A bill of sale, proof of purchase, proof of payment, As Is Bill of Sale, Proof of Sale, Sales Slip, or Sales Receipt, is a document or receipt used to transfer the ownership of an object such as a vehicle. This document becomes important when you need to buy or sell personal property. You may associate bills of sale with used vehicles, but you can use this document for a variety of items.
A bill of sale will detail a transfer of property or sale of items between a seller and buyer. This type of document serves as legal evidence that the seller transferred his or her rights to the assets described in the bill of sale.
A bill of sale must include key information such as the following:
You'll typically see a bill of sale used to record the sale of automobiles, motorcycles, watercrafts, or other objects associated with transportation. You can also use a bill of sale to record the transfer of personal property, such as purchasing or selling a used car. A bill of sale is also useful for transfer of other personal property such as a bicycle, furniture, a laptop, or an animal such as a horse or other livestock.
This legal document records a transfer of ownership of an asset from one party to another. As a rule, the seller will draft the document. A bill of sale should include all details of the transaction as a way to protect both parties if a disagreement about the condition of the item or terms of the sale occurs. Since a bill of sale will include details about the condition of the item sold and any warranties, as well as terms of payment, this document acts as legal proof of the agreement.
You should use a bill of sale for the following circumstances:
Some transactions involve an exchange of property but do not require a bill of sale, including the following:
If you're not certain whether you need a bill of sale, you should consult an attorney. An attorney can help ensure you're using the correct document and are including all information that you need for your transaction.
You must understand the intricacies of the bill of sale with motor vehicles if you plan to buy or sell an automobile. An automobile bill of sale represents that the right to ownership of the vehicle has been transferred. However, the vehicle's certificate of title represents the actual ownership. Every state requires this certificate of title, a document that records official proof of ownership of a vehicle.
If you are the purchaser of a vehicle, you can apply for a title in your name at your state's DMV when you have the signed bill of sale and pay a title transfer fee. In some states, the DMV requires a bill of sale signed by both the seller and the buyer. Some states require a notarized bill of sale as well.
Make sure you understand the differences between a sale contract and a bill of sale when deciding which document you need.
A sale contract:
A bill of sale:
Some county tax assessor-collector's offices or local DMVs provide bill of sale forms that you can use. Some sellers also choose to create their own bill of sale. Since requirements vary by state, check your state's requirements to make certain your document complies with them. In some states, only the buyer needs to sign the bill of sale. Other states will require both the seller and buyer to sign. Requirements for notarization also vary among states.
Include the following essential pieces of information:
Before completing the transaction, make sure the bill of sale is completely legible and verify that all information and signatures are accurate. Finally, make copies of the document for both the buyer and the seller.
Protect yourself as either a buyer or seller with a carefully constructed bill of sale the next time you enter into a legal transaction.
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