Docs for Your Deal Jacket, But Are They Required?

In this blog we will review five common documents used when selling a vehicle. As you know, some documents are required by law to be in the deal jacket on every sale. Although they may vary depending on whether it is a cash sale or a finance deal and other documents may be required based on the situation presented during the sale, like if there is a trade-in or you are including a warranty on the vehicle.

But what about recommended documents that can go in the deal jacket?  These documents that can help you if you run into a problem down the road after you sell the vehicle. Of the five documents listed below can you identify the ones that are required and the ones that we recommend you keep in your deal jacket?
Customer ID
Disclosure of Known Defects
Buyer's Guide
Payment Instrument
OFAC Search
Documents that are required to be in the deal jacket include:
Photo ID.  If the vehicle will be titled in Texas, dealers are required to keep a copy of the customer's photo ID in the deal jacket.  Only certain ID types are acceptable, you can see what they are here.  The customer's ID may not be expired by more than one year as of the date of sale. 
Buyer's Guide.  The Buyer's Guide must be posted on every vehicle offered for sale. You are also required to retain a copy in the deal jacket. It is highly recommended that you have your customer sign the Buyer's Guide.
Payment Instrument.  You are required to retain a record of the customer's payment instrument such as a cancelled check or credit card receipt.
And a few Documents that are not required but we suggest you keep a copy in the deal jacket anyway:
Disclosure of Known Defects.  This document is for making full disclosure to your customer about your knowledge of the vehicle's condition.
OFAC Search.  Dealers are required to comply with the provisions of the Federal Patriot Act, one of which is to check the specially designated nationals list from OFAC to make sure you do not do business with a suspected terrorist.  Many software systems include an OFAC compliance feature.  You may also visit the U.S. Department of Treasury website and click on “search OFAC's Sanctions List”, print out the results and retain them in the deal jacket.


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