Bill of Sale for Gifted Car Create a Bill of Sale for Gifted Car

Bill of Sale for Gifted Car

Updated Dec 03, 2025
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A Bill of Sale for a Gifted Car is a legal document that records the transfer of ownership (for a car) without monetary exchange.

Governing State

Select the state where the transaction is legally recognized.

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BILL OF SALE FOR GIFTED CAR

I. THE PARTIES

This Gift Affidavit and Bill of Sale (hereinafter referred to as the "Agreement") is entered into on (the "Effective Date"), by and between:

The Donor (Grantor):
Name:
Address:
Driver’s License Number:

The Recipient (Grantee):
Name:
Address:
Driver’s License Number:

The Donor and Recipient may be referred to individually as a "Party" and collectively as the "Parties."

II. RELATIONSHIP OF PARTIES

The relationship between the Donor and the Recipient is:

III. VEHICLE DESCRIPTION

The Donor agrees to transfer ownership of the following vehicle (the "Vehicle") to the Recipient:

Make:
Model:
Year:
Body Type:
Color:
Vehicle Identification Number (VIN):
License Plate Number: State of Registration:

IV. TRANSFER OF OWNERSHIP AND CONSIDERATION

The Parties agree that the transfer of the Vehicle is a GIFT.

1. No Monetary Exchange: The Recipient has not paid, and will not pay, any monetary amount for the Vehicle. The purchase price is $0.00.
2. Consideration: The sole consideration for this transfer is love and affection.
3. No Debt Assumption: The Recipient is not assuming any outstanding debt or liens on the Vehicle unless explicitly stated in Section VI of this Agreement.

V. ODOMETER DISCLOSURE STATEMENT

Federal and State laws require that the transferor state the mileage upon transfer of ownership. Failure to complete or providing a false statement may result in fines and/or imprisonment.

The Donor states that the odometer reading at the time of transfer is (no tenths) miles.

The Donor certifies that to the best of their knowledge the odometer reading reflects the actual mileage of the Vehicle unless one of the following is checked:

VI. WARRANTIES AND REPRESENTATIONS

The Donor warrants and represents the following:

1. Ownership: The Donor is the true and lawful owner of the Vehicle and has full legal authority to transfer ownership.
2. Title: The title to the Vehicle is free and clear of all liens, encumbrances, and claims, EXCEPT for the following (if none, leave blank):

3. Defense of Title: The Donor will defend the title of the Vehicle against any and all claims and demands of all persons.

VII. CONDITION OF VEHICLE ("AS-IS")

The Recipient acknowledges and agrees that the Vehicle is being gifted and accepted in "AS-IS" condition.

1. No Warranty: The Donor makes no warranties, express or implied, regarding the condition, merchantability, or fitness for a particular purpose of the Vehicle.
2. Inspection: The Recipient has inspected the Vehicle to their satisfaction or has waived the right to do so.
3. Mechanical Issues: The Donor shall not be liable for any mechanical repairs or defects existing at the time of transfer or arising thereafter.

VIII. LIABILITY AND INDEMNIFICATION

Effective as of the date of this Agreement:

1. Assumption of Liability: The Recipient assumes full responsibility for the operation, maintenance, and insurance of the Vehicle.
2. Indemnification: The Recipient agrees to indemnify and hold the Donor harmless from any claims, damages, liabilities, fines, or expenses arising from the use or ownership of the Vehicle occurring after the time of transfer.

IX. TAXES AND FEES

The Recipient understands that while this transfer is a gift, the Department of Motor Vehicles (DMV) or relevant tax authority in the State of registration may still require the payment of:
1. Title transfer fees;
2. Registration fees; and
3. Use tax or sales tax, unless a valid family exemption applies and is properly claimed.

The Recipient assumes sole responsibility for all such costs associated with transferring the title and registering the Vehicle.

X. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of .

XI. ADDITIONAL TERMS AND CONDITIONS

Any additional terms regarding this gift are as follows:

XII. SIGNATURES

DONOR SIGNATURE
Signature: ________________________ Date:
Print Name: _______________

RECIPIENT SIGNATURE
Signature: ________________________ Date:
Print Name: _______________


NOTARY ACKNOWLEDGMENT

State of
County of

On this , before me, (Name of Notary Public), personally appeared _______________ (Name of Donor) and _______________ (Name of Recipient), who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of _______________ that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public: ________________________
Date:

(Seal)

What is a Bill of Sale for Gifted Car?

A Bill of Sale for Gifted Car is a legal document that records the transfer of ownership of a vehicle from one party to another without the exchange of money. This document serves as a crucial record that proves the gifting transaction occurred, detailing the car's condition, odometer reading, and any warranties or agreements between the giver and recipient. It is necessary for individuals who are gifting a vehicle to a family member, friend, or charity and need to formalize the transfer of ownership. The document helps in ensuring compliance with local tax laws and regulations regarding gifts of property and can be instrumental in avoiding misunderstandings or legal issues down the line.

Key Features

Clearly outlines the vehicle's current condition and odometer reading at the time of gifting.
Includes provisions for disclosing any warranties or guarantees associated with the car.
Facilitates compliance with state and local tax laws regarding gifted vehicles.
Provides essential documentation for registration and title transfer processes.
Helps in safeguarding against future disputes by recording the transaction details.
Can serve as evidence of ownership transfer in situations requiring proof.

Important Provisions

  • Details of the donor and recipient (names, addresses, contact information).
  • Description of the gifted vehicle (make, model, year, VIN).
  • Statement declaring the vehicle is being gifted without financial consideration.
  • Disclosure of the vehicle's condition and any warranties applicable at the time of gifting.
  • Signatures from both parties acknowledging acceptance of terms.

Pros and Cons

Pros

  • +Simplifies the process of transferring vehicle ownership without financial exchange.
  • +Helps in accurately documenting the car's condition to prevent future disputes.
  • +Assists in navigating tax implications associated with gifting a car.
  • +Facilitates a smoother registration and title transfer process with DMV agencies.
  • +Ensures both parties have a clear record of the agreement and terms.

Cons

  • -May not cover all specific legal requirements unique to every state or locale.
  • -Requires accurate information about the car, which might necessitate professional assessment.
  • -Could lead to complications if not executed properly or if details are omitted.

Common Uses

  • Gifting a car to a family member without exchanging money.
  • Donating a vehicle to charity or a non-profit organization.
  • Transferring ownership of a car as part of an estate settlement or inheritance.
  • Gifting a vehicle between friends with an understanding no payment will be made.
  • Formalizing the gift of a car for tax purposes or legal clarity.

Frequently Asked Questions

While it might be possible to gift a car without this document, having a Bill of Sale for Gifted Car provides legal proof of the transaction and clarifies that it was indeed a gift. This can be crucial for tax reporting purposes and in proving transfer of ownership.
Not using one could lead to potential legal disputes or issues with tax authorities over the nature and value of the gift. It ensures clarity and compliance with local laws.
Requirements vary by state; however, even if not legally mandated, it's highly advisable to use one for documentation purposes and to facilitate title transfer with local DMV offices.
[This] serves as an official record detailing that no money was exchanged in transferring ownership. By documenting conditions and terms agreed upon by both parties, it mitigates potential conflicts.

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