Questions to Ask When Dealing with Minnesota Bill of Sale
The Golden Rule is simple: treat others as you would wish to be treated. In this case, do or sell an item in excellent condition since you’d want to buy a used item in good condition were you the buyer. True, this rule makes total sense, and those who abide by it are happy, if lucky. Why do we have little trust in this rule? Well, that would be a long subject, and we won’t discuss it here. However, we’ll discuss the fact that we cannot trust each other all the way.
Even when you have faith in the human race, it happens that there are many times when we’ve been duped and being good is not good enough. As a result, we trust verifiable documents when we want to sell and transfer the ownership of branded animals, cars, furniture, boats, and other valuables.
In this case, the document is a bill of sale (BOS), It is a document, which, according to the laws by the state of Minnesota, documents the sale of personal property and the transfer of the ownership for the property from a seller to a buyer. The items on sale requiring the preparation of the BOS should be valuable. Otherwise, a simple receipt, a handshake, or a nod would be enough to validate the transaction.
So, is mistrust the only reason why a BOS is important?
No. The document comes in handy when you want to keep a record of the sale, as well as the identity of the person buying the property. You will need this information (and your personal information) if the buyer makes a claim that requires verification or if you’re questioned about the ownership of the item. This documentation is also important if you want to keep a record of the sale; hence the need for extra copies of the BOS.
Does it mean that the BOS is mandatory?
Yes and no. You may not need it when selling small items, but it’s important when selling important and valuable items that require registration
Should you notarize the BOS?
While the state of Minnesota doesn’t have any legal requirements for the notarization of the document, it’s advisable to sign the document in the notary public especially when the item on sale is of great value and when the BOS is necessary for the registration of the asset after the sale.
What are the standard requirements for the BOS in Minnesota?
First off, we recommend downloading the free Minnesota bill of sale form online as it ensures that the final document has all the standard details of the bill and for its legality.
Once you have the form, you need to ensure that the standard requirements are all in there. Though created by the seller, the BOS should have the basic identification information of the seller and the buyer. This is the full and legal names, the addresses: state, city, zip code, and the state identification numbers or the driver’s license numbers.
All the BOS documents should have the date that the document is drafted, the date of the payment as agreed between the parties, and the final date. The final date is also the date that the seller and the buyer sign the document.
The payment details of the asset should be laid down. Here, indicate if you’re getting paid in cash if you’re trading that asset for something else and if you’re giving out the asset as a gift. If the sale involves monetary compensation, you have to put down the cost of the item in words then in numbers.
The seller’s disclosure is the other important feature and requirement of the bill of sale. You need to let the buyer know about the imperfections that the item has. This disclosure will protect you from getting sued by the buyer. So, go ahead and list the physical flaws as well as the technical and the mechanical ones.
The last thing that should be in every free bill of sale form in Minnesota is the signatures of the seller and the buyer. Both signatures should be dated.
So, which are the main types of BOS acceptable in the state and which ones are necessary for the registration of the item on sale?
Selling jewelry, electronics, your laptop, television, bicycle, snow machine, or your antique dining table? A general BOS will sort you out. While it’s not necessary for registration hence no need for notarization, it protects you from getting sued and from liability. So, after putting down the details of the BOS above, you should go ahead and describe the item on sale in details.
Highlight the item’s registration number, the model, make, color, size, shape, and even the registration number is available. Once you list all the details of the BOS and the buyer pays for it, you should both sign it and then keep copies in your records.
What are the requirements for the motor vehicle BOS?
Although the state of Minnesota doesn’t make it mandatory for you to use the BOS for that motor vehicle as a document needed for registration, you have to document the year, the vehicle’s identification number, its model, make, and the odometer reading.
You also need to disclose any damage to the vehicle. In Minnesota, you don’t have to give an odometer disclosure statement if the vehicle for sale is less than 10 years old. However, disclosure regarding damage to the vehicle is essential if the car is less than 6 years old.
Notarization is necessary if the vehicle has a lien. This is necessary for you to get a notarized release on the lien.
What are the requirements for creating a BOS for the sale of a boat?
To sell the boat and to prevent getting sued later, put down the boat’s length, the year it was built, the Hull ID, its registration number, style, make, model, title number, and the odometer reading. You also have to disclose if the sale includes the trailer and the outboard motor. Details of the trailer include the make and the year. If the motor is present, list its year, make, serial number, and the horsepower.
Note that this document isn’t necessary for the boat’s registration.
To expedite the sale of that item, get our free and downloadable bill of sale forms from any city in Minnesota.