A Bill of Sale in Georgia is required to record a private sales transaction of a vehicle between a seller and a buyer.
The purpose of this is to protect both the seller and buyer from any liability that relates to the vehicle ownership. The official government document (Form T-7) must be used and it will be required when the new owner registers/titles the vehicle.
When selling a vehicle that is the model of the year 1986 or newer, you will need a bill of sale for Georgia and the vehicle’s title. Vehicles that are the model of year 1985 and older require a bill of sale for Georgia and the vehicle’s last registration certificate. Be sure to make a copy of the bill of sale for both yourself and the buyer. Once the vehicle has been sold, the seller must cancel their registration, which can be done at your local county tag office. An application for voluntary registration cancellation (Form MV-18J) will need to be completed.
If you are out of state at the time that you are selling your vehicle, and someone else will be taking care of the sale on your behalf, a Form T-8 (limited power of attorney for motor vehicle transactions) must be completed and notarized.
Components of a Bill of Sale Georgia
There are a few essential components/details that are necessary to be included on a bill of sale Georgia.
It must have, at minimum, the following details:
- Contact details for both the buyer and seller
- Description of the car, including the make, year, model, odometer reading, VIN, and mileage
- The price that it is being sold for
- The date that the transaction took place
- Signatures of both the buyer and the seller
Note: A bill of sale in Georgia must be signed by both parties to be legally binding. A witness or notary is not required.
Registering/Titling a Vehicle in Georgia
You can obtain a vehicle bill of sale for Georgia on the department of revenue’s website Form T-7.
Aside from the bill of sale in Georgia, you will also need form GA-25, also known as the odometer disclosure statement. The odometer reading must be recorded at the time of the sale by the seller. Both are required for any vehicles that are being registered under a new owner. Registration is done at your local county tax commissioner tag office.
A motor vehicle must be registered within 30 days of the sale taking place. If you are registering a vehicle from a different county or from out of state, you have 30 days from the date that you have established your residency to register your vehicle. If you have recently moved to Georgia, you will need to first acquire a Georgia driver’s license before you can register your vehicle.
Where to Register a Vehicle in Georgia
You can register your vehicle at your county’s tag office or online at Georgia’s Eservices site.
The following documents are required:
- A bill of sale for Georgia
- An odometer disclosure statement
- A tag/title application (Form MV-1)
- A valid original title for the vehicle. If you do not have the title, you may also use the manufacturer’s certificate of origin, or certification of inspection (Form T-22B)
- A valid State ID or Georgia driver’s license
- Valid proof of insurance that has either been filed directly to the department of motor vehicle by your insurance provider or with an insurance binder that shows the liability coverage. Insurance must cover the following:
- Bodily injury liability: Cover of $25,000 (per individual) and cover of $50,000 (per accident)
- Property damage liability: Cover of $25,000 (per accident)
- Bodily injury for uninsured driver: Cover of $25,000 (per individual) and cover of $50,000 (per accident)
- The correct fee for the title registration and transfer
- If you are registering a vehicle on behalf of another, you will need to complete a motor vehicle power of attorney form.
Georgia Ad Valorem Tax
Residents of Georgia who are buying a used or new car are not required to pay a Georgia car sales tax. However, you will be required to pay TAVT, or title ad valorem tax, which is a one-time fee. The amount that you pay will be based on the vehicle’s value rather than the price that you bought it for. You are required to pay tax even if the vehicle has been purchased out-of-state. In most Georgia counties, the rate is 7%.
You will need to have the following documents to make payment:
- You will need to complete an MV-1 application.
- Proof that your insurance provider has forwarded insurance details to Georgia’s DMV database.
- The correct fees to pay for a vehicle title, registration, and sales tax.
Following is a free downloadable bill of sale Georgia template for you:
The importance of a bill of sale in Georgia can not be emphasized enough. The circumstances in which it is most relevantly utilized have been included in this article for your ease along with the necessary requirements of the form itself and the filing procedure.