Quoted: You should just need to sign over the title. The buyer payes the sales taxes. A bill of sale isn't needed, but can be a good idea. Here's one I found that seems appropriate.
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It likely varies somewhat from state to state. Generally, one need only sign and deliver the title...at least in Illinois.
If you're going to use a contract, do it right and have an attorney do one for $50 or $125 tops.
The contract posted hits a number of highlights but misses some standard language I would include for a seller in IL such as:
1) Disclaimer of warranty of fitness for a particular purpose
2) Merger clause ...i.e. This agreement represents the entire agreement of the parties yada yada no oral representations... blah blah the parties expressly acknowledge that they have not relied on any statements or representations not contained in this agreement (or something similar)
3) Buyer has inspected the above described property and is satisfied as to its condition.
4) Buyer acknowledges that he has been advised that he is entitled to have this contract reviewed by legal counsel of his choosing and that he has declined (if he does decline or that he has had it reviewed by his atty if he wants)
5) Most importantly, the agreement should provide for reasonable attorney fees to be awarded to a party if they hire an attorney in connection with enforcing the contract if a party breaches the contract.... I would suggest setting a minimum figure like $200.00 and provide that the parties agree that such an amount is reasonable. At least in IL, simple breach of contract does not generally support an award of atty fees. You simply have to eat them. Often, they add up to be more than the amount in controversy.
Is all that necessary?
Generally not but once again, why bother doing it if you don't do it right? You could just draw a contract in pencil on the back of a cocktail napkin that John agrees to sell Joe his 19XX Pontiac Whatsist for $$$$.$$ to be delivered by xx/xx/xxxx. I wouldn't but that's just me.
I think a lot of folks sign homegrown contracts that are horrendous just because they felt better having signed something. When things go south, inartfully drawn and simple contracts tend to be more of a liability. Unfortunately, a lot of lawyers draw sloppy contract for simple transactions too just because the parties don't want a 5 page contract in connection with selling a 1984 LeBaron for $200.00 and because they attorney figures all will go well, as do the parties. For the most part, that is true but there are exceptions and that is the reason to be thorough.
Two more tips:
1) Get cash/certified funds in full before signing or delivering the title. I would personally not do it any other way. Too easy to be burned.
2) If you decide to let him pay over a period of time, you can sign over and deliver the title but make sure you take a security interest in the vehicle. The process can be heavily state dependent. In IL, the lienholder generally charges the Buyer for the title transfer fee, takes the title to be processed with instructions that the creditor's lien be noted and the title returned to the creditor. Once PIF, the creditor signs a release of lien right on the title and delivers it.
3) He is coming there to pick up so I see this as less of an issue. BUT, what if you were shipping? Can he sue you in his state? Can you sue him in yours? Whose law controls? This is something else I would address by contract in connection with an interstate contract.
DISCLAIMER: the only portion of this post that should be taken as legal advice is this: Have a local lawyer draw up a cheap contract, at least if he screws up, you can go after his malpractice coverage.
The rest of this is just rambling