When two parties wish to trade items, they can legally document it with an even trade bill of sale. Even if there is no money passing between buyer and seller, one item’s value can count toward the price of the other, either reducing it or covering it in full. Most cases involve the trade-in of vehicles used in the purchase of a brand-new car.
An even trade is the exchange of one item for another. It usually involves items that hold the same value, doing away with any need to exchange money in the process. With motor vehicles, an even-trade bill of sale is used to legally document the change of ownership in the motor vehicle in question. This documentation is used for both inventory and tax purposes, giving both the buyer and seller the legal paperwork they need to keep the entire purchase legal.
Even trades with vehicles are possible between two individuals or an individual and a certified car dealer. Each party needs to have proper documentation to keep their records straight and avoid any penalties that may come from faulty documentation. The most common need for a bill of sale template is to account for currency exchanged for tax purposes, to keep all things legally documented.
When owners would like to trade their vehicle for another, a few things must occur. Each is responsible for the gathering of information both about themselves and the vehicles in question. Before any legal documentation, both parties should come prepared with:
With all of this information collected, both parties should first consider the specific laws in their state to ensure all documentation is correctly filled out. Once the details about creating an even trade bill of sale are clear, both parties need to print and fill out the proper documents to show one vehicle’s trading for another. Below are the steps to creating such a form, where parties can follow along to ensure they have all they need to finalize the process.
In Missouri, when creating an even trade bill of sale, both parties will need to fill out Form 1957. With this form in hand, they will need to follow a few steps to ensure the proper creation. Once everything is done correctly, parties need to visit their local Department of Motor Vehicles to finalize the transaction.
Fill out Form 1957
The first step in the process is to fill out the entire bill of sale form properly. Each blank space in the document must be written in clear print and include information about the buyer, seller, and vehicles in question. Documentation is acceptable, either handwritten or printed, allowing each party to take their pick.
Signing and Notarizing
Once all information is appropriately documented, both parties should look each form through, ensuring that everything is indicated precisely before signing. When each party agrees to the document, they should both sign the bill of sale, along with the date. Most states require the presence and signing of a notary public. This means that all parties must wait until they are in front of a notary public to ensure the document’s legality. Other states may allow the presence of two witnesses in place of a notary public. In any form, all involved should check their local laws to ensure the entire process is done correctly.
When dealing with vehicles, individuals must be sure to come prepared with the title. The vehicle’s title shows the current owner and is used in all documentation involving the purchase and sale. Because one vehicle is traded for another, the titles must exchange hands, too. To make the title transfer, current owners and future owners can use the bill of sale form 1957 as proof of purchase. The new owner must sign their name on the title, showing that they now have acquired ownership. All legal documentation of a title transfer must be filed with the Department of Motor Vehicles in the state in which the sale is taking place.
Once all documents are correctly filled out and signed, all of those involved should obtain their own copies. Documentation of vehicle ownership is connected to the vehicle throughout its entire history, used any time another party wishes to purchase or trade their vehicle. When there is a change in ownership in the future, parties in question should fill out a new bill of sale to document another ownership transfer legally.