Important Terms for a Bill of Sale
- Seller: The person or party that is releasing the property.
- Buyer: The person or party that is taking possession of the property in exchange for consideration.
- Date of sale: The date that the sale took place.
- Price: The price paid for the property.
- Sales tax: Indicates whether or not sales tax was collected and how much.
- Description: A description of the property being sold, including make, model, year, and VIN.
- As-is: Indicates that the item was sold as-is and without any warranties.
- Signature/Certification: The signature of the seller and/or buyer. In-person signatures are always valid, but you can also use PandaDoc to obtain a legal digital signature.
1. Illinois Bill of Sale Requirements
You aren’t required to have a bill of sale in Illinois when you register a vehicle that was purchased from an individual or in-state dealer. But, if you are new to the state and want to register a vehicle with an out-of-state title, you’ll need to submit either that title or proof of ownership, which could include a bill of sale.
Why Use One?
Even though you don’t have to use a bill of sale in Illinois under most circumstances, there are benefits to using this document and having it on hand. More than anything, a bill of sale gives both buyer and seller legal protection and proof of the transaction. It’s also good for your records.
As a buyer, you can use a bill of sale to prove that you don’t owe fines, parking tickets, or weren’t responsible for an accident that took place before the date of sale. Likewise, a seller can prove that they aren’t liable for costs associated with vehicle abandonment or other wrongdoing after the date of sale.
Some buyers and sellers might want to use their vehicles for business or tax purposes. A bill of sale can provide the documentation required to accomplish this.
Additional Considerations
Language Requirements
The Illinois Secretary of State Driver Services recommends that you write and submit your bill of sale form in English.
Number of Copies
Unless you are going to submit a bill of sale form to the state to prove ownership, you only need two copies — one for the buyer and one for the seller.
Junk Vehicles
If the owner of a vehicle has lost the title or plans to send it to a salvage yard, the state of Illinois requires that they submit a Junk Vehicle Notification Form (Form VSD-325) along with a properly assigned Certificate of Title, Certificate of Purchase, or Salvage Certificate. For junked vehicles, this is the only acceptable bill of sale form.
After Purchasing a Vehicle
After you purchase a vehicle in Illinois, you have just seven days to register it with the Secretary of State Vehicle Services Department (VSD).
You can print and complete the Application for Vehicle Transaction(s) (VSD-190) online, or you can visit your local Driver Services offices to complete the process. In some cases, you can begin and even complete most of the process through the state’s Electronic Registration and Title (ERT) System.
When you register a vehicle in Illinois, you’ll need the following documentation:
- Original title signed by seller
- Valid identification
- Proof of insurance
- Current odometer reading
- Lienholder information
- Proof of paid taxes
For private party sales, buyers must submit a completed Tax Form RUT-50. If you are moving from out-of-state and registering your vehicle in Illinois, you must submit a complete Tax Form RUT-25.
2. Illinois Car (Vehicle) Bill of Sale
Illinois doesn’t require a bill of sale and the state doesn’t have a standardized form for one. But, that doesn’t mean you can’t create your own as proof of the transaction to protect your interests.
Any vehicle bill of sale template or document you create should include the following information:
- The seller’s name and contact information
- The buyer’s name and contact information
- The vehicle make, model, year, color, VIN, and odometer reading
- The date of the sale
- The purchase price
- Signatures of both parties
If you are looking for a reliable vehicle bill of sale template, you can download the one created by PandaDoc. Using our service, you can even complete and digitally sign your document for convenience.
3. Illinois Boat Bill of Sale
In Illinois, you must have a registration, Certificate of Number, Certificate of Title, and the proper decals to legally operate a vessel on public waters. Exceptions to this requirement include unpowered vessels like kayaks, vessels documented with the U.S. Coast Guard, and out-of-state vessels using public waters for less than 60 consecutive days.
You can register your vessel with the Illinois Department of Natural Resources. You don’t need a boat bill of sale for this process, but having one is still a good idea. You can download a boat bill of sale template, and it should include:
- The seller’s and buyer’s names and contact information
- The date of the sale and price paid
- The manufacturer, model, length, color, and propulsion type of the vessel
- Signatures of both parties
4. Illinois Firearm Bill of Sale
Illinois does not require firearm owners to register their firearms. But, to legally possess firearms or ammunition, Illinois residents must have a Firearm Owners Identification (FOID) card, which the Illinois State Police issues to qualified applicants.
Even though you don’t need a bill of sale, the state requires that individuals who are not federally licensed firearms dealers contact the state police to make sure a potential buyer holds a valid FOID card.
Having a bill of sale for firearms in Illinois is vital to protect both buyers and sellers from potential liability. The state doesn’t provide a firearm bill of sale form, but yours should include:
- The seller’s and buyer’s names and contact information
- The date of the sale
- The purchase price
- The manufacturer, model, caliber, and serial number of the firearm
- Acknowledgment that all state laws were followed
- Signatures of both parties
5. Illinois Horse Bill of Sale
Unless you plan on racing or breeding your horse, you won’t have to register it with the state. The Illinois Department of Agriculture does have a program to keep track of horses for these purposes.
However, because horses are costly investments, it’s a good idea to have a bill of sale when you buy or sell one. You can find a horse bill of sale template online or create your own. It should include the following information:
- Name and address of buyer and seller
- Date of sale
- Purchase price and terms
- Location of horse
- Horse information: name, color, age, breed, height
- Signatures of both parties
6. Illinois Trailer/RV Bill of Sale
All trailers in Illinois need some type of registration and license plate. Which type of license plate you get and the fees you pay will depend on the type of trailer or RV you have. If your RV is the driveable type, you will follow the instructions for registering a motor vehicle.
You don’t have to have a bill of sale for a trailer, but it’s still a good idea. If you use a trailer bill of sale template or create your own, it should include the following information:
- Name and address of seller
- Name and address of buyer
- Date of sale
- Purchase price
- Description of trailer: make, year, model, empty weight, ID number
- Signatures of both parties
