Give your sister a car by creating a bill of sale. The bill of sale indicates your role as seller and your sister's role as buyer. She must have a signed bill of sale to register the car at your state's department of motor vehicles. The property, a car, is described by year, make and vehicle identification number (VIN). As long as the car has no liens and is yours to give, provide your sister with the simple bill of sale and endorse the title to her. Provide her with copies of both documents.
Collect information needed to write the bill of sale. You must have the car's year, make and vehicle identification number. The VIN is usually found on the left side of the car dashboard.
Have a copy of the car's title on hand to verify your ownership. If you still owe money on the car to a bank or auto finance company, request written permission from the company to transfer ownership. Provide its written permission with the bill of sale.
If any questions arise about legal ownership of the car, anyone may obtain information about the car at AutoCheck or CarFax with the VIN.
Prepare the bill of sale document in writing, via a prepared form or one you write yourself. Identify yourself as seller, as in: "Jane Doe, the Seller, located at 124 Main Street, Anytown, Massachusetts 02108," and your sister as the buyer, as in: "Jill Doe, the Buyer, located at 298 Mission Street, Hometown, Massachusetts 01060." You must indicate the price the buyer is paying for the car. In this case, the car price is zero dollars. Provide any information about items of value, such as a DVD player, stereo system or bicycle rack.
Describe the condition of the car and include any defects. State that the car is sold "as is" to avoid any future misunderstandings. Supply a mechanic's report along with the bill of sale to provide an accurate report of the car's sale condition. Alternatively, the seller may provide a warranty of parts and labor for a set period.
Print two copies of the bill of sale. Both buyer and seller must sign the document and acknowledge receipt of any attachments to the bill of sale. If the car has no liens at the time of sale, endorse your copy of the title and give it to your sister.
Electronic signatures to the bill of sale may be used if the buyer and seller are not meeting to transfer the property.
Giving a car to your sister doesn't provide a tax deduction of the car's fair market value. Obtain a tax deduction by donating the car to a charity, such as the American Cancer Society.
Contact your department of motor vehicles before selling the car to your sister to check whether your state has special requirements on documents.
Always prepare and sign a bill of sale when transferring or selling any item of value.
- California Department of Motor Vehicles: Bill of Sale REG 135
- "The Complete Book of Personal Legal Forms"; Mark Warda, James C. Ray; 2005
Laura Lemay started writing in 1996. She has published articles on Luxist, Paw Nation, StyleList, Gadling, Urlesque, Asylum, BloggingStocks and other websites. Lemay also worked at "Ladies Home Journal" and "Institutional Investor." She holds a Bachelor of Arts in English from Smith College and a Master of Arts in education from Virginia Tech.