Table of Contents
The SFN 18609 form, also known as the Damage/Salvage Disclosure Statement, is an essential document for vehicle transactions in North Dakota. This form is required for all vehicles that are less than nine model years old and must be completed by the seller. It serves to inform potential buyers about any significant damage that the vehicle may have sustained within the past eight years, including damage from accidents, fire, vandalism, or severe weather. The seller must indicate whether the vehicle has experienced body or structural damage and, if so, provide details regarding the extent of that damage. The form includes specific sections that ask the seller to disclose if the damage equals or exceeds $10,000 or 25% of the vehicle’s pre-damage retail value. Furthermore, if the damage exceeds 75% of the vehicle's retail value, additional information is required regarding the nature of the damage and the seller's ownership history. Both the seller and buyer must sign the form, which then accompanies the application for title transfer. Completing the SFN 18609 accurately is crucial, as any false statements can lead to legal consequences.
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Similar forms
The SFN 18609 form, known as the Damage/Salvage Disclosure Statement, serves a crucial role in the vehicle transfer process in North Dakota. It ensures transparency regarding the condition of a vehicle and protects both buyers and sellers. Several other documents share similarities with this form in terms of purpose and function. Below is a list of seven such documents:
- Bill of Sale: This document records the transaction between the buyer and seller, including details about the vehicle. Like the SFN 18609, it requires signatures from both parties and serves as proof of the sale.
- Title Application: When applying for a vehicle title, this form often requires information about the vehicle's condition. Similar to the SFN 18609, it ensures that buyers are informed about any potential issues before the title is transferred.
- Odometer Disclosure Statement: This document is required to disclose the vehicle's mileage at the time of sale. It parallels the SFN 18609 in that it protects consumers by providing essential information about the vehicle's history.
- Vehicle History Report: This report provides a comprehensive overview of a vehicle's past, including accidents and damages. Like the SFN 18609, it aims to inform potential buyers about the vehicle's condition and history.
- Salvage Title Application: If a vehicle has been declared a total loss, this application is necessary to obtain a salvage title. It shares the goal of the SFN 18609 in ensuring that buyers are aware of the vehicle's damaged status.
- ADP Pay Stub: This form provides a comprehensive overview of an employee's earnings and deductions, akin to how vehicle transaction documents disclose critical information; resources for generating ADP Pay Stubs can be found at smarttemplates.net.
- Inspection Certificate: This document certifies that a vehicle has been inspected for safety and compliance. Similar to the SFN 18609, it provides assurance to buyers regarding the vehicle's condition before purchase.
- Warranty Transfer Form: When a vehicle's warranty is transferred to a new owner, this form is used. It includes information about the vehicle's condition and ownership, akin to the SFN 18609, which also requires disclosure of any significant damage.
Each of these documents plays a vital role in the vehicle transfer process, ensuring that all parties involved have access to necessary information about the vehicle's history and condition.
How to Use Sfn 18609
Completing the SFN 18609 form is a straightforward process that requires careful attention to detail. This form is essential for documenting any damage or salvage history of a vehicle, particularly for those less than nine years old. After filling out the form, it should be signed by both the seller and the buyer and submitted alongside the application for title transfer.
- Begin by entering the year, make, model, style, and Vehicle Identification Number (VIN) in the designated fields at the top of the form.
- Fill in the title number of the vehicle.
- In Section 1, indicate whether the vehicle has sustained any body or structural damage within the past eight years by checking YES or NO.
- If you checked YES in Section 1, proceed to Section 2. Here, disclose if the damages equal or exceed the greater of $10,000 or 25% of the vehicle's pre-damage retail value by checking YES or NO.
- Next, move to Section 3. Indicate whether the damages exceed 75% of the vehicle's retail value by checking YES or NO.
- If you answered YES in Section 3, complete Section 3A by selecting the option that best describes your situation regarding the damage.
- In Section 3B, check all applicable types of damage and provide a brief explanation of the damage.
- Proceed to Section 4. Fill out your name as the transferor (seller), along with your daytime telephone number, mailing address, city, state, and ZIP code. Sign and date the form.
- Finally, if any questions in Sections 1-3 were answered with YES, complete Section 5 with the legal name of the transferee (buyer), their daytime telephone number, mailing address, city, state, and ZIP code. The buyer must also sign and date the form.
Dos and Don'ts
When filling out the SFN 18609 form, it is essential to follow specific guidelines to ensure accuracy and compliance. Here are five things to do and five things to avoid:
- Do complete all required sections of the form, including vehicle details and damage disclosures.
- Do ensure the form is signed by both the transferor (seller) and transferee (buyer).
- Do provide clear and honest answers regarding any damage the vehicle has sustained.
- Do include all necessary contact information for both parties, including daytime telephone numbers.
- Do double-check calculations for assessed damage to ensure they meet the stated thresholds.
- Don't leave any sections blank; incomplete forms may delay processing.
- Don't provide false information; doing so can result in legal consequences.
- Don't skip the explanation section if the vehicle has sustained damage; clarity is crucial.
- Don't forget to date the form; missing dates can lead to confusion about the transaction timeline.
- Don't assume that verbal agreements are sufficient; all disclosures must be documented on the form.
Document Example
DAMAGE/SALVAGE DISCLOSURE STATEMENT
North Dakota Department of Transportation, Motor Vehicle
SFN 18609
MOTOR VEHICLE DIVISION
ND DEPT OF TRANSPORTATION 608 E BOULEVARD AVE BISMARCK ND
Fax (701)
This form MUST be completed by the transferor (seller) for all vehicles less than nine (9) model years old.
This form MUST be signed by the transferor (seller), given to and signed by the transferee (buyer), and accompany the application for title.
Year
Make
Model
Style
Vehicle Identification Number (VIN)
Title Number
Section 1: NDCC
Within the past eight (8) years, has this vehicle sustained body or structural damage from a vehicular crash or accident, including loss by fire,
vandalism, weather, or submersion in water, resulting in damage to the motor vehicle? |
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Yes* |
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No |
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The term damage does not include body or structural modifications, normal wear and tear, glass damage, hail damage, or items of normal maintenance and repair.
*If yes is checked, sections 2 & 3 must be completed.
Section 2: NDCC
If vehicle has sustained damage, please answer the following question:
Do the damages equal or exceed the greater of $10,000 or
determined by the National Automobile Dealers Association official used car guide? |
Yes |
No |
Section 3: NDCC
If the vehicle has sustained damage, please answer the following question:
Do the damages exceed |
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Yes* |
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No |
3A. *If you answered yes, please check the box below that best describes your situation.
Damage occurred in a single occurrence while I owned the vehicle.
I acquired the vehicle with unrepaired damage.
Damage occurred prior to my ownership and I acquired it in a repaired condition.
Other - Must explain:
3B. Type of Damage: |
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Collision |
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Weather |
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Theft |
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Interior |
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(check all that apply) |
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Water |
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Vandalism |
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Fire |
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Under Carriage |
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Other |
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Explanation of Damage:
Any person who makes a false statement on this form is guilty of a Class A Misdemeanor.
Section 4
Name of Transferor (Seller) |
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Daytime Telephone Number |
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Mailing Address |
City |
State |
ZIP Code |
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Signature of Transferor (Seller) |
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Date |
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Section 5 |
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Legal Name of Transferee (Buyer) |
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Daytime Telephone Number |
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Mailing Address |
City |
State |
ZIP Code |
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Signature of Transferee (Buyer) |
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Date |
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SFN 18609
Page 2 of 2
INSTRUCTIONS FOR COMPLETING DAMAGE/SALVAGE DISCLOSURE STATEMENT
Section 1
The seller must disclose if there has been damage* to the vehicle within the past 8 years by checking YES or NO to the question.
If YES, proceed to Sections 2 & 3.
*Damage is defined as body or structural damage from a vehicular crash or accident including loss by fire, vandalism, weather, or submersion in water, resulting in damage to the motor vehicle. The term damage does NOT include body or structural modifications, normal wear and tear, glass damage, hail damage, or items of normal maintenance and repair.
Section 2
The seller must disclose if damages* equal or exceed the greater of $10,000 or
*The amount of damage to a motor vehicle is determined by adding the retail value of all labor, parts, and materials used in repairing the damage. See NDCC
DAMAGE DISCLOSURE FORMULA
1.Calculate 25% of the retail value of the vehicle at the time the vehicle was damaged.
2.Which is the higher amount 25% of the retail value of the vehicle or $10,000?
3.What is the amount of the assessed damage?
4.The assessed damage amount must be greater than the higher amount from step 2 to be a damaged vehicle.
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EXAMPLE 1 |
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EXAMPLE 2 |
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1. |
$15,000 (retail value) X 25% = $3,750 |
1. |
$50,000 |
(retail value) X 25% = $12,500 |
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2. |
$3,750 OR $10,000 = $10,000 is higher |
2. |
$12,500 |
OR $10,000 = $12,500 is higher |
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3. |
Assessed damage is $7,000 |
3. |
Assessed damage is $13,000 |
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4. |
Check NO on damage disclosure form |
4. |
Check YES on damage disclosure form |
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Section 3
The seller must disclose if the damages* exceed
If YES, seller must answer Sections 3a. & 3b.
*Vehicles damaged in excess of 75% may not be operated on ND highways unless they have been reconstructed and inspected by a business that is registered with the Secretary of State, is in good standing, and offers motor vehicle repairs to the public. (SFN 2486 Certificate of Vehicle Inspection) The business completing the inspection may not be the same business that reconstructed the vehicle. If a vehicle has been reconstructed, a certificate of title will be issued with a "previously salvaged" brand status. Salvage requirements apply to all model year vehicles and all brands must be carried forward regardless of the age of the vehicle.
Section 3a
The seller must select one of the options which best describes their ownership of the vehicle in regards to the disclosed damage. Example of "Other": Title already branded for the damage disclosed above.
Section 3b
The seller must select all that apply which best describes the type of damage to the vehicle and briefly explain. Example of "Explanation of Damage": Hit a deer.
Section 4
Seller information to be completed in full with seller signing and dating the form.
Section 5
The buyer is only required to complete Section 5 if YES has been answered to any of the questions completed by the seller.
File Breakdown
| Fact Name | Fact Details |
|---|---|
| Form Title | DAMAGE/SALVAGE DISCLOSURE STATEMENT |
| Governing Body | North Dakota Department of Transportation |
| Form Number | SFN 18609 |
| Last Updated | August 2019 |
| Purpose | To disclose any damage or salvage history of a vehicle less than nine model years old. |
| Required Signatures | The form must be signed by both the transferor (seller) and the transferee (buyer). |
| Applicable Law | North Dakota Century Code (NDCC) 39-05-17.2, 39-05-20.2, and ND Administrative Code (NDAC) 37-09-01-02. |
| Damage Definition | Damage includes body or structural damage from accidents, fire, vandalism, weather, or water submersion. |
| Damage Threshold | Damages must equal or exceed $10,000 or 25% of the vehicle's pre-damage retail value to be reported. |
| Consequences of False Statement | Providing false information on this form is a Class A Misdemeanor. |
Common mistakes
Completing the SFN 18609 form can be straightforward, but several common mistakes can lead to complications. One frequent error is failing to check the correct box in Section 1 regarding the vehicle's damage history. Sellers must accurately disclose whether the vehicle has sustained damage in the past eight years. If they mistakenly check "No" when the vehicle has indeed been damaged, they risk legal consequences, including potential misdemeanor charges.
Another common mistake involves misunderstanding the definition of "damage." Many individuals confuse normal wear and tear with structural or body damage. It is essential to recognize that damage refers specifically to incidents like accidents, fire, or flooding. Ignoring this distinction can lead to incorrect disclosures and potential penalties.
In Section 2, sellers often miscalculate the assessed damage. They must determine whether the damages equal or exceed $10,000 or 25% of the vehicle's pre-damage retail value. A simple miscalculation can lead to an incorrect answer, which could affect the vehicle's title status. Sellers should take care to use the correct retail value and apply the formula accurately to avoid this mistake.
Additionally, sellers sometimes neglect to complete Sections 3A and 3B if they answer "Yes" to the damage exceeding 75% of the vehicle's retail value. This oversight can result in incomplete information, which may delay the title transfer process. Each section is designed to gather specific details about the vehicle's damage history, and skipping these sections can lead to complications.
Another mistake is failing to provide complete contact information in Section 4. Sellers must include their full name, telephone number, and mailing address. Incomplete information can lead to difficulties in communication, especially if there are follow-up questions about the vehicle's condition.
Moreover, some sellers forget to sign and date the form. The signature of the transferor (seller) is mandatory for the form to be valid. Without this signature, the form is not legally binding, and the title transfer may be rejected.
Buyers also make mistakes when filling out Section 5. They are only required to complete this section if the seller has indicated damage. However, some buyers mistakenly believe they need to fill it out regardless of the seller's answers. This misunderstanding can lead to unnecessary delays in the title transfer process.
Lastly, individuals often overlook the importance of providing a detailed explanation of the damage in Section 3B. A vague description can lead to confusion or further questions from the Department of Transportation. Clear and precise explanations help ensure that all parties understand the vehicle's history and condition.
FAQ
What is the purpose of the SFN 18609 form?
The SFN 18609 form, also known as the Damage/Salvage Disclosure Statement, is designed to ensure transparency in vehicle transactions. It requires sellers to disclose any significant damage that a vehicle has sustained within the last eight years. This helps protect buyers from purchasing vehicles with undisclosed issues and ensures that all parties are aware of the vehicle's condition before a sale is finalized.
Who is required to complete the SFN 18609 form?
The form must be completed by the transferor, or seller, of any vehicle that is less than nine model years old. It is crucial for the seller to fill out this form accurately to provide potential buyers with essential information regarding the vehicle's history.
What types of damage must be disclosed on the form?
Sellers must disclose any body or structural damage resulting from accidents, fire, vandalism, weather events, or water submersion. However, normal wear and tear, glass damage, hail damage, and routine maintenance do not need to be reported. This distinction helps clarify what constitutes significant damage that could affect the vehicle's value and safety.
What happens if a vehicle has sustained damage?
If the seller indicates that the vehicle has sustained damage, they must answer additional questions in Sections 2 and 3 of the form. These sections assess the extent of the damage and whether it exceeds certain financial thresholds. This information is critical for buyers to understand the severity of any issues before making a purchase.
How is the assessed damage calculated?
To determine if the damage meets the reporting criteria, sellers must calculate the retail value of the vehicle and compare it to the cost of repairs. If the damage equals or exceeds $10,000 or 25% of the vehicle's pre-damage retail value, it must be disclosed. This calculation ensures that significant damage is appropriately reported to protect buyers.
What are the consequences of providing false information on the form?
Providing false information on the SFN 18609 form is a serious matter. It is classified as a Class A Misdemeanor, which can lead to legal repercussions for the seller. This underscores the importance of honesty and accuracy when completing the form, as it serves to protect both the seller and the buyer in the transaction.
What should the buyer do after the form is completed?
Once the form is completed and signed by both the seller and the buyer, it should accompany the application for title transfer. This ensures that the buyer has a complete understanding of the vehicle's history and condition, which is essential for making an informed decision.
Where can I find more information or assistance regarding the SFN 18609 form?
For additional information, you can visit the North Dakota Department of Transportation's website or contact their Motor Vehicle Division directly. They can provide guidance on completing the form and answer any specific questions you may have regarding vehicle transactions and disclosures.