Imagine buying a used car or a gun and taking it in your possession only to be told that the ownership of the car didn’t transfer hands legally. And, having bought the car in cash, you cannot prove that you bought and owned the car because you don’t have any other documents that prove the purchase. Infuriating, isn't it? Well, that's what awaits you on the other side of the law if you don’t ask for and sign a bill of sale when buying an asset. The document is also important to a seller.
So, what is a bill of sale?
Accessible after filling in a free bill of sale form in Delaware, this document, also called a BOS refers to a legally binding document which shows proves the exchange of the ownership of personal property from a seller to a buyer. In the free Delaware bill of sale form, the state recognizes two parties in the BOS, the seller, and the buyer. And, as mentioned above, this document is essential to the buyer and the seller. It signifies the proof of ownership and a document that can be used as evidence in the court, if and when necessary.
Thanks to its importance, BOS are of different kinds like those for use during the sale of motor vehicles, boats, guns, horses, pets, even furniture.
The General BOS
In the state of Delaware, the general BOS represent the documents used to prove the ownership of smaller items that don’t require registration in the state after the change of ownership. So, if you are selling your used or a new phone, furniture, laptop or kitchenware, you need to look for a general BOS.
To make the document valid, you'll have to include the specific name of the item on sale, as well as details like the serial number, the model, type, make and even the year or manufacture.
You may also need to include other descriptions like the size, color, and the shape of the item on sale.
Other than the physical and the technical specifications of the BOS, you also need to note if you’re taking money for the item on sale or if you’re trading it.
Other important details include:
The purchase price of the item in words and numbers (in that order)
Date of payment if the buyer notes that they will pay for the item on a later date agreed upon by the seller and the buyer.
Any other terms of sale like: is the item a gift or is it being traded?
The seller's disclosure indicating whether the item sold has any defects, the nature of the defects. Disclosure is important because it highlights that the seller certifies that the information issued is true and any false details deem the seller guilty of perjury.
To finalize the document, the seller and the buyer must put down their names on the document. The general BOS must be dated against the signatures.
BOS for motor vehicles in Delaware
Like other BOS, the BOS for motor vehicles must have details that deem the document valid. These details include the make and model of the car, the vehicle identification number, the color, year, as well as the odometer reading.
Note: in the sale of vehicles whose odometer readings exceed 100,000 the odometer readings shouldn’t be included in the document.
In the state of Delaware, it’s essential to mention whether the BOS will include the trade or the purchase price of the car. And, if the seller is taking cash and not treating the transaction a trade, the selling price of the car must be in words first and then in numbers. On the other hand, if there is a trade, then the details of the trade should be listed in detail, and other terms of trade used explained.
When filling out your free bill of sale Delaware, ensure that the document explains the date of the payment for the car.
It’s also essential to include disclosures from the buyer and the seller before both parties sign a dated BOS for the motor vehicle.
Even though the BOS doesn’t have to be notarized, you'll have to notarize other documents such as the car's title and the lien release.
Also, the state requires the use of a BOS in specific circumstances.
BOS for Guns
The BOS for guns require specific information regarding the seller and the buyer. When selling your gun, you'll have to fill this proof of ownership document populating it with details like the gun's model, the make, the caliber, as well as the serial number.
The BOS should also explain if the transaction is a trade or a purchase. If it’s the latter, the price of the gun should be stated in words then numbers. And, if the transaction is a trade, a detailed description of the trade will be essential.
The BOS should indicate whether the gun is a gift or not.
Like the other BOS in the state of Delaware, the document should be dated and the date of the expected payment listed. A disclosure by the seller and the buyer is also essential.
Lastly, we recommend getting the document notarized even though this isn’t a necessity.
So, which BOS do you need processed in the great cities of Delaware? We've got you covered with our downloadable bill of sale forms at no cost.