Free Delaware As-Is Bill of Sale
Delaware's lemon law (6 Del.C. § 5001 et seq.) applies only to new vehicles purchased from licensed dealers — private party as-is sales have no lemon law exposure. Delaware UCC 6 Del.C. § 2-316 requires as-is language to be conspicuous in the written agreement to validly exclude implied warranties. Delaware's Consumer Fraud Act (6 Del.C. § 2513) applies narrowly to 'merchandise in commerce,' and courts have generally not extended it to private one-time sellers — but common-law fraud for knowing concealment of material defects remains a real risk for any seller.
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Delaware As-Is Bill of Sale — What You Need to Know
Sales Tax Details
Delaware charges a 5.25% document fee at title transfer — not a traditional sales tax but functionally similar. The fee is assessed on the higher of the sale price or the vehicle's NADA average trade-in value.
Exemption: Delaware's document-fee law lists no family exemption; ask the Delaware DMV how a family transfer is assessed.
Inspection Requirements
Delaware requires a safety inspection (VIN verification and safety check) at the time of registration for vehicles new to Delaware registration. There is no mandatory pre-sale inspection for private party sales, but the buyer must pass the Delaware inspection to register the vehicle.
Delaware As-Is Sale — Step-by-Step Checklist
- Print 'THIS VEHICLE IS SOLD AS IS — NO WARRANTIES EXPRESS OR IMPLIED' in bold or all-caps prominently in the bill of sale.
- Disclose all known material defects in writing — common-law fraud liability survives any as-is clause when the seller actively conceals known problems.
- Complete the federal odometer disclosure on the title or a separate form for vehicles of model year 2011 or newer and under 16,000 lbs GVWR.
- If the vehicle has a salvage or rebuilt title, transfer the correct Delaware title type and disclose the salvage history in writing — never represent a salvage vehicle as clean.
- Sign the back of the Delaware Certificate of Title over to the buyer with sale price, odometer reading, and date.
- Advise the buyer that Delaware charges a 5.25% document fee at title transfer on the higher of the sale price or the NADA average trade-in value.
- Advise the buyer that a safety inspection is required when registering the vehicle with Delaware DMV.
- Provide the buyer a dated bill of sale with buyer/seller full names, addresses, VIN, year, make, model, and agreed sale price.
Common Pitfalls
- Using inconspicuous as-is language — 6 Del.C. § 2-316 requires conspicuousness; language buried in standard text can be voided, restoring implied warranty liability.
- Assuming the 5.25% document fee is based on the sale price alone — Delaware DMV assesses it on the higher of the sale price or the NADA average trade-in value; buyers should be prepared for this.
- Failing to disclose a salvage or rebuilt title — concealment is fraud under Delaware law and voids the as-is protection; the buyer can seek rescission and damages.
- Thinking Delaware's Consumer Fraud Act eliminates all statutory exposure for private sellers — while the Act has narrow applicability to private individuals, common-law fraud has no such limitation and knowingly concealing a defect remains actionable.
- Skipping the odometer disclosure for qualifying vehicles — federal odometer fraud law applies regardless of any as-is clause or state law.
Pro Tip
Delaware's tax structure (a document fee on the higher of price or NADA average trade-in value rather than a traditional sales tax) is the detail most likely to surprise buyers — flag it explicitly in the bill of sale. The lemon law and Consumer Fraud Act have limited applicability to private sellers, but common-law fraud remains live; written disclosure of known defects is essential.