Auto sale to relative - sales agreement form?

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MN-Investor
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Auto sale to relative - sales agreement form?

Post by MN-Investor » Tue Sep 11, 2018 5:55 pm

I plan on selling my 2012 Hyundai Santa Fe to my niece. What kind of paperwork should I have? Can I just write up a simple "I, MN-Investor, sell my 2012 Hyundai Santa Fe, VIN #xxxx, to MN-Investor-Niece, for $10,000 effective September 14, 2018," then both of us sign and date it?
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Gill
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Re: Auto sale to relative - sales agreement form?

Post by Gill » Tue Sep 11, 2018 5:57 pm

Do you need any paperwork? Just sign over the title and receive her check
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psteinx
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Re: Auto sale to relative - sales agreement form?

Post by psteinx » Tue Sep 11, 2018 6:01 pm

I'm not a lawyer, but mentioning in a (potentially very brief) sales contract that the sale is "as is" might be helpful.

Also, consider encouraging the relative to get an inspection prior to the purchase. It may have problems that even you don't know about.

Jack FFR1846
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Re: Auto sale to relative - sales agreement form?

Post by Jack FFR1846 » Tue Sep 11, 2018 6:02 pm

Depends on the state.

In my state (MA), we've done several relative sales. The selling party wants to fill out a full sales agreement, even if the price is zero. They then submit that along with the plate return receipt from the RMV (can now be done completely online) and an application for abatement to the town tax collector to get exise tax back.

The buyer wants a copy of the sales agreement, the signed title and a relative transfer form so that they don't have to pay sales tax when registering the car. The amount of the sale, regardless of what amount is paid should be listed as $0. This is per the RMV who corrected me my first time when I listed $3500 as the selling price.
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denovo
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Re: Auto sale to relative - sales agreement form?

Post by denovo » Tue Sep 11, 2018 6:02 pm

MN-Investor wrote:
Tue Sep 11, 2018 5:55 pm
I plan on selling my 2012 Hyundai Santa Fe to my niece. What kind of paperwork should I have? Can I just write up a simple "I, MN-Investor, sell my 2012 Hyundai Santa Fe, VIN #xxxx, to MN-Investor-Niece, for $10,000 effective September 14, 2018," then both of us sign and date it?


Depends on how much you trust your niece.
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NotWhoYouThink
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Re: Auto sale to relative - sales agreement form?

Post by NotWhoYouThink » Tue Sep 11, 2018 6:23 pm

We've just signed the title and taken the check or cash. Except when they buyer could avoid sales tax by filling out a relative transfer form. In that case, it was the buyer's job to do the scut work to research the process and print and fill out the form except for signatures.

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Re: Auto sale to relative - sales agreement form?

Post by MN-Investor » Tue Sep 11, 2018 6:36 pm

denovo wrote:
Tue Sep 11, 2018 6:02 pm
MN-Investor wrote:
Tue Sep 11, 2018 5:55 pm
I plan on selling my 2012 Hyundai Santa Fe to my niece. What kind of paperwork should I have? Can I just write up a simple "I, MN-Investor, sell my 2012 Hyundai Santa Fe, VIN #xxxx, to MN-Investor-Niece, for $10,000 effective September 14, 2018," then both of us sign and date it?


Depends on how much you trust your niece.
My main concern is making sure this is a legal transfer so that if she gets into an accident, it's her issue, not mine. I guess the signed title transfer backs up the sale too.

[I short-cutted the initial post. It's actually my husband's nephew's stepdaughter who's buying the car, but that's a lot to write. My nephew will make sure she gets insurance on it and gets it licensed in Iowa. He'll make sure she pays me, so my faith is based on my nephew's integrity. He won't let her slide on any of this.]
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cashboy
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Re: Auto sale to relative - sales agreement form?

Post by cashboy » Tue Sep 11, 2018 6:53 pm

OP,

I suggest you write something up for both of you - relative or not.


Bill of Sale
Date: August 5, 2017

I, the undersigned seller, xxxxxx

for the sum of $ 11,000.00 ( Eleven Thousand dollars)

sell to the undersigned buyer, yyyyy

the following vehicle.

Make:
Model:
Year:
Vin number:
Mileage:


The undersigned seller affirms that the above information about this vehicle is accurate to the best his/her knowledge.

The undersigned buyer accepts receipt of this Bill of Sale and understands that the above vehicle is sold in “as is” condition with no guarantees or warranties, either expressed or implied, for the vehicle.


Seller’s name:
Street address:
City:
State:
Zip:


Seller’s signature__________________________________________




Buyer’s name:
Street Address:
City:
State:
Zip:

Buyer’s signature__________________________________________

denovo
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Re: Auto sale to relative - sales agreement form?

Post by denovo » Tue Sep 11, 2018 8:08 pm

MN-Investor wrote:
Tue Sep 11, 2018 6:36 pm
denovo wrote:
Tue Sep 11, 2018 6:02 pm
MN-Investor wrote:
Tue Sep 11, 2018 5:55 pm
I plan on selling my 2012 Hyundai Santa Fe to my niece. What kind of paperwork should I have? Can I just write up a simple "I, MN-Investor, sell my 2012 Hyundai Santa Fe, VIN #xxxx, to MN-Investor-Niece, for $10,000 effective September 14, 2018," then both of us sign and date it?


Depends on how much you trust your niece.
My main concern is making sure this is a legal transfer so that if she gets into an accident, it's her issue, not mine. I guess the signed title transfer backs up the sale too.

[I short-cutted the initial post. It's actually my husband's nephew's stepdaughter who's buying the car, but that's a lot to write. My nephew will make sure she gets insurance on it and gets it licensed in Iowa. He'll make sure she pays me, so my faith is based on my nephew's integrity. He won't let her slide on any of this.]
Signed title transfer with the proper forms filed and the relative immediately going to DMV changing ownership is what you should be thinking about then.
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Watty
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Re: Auto sale to relative - sales agreement form?

Post by Watty » Tue Sep 11, 2018 8:22 pm

Jack FFR1846 wrote:
Tue Sep 11, 2018 6:02 pm
Depends on the state.
+1

To prevent hard feelings if there is a future problem I would insist that she have it inspected by a mechanic before she buys it.

One risk is that she has an accident where someone is hurt between the time when she buys it and when she files the paperwork to get the new title and registration. Be sure to get some paperwork acknowledging that she bought it.

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MN-Investor
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Re: Auto sale to relative - sales agreement form?

Post by MN-Investor » Tue Sep 11, 2018 8:47 pm

Watty wrote:
Tue Sep 11, 2018 8:22 pm
To prevent hard feelings if there is a future problem I would insist that she have it inspected by a mechanic before she buys it.

One risk is that she has an accident where someone is hurt between the time when she buys it and when she files the paperwork to get the new title and registration. Be sure to get some paperwork acknowledging that she bought it.
I'll make sure she signs something acknowledging the sale before she drives away.

My nephew is great with cars and I'm sure he'll check it over. I don't anticipate any problems. My husband also kept a close eye on the car (my sweetie passed away in April), and we've had minor things taken care of as they've come up. I did tell my nephew that I would pay for any major issues which arose during the first year. I really don't need the money from the sale, it's more the fact that you don't just give a 22-year old a car for free. I had the oil changed at the dealership last week and asked them for what they would give me for the car. They would give me $9,600 today. I'm actually asking my niece for $9,000. BTW, the car only has 72,000 miles, pretty much looks brand new, all-wheel drive, V6.
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