How Does a Tennessee Bill of Sale Fit in an Imperfect World?
In a perfect world, you would not require documentation to prove a sale or purchase or even the transfer of ownership. Maybe, we’d have state-of-the-art technology that prevents the need for signing papers and keeping copies, and maybe, no one would sell a used item and complaint about it. But, no, we do not live in a perfect world, and we don’t trust each other. For that reason alone, we have to document every little thing we do, and we have to sign papers as proof of trade and financial transactions.
Fortunately for us, there are documents we and the laws trust to recognize transaction to be valid. This document is what we call the bill of sale.
A bill of sale (BOS) represents the bridge to a world of safe and almost perfect transactions. Using this document, anyone in the state of Tennessee can sell their used property without expecting liabilities after the sale.
A BOS is a document that recognizes a sale in exchange for money or a trade, as well as the subsequent transfer of ownership from the seller to the buyer. It serves as the proof of purchase to the buyer and the proof of sale to the seller. It is legally binding, and it recognizes a seller and a buyer as the parties to the transaction. Either party could use the document as evidence in court should a dispute arise.
The BOS is also important around the tax season since the seller uses it to file their sales tax.
With all that this document can do, how do you get it? Well, all you need to do is to download a free Tennessee bill of sale form online then enter the relevant details in the fields in the form. You will also learn that you have to download different types of forms to process sales of different kinds of personal property.
The BOS types range from the ones used by the DMV to record sale of motor vehicles to the ones for boats, motorcycles, aircraft, horses, dogs, businesses, and household items including furniture and lawnmowers
Business BOS in Tennessee
The first step to take when planning to transfer the ownership of your business to another party is to gather all your documents and ensure they are in order. This is an important step to take even if you don’t have a narrowed down list of the interested buyers.
These documents range from the revenue and tax records for at least 3 years, a comprehensive record of the business’s assets, financial statements, nondisclosure forms, distributor and client contracts and insurance forms to the list of your employees and payroll details, manual for operating the business, and pictures of the business. Once you have these documents in order, get the BOS form.
After downloading a free bill of sale form in Tennessee to process the sale of your business, you will have to indicate the date that you have created the document and the details of the transaction. The details of the transaction will include the purchase consideration, the date of the sale, and the addresses/names of the buyer and the seller.
The other notable information for the BOS is the business information: the state it was incorporated, the address of the headquarters, and the assets/ shares/ and personal property. You’ll have to indicate the date the money is transferred, dated signatures of the buyer and seller, as well as dated signatures of the witnesses.
The last detail is the certificate that acknowledges the transaction from the notary public.
By signing and having the acknowledgment of the transaction by the notary public, it means that the seller(s) and the buyer(S) agree to the terms of the sale and that the seller doesn’t have any interests in the business anymore unless stated otherwise in terms of the sale.
The General BOS
In Tennessee, the general BOS represents the document which proves that a seller has transferred their ownership rights for a household item – jewelry, a jet ski, a snowmobile, a television or even a laptop (among others) – to the buyer and that the buyer agrees to buy the item at the agreed price even if it has defects. Signing this document prevents legal cases and disputes between the parties.
To identify the item on sale, you have to highlight its make, model, serial/ registration number, the year, and even the color, size or shape. Signing a seller’s disclosure helps layout the defects of the item on sale, and the buyer cannot sue the buyer once they sign it.
This BOS also requires information of the seller and the buyer: names and mailing addresses.
The date of the BOS’s creation, date of the sale, and the date the document is finalized should be indicated in the BOS.
It doesn’t have to be presented to the notary public.
BOS for boats
Once downloaded, enter the date you created the document then enter your name and address, as well as the buyer’s. Indicate the purchase price, the terms of sale, type of transaction, date of the payment and enter the details of the boat.
Descriptors for the boat include the year it was manufactured, the manufacturer, the make, model, main color, Hull ID, length, title number, registration number, and the odometer reading. Also note down the details of the trailer or the outboard motor, if any.
This should be notarized.
Motor vehicles BOS
Save for the description, the BOS form for motor vehicles should have the same information as that of the boat.
The descriptors required by the DMV include the vehicle’s identification number, title number, odometer reading, the make, model, year, and the color. It must be notarized for vehicle’s registration. You need it to prove that you are no longer the owner and the buyer is the one who should take responsibility for the vehicle.
Need a BOS today? Get our bill of sale forms online at no cost.