Bill of Sale vs Car Title
Often confused, or thought of as one document, a Bill of Sale and Car Title are not at all the same thing. But do you know the difference? Before we get into the differences, there is one major similarity: both documents are very important when it comes to buying and selling a vehicle. To be perfectly clear, however, you cannot complete the sale of a vehicle without the title, but you can without a bill of sale it's just not a very good idea.
Purchasing a vehicle is a big moment, and one that devotes a lot of money to one specific object the car. When you buy or sell a car, the title of ownership will change hands, and this information must be updated on the title. But why do you need a bill of sale? Because a bill of sale is a hard-copy record of the transaction and contains a lot of information that is important to both the buyer and the seller. Drafting a bill of sale is recommended to anyone that is buying or selling a used car.
In Florida and the rest of the United States, the only proof of ownership of a vehicle is the title. The name listed as the owner on this document is the owner of the vehicle. So if you purchase a car, but never make the change on the title, the vehicle does not belong to you. Driving a vehicle that is not owned by you will incur penalties and fines if you are caught. Furthermore, it is difficult to obtain insurance for a vehicle you do not own. When the title is transferred into your name, file the document away in a safe place until the time comes when the information must be updated again.