Leading Types of Bill of Sale in New Mexico
You cannot go around buying expensive assets or property from individuals without asking for documentation. Even when the item has been used before, and it doesn’t make a big difference trying to get a written and signed document to prove that you bought the named item, it is the right and the secure thing to do – think about what will happen if you end up buying a used laptop that was stolen or a car that has been used in crime before.
What will you do when enforcement officers ask you to provide ownership proof? You wouldn’t be incarcerated for a crime you didn’t commit, right? At the same time, you wouldn’t want to pay for parking tickets for a vehicle you no longer own, right? So then, how do you protect yourself, your property and your honor?
Well, we only know of one reliable and foolproof strategy, signing a bill of sale. A document prepared by the seller after they download a free bill of sale form in New Mexico, it refers to the documentation that proves that a sale took place and the seller transferred their ownership rights and obligations for the item on sale to the buyer, often in exchange for money.
But, the exchange is not limited to money, in other cases, the seller and the buyer could initiate a trade, and the seller gets property of equal value for their piece of property. What happens when you don’t want to get any money or traded item in place of that old laptop – say you wish to gift your friend or nephew – what do you do then? Well, you can gift that item and the bill of sale (BOS) will document that transaction as legal.
You also need to know that the BOS doesn’t apply to used vehicles or laptops only; you can use it to give the buyer a legal proof of purchase for boats, aircraft, guns, motorcycles, dogs, or even horses. But, you have to use the correct type of BOS. And, it all starts with downloading a free bill of sale form in New Mexico.
In New Mexico, the BOS is created only if you own an item and you want to sell it to a willing buyer in a private transaction. Though notarization is not a legal requirement, when both parties (seller and the buyer) sign the document in the presence of the notary public or even when the two parties are involved, both parties have a record of the transaction. The BOS can be presented in the court of law should a dispute arise.
That brings us to the main types of bills of sale in the state of New Mexico
It’s also referred to the purchase agreement. It recognizes that the sale of stakes in business represents the official change in ownership of the business, as well as the business assets. The document sets all the terms of the sale by detailing the key details of the buyer and the seller. Therefore, it is a record of the final transaction.
But, when do you need the BOS for the sale of a business?
You need it when you need to sell your business. When the buyer needs proof of ownership for the business permits and registration matters. Otherwise, the ownership of the business is questioned, and disputes arise. A buyer could lose their money and could be persecuted.
Before we look at what you need before the sale, note the difference between the BOS and the sale or purchase agreement. The sale or purchase agreement is used in negotiating future purchases and sales, and so, it is not the final document. The agreement only comes in during the initial stages of the sale like negotiations, and it secures the business’ assets and business terms. The BOS, on the other end, is the final document that recognizes the new ownership of the business; something the sales/ purchase agreement doesn’t do.
You need to get in order for the business’ revenue and tax records for at least 3 years, the picture of the business, records of assets, list of the employees in the payroll, at manual for operating the business, financial statements, non-disclosure forms, client and distributors’ contacts, as well as insurance forms before filling out the BOS.
Next, fill out the BOS form. This document needs specific details like the date of the sale, the names and addresses of the buyer and the seller, and the purchase price.
Necessary details about the business include the state the business was incorporated, the address of the business’ headquarters, and the details of the assets, personal liability, shares, and any other interests.
The date of money transfer is also important as are the signatures of the parties and witnesses to both parties. For the business BOS, an acknowledgment certificate from the public notary is important.
You may have other inclusions in the BOS, as well as terms of the sale.
The BOS for motor vehicles
If you don’t want to carry any liability over your car once you sell it, you will need to prepare a proof of sale/ ownership transfer document which indicates that you no longer shelf any responsibility for the vehicle having received money in exchange. So, the buyer is the only person responsible for everything about the vehicle. This means that you will have to get a BOS form for motor vehicles and then fill it out, populating the fields clearly with your identification details, as well as those of the buyer (name, state ID/ driver’s license number, mailing address, and the zip code).
You also need to indicate when you created the document when the buyer pays for the vehicle and the purchase price. Other terms or conditions of sale should be noted, as should the type of transaction (cash sale, trade, or gift).
The form used matches the requirements of New Mexico’s state of Taxation and the Revenue Department for motor vehicles.
Next up is the description of the vehicle on sale – put down the odometer readings, year, make, model, license plate numbers, the vehicle identification number, body type, and the color. When indicating the odometer reading, note if the reading represents the actual mileage or not. If the mileage exceeds the mechanical limits or when the odometer is faulty, you should let it known.
This document may need notarization, and New Mexico requires you to include the name and the address of a lienholder (if any), when it was created, and when the lien will come to an end.
The General BOS
This is what you need to sell an old home or office furniture, a laptop, television, or even a bicycle. The details of the general BOS form are similar to those of the motor vehicle BOS except for the item description – the registration number, serial number, make, model, or color. Notarization is not mandatory.
You could also get a BOS for the sale of a boat, motorcycle, a horse/ dog or firearms. All you need is a signed and dated BOS. Download our free bill of sale forms today to get started.