What is an Illinois Car Bill of Sale?

An Illinois car bill of sale terminates the previous owner’s vehicle possession, transferring ownership to the buyer. As the new owner, the purchaser must adhere to state-mandated procedures, such as obtaining the vehicle’s registration and title and ensuring the car is road-ready. The buyer cannot request post-sale compensation from the seller unless they disclose known defects or issues.

What are the Buyer’s Tasks?

Buyers should always use their best judgment when purchasing a vehicle. The individual should research and look beyond the documents or information the seller provides. They should consider the following steps before establishing an agreement to purchase.

1. Check the vehicle’s current status. Carfax and similar websites allow for vehicle identification number (VIN) searches. This step prevents “junk,” “total loss,” or “salvage” vehicle purchases, all of which the SOS does not register.
2. Perform a history report and check for title notations. The record should include evidence of flooding, rebuilding, incorrect mileage (or one that exceeds mechanical limits), special construction, invalid odometer, and other related issues. If the seller rebuilt the vehicle, they must inform the buyer before the sale and give them a “rebuilt vehicle” form.
3. Inspect the title and vehicle. The title should include the seller’s authentic signature and the signing date. Next, the buyer should crosscheck the VIN on the title with the sticker on the door frame and the number on the driver’s side dashboard. The seller’s name listed in the title should also correspond with their driver’s license identity. The document cannot have alterations or erase marks, or else the state deems them invalid.
4. Complete a bill of sale. After the buyer examines the car’s history and decides to purchase it, both parties should create a bill of sale together. The document must obtain the seller’s information if the new owner needs to contact them following the sale.
5. Remove the seller’s license plates. Individuals cannot use someone else’s license plates. Law enforcement can penalize residents who do not follow this law.

What are the Seller’s Tasks?

The seller must follow the state-mandated steps when transferring ownership of the vehicle. Abiding by local law ensures that the previous owner removes their responsibility and does not receive fines or penalties.

1. Remove license plates before giving the buyer the vehicle and paperwork.
2. Take out registration documents, insurance cards, and other essential or personal information in the car prior to transferring ownership.
3. Sign and date the title. Fill out the “Notice of Sale” section if available. Give the completed document to the buyer upon purchase.
4. If the title does not have a “Notice of Sale” section, complete a separate Seller’s Report of Sale (Form VSD 703.1) and send it to an SOS office.
5. The seller should complete a bill of sale form with the buyer. Ensure that the purchaser enters their contact information to identify themselves and allow others to get ahold of them post-sale. Sellers should safely store a copy of the document.

How to Register a Car in Illinois (5 Steps)

After purchasing a vehicle, buyers have twenty (20) days to register and title it in their name. Incoming residents have thirty (30) days to obtain tags and plates. Drivers operating an unregistered vehicle can receive fines up to $90 per incident (§ 1010.330). Appointments occur through a Secretary of State (SOS) Driver Services Facility.

Step 1 – Illinois Driver’s License

Individuals moving into Illinois from another state have ninety (90) days to transfer their license. The applicant can use their in-state driver’s license to prove their residency when registering or titling their vehicle.

First, applicants must make a driver’s license appointment. The type of meeting depends on their needs. Generally, the individual gives their previous unexpired license and payment to the office. Next, they must pass the required vision, written, and driving tests, then pay the required fees.

If the applicant passes the tests and provides the correct forms, the SOS gives them a temporary ninety (90) day license. The official card comes by mail within fifteen (15) days.

Step 2 – Auto Insurance

In-state vehicles must have a valid insurance policy. Uninsured drivers stopped by law enforcement can face fines up to $1000.

The individual’s insurance plan must cover $25,000 for the injury or death of one (1) person and $50,000 for the injury or death of two (2) or more people. In addition, it must include $20,000 worth of property damage per incident (§ 625 ILCS 5/7-601).

Step 3 – Emissions