A bill of sale is a legal document that documents the transfer of ownership of an asset to a second party in exchange for money. The document is commonly used to record the sale of aircraft, autos, motorcycles, and watercraft; however, it also can be used to record the sale of personal property, such as animals or furniture.
The bill of sale, as a rule, is drafted by the seller and includes the details of the transaction. It protects both the buyer and the seller, should disagreements arise in the future.
When Should You Use a Bill of Sale?
Most states require expenses of sale as proof of purchase when buying or selling a vehicle or a branded animal, like a horse (a horse bill of sale). A bill of sale is commonly used when selling or buying an item of value.
If you’re selling an item of smaller value, such as clothing, it comes down to personal preference as to whether you want to take the time and trouble to draft a bill of sale. ( If you are the buyer, and you want an expenses of sale, you can bring one with you, even though the seller typically provides it. )
Parts of a Trailer Bill of Sale
A generic bill of sale includes the following information:
- Time of purchase
- Name and address of vendor and of buyer
- Amount payed for the transfer of ownership
- Explanation of the possessions being transferred
- Warranty that that is clear of all promises and offsets
- Representations or warranties
- Signatures of vendor, of buyer, and of a notary public
When drafting good simple costs of sale, make sure it complies with state requirements, that will vary by condition. For instance, some state governments require only the customer to signal the document, while some require both buyer and owner to signal the record. Still, other state governments require that the proper execution be notarized.
Quitclaim Bill of Sale
A quitclaim costs of sale is comparable to a quitclaim deed: It exchanges possession of property in one party to some other. It can be used when owner can’t ensure that they own the property and have the right to transfer it, or when the seller doesn’t want to warrant title, which leaves the buyer no legal recourse if problems arise in the future.
A expenses of sale with warranty, on the other hand, means the seller can assure that they own the property and have the right to transfer it, and will protect the buyer from future statements against the property.
Because of the complexities of real estate transactions, you should not use quitclaim expenses of sale when selling or buying real estate.
Vehicle Bill of Sale
A vehicle expenses of sale is not required in all claims. For Illinois, example and Tennessee don ‘t require an auto expenses of sale. Some claims require that you use expenses of sale from your state’s Division of Motor Vehicles (DMV), while others let you draft your own, so long as it complies with your state’s legal requirements.
Keep in mind, however, that a costs of sale does not show ownership-only a title transfer does that. A expenses of sale is only a record that a sales transaction occurred between two parties. Your state’s DMV may require that you bring a completed costs of sale with you prior to the vehicle name transfer paperwork can be completed.
A vehicle costs of sale also contains:
- Vehicle type (i. e., car costs of sale, motorbike costs of sale, sail boat costs of sale)
- Make, model, and calendar year of vehicle
- Odometer reading
- Hull number
- Engine serial number
- Vehicle enrollment number
- Vehicle id number
Whether or not or not a state requires a costs of sale, it’s wise to have one on apply for your personal information.