What is in a Washington Bill of Sale?
A Bill of sale refers to the document used to transfer the ownership rights and obligations for an asset from a seller to an interested buyer. It represents an agreement between the seller and the buyer. In exchange for ownership, the seller gets money through the state laws recognizes trades as a means of exchanging ownership for the personal property.
The bill of exchange is legally binding, and it recognizes the seller and the buyer as the main parties to the transaction. Also, as a legally binding document, either party could present it in court as evidence should a dispute ensue.
In the state of Washington, like all the other states, the bill of sale (BOS) facilitates the sale of watercraft, motor vehicles, branded animals, businesses, household goods, as well as firearms, among others. Whether you use one BOS over the other depends on the item you wish to sale.
To get you started, you have to download a free Washington bill of sale form online. The form has blank fields which detail the facts about the item on sale, the purchase consideration, the type of transaction, the terms of the transaction, identification details of the buyer and the seller, as well as the signatures of the seller(s) or the buyer(s).
This brings us to the main types of BOS in the state of Washington
What are the elements of a Washington BOS for Motor vehicles
If you are selling a used vehicle to your friend, family, or an acquaintance, you should keep a record of the sale in a reliable and a legally recognized document. The BOS provides that solution but, we need to keep the document airtight.
Since a dispute can arise or in the very least the buyer may delay registration of the vehicle so that the enforcement reaches out to you if the car gets abandoned, your BOS needs to show that the buyer took over ownership and the subsequent obligations for the vehicle as soon as they signed off on the BOS. You can only have an airtight BOS if you input the following details, as per the recommendation of the BOS:
First, you need to indicate the date that the BOS comes to life.
The next step is to fill out the free bill of sale in Washington with the details of the seller and the buyer. Input the name and address of the buyer and the seller. These identification details should be as they appear in an individual’s state ID or their driver’s license.
The identifying details of the vehicle on sale: what is the vehicle’s identification number, when was it built, who made it, what’s its make, and the odometer reading. The BOS will also need the vehicle’s registration number or the license plate number.
Now that you have the details of the vehicle indicate its selling price (purchase consideration) as well as the date that buyer pays for that item. The purchase consideration should be in US Dollars and the amount put down in words first then in numbers. If the transaction involves a trade, mention it and describe the traded item in details.
Certify the seller’s disclosure: a seller’s disclosure protects a seller from getting sued by the buyer in future. It outlines the defects/ flaws of the vehicle as per the knowledge of the seller. That means that if a buyer signs off on the BOS after reading the disclosure statement, the seller is free from any liability.
Indicate the date the buyer pays for the vehicle and then you can sign off on it.
To formalize the BOS and to make it valid, the seller and the buyer have to date and sign off on the BOS. The buyer may need the BOS to apply for a new title hence the need for notarization. It is, however, optional.
So, without the dates, name/addresses, vehicle description, the terms of trade, seller’s disclosure, and signature, purchase price, the BOS is incomplete.
Creating a complete business BOS
To avoid legal and financial ramifications, as well as tax issues, you have to prove that you no longer own that business. The BOS will complete the transfer of ownership, but you have to input all the correct details. As the buyer gets ready to buy the business, you will have to furnish them with the right documents. The buyer requires your tax and revenue details for at least the past 3 years.
They also need your business’ operating manual, financial statements, insurance forms, list of your assets, the list of employees in the payroll, current contracts, and non-disclosure forms. They may need pictures of the business too.
Once satisfied, you can proceed with the BOS. The first step is to indicate the date that you create the BOS. Next, indicate the date of the sale, what the buyer is paying for the business and the date for the money transfer.
The details of the buyer and the seller are also essential. Indicate your names and addresses. Then, you have to write down the details of the business: where did you incorporate the business? Where is the main headquarters located? Which assets, personal property or shares do you have in the company? These details simplify the sale of the business.
The next important step is to put down your dated signatures. It is recommended to have witnesses sign the BOS too. Lastly, this BOS must go to the notary public for acknowledgment: you will receive a certificate of acknowledgment.
Details of the General BOS
Are you selling old furniture in excellent condition, an ATV, a jet ski, a television, jewelry, a laptop, or anything else of value to declutter or for money, get a general BOS. It will keep a record of the sale for future references, and it will protect you.
This BOS should have the name and address of the parties, the cost of the item, type of transaction, terms of sale, date of payment and date of sale, as well as the description of the named item. You should indicate the make, model, registration number, color, size, shape, and anything else that identifies that item uniquely.
A seller’s disclosure is optional as is notarization. Don’t forget to note down the date you created the BOS. The last step involves signing and dating the BOS.
Where in the state of Washington do you live? Whichever city you live in, you can download our free bill of sale forms at no cost today.