An Alabama Vehicle Bill of Sale is sometimes required when you buy or sell a vehicle in Alabama, which includes motorcycles and cars, especially if there is no title. It is required by the buyer in order for them to transfer ownership of the vehicle from the seller to the buyer.
Ownership of the vehicle cannot be transferred until money has been exchanged, the correct vehicle bill of sale for your county is signed and any other necessary documents are submitted.
In Alabama, if the vehicle is under 16,000 pounds or under 10 years old, you will also need to fill out Form MVT 5-5, which is the Odometer Disclosure Statement.
This can be obtained on the Alabama Department of Revenue’s website:
https://revenue.alabama.gov/wp-content/uploads/2019/08/MVT-5-5-8-19.pdf
Some of the counties in Alabama require a specific version of a motor vehicle bill of sale, because some may require notarization, or they may require both the seller and the buyer to sign the document.
There are six counties that have their own Alabama vehicle bill of sale document:
- Mobile
- Baldwin
- Lawrence
- Coffee
- Morgan
- Lee
Note: The state of Alabama requires sellers to use a notary public to authorize the transfer.
Alabama County Forms
Registering a Vehicle in Alabama
There are certain requirements that have to be met in a proper and professional manner in order to register a vehicle in the State of Alabama.
Some of these requirements include;
You need to register a vehicle within 20 days of the date it was sold to you. If you purchased the vehicle outside of Alabama, you will be given an additional 10 days (see section 40-12-262(a)). Vehicles need to be registered annually, which can be done online in some counties.
You may also register your vehicle at a Department of Revenue Licensing Office.
At the time of registration, the VIN and odometer reading will be checked by a county official (see section 810-5-1-.247)
All counties in Alabama allow for online vehicle registration, except for:
- Choctaw
- Fayette
- Greene
- Perry
- Wilcox
Where to Register Your Vehicle
If registering your vehicle in person, you will need to do so at a Department of Revenue Licensing Office. You can go to the Alabama Department of Revenue website to find the licensing office for your county and access the websites of the counties that allow for online registration.
Requirements of Alabama Vehicle Bill of Sale
In most cases, if you have a title for the vehicle, you can use that to change ownership. Where there is no title, the Alabama vehicle bill of sale will be needed.
Alabama doesn’t have a general document to use, however, several counties have their own bill of sale forms that you can download. While you can use your own template, you need to be sure that it follows the requirements of your county.
Following are the basic requirements that all Alabama vehicle bill of sale must have:
Language
Both the Department of Revenue and individual counties only have forms written in English. If you don’t speak fluent English, you will need to have your own translator to interpret the document from your language into English and vice versa. However, an Alabama vehicle bill of sale that is only being used by the buyer and seller, and not for registering a vehicle, can be in another language. Both parties must be able to understand the language being used though.
Copies required
When using an Alabama vehicle bill of sale for a vehicle sale’s transaction, you will need to provide a copy to Alabama state. Both the buyer and seller should also have a copy.
Once a vehicle has been purchased
When registering a vehicle in the state of Alabama, you will need the following documentation:
Purchased at a dealership
In some cases, the dealer may submit the application for a title once the vehicle has been purchased. When registering the vehicle, the buyer will need to provide proof of the title application for their county’s licensing office. Vehicles that have been leased will also need a copy of the lease agreement, along with a power of attorney document from the company that you are leasing the vehicle from.
In some situations, a title may not be required and all you will need to provide is the vehicle bill of sale. It should have information on any itemized tax. The buyer will only be given registration for the vehicle.
For out-of-state vehicle purchases, you will need an affidavit from the dealer, as well as a VIN/Ownership Documentation inspection.
Purchased through a private sale
Buyers will need a VIN/Ownership Documentation inspection from the vehicle’s original state. A safety inspection will also be required before the vehicle has been transferred or sold. Emissions testing is not a requirement in Alabama. You will have 20 days from the date of sale or transfer in which to register the vehicle. In situations where a buyer is new to the state of Alabama, you will have 30 days.
Documents required for registration:
- Vehicle bill of sale for the correct county
- Odometer Disclosure Statement (Form MVT 5-5)
- Title certificate (If you do not have a Certificate of Title, you can apply for one at the Title Portal.)
- A valid driver’s license
- Correct registration fee (see Alabama Fee Schedule)
- Proof of insurance: There are minimum requirements that you need to fulfil in this regard, which are as follows:
- $25,000 cover for bodily injury, person, and/or accident
- $25,000 cover for property damage and/or accident or $75,000 cover for combined single limit for accident
- $50,000 cover for combined bodily injury, and/or accident
If you are registering a vehicle on behalf of another, you are required to provide an Alabama vehicle power of attorney that has been authorized.
Conclusion
Making a motor vehicle sale transaction in the State of Alabama is not a challenging task and if done right in a specific required manner with the help of an Alabama vehicle bill of sale, it can protect and save the buyer and seller from several sorts of damage in the long run. Our free downloadable templates would help you a great deal in attaining a well-crafted Alabama vehicle bill of sale.
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