A Vermont vehicle bill of sale (Form VT-005) is the document allowing you to complete a private sale or purchase of a motor vehicle in Vermont. In the territory of this U.S. state, completion of the bill of sale template is mandatory for the execution of transfer of ownership, and it is referred to as form VT-005. Here are some details about the procedure of registration and an explanation of the necessary steps for the new owner of the vehicle to register it in Vermont.
Vermont bill of sale forms – click for more Vermont-related bill of sale forms that you might need.
According to Vermont laws, new owners of the motor vehicle have no right to operate that item on the state’s roads until they complete registration. If the owner doesn’t have some necessary documents and needs more time to complete the registration process, a temporary registration document is provided as evidence of the transfer of ownership title.
To complete registration or obtain temporary registration, you should attend the local division of VT DMV. There, you should provide the following documents for review:
Those unsure about the amount of tax or agency to which the tax for motor vehicle acquisition should be paid may consult the Vehicle Taxation policy of the Department of Motor Vehicles of Vermont Agency of Transportation. At present, the purchase and use tax for autos (including cars and trucks) is set at 6%. This category also covers motorcycles, trailers, and trucks weighing less than 10,099 lbs (for those exceeding this weight, the maximum tax rate is set at $2,075 regardless of their weight). This percentage is calculated from the net taxable cost of the motor vehicle you’re acquiring (which should also be stipulated in the bill of sale). Another alternative to determine the tax rate is the National Automobile Dealers Association’s (NADA) clean trade-in value of the item. The taxable sum is the greater of the two.
Buyers of motor vehicles in Vermont should also keep in mind that VIN verification may be necessary in case the title was previously registered in another U.S. state, or it is branded “salvage.”
It’s not mandatory to register the motor vehicle in person. New owners can mail all the documents to the local DMV, including the printed NADA estimation of the vehicle’s value, form VD-119 (registration, tax, and title application form of the state of Vermont), and a receipt of relevant tax and title fee payment.
The instructions here are based upon our custom bill of sale template. But, it is advisable to opt for the official document should it be provided by your local authorities.
Step 1: Specify the document’s creation date.
Step 2: Type in the seller’s and purchaser’s information:
Step 3: Fill out the information about the motor vehicle that you’re trying to sell:
Step 4: Pick the way in which the buyer will buy the vehicle and for what amount.
This step also involves specifying the exact date of the transaction and the complete sum decided upon by both sides of the deal. You need to furthermore indicate the sale method the purchaser will opt for:
Then, specify the way the buyer pays:
The final thing to do within this section is to determine whether or not all applicable taxes are included in the price.
Step 5: Read through standard terms and ensure both sides are aware of them.
This part generally has the “as-is” provision that implies the object is sold with no warranties.
Step 6: Sign the form.
In the majority of states, the signature of the purchaser is not necessary. Nonetheless, it’s advised to have the form signed by each party. You may additionally have one or a few witnesses attest the deal.
Step 7: Use the help of a notary public
Notarization is typically not mandatory, but it’s a great approach to introduce an additional level of legal protection to the transaction.
In most states, a bill of sale form can be necessary during title transfer, so the buyer should keep the original. As a seller, you could either get a copy and keep it or have a pair of identical forms signed and filled out by both parties.