Free Alabama Automobile Bill of Sale

Generally, the seller provides a warranty that the vehicle is being transferred free and clear of any liens or encumbrances, that is, no other party has a valid claim to the vehicle. If the vehicle that will be transferred under this document has been pledged as security for a loan, it may be necessary to obtain a release from the party to whom the loan is owed. Such a loan is a "lien" or "encumbrance" on the vehicle.

Usually, the seller transfers the property "AS IS," but in some cases, the seller may be willing to warrant that the vehicle "is in good working condition," subject to a condition that the seller will only be liable for repair costs up to a specific amount if incurred during a specific time period after the date of the sale.

Federal law requires a statement by the seller as to the odometer mileage at the time of the transfer of ownership. In many states the odometer statement is included as part of the certificate of title. The buyer(s) are required to acknowledge the odometer statement by signing the Automobile Bill of Sale immediately below the odometer statement.

1. The Automobile Bill of Sale document should be signed by both the Buyer(s) and the Seller(s). The Buyer(s) should sign in the Odometer Certification section, and the Seller(s) should sign at the end of the document. It is not necessary that the signatures be witnessed or notarized. The sale becomes effective as of the date provided in the text of the document.

2. Note: This document only represents the transfer of the RIGHT to ownership of the vehicle; the automobile's Certificate of Title reflects ACTUAL ownership. Therefore, both this document and the Certificate of Title are needed to complete the transfer of the automobile.

3. The original copy of the Bill of Sale should be given to the Buyer(s). The Seller(s) should retain a copy.

4. The Buyer(s) should be certain to obtain appropriate insurance coverage for the automobile.