Bill of Sale in Nevada
There are some very specific steps that you need to follow in the state of Nevada when buying a vehicle in a private sale.
Transferring and Reassigning a Vehicle or Vessel
There are no special forms or requirements if the transfer or sale is within a family. It is the same as a private party sale. However, it is important to know that in the state of Nevada it is illegal to “sublease” a vehicle or “take over payments.” Liens or loans on a vehicle must be satisfied before any sale can be completed. It is also illegal to buy or sell a car from an empty lot. It is suggested that if you are a private party that you sell the car or truck from a residence.
Also, you may not sell more than three personally owned vehicles in a year without having a dealer’s license.
What is a Notice of Transfer and Release of Liability?
When selling a vehicle it is important to notify the Nevada DMV that you no longer have possession of the car or truck. You may use the Online Vehicle Resale Notification to notify the DMV. The license plate for the car, truck or motorcycle must not be transferred to the new owner. You must either keep the license plates or surrender them to the DMV within 30 days of the sale.
If you do choose to transfer the license plate to the new owner, such as in the case of a classic or collectible car, the seller must fill out the License Plate Release (SP 67) and turn it in to the DMV.
What’s the Purpose of a Bill of Sale?
Some people think that filling out a bill of sale when either buying or selling a vehicle is just a hassle, but it’s much more useful than you think. A bill of sale is a legal document that protects both the buyer and seller. This provides you with a clear and understandable way to document your property transfer. Instead of just filling out a piece of paper that says “Car sold to John Doe on April 10th,” the bill of sale gets into detail about the make and model of the vehicle, the mileage and condition of the vehicle, how much it was sold for, and the exact date of sale.
This is a permanent legal record that protects both the buyer and the seller of the vehicle. As the seller, this protects you from having a buyer claim you sold them a different car, or the same car for a different amount. It also protects the seller in case the vehicle is later abandoned by the new owner. If you, as the seller, complete the online bill of sale notification, the new owner’s information you enter will be provided to wreckers and tow car operators in the event the vehicle is abandoned. As a buyer, a bill of sale gives you details about the vehicle including mileage and if it had ever been a “salvage vehicle.” It also protects the buyer in case the seller claims the car was stolen.
Duties of the Seller
When you are the seller of a vehicle in Nevada, you have a few specific steps that you need to take. It is important to remember that it may be illegal to place your car or truck in an empty lot in order to sell it. It is recommended that you have the vehicle stored at a residence.
As the seller, you are responsible for the following:
- Provide a proper title to the buyer.
- Complete and keep a Bill of Sale (VP 104) as your record of the sale.
- Use the Online Vehicle Resale Notification to notify the DMV.
- Keep the license plates and transfer or surrender them.
- If the vehicle is registered to a family trust, you must also complete a Trustee Appointment and Powers Affidavit (VP 188).
As the seller you must provide a title to the buyer that is correctly filled out. All loans on the vehicle must be satisfied before a sale can be completed. The seller must also keep the license plates for the vehicle.
Duties of the Buyer
If you are buying a vehicle, or are receiving a vehicle as a gift from a family member, you must receive a properly filled out title for the vehicle. If the seller does not offer you a properly completed title, the owner of record will have to apply for a replacement title and fill it out completely before the sale can be completed.
It is suggested that the buyer run a background check on the vehicle. The buyer may use the NICB VIN Check to check for stolen and total loss vehicles for free.
Once the purchase of the vehicle is completed, the buyer must obtain insurance and a movement permit in order to operate the car, truck or motorcycle on public streets. The buyer must present a properly filled out title at a DMV office to receive a movement permit. The new title will be mailed to the new registered owner listed on the form.
You must bring the vehicle to a DMV office in order to register it within 30 days from the date of sale. In order to register your vehicle, you must have the vehicle’s title, Nevada Evidence of Insurance Card, Nevada Emission Vehicle Inspection Report if required, Vehicle Identification Number Inspection if required and a completed Application for Vehicle Registration (VP 222).
Salvage and Bills of Sale
It is necessary that anyone selling salvage vehicles inform a prospective buyers that the car has been designated as such. A vehicle with a salvage vehicle title may not be sold or registered in Nevada until it has been repaired and inspected by a Nevada licensed auto body shop, licensed rebuilder, or registered garage and the DMV. The salvage vehicle will then receive a new title as rebuilt, at which point it can be sold or registered in Nevada.
Other Tips for Purchasing a Vehicle
Once you have bought and registered your vehicle, it is important to keep the Certificate of Registration and your Nevada Evidence of Insurance with your vehicle. Remember, your new title shows legal ownership of the vehicle – keep it in your records and enjoy your new vehicle.