When Do You Need the Montana Bill of Sale?
To prove ownership of an asset bought from an individual, say a used car, you need a document that will hold the signatures of the buyer and the seller. At the same time, you need a document you can refer to or even present in court should disputes arise. This document is a bill of sale or a BOS.
A bill of sale denotes the document that facilitates the transfer of ownership of personal property or assets from a seller to a buyer. It acts as the proof of purchase to the seller, and the original document will change times when it's time to transfer the ownership of the item(s).
Often, the ownership transfer takes place after the purchase consideration is given. For that used car on sale, the buyer gets the BOS when they give you the cash and you (the seller) hands out the keys.
A BOS signifies and identifies that the seller has agreed to transfer the item to the buyer willingly. You also need to know that the BOS is completely different from the sale of goods agreement signed by the seller and the buyer or the vehicle sale agreement. Compared to these two documents, the BOS shows that the item on sale no longer belongs to the seller.
In the state of Montana, you have to fill out a free Montana bill of sale form which allows you to enter your details (seller's) and the buyer's details, as well as the information about the item on sale. You could use this proof of ownership/ proof of sale document to transfer the ownership of a vehicle, a horse, dog, motorcycle, watercraft or even a gun. The BOS could also be used to record the sale and the transfer of the ownership of a business.
Note that this bill is legally binding. It recognizes the seller and the buyer as the main parties involved in the sale.
What are the legal requirements for the completion of the BOS?
For its validity, a BOS should have specific details. Among them:
When the BOS is created
Date, the buyer, pays for the item
The full legal names and addresses of the seller and the buyer
A comprehensive description of the property on sale
The purchase consideration (amount in words then in numbers)
Whether the transaction is a trade and what's traded
If the seller is giving out the personal property as a gift
The terms or conditions of the sale
A seller's disclosure
The date the document is completed
The signatures of the seller and the buyer
Which are the kinds of bill of sale available in Montana?
The BOS for selling horses
While a buyer takes time to identify the features they would want in a horse - taking into consideration where the horse will live and what it will do, a seller needs to ensure that they give accurate details of the horse. What this means is that you need to document all the details of the horse and the sale, even if you have a pre-sale health report prepared as per the buyer's request. So, download a free bill of sale form in Montana then fill it with information necessary for the transfer of the ownership of the horse.
In the BOS, you have to input the full legal names of the seller and the buyer, the day that the document is created, and the mailing addresses of the parties involved.
The horse's description comes in next. Indicate the horse's name (if it has a name), the breed, age (date of birth), gender, their registration number, and other descriptors like the color of the eyes, mane, or hooves. After the horse's description put down the purchase price of the horse.
If a buyer requested a pre-sale health examination, putting down a security deposit, you would deduct this cost from the final purchase price. This also means that you need to put down the date that the buyer requests the health examination and the date that the remaining amount is paid.
Don't forget to out down the amount of the security deposit as well as any underlying conditions of the security deposit - for example; you should indicate that the buyer could lose the amount of the security deposit if they don't pay the remaining amount by a specific date.
Finally, both parties and witnesses should put down dated signatures. You may have to notarize this BOS in the notary public.
BOS for the sale of Motorcycles
If you are looking to sell a motorcycle in Montana, you and the buyer should sign an agreement which allows you to transfer the ownership of the motorcycle to the buyer (s). This BOS will also let you give out the motorcycle to the 'buyer' as a gift. It also recognizes the transfer of ownership in a trade.
Why go through all this trouble? Well, this document will come in handy if ownership proof is necessary if the motorcycle gets involved in an accident, it a parking ticket is not paid, or if the motorcycle gets involved in a criminal act.
So, other than the names and mailing addresses of the parties, you need to include the agreed amount of the sale as well as the description of the motorcycle. In the description, indicate the make of the motorcycle, its model, make, color, year, and the vehicle's identification number (VIN). You also need to note down the manufactured odometer readings.
Other details include the date of the agreement and the signatures of the buyer and the seller, plus signatures of the respective witnesses. These signatures must be dated.
Note that you will need these details to process the sale of your used car. Notarization is also necessary for the registration of the motorcycle.
The General BOS
Though you don't have to notarize this BOS, you have to populate it with the details of the buyer and the seller - names, identification numbers, and mailing address. You also need to note down the detailed description of the item on sale (jewelry, laptop, television, furniture, PlayStation, etc.). The main descriptors include the serial number, registration number, make, model, year, and color. You also need to include the purchase price and if the item is traded for something else or given as a gift. Finally, both parties have to sign the document against the date of the agreement.
Do you need a proof of sale document in Montana? Get started with our bill of sale forms available online.