Alabama Bill of Sale

What Is It?

If you’ve ever had to sale a piece of your property, a car, puppy, horse or a boat, you’ve heard of bills of sales, right? To answer your questions clearly, the bill of sale (BOS) is a legally binding document which transfers the legal ownership of any personal property from one individual to another. You could also think of this document as a proof of purchase or the proof of sale since it confirms that the ownership of the property in question has changed hands. The bill represents a legal contract with a record of the agreement made upon the sale and the receipt of property.

Under the laws of Alabama, the proof of purchase document refers to the seller, the person who gives away their interests in property and buyer is the party that takes over the possession of the property. No limit exists to what the property could be exchanged for meaning that you can exchange the property for other traded items, money, or any valuable item.

Is there something specific you should do when signing any proof of purchase document? Yes. The state of Alabama requires that you and the party buying the property keeps at least one copy (1 or 2) copies of the bills for record purposes. In case of a legal issue, you’ll have proof that the property changed hands legally.

Note that this bill will only apply to matters around transferring personal property only – it doesn’t have anything to do with services or the sale and purchase of real estate. Besides the transfer of property and a situation where a party gets to possess property physically, it also applies to a situation where a buyer gets the right, title, or interest in the property even when the property remains in possession of the selling party.

What are the requirements of the bills of sale?

As you get ready to fill out your free bill of sale form in Alabama, note that the document must be clear in identifying the object changing hands. The document should have information about the property’s identity, the cost of the sale, name, and addresses of the seller and the buyer, specifics of the property, as well as any other claims, representations, and warranties for the property.

For validity, the free Alabama bill of sale form should have signatures of the buyer and seller, also the date and the time/ location the transaction takes place.

• So, which are the main types of BOS in the state of Alabama?

• • 1. Alabama Bill of Sale for a Car

Unlike some other states, the state of Alabama requires the preparation and signing of a BOS for cars (all vehicles), especially where the car’s title is unavailable for sale; in the presence of a title, there is title reassignment.

The car proof of purchase acts as a receipt for vehicle sales. It contains contact information for the two parties. Its main role is to protect the seller just in case the buyer doesn’t register the car or if they abandon the car soon after buying.

• Conditions for Car’s BOS in Alabama

• • It should have the names as well as the complete addresses for the buyer and the seller. And the address should be the street address, not a P.O Box. And, if dealing with a seller who doubles as a dealer, the BOS has to enlist the name in the license.

  • It requires the date of sale to be valid.

  • The BOS also needs the full description of the vehicle including the vehicle registration number, the make, model, year, body type, and the series number.

  • The vehicle’s odometer readings during the time of its sale

  • The notarized signature of the seller or that of the authorized seller’s representative.

• Note that you should be given a BOS if buying a vehicle from a registered dealer.

• • 2. Horse Bills of Sale

It represents the legal document detailing the transaction between two parties involved in the sale or the purchase and the change of the ownership of a horse.

If a health examination is necessary before the purchase is completed, a deposit might be required, and if the parties move on with the sale, the amount of the deposit is deducted from the outstanding balance. This document is legally binding.

• Simple steps to take before signing a horse BOS

• • Identify your horse

  • Determine the budget

  • Find your seller

  • Take the horse on a test ride

  • Negotiate a price cut before putting down the deposit

  • Get a pre-purchase examination by the vet

  • Finalize the sale.

  • 3. Motorcycle BOS

This refers to a legal agreement allowing you to purchase and hold a purchase receipt after the completion of the transaction. The receipt will be necessary during the tilting and the registration of the motor vehicle.

Note that when a buyer pays cash, the BOS is the only proof of purchase and transfer of ownership. In this case, the sale of the motorcycle takes place in an ‘as-is’ condition.

In the event of an inspection request by the buyer, it should be done before the transfer and the end of the transaction.

For its validity, the BOS for motorcycles should be prepared in the presence of a witness, and it should be notarized by the Notary Public in the state of Alabama.

So, choose your motorcycle, make a budget, find your seller, negotiate the price, get insurance, registration, and transfer of title, and then finalize the sale.

Would you like a BOS processed soon? Get our free bill of sale forms online from any city in the state of Alabama including Birmingham, Montgomery, Huntsville, Tuscaloosa, Dothan or Auburn city and protect your property and reputation.