What is a Delaware Car Bill of Sale?

A Delaware car bill of sale provides a buyer and seller with evidence of the deal they carried out with one another. The document informs the Division of Motor Vehicles (DMV), insurance companies, and other entities of the transaction. Buyers can also re-sell the car using a bill of sale.

If the seller gifts the automobile to the buyer, both parties should visit the DMV together. They must complete additional forms for gifting the car and officially transfer the title. Even though the buyer does not pay for the vehicle in this scenario, they still have liability for it. In addition, the seller releases their ownership and no longer has obligations tied to the car.

What are the Buyer’s Tasks?

Buyers who purchase vehicles from private sellers must handle the transfer process themselves. This process differs from dealership purchases as the salesperson takes care of the paperwork. They also handle registration and titling through the Division of Motor Vehicles (DMV).

Before purchasing, the buyer must ensure the seller has a trustworthy reputation. Taking precautions prevents scams or fraudulent deals. Websites like Carfax and AutoCheck, provide the vehicle’s history. The DMV also provides a vehicle identification number (VIN) check, which provides residents with free information.

Once the interested party decides to purchase the car, they must add the following information on the backside of the title:

• Print and sign their name in section one (1).
• Enter lien (or lienholder) information if financing the vehicle in section three (3).
• The purchaser’s application in section four (4) must include the buyer’s full name, driver’s license number, birthday, and signature.

The DMV recommends that buyers and sellers attend the DMV appointment together to transfer the title. It ensures that both parties complete the required forms and correctly carry out the exchange of property.

What are the Seller’s Tasks?

Individuals must take the proper steps when selling a car. If they fail to do so, the DMV holds them responsible for the vehicle, even after the transfer. As a result, if the buyer receives tickets or has an accident, the information goes on the seller’s permanent record. Therefore, the seller should remove the license plates from the vehicle and return them to the DMV office. They should also submit the required documentation.

The seller must finalize the title transfer by filling out “Section One (1)” on its backside. This area (known as the assignment of certificate of title) must contain the buyer’s name and address, the purchase date, the sale price, and the odometer disclosure. If two (2) or more owners exist, they must also print and sign their names on the title.

On the back of the registration card, the seller must include the buyer’s name and address, the hour and date of the purchase, and their signature. If they do not have a registration card, they can also use a seller’s report of sale.

Sellers should accompany buyers to the DMV upon purchase. The presence of both parties ensures that the title transfer happens without error or confusion. Plus, each person knowingly submits the completed, correct forms.

How to Register a Car in Delaware (4 Steps)

Vehicles operated in the state must have a title, registration, and insurance policy. Incoming residents have thirty (30) days to submit their change of address to the DMV. Within sixty (60) days of residency, they must register and title the car (§ 2102). Residents with newly purchased vehicles must follow the same timeline.

Step 1 – Car Insurance

Delaware strictly enforces automobile insurance laws. Residents driving an uninsured vehicle can face fines of $1,500 or more, thirty (30) days in prison, and/or a six (6) month driver’s license suspension. The state audits residents randomly throughout the year to check for coverage.

The vehicle owner must provide their insurance plan upon registration. They can present either a physical or electronic identification (ID) card (§ 2118).

The insurance policy must include:

• Bodily Injury or Death – $25,000 for one person / $50,000 for two (2) or more persons
• Property Damage – $10,000 per incident
• Personal Injury Protection (PIP) – $15,000 for each person / $30,000 for two (2) or more persons; $5,000 maximum for funeral expenses

Step 2 – Vehicle Inspection

Incoming residents must have their out-of-state car inspected before registration. The weight and year of the vehicle determine the required type of inspection. It could need a full inspection or vehicle identification number (VIN) verification.

A complete inspection includes an assessment of the entire car. For example, the inspector checks the lights, brakes, windows, mirrors, windshields, wipers, and other external components. The vehicle only passes if it does not have detectable issues.

A VIN inspection requires the driver to provide documentation with the vehicle’s VIN, such as the registration, title, or bill of sale. The inspector checks the number on the forms and compares it to the VIN displayed inside the car. If the numbers match, then the car passes.

Owners of vehicles that pass inspection receive an official report from the inspector. The individual must keep the form as they must provide it to the DMV when registering and/or titling the car.

Automobiles that fail inspection do not meet the criteria for a registration and title. The owner must fix the issue(s) detected, then bring the car back for inspection.