Important Terms for a Bill of Sale
- Seller(s): This section is for the main seller’s contact information, such as their full name and their address. Any additional sellers are also mentioned here.
- Buyer(s): This section provides the contact information of the buyer. It also includes information about any additional buyers.
- Description of asset(s): When selling any type of asset, the bill of sale includes a description of what’s being sold.
- Amount paid: All bills of sale include the amount paid for the asset to make sure all parties are on the same page.
- “As is” vs. warranty: Depending on the bill of sale, the asset may either be sold “as is” or with a warranty. Selling “as is” means that the buyer is now responsible for all problems with the asset. On the other hand, a bill of sale with a warranty means that the seller guarantees the condition of the asset for a certain number of days.
1. Hawaii Bill of Sale Requirements
A bill of sale is a legal document showing that an asset has been officially transferred from one party to another.
Hawaii requires certain types of assets be sold with a bill of sale, such as motor vehicles, firearms, boats, and horses. A bill of sale makes it easier for buyers to prove that they own the asset and for sellers to prove the price that was agreed on.
All bills of sale should include:
- The names of the buyers and the sellers as well as their contact information
- The specific terms of the sale, including the sale price, the condition of the asset, a description of the asset, and any warranties the buyer and the seller agree upon
- The date of sale
- Signatures of both the buyer and the seller.
- If there is a lien on the asset, it should also include the signature of the lien holder authorizing the sale
Many bills of sale can also be notarized, especially those documenting the sale of particularly high-value assets.
Why Use a Bill of Sale?
A bill of sale is useful even when it’s not required. It helps demonstrate that both the buyer and seller agree on the terms of the transfer. It also serves as proof of the date of transfer, the condition of the asset at the time of sale, and even the amount for which it was sold. Having documentation of these details can be useful in the case of future legal disputes over the property.
The state of Hawaii only provides bill of sale forms in English. However, parties who do not fluently speak English may draft a bill of sale in their native language or use an interpreter. If the bill of sale must be notarized, you will have to work with a notary public who is fluent in the language that the document is written in.
Number of Copies
Both the buyer and the seller should have a copy of the bill of sale. In some cases, it’s best to have at least three copies of a bill of sale, so you have a copy to submit to the state of Hawaii for registering certain assets.
When a car has been declared a total loss anywhere in Hawaii, it is considered a junk vehicle by the state. This condition must be noted on any bill of sale for the vehicle as a part of the description. Even if the vehicle is rebuilt, the fact that it was once considered totaled must be included as a part of full disclosure.
After Purchasing a Vehicle
Once you have purchased a vehicle and have a signed bill of sale that includes the vehicle identification number (VIN), you can register your vehicle. Depending on your county, you can register the vehicle by mail, online, or at a government office that handles motor vehicle registration.
You will also need to provide:
- A current Hawaii vehicle inspection certificate
- A copy of the old owner’s certificate of title
- Proof of insurance
- The last issued certificate of registration
- Your current valid driver’s license (out-of-state is fine)
- Registration fees
This will allow you to legally register your vehicle in your name.
2. Hawaii Car (Vehicle) Bill of Sale
Whether you’re buying from an individual or a dealership, a Hawaii car or vehicle bill of sale should include the specific details of the vehicle in question. This includes the make and model, color, odometer reading, license plates, and VIN.
A detailed description helps ensure that the correct vehicle is sold and keeps both the seller and the buyer legally protected. All vehicle bills of sale must be signed in front of a notary public. You can find the official Hawaii vehicle bill of sale here.
3. Hawaii Boat Bill of Sale
In Hawaii, boats must be registered with the state and a bill of sale helps prove ownership. Boat bills of sale must include the make, length, year, hull ID number, registration number, odometer reading in hours, the title number, and whether any trailers or outboard motors are included in the sale. If so, sellers must also include the make and year of both.
4. Hawaii Firearm Bill of Sale
A bill of sale is legally required to transfer ownership of a firearm in Hawaii. Without a bill of sale, you cannot register your firearm, and unregistered firearms are illegal.
Firearm bills of sale must include the buyer and seller’s information along with the make, model, caliber, and serial number of the firearm being sold. All Hawaii firearm bills of sale must be notarized and signed by two witnesses, along with the buyer and the seller.
5. Hawaii Horse Bill of Sale
Though it’s not required, horses and livestock should typically be sold with a bill of sale in Hawaii. This helps prove the animals’ lineage as well as providing proof of ownership. A horse or livestock bill of sale should include the animal’s species, name, breed, sex, date of birth, registration number, and description, along with the standard bill of sale information.
6. Hawaii Bicycle/Moped Bill of Sale
A bill of sale is not required for selling a bicycle or moped in Hawaii, but it’s recommended to prevent legal disputes. This bill of sale should include the make, model, year, serial number, number of speeds, color, and body type along with standard bill of sale information.
FAQ: About the Hawaii Bill of Sale
What is a bill of sale?
A bill of sale is a legal document that proves both the buyer and the seller of an asset agree on the sale, price, and condition of an asset. Bills of sale are often used for high-value property like cars, boats, horses, mopeds, and firearms.
Is a bill of sale required in Hawaii?
In Hawaii, state laws require a bill of sale for firearms, vehicles, and boats. It is highly recommended for mopeds and bicycles as well as for livestock. This helps confirm ownership and verify who has had possession of these assets.
How does a bill of sale benefit the buyer?
A bill of sale helps document the details of an asset’s condition and the agreed-upon sale price. If the asset isn’t received in the agreed-upon condition, the buyer has a legal contract that can help them get their money back.
The buyer can also use a bill of sale to prove ownership of the asset. This lets you register a boat, vehicle, or firearm in your name, which is legally required in Hawaii.
How do I get a bill of sale?
You can write your own bill of sale or use a PandaDoc template as a starting point. Then, you can fill out the important information and make sure both the buyer and seller sign it to make sure it’s legally binding.
What information do I need for the bill of sale?
Bills of sale should include:
- The buyer’s name and contact information
- The seller’s name and contact information
- The agreed-upon terms of the sale including the sale price
- The signatures of the buyer and seller
Boats, firearms, and vehicles also require notarization.