A bill of sale is an official document establishing ownership transfer between a seller and a buyer. It releases the seller from liabilities and provides the buyer’s title confirmation. This document is the seller’s responsibility, and the buyer should thoroughly consider it before signing. Most states demand this paperwork when selling a car or registering ownership of some domestic animal.
It is legal evidence that the seller transferred their rights to the items described in the bill of sale.
What is Included in the Bill of Sale?
A bill of sale must containessential details, such as:
- The buyer and seller’s names.
- Contact information.
- A brief description of the item(s) for sale.
- The cost of the item (s).
- Payment options.
- Warranty information.
A bill of sale is commonly used to record the sale of automobiles, motorbikes, boats, or other transportation-related items. This document is also essential when recording the transfer of personal property, such as when buying or selling a used automobile.
It is also useful when transferring personal property such as a bicycle, furniture, a laptop, or an animal such as a horse or cattle. And it is usually the seller who should draft this document.
When Should I Use a Bill of Sale?
A bill of sale should be used in the following situations:
- For accounting purposes, you own a property you want to sell and require a record of the acquisition details. A motor vehicle (such as a car) or other personal goods are examples ofproperty but not real estate.
- You want to buy a car or other property from a private seller and record the proof of purchase and the terms of your agreement in writing.
- A purchase receipt is necessary. When transferring a title with a state’s department of motor vehicles (DMV) or purchasing and selling branded cattle, several jurisdictions will demand a signed bill of sale.
Some transactions that may include the exchange of property but do not necessitate a bill of sale, like:
- Property investment. A bill of sale cannot be used to transfer real estate between owners because real estate transactions are more complex. When dealing with a real estate transaction, you will need extra papers from your state or local government and a quit claim deed.
- Services are rendered. A bill of sale conveys ownership rather than services. You should utilize a general contractor if you deliver or receive a service, such as business advice or childcare. A generic receipt is adequate if you operate a business that accepts payment for selling things.
- Sales on a small scale. Many people don’t think creating a bill of sale for less-priced things is necessary, and of course, it isn’t needed.
The benefits of the bill of sale are evident and go beyond proof of car ownership. As a seller, you must always draft this document to ensure that your buyers are on the right side of the law. And there is no better place to get your bill of sale forms apart from our website. Get started with us for accurate and customized forms today.