There are several things that you must do if you want to sell your vehicle privately in Alberta or Canada. First and foremost, you’ll need to buy a Used Vehicle Information Package that you will eventually provide to the buyer.
You’ll also need to make sure that there are no liens on your vehicle and that the VIN matches the number on your ownership document. And finally, you’ll want to complete a signed Bill of Sale. But what exactly is a signed bill of sale?
What is a Bill of Sale in Alberta?
In Canada, you’ll need to fill out a bill of sale before you can transfer ownership of your vehicle to another person. This bill will contain pertinent information about the buyer and the seller (name, address, etc.) and relevant information about the vehicle being sold.
You will need to record the following information about your vehicle on the bill of sale:
- Body Color
- VIN Number
- Odometer reading
You will also need to include the amount that the vehicle was sold for and any special conditions of the sale (how it’s being paid for, any liens, etc.). Both the buyer and the seller will then sign the Bill of Sale before the sale is considered final.
Is a bill of sale required in Alberta?
The simple answer is yes! If you intend to purchase a vehicle, you must produce the original bill of sale in order to register a vehicle in Alberta.
Why Do I Need a Bill of Sale?
Your Bill of Sale is a legally binding document that serves a dual purpose. Firstly, it confirms that the vehicle’s ownership has been transferred from one person to another.
In this sense, it serves as a binding contract between the two parties involved. If there is ever a future dispute between the two, the Bill of Sale can act as evidence in court.
Bills of Sale are also commonly used for official purposes. For example, you may need one to register a boat or other vehicle.
What if I own an Automotive Business?
If you own an Automotive sales business, you still need to fill out a bill of sale; it will just be more comprehensive than a regular Bill of Sale. It’s known as a “Comprehensive Bill of Sale.”
In addition to the standard buyer and seller information, you will also have to include additional information regarding the vehicle.
An Automotive Bill of Sale must include:
- Date of delivery
- A list of all applicable fees and when they are to be paid (inspection fees, transportation fees, licensing fees, etc.).
- A list of all extra equipment being sold with the vehicle
- Any down payments made on the vehicle, as well as the remainder owing.
- List of free incentives provided with the vehicle
- Any information regarding a credit agreement
- A complete history of the vehicle including odometer reading, fitness assessments, previous use, history, and condition of the vehicle.
Additional information will need to be included if the buyer of the vehicle is trading in another vehicle to purchase the new one.
Where can I get a Bill of Sale in Alberta?
If you need a Bill of Sale in Alberta, you can download and print one directly online from the Alberta website. These Bills of Sale are quick, easy to use, and are very straightforward in what needs to be included.
With that being said, you don’t have to have a professional Bill of Sale in your hands to draft one up. Like most legal documents, a handwritten bill of sale is just as legally binding as a professional one.
As long as your document contains all of the necessary information, you can create your own Bill of Sale too.
Can I back out of a deal once the Bill of Sale has been signed?
Unless you have an additional policy that states that you can back out of the deal, then a Bill of Sale is final, and you may not back out. The only way that a Bill of Sale can be voided is if both parties (the buyer and the seller) agree to dispose of it.
With that being said, even if both parties are under agreement to cancel the sale, the seller can still keep any deposits that have been made.
In conclusion, if you are buying or selling any type of vehicle in Canada or Alberta, you’ll need to fill out a Bill of Sale. This bill of sale is designed to protect you and the other party should a disagreement occur in the future.