Are you planning to buy a pre-owned car? There are numerous things that you need to consider when you are contemplating the transaction.
Not Buying The Car From The Owner
That’s the biggest mistake that you can make! It would help if you made sure that the person who is selling the car is the real owner of the vehicle. Ask for a copy of their ID. If there are two title owners, you would need both people to sign as the sellers. If someone tells you that it is their car, as they are driving it, it better to move ahead as the bill of sale template in Texas will ask you for this information.
Not Getting the Title
The title is the document that transfers ownership. If the seller hands you the registration, it is better to verify the same first. If you don’t have the title, the transfer will not be done.
Not Getting All the Documents
If the seller has out of state title, the seller needs to provide a copy of their out-of-state driver’s license. The title and bill of sale should be notarized in another state, or the seller will have to provide a notarized affidavit stating that he is not the resident of and gives his state address.
Vehicle Has Salvage Title
Many good cars have salvage titles, but when you are considering buying such a vehicle, ask about the repairs and how the car got these damages. A salvaged or reconstructed title means there was a point in time when the vehicle was declared a total loss. It also means that the vehicle got damaged to a large extent, up-to 75 percent. If they’re on the title, it will remain with the vehicle.
Not Getting It Notarized
The title transactions in Texas should be notarized. It needs either the notary or affidavit by the witness. If a notary can’t be present, the title should be signed in front of the two witnesses—the witnesses sign with their names where it is indicated. The buyer will bring the title and one of the witnesses to the notary, and he will complete the witness section.
Missing the Odometer Readings
You need to know the correct mileage of the vehicles which are over 9 yrs. of age. There is no need to find the distance between cars which are older than ten years.
The state law requires proof of liability insurance is provided at the time of the registration of the vehicle. The proof of liability insurance includes a copy of the insurance policy. If the copy of the ID card issued by the insurance company is available or the copy of the declaration page is available, it can be accepted as well. The written statement from the insurance company or the agent is also acceptable.
If the owner passed away, and a family member wants to sell their car, additional documents will be required. It all depends on the circumstances, and it will decide who needs to sign the title and the bill of sale.
Forgot the Taxes
The law requires that the tax be imposed on the sale or use of any vehicle that is subject to the vehicle registration tax. The use tax has to be collected on various transfers of motor vehicles that have to be based on the selling price, as shown on the notarized bill of sale or invoice, as written on the back of the title.
The Bill of sale template in Texas is available at numerous legal forms sites. Sign up and start creating a bill of sale.