How to Protect Your Interests in Property Using a Bill of Sale in Indiana
Even though you know each other too well, you need to protect yourself from liability when selling or buying an item of value. It should be important for stores to issue receipts as proof of sale and so, it would be taking a misguided move that could come back to bite you if you don’t prepare a legal document that shows that the buyer agreed to buy the item you were selling despite its flaws. Wondering what you need to document the sale of the old car or laptop? A bill of sale (BOS) is the answer.
What is it?
A bill of sale refers to a written document detailing the sale of goods or property from one party (the seller) to another (the buyer), and the subsequent transfer of ownership to the buying party. You may, therefore, think of the BOS as a legal document which proves the provision of full consideration in the transaction which the seller uses to transfer their rights to the item on sale to the buyer. This document also represents the seller's voluntary transfer of ownership, interests or title of the personal property, absolutely or as security.
Through the use of this proof of sale document, you're confirming ownership transfer and also, you create a document which could be used as evidence in a court of law.
Note that the BOS is in two forms: absolute and conditional. The absolute BOS doesn't represent any forms of security but rather serves as a document used as evidence of the transfer or an assignment. On the other hand, the conditional BOS represents the assignment and the transfer of any personal chattels to another person as the security for some payments.
To access this document, you may fill out our free Indiana bill of sale form.
Some of the uses and the importance of the BOS include:
Registration of an asset
Proof of sale for tax purposes
Security for loans (this is one of the complex uses of this document. The lender may take this document as security for loan requested if you pledge a car as the collateral for the loan).
You could also use it as the element of the loan where the final agreement serves as the BOS.
It also includes warranties.
Now that we have the basic information about this proof of sale document, which are the main types of BOS available in the state of Indiana? And which are the similarities of the BOS documents as noted in the free bill of sale form in Indiana?
While some of the BOS documents in Indiana require notarization, others don't. However, all the documents must have the full legal names and addresses of the seller and the buyer. The address should have the state name and the zip code. It should also carry the driver's license number for both parties involved or their state identification numbers.
The major types of BOS in the state of Indiana include the ones for the sale of motor vehicles, boats, or guns. All these documents have unique features that start from the features of the item on sale.
The General BOS for Personal Property
Besides the information in all the BOS documents, the location and identification details of the seller and the buyer, your general BOS form requires you to list the unique features of that TV or bed on sale. So, you have to list the serial or the registration number of the item (if present), the model, make, color, size, and other features that set the item on sale apart from others. You also need to include other descriptions of the item on sale.
Once you have written down the features that identify the item on sale, you need to state the item's purchase price or the details of the trade. If the transaction is a trade, you'll have to give details and conditions of the trade, including the description of the item traded by the buyer.
You also have to disclose if the buyer is getting the item as a gift.
When stating the purchase price, put it down in words first then in numbers. You also have to state the date the sale is initiated as well as the expected date for the payment as agreed with the buyer.
As part of the conditions or the terms of the sale, you have to include the seller's disclosure which informs the buyer of the defects present.
Finally, both parties have to sign the document, writing down the date for sale. Note that notarization of the general bill of sale isn't a legal requirement in Indiana and several other states.
BOS for Motor Vehicles in Indiana
According to the state laws and the requirements by the bureau of motor vehicles in Indiana, a BOS for motor vehicles represents that legal written document which signifies and proves the transfer of personal property, in this case, a motor vehicle, from a buyer to a seller.
Since you're handing over the car and you want to protect yourself should the car be involved in criminal activity or if the new owner fails to pay the parking ticket, you have to give exact details of the car. You also don't want the buyer to accuse you of giving the incorrect odometer readings, and so, you have to fill in the form with the accurate odometer readings, the make of the car, model, its length, color, and the vehicle identification number.
The BOS will also have the full legal names of the seller and the buyer, as well as the physical and mailing addresses.
Note that you have to fill out the state form 44237 which is provided by Indiana's bureau of motor vehicles.
The other important information in the BOS is the purchase price and the motor vehicle's date of sale.
Unlike the motor vehicle proof of sale documents in other states, the one by the state of Indiana should have the certification of both the seller and the buyer to signify that the information given by both parties is accurate. The seller also needs to certify that the vehicle has no liens and that they give the buyer all their rights to the property.
Once these certifications are given, the seller and the buyer must input their dated signatures.
While the state doesn't make it mandatory for the document to be notarized, it's in your best interests to notarize the document especially for its use during the registration process.
BOS for Boats in Indiana
Like the BOS for motor vehicles, this document has the details of the seller and the buyer, the purchase price, sale date and signatures of the parties involved. The price is given in words first then in numbers.
Identifying features of the boat include its Hull ID, the year it’s manufactured, its make, model, and the length.
There should be a signed certification to prove that the boat's interest has been transferred to the buyer and that no lienholder exists. The buyer should also certify that the information given is true to their knowledge.
If interested in a BOS, get our bill of sale forms online from any city in the state of Indiana.