase prices needs to be mentioned in the first blank and you must also include complete information about the price, such as down payments made until now.
- The description of motorcycle like:
- Current mileage
- Vehicle identification number
- Year, make, model
- Motorcycle engine no., which is a 10 digit number and letters mentioned at the bottom park of engine usually.
- The full name, signatures, and addresses of two parties â€“ The bill of sale needs to have the address details and names of both the seller and the buyer as well as signatures to signify that both of them agree to the transaction. The person whose name is written on the title of the motorbike is legally allowed to sell it.
After the document is filled, the buyer, as well as the seller, must have a copy of the motorcycle bill of sale, and the original copy should remain with the buyer.
Things to Consider While Selling the Motorcycle in Iowa
- You should ensure that the address and name of the other party is correct. If any queries arise, you may have to contact the person.
- Sign two copies of bill of sale, one for the other party and one for you.
- You should provide the buyer with the complete motorcycle bill of sale only once you have got the payment and your transaction is complete. Bill of sale states if you have been paid. Without this information, you may find it difficult to get the complete payment.
- If the buyer wishes to make down payment and pay rest of the amount over time, avoid using the enclosed bill of sale. This document assumes that purchase price of the motorcycle will be paid completely on the selling date. You can create a promissory note and sign it and utilize the document that provides for the deferred payment.
- You can bring a third party during the signing of bill of sale. This way, the person can serve as reporter of the deal whenever required.
- After bill of sale is signed, visit the tax office or local county clerk to record this document, which will be registered to be used for estimating the applicable sales taxes.
- If you are the seller, once your bike is sold, contact the DMV (Department of Motor Vehicles) in your state as soon as possible and inform that your bike has been sold as well as to whom. You will be protected if the motorcycle you sold gets involved in an accident until its re-titling.
- You must remove the license plate of the motorcycle before it is physically transferred to another party. In many states, doing so is demanded by the law.
What Should I Do with the Motorcycle Bill of Sale As a Buyer/Seller
As a seller, you need to keep the copy of this document with you and give the original bill of sale to the buyer. So, if anyone is injured or property is destroyed during your motorcycle’s use, you have the proof it no longer belongs to you.
If you are the buyer, have recently purchased the motorcycle, the first thing you must do is to put the original copy of bill of sale in a secured location. Doing so is essential because, without the document, you cannot claim for the registration. If you lose the copy of bill of sale, you cannot prove that the vehicle now falls under your ownership in case other individual claims that the motorcycle belongs to them. Additionally, you may even face problems if you choose to sell it. In order to keep the document safe, you can choose to create its digital copy keep the bill of sale in a safe place.