-How Much Security Does an Absolute Bill of Sale Offer?
A bill of sale (BOS) represents a legally binding instrument that recognizes the sale and subsequent ownership of an asset from a seller to a buyer.
On the other hand, you have the absolute bill of sale. The absolute bill of sale is the BOS that’s presented when the transfer of the property (once on sale) is completed without any restrictions, and the item is paid for in full at the agreed sale/ purchase price. An absolute bill of sale might, for example, be used when buying a used car then you pay for it in full at the time of transfer. This means that at the completion of the transaction, the buyer owns the car and the seller is no longer its owner. Once an absolute BOS is signed, the seller cannot make any other monetary demands.
What should be in an absolute bill of sale?
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It contains the following elements
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The location of the item/ property purchased (to be) at the time of the sale
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The names, signatures, and addresses of all the sellers and buyers involved in the transaction
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The effective sale date
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The description of the property, including its identification or serial number, where applicable
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The full amount that the buyer pays the for the item, as agreed by the two parties
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But, that is not all – the absolute BOS also carries the details of the form of payment used by the buyer. If the buyer pays a small percentage in cash and the remainder by check, then it should be indicated in the absolute BOS. All monetary types should be indicated in the document.
The other thing you should be aware of in the absolute bill of sale form is the condition of the item on sale.
“As-is”
Often, the condition of the item on sale is indicated “as-is.” What this means is that the seller is selling the item with no guarantees that it will always continue running properly, and that he or she does not agree to take up future responsibilities for injuries or problems that could result from malfunctioning of the equipment. This means that if “as-is” equipment breaks down after the completion of the transaction, then the seller will not owe the buyer a refund, and he or she will not be responsible for necessary repairs.
Note that while the absolute BOS assures you of the completion of a transaction, it does not, in any way, represent a form of security for loans.
To start filling out a free bill of sale, click here.